ASX falls as banks and oil stocks weigh, Coles and Woolworths trade ex-dividend
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The news: The Australian sharemarket closed lower as the big banks all fell and oil companies extended recent losses on the prospect of output increases from OPEC+ nations. Supermarket giants Coles and Woolworths each shed more than 4% as they traded ex-dividend.
The ASX 200 fell 0.7% to end at 8,141.1, with 9 out of 11 sectors finishing in red.
ASX 200 declines:
- Consumer staples (-3.6%) — The sector's three largest stocks Woolworths (-4%), Coles (-4.8%) and Treasury Wine Estates (-5.4%) all traded ex-dividend. RBC Capital Markets initiated coverage on the two supermarket groups, giving Coles its top rating of 'outperform' and Woolworths a lower 'sector perform' rating.
- Energy (-1.7%) — Australian oil companies extended losses after OPEC+ countries announced planned production increases from April, sending global crude prices tumbling. Ampol (-4.2%), Viva Energy (-3.1%), Santos (-2%), Karoon Energy (-1.6%), Woodside Energy (-1.2%) and Beach Energy (-0.7%) all lost ground.
- Financials (-1%) — National Australia Bank (-1.7%), Westpac (-1.4%), Commonwealth Bank (-1.2%) and ANZ (-1.1%) all lowered.
ASX 200 gains:
- Rio Tinto (0.3%) and BHP (0.2%) — Eked out small gains after days of declines, leaving materials (flat) as one of the best performing sectors. It came as the world's biggest iron ore buyer China set its 2025 economic growth goal at 5%, raising expectations for new economic stimulus measures.
Executive moves:
- Virgin Australia — Appointed current chief commercial officer Dave Emerson as its new CEO, succeeding Jayne Hrdlicka, who announced her retirement last month.
- Reserve Bank of New Zealand — Governor Adrian Orr has resigned and will step down on 31 March after seven years in the role. A temporary governor will be appointed from 1 April for a period of up to six months.
- KMD Brands (1.5%) — New chief executive, former Nike executive Brent Scrimshaw, will start on 24 March, following the resignation of Michael Daly last year.
Other news:
- MA Financial (-0.7%) — Saw its first listed private credit fund MA Credit Income Trust (flat) float on the ASX.
- SG Fleet Group (flat) — Took a step closer to its $1.2 billion takeover by private markets investor Pacific Equity Partners, after the federal government's Foreign Investment Review Board approved the deal.
- WiseTech Global (1.2%) — Said it expects to appoint at least one independent director in the next four weeks in order to meet ASX listing rules.
- Clarity Pharmaceuticals (3.4%) — Reported positive clinical trial results for its prostate cancer treatment Cu-SAR-bisPSMA, and signed a new supply agreement with The University of Queensland.
The Australian dollar is buying 62.51 US cents.
