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ASX loses 1.2% as iron ore miners continue slump; Star drops 15%

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The news: The Australian market recorded its biggest loss in nearly three weeks on the final day of earnings season.

Dan Murphy's and BWS owner Endeavour Group saw one of the biggest falls, after reporting a 15% drop in first-half profit and cutting its interim dividend.

Meanwhile, troubled casino operator Star Entertainment saw its shares tank as it awaits "one or more" liquidity proposals before lodging its half-year financial report. Failure to meet tonight's deadline will see the shares suspended from trading from Monday.

Elsewhere, US President Donald Trump's confirmation of new tariffs on China, Mexico and Canada saw shares in mining giants Fortescue, BHP and Rio Tinto track further declines in iron ore prices.

The ASX 200 fell 1.16% to end at 8,172.4, with 10 out of 11 sectors finishing in red.

ASX 200 gains:

  • Pexa Group (8.1%) — Announced a $50 million share buyback and reaffirmed full-year revenue guidance, but widened its first-half loss due to a non-cash impairment.
  • Life360 (7.2%) — Full-year earnings came in at the top end of guidance and fourth-quarter earnings beat consensus estimates by 28%.

ASX 200 declines:

Earnings news:

  • Endeavour Group (-7.1%) — Cut its interim dividend as first-half profit declined 15%, and announced that chair Ari Mervis will become executive chairman on 17 March.
  • Harvey Norman (2.6%) — Posted a 40% jump in half-year profit on the back of higher revenue from franchises and revaluation of property
  • Neuren Pharmaceuticals (-6.8%) — Reported a 9.6% slide in full-year profit despite royalties from sales of its Rett syndrome drug Daybue doubling in 2024.
  • TPG Telecom (2.4%) — Increased underlying earnings for the 12 months to December, boosted by a growing number of mobile customers thanks to its new network-sharing agreement with Optus.
  • Arcadium Lithium (1.4%) — Swung to a fourth-quarter loss after reporting lower pricing across the majority of its products.
  • Generation Development Group (4.9%) — Reported a leap in first-half net profit, boosted by a 31% uptick in funds under management during the period.

Other news:

  • Materials sector (-2.5%) — Continued its recent decline after its three biggest stocks Fortescue (-3.7%) Rio Tinto (-2.9%) and BHP (-2.5%) all tumbled on falling iron ore prices.
  • Webjet Group (-0.7%) — Agreed to pay a $9 million fine to resolve Federal Court proceedings, after the competition regulator alleged the company's subsidiary Webjet Marketing made misleading claims about airfare prices and flight bookings.
  • Ventia (1.2%) — Awarded a $2.1 billion contract by NBN to deliver maintenance and customer services across its broadband network in Queensland, New South Wales, the ACT and Tasmania.
  • Karoon Energy (5.5%) — Extended Thursday's gains as analysts increased their price targets on the oil and gas explorer, after the company's acquisition of floating production, storage and offloading facility Baúna Cidade de Itajaí.

The Australian dollar is buying 62.13 US cents.

What’s ahead: With earnings season now over, traders will turn to a number of economic releases next week. These will include:

  • Tuesday: Meeting minutes from the Reserve Bank's last meeting, which saw the first cash rate cut since November 2020.
  • Wednesday: Australia's quarterly GDP growth rate data.
  • Thursday: Monthly balance of trade figures.

By Hugo Mathers