ASX lower as telecoms sector drags
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The news: The Australian sharemarket ended slightly lower after a mixed session with a drag from telecommunication services.
The numbers: The benchmark ASX 200 closed 0.15% lower at 7,851.7 with four out of 11 sectors finishing in red.
The worst-performing sector was telecommunication services, down 1.05%, followed by materials (-0.72%) and healthcare (-0.52%). Telstra’s axing of 2,800 jobs in a restructure was the big news of the day, resulting in its share price dropping 2.18%.
Building materials manufacturer James Hardie plummeted 14.5% after its FY25 guidance came in below analysts’ consensus. It was also the worst-performing stock across the ASX 200.
Star Entertainment plunged 7.87%, paring some of Monday’s gains, after Hard Rock International denied discussions over a potential bid for the casino operator. Star replied that a consortium of investors that did send an indicative proposal included an entity called Hard Rock Hotels & Resorts (Pacific).
Sonic Healthcare slid 6.24% after flagging lower earnings for the fiscal year while Infratil fell 5.6% despite posting an earnings uplift.
The best-performing sector was IT, up 0.72%, followed by industrials (0.66%) and consumer discretionary (0.31%). TechnologyOne was the best performer across the ASX 200, up 5.06%, after it lifted its half-year profit and dividends.
Despite a sharp drop in profit for FY24, ALS shares lifted 5.29% as the company said it expected a positive outlook for FY25.
Elsewhere, SkyCity gained 3.05% after agreeing to settle anti-money laundering proceedings in New Zealand through a $3.8 million penalty, while Zip Co finished 2.38% higher after appointing Joe Heck as its new US CEO.
The Australian dollar is lower, buying 66.58 US cents.
The context: Wednesday will see full year earnings results from Webjet and Argo Investments, while Eagers Automotive will hold its AGM.
