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Market Wrap

ASX rallies despite WiseTech, MinRes plunge

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The news: The Australian sharemarket closed higher, despite significant sell-offs for WiseTech and Mineral Resources following news stories about the chief executives of both companies.

The numbers: The benchmark ASX 200 gained 0.74% to end at 8,344.4, with 10 out of 11 sectors finishing in green.

The tech sector was the only one in the red, falling 2.97%, pulled down by WiseTech (-14.56%) after media reports of inappropriate behaviour allegations against the firm's chief executive Richard White. The board said it is seeking external advice and reviewing the full range of matters raised in the reports.

Similarly, Mineral Resources shares plunged 13.7% after its managing director Chris Ellison admitted to involvement in an alleged tax evasion scheme involving offshore companies.

Quarterly earnings today included:

  • Amotiv (10.01%) — Its first-quarter trading update met market expectations and it announced a 12-month share buyback;
  • Bellevue Gold (6.1%) — Gold production for Q1 was in line with consensus and operating costs and cash flow beat average estimates. Gold miners also rallied during the trading day after escalating tensions in the Middle East pushed bullion to a record high;
  • Stockland (1.13%) — Reported a positive quarter and reaffirmed its full-year funds from operations guidance;
  • South32 (0.41%) — Posted mixed results for the September quarter as aluminium, copper and nickel production rose while alumina, silver, lead and manganese output fell; and
  • Nick Scali (-4.73%) — Higher-than-expected freight rates will affect the furniture retailer’s margins and profit in the first half of the fiscal year.

In other news:

  • Bigtincan (8.82%) — Has paved the way for a possible Nasdaq listing after it agreed to a business combination with US-based Investcorp AI Acquisition Corp;
  • EVT (4.71%) — Citi analysts upgraded their rating on EVT to a ‘buy’ despite the entertainment and hospitality group reporting a slide in first quarter earnings;
  • Strike Energy (2.38%) — The oil and gas explorer reported "exceptional" production testing result at its Erregulla Deep-1 exploration well;
  • BHP (1.45%) — Negotiations are continuing for the mining giant’s proposed settlement to address damages caused by the collapse of its co-owned Fundao dam in Brazil;
  • ANZ (-0.06%) — Morgan Stanley has warned that ANZ's near-term earnings growth outlook is weaker than its big four peers;
  • Macquarie Technology (-0.64%) — Increased its debt refinancing to $450 million to support its ongoing data centre expansion; and
  • Synlait (-1.32%) — The embattled dairy producer’s chief executive Grant Watson has resigned.

The Australian dollar is buying 67.01 US cents.

What’s ahead: Tuesday will see:

  • Quarterly updates: Mirvac and Transurban;
  • Annual general meetings: Audinate, Suncorp, Magellan and Transurban; and
  • IMF meetings commence in Washington, DC.

By Jassmyn Goh