ASX rises; Domain falls on leadership change
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The news: The Australian sharemarket ended higher as Treasury Wines rallied on a ratings upgrade and the wider consumer staples sector enjoyed gains.
The numbers: The ASX 200 increased 0.13% to end at 8,216 with seven out of 11 sectors finishing in green.
The biggest news across markets today included:
- Domain (-3.55%) — announced that its CEO Jason Pellegrino would step down from the role after six years, which sent its shares lower;
- Coles (1.4%) and Woolworths (1.6%) — Told the Federal Court of Australia that its price rises were a result of suppliers increasing their prices. However, the competition’s regulator has argued that whether or not the prices were a result of suppliers, it did not change the fact that the supermarkets’ pricing conduct was misleading; and
- QBE (-0.64%) — The corporate regulator announced that it is suing the company as it alleges the insurer misled customers about the value of discounts offered on some general insurance products.
Some of the largest movers today across the ASX 200 were:
- Treasury Wine (2.41%) — Citi analysts have upgraded Treasury Wine to ‘buy’ from ‘neutral’ citing an acceleration in Australian wine exports to China and the recent decline in the company’s share price; and
- Audinate (-4.58%) — The company’s losses extended following its full-year profit warning as Canaccord Genuity analysts slashed their price target on the stock.
Today’s AGMs included:
- Tabcorp (1.61%) — Chief executive Gillion McLachlan told investors that FY25 would see the company continue its cost cutting program and review its entire operating cost base and capital spend; and
- Codan (-0.69%) — Clawed back most of its earlier losses in the day after the technology manufacturer told investors at its AGM that it was observing softness in North America.
Quarterly results today included:
- MA Financial (2.72%) — Posted an 11% rise in assets under management for the September quarter;
- Perseus Mining (1.71%) — Reaffirmed first-half and full-year guidance as Citi analysts noted its September quarter production beat expectations on costs;
- EBOS Group (1.24%) — Reaffirmed FY25 earnings guidance and said it was targeting new revenues;
- Fletcher Building (ended flat) — Gross margin pressure weighed on its Q1 result but the company said the fundamentals of the business remained sound; and
- Boss Energy (-1.1%) — Announced that its flagship Honeymoon uranium project was on track to meet its full-year guidance.
Other news:
- Stanmore (1.99%) — Citi and Morgans analysts were impressed with the miner’s Q3 results and expect it to meet or exceed the top end of its guidance range for the calendar year;
- Mirvac (1.6%) — Macquarie and Citi upgraded their target prices on the property developer;
- Ventia (0.64%) — Has extended its whole of government cleaning services contract with NSW Public Works, in a deal worth $125 million; and
- Netwealth (-1.26%) — Morgan Stanley downgraded the stock to ‘equal weight’ as a lot of its positive attributes were now captured in the investment platform’s valuation.
The Australian dollar is buying 66.77 US cents.
What’s ahead: Thursday’s events include:
- Offshore: Tesla’s Q3 earnings;
- Quarterly updates: Newmont, Insignia Financial, Fortescue, Karoon Energy, Northern Star and Brambles;
- AGMs: Chorus, IAG, Challenger, Reliance, APA Group, Reece, Super Retail, Brambles, S32, and Deterra Royalties; and
- Economic: Reserve Bank of Australia Annual Report 2024.
