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Market Wrap

ASX slips, Woolworths drops on cost-of-living pressures

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The news: The Australian sharemarket lost ground as supermarkets fell on expectations that cost-of-living pressures would weigh on earnings for the rest of the financial year.

The benchmark ASX 200 fell 0.83% to end at 8,180.4, with 10 out of 11 sectors finishing in red.

Biggest ASX 200 movers:

  • Woolworths (-6.1%) — Revised down its first-half earnings forecasts as it believes cost-of-living pressures will continue for the remainder of FY25. Supermarket peer Coles fell 2.37%.
  • Star Entertainment (-3.77%) — Posted a September quarter EBITDA loss of $18 million and said it continued to experience a challenging operating environment.
  • Data#3 (6.05%) — Reported a first-half profit guidance of between $31 million and $33 million, above consensus forecasts.

Other news:

  • Cettire (-17.51%) — Extended losses after posting poor Q1 results on Tuesday as Bell Potter analysts downgraded the stock to ‘hold’ from ‘buy’.
  • Flight Centre (1.47%) — Has agreed to buy Manchester-based Cruise Club UK to fast track its growth in the UK leisure market.
  • Capricorn Metals (halted) — Announced a $200 million capital raise to help fund the expansion of its Karlawinda mine and the development of its Mount Gibson project.

Quarterly earnings:

  • Liontown (-4.49%) — Reported “significant progress” in its Kathleen Valley ramp-up and reported stockpiles of around 674,000 at the end of the September quarter.
  • Lynas Rare Earths (-1.04%) — Q1 sales revenue was down 5.9% year on year and production of rare earth oxides fell 24.6%.
  • Syrah Resources (-1.75%) — Secured a binding loan agreement from the US International Development Finance Corporation for its Balama graphite project in Mozambique.
  • Bega Cheese (-1.51%) — Warned it would not be able to offset inflationary pressures with price increases but retained its full-year earnings guidance.
  • Nickel Industries (flat) — The September quarter was its strongest in the 2024 calendar year, driven by its 80% owned Henjaya mine in Indonesia.
  • Dexus (0.7%) — Reiterated its full-year guidance after the property investor's occupancy income edged down in the September quarter.
  • Pilbara Minerals (1.05%) — Has decided to mothball its high-cost Ngungaju plant amid difficult market conditions and has paused plant construction works with its joint venture partner Calix.
  • Appen (1.27%) — Reported a rise in Q3 earnings and said China continued to experience “significant” revenue growth.
  • Southern Cross Media Group (3.06%) — Booked a Q1 revenue bump as the company progresses the sale of a string of regional television assets amid a protracted advertising rout.

The Australian dollar is buying 65.43 US cents.

What’s ahead: Tonight will see the release of the latest US GDP figures.

Thursdays events include:

  • US earnings: Meta and Microsoft.
  • AGMs: AUB, Woolies, JB Hifi, Corporate Travel, Mineral Resources, SkyCity, Wesfarmers.
  • Quarterly earnings: Amcor.
  • Economic data: Retail trade and building approvals.

By Jassmyn Goh