ASX 200 slips at open; Magellan Financial, CSR top gainers

The Australian share market opened with a downtick on Wednesday as global markets remain volatile on the back of interest rate hikes leading to recession risks. Commodity prices witnessed selling pressure on diminished demand concerns due to COVID-19 lockdowns in China. The benchmark ASX 200 index fell 0.15% or 10.5 points to 7,040.7 in the first 10 minutes of trading. The ASX All Ordinaries index was also down 0.15% to 7,274.1. The A-VIX crashed 11.51% to 18.94.

Most of Wall Street stocks rebounded on Tuesday while US Treasury yields retreated from their highs. Crude oil prices tumbled over 3.5% amid fears about inflation and slowing economic growth.

US stock markets ended Tuesday’s session on a mixed note after the previous day's sharp selloff. The Dow Jones Industrial Average took a hit of 0.26% to 32,160.75, while the S&P 500 gained 0.25% to 4,001.04. The NASDAQ Composite ended the session 1.3% up at 11,737.67.

Market action

Data Source: ASX (as of 11 May 2022, 10:30 AM AEST)

Image Source: © 2022 Kalkine Media®

Coming to the top ASX 200 laggards, Link Administration Holdings Limited (ASX:LNK) and Healius Limited (ASX:HLS) were the top losers, falling 3.82% and 3.33%, respectively. On the other hand, Magellan Financial Group (ASX:MFG) and CSR Limited (ASX:CSR) were the top gainers, rising 3.42% and 2.28%, respectively.

On the sectoral front, seven out of the 11 sectors were trading in the red. The utilities sector was the top loser, falling 0.49%, followed by a 0.21% fall in the materials sector. The consumer discretionary and financial sectors were slightly up by 0.06% and 0.03%, respectively.

Read More: WPL, STO, VEA: Three ASX energy stocks in focus as oil prices tumble

Newsmakers

1. Magellan Financial Group Limited (ASX:MFG)

• The Group has appointed Mr. David George as Chief Executive Officer and Managing Director.
• Mr George is a respected investment leader with over 20 years’ experience across analytical roles, investment management and organisational leadership.
• Most recently, Mr George held the role of Deputy Chief Investment Officer, Public Markets at the Future Fund.

2. Money3 Corporation Limited (ASX:MNY)

• The company is undertaking an on-market buyback of up to AU$15 million.
• It is a part of the company’s capital management strategy.
• This decision reflects the strong confidence of the board and management in the group’s financial performance and future growth prospects.

3. GPT Group (ASX:GPT)

• GPT’s retail portfolio occupancy was recorded at 99.2% on 31 March 2022, with solid leasing enquiry translating to 231 lease deals during the quarter.
• Total Centre sales for the March 2022 quarter were up 4.6%.
• Highpoint Shopping Centre delivered a strong Total Specialty sales growth of 7.6% in the quarter, compared to the prior corresponding period.

4. CSR Limited (ASX:CSR)

• CSR has announced net profit after tax of AU$193 million for the year ended 31 March 2022, up 20% from the previous year.
• Activity in the apartment and non-residential markets has improved after an extended slowdown in the last few years.
• The company declared a final dividend of AU$0.18 per share, bringing the full year dividend to AU$0.315 per share.

5. GrainCorp Limited (ASX:GNC)

• The company has delivered a record half year (1H FY22) with EBITDA at AU$427 million and NPAT at AU$246 million.
• It also declared a fully franked interim dividend of 24 cents per shares.
• FY22 guidance for underlying EBITDA has been pegged in the range of AU$590-AU$670 million.

Read More: Why Australian bond yields are scaling new heights