ASX 200 plunges 1% on dismal Wall Street cues; EML Payments falls 9%

The Australian share market plunged at the opening tick on Wednesday, tracking a sharp fall in the US markets as inflation worries coupled with tech giants’ earnings and China's COVID-19 situation continue to dampen risk appetite. The benchmark ASX 200 index fell 0.99% or 72.3 points to 7,245.7 in early trade, while the ASX All Ordinaries index was down 1.07% to 7,522.9. The A-VIX shot up by 8.6% to 17.74.       

Image Source: © 2022 Kalkine Media®

The US stock market plunged on Tuesday and European stocks continued extending their losses for a third consecutive day as investors awaited US tech earnings.

Wall Street’s lower closing was primarily led by the NASDAQ Composite as investors fretted over sluggish global growth and a more aggressive rate hike by the US Federal Reserve. Post-market earnings from Microsoft and Alphabet were also discounted during the session.

On Tuesday, the Dow Jones Industrial Average fell 2.38%, to 33,240.71, while the S&P 500 lost 2.81% to end at 4,175.21 points. The NASDAQ Composite ended the session 3.95% lower at 12,490.74.

Market action

Data Source: ASX (as of 27 April 2022, 10:30 AM AEST)

Image Description: Top 5 ASX gainers and losers

Image Source: © 2022 Kalkine Media®

Coming to biggest losers weighing on the ASX 200, EML Payments Limited (ASX:EML) plunged another 9% in morning trade, after nosediving 38.5% a day before, followed by a 5.05% plunge in Life360 Inc’s (ASX:360) shares. On the flip side, Ampol Limited (ASX:ALD) and Downer EDI Limited (ASX:DOW) were the top gainers, surging 1.57% and 1.37%, respectively.

On the sectoral front, 10 out of the 11 sectors were trading in the red. The IT sector was the biggest loser, falling 0.85%, followed by the healthcare and utilities sectors, both falling 0.79% each. The energy sector is up 0.13% on account of a bounce-back in crude oil prices.

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Newsmakers

1. SomnoMed Limited (ASX:SOM)

• The company clocked a revenue of AU$17.3 million for Q3 FY22, a 10% growth over the same period last year.
• It reaffirmed FY22 guidance for revenue growth of at least 15% and breakeven EBITDA.
• At the end of the reporting period, the company had a cash balance of AU$14.8 million.

2. RPM Automotive Group (ASX:RPM)

• Strong organic growth was reported across all four divisions of RPM for Q3 FY22, with overall organic revenue growth of 16.2% YOY, as at 31 March 2022.
• RPM successfully completed the acquisition of Safety Dave with sales of AU$1.6 million from two months of trading during Q3 FY22.
• Sound balance sheet, with net cash of AU$3.8 million, as at 31 March 2022, continued to support the company’s working capital requirements.

3. Plenti Group Limited (ASX:PLT)

• Plenti Group record quarterly loan originations of AU$321.9 million for Q4 FY22, 87% above the prior corresponding period (pcp).
• Loan portfolio more than doubled to AU$1.3 billion, at 31 March 2022, 111% above the pcp.
• Exceptional credit performance maintained and 90+ day arrears of 26 basis points recorded, as at 31 March 2022.

4. Whispir Limited (ASX:WSP)

• Whispir has recorded a free cash outflow for the quarter ended 31 March 2022 (Q3 FY22) of AU$5.6 million.
• Cash receipts for the reported period stood at AU$19.8 million, up 81.6% on the pcp of AU$$10.9 million.
• Annualised Recurring Revenue (ARR) jumped 24.1% over the pcp to AU$62.4 million.

5. 29Metals Limited (ASX:29M)

• During the March 2022 quarter, operations were impacted by seasonal operating constraints combined with the continuing impact of tight labour market conditions and COVID-19.
• The company continued investment in organic growth, including the commencement of the 2022 field program at Redhill in Chile.
• At Capricorn Copper, supply chain delays were exacerbated in the March quarter by severe weather and flooding in south-east Queensland and northern New South Wales.

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