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Highlights
- ASX 200 edges lower as inflation data aligns with expectations.
- Kelsian Group (ASX:KLS) sees a sharp decline following profit dip.
- PointsBet (ASX:PBH) surges as takeover interest heats up.
The Australian stock market faced a mixed session on Wednesday, with the S&P/ASX 200 slipping 0.3% to 8230.20 by midday. The broader All Ordinaries Index mirrored the drop, while eight of the 11 sectors recorded declines, led by consumer staples and materials.
Investor sentiment remained cautious as fresh economic data showed consumer price growth in Australia held steady at 2.5% for January, matching expectations. Meanwhile, core inflation saw a slight uptick to 2.8%, reinforcing market consensus that an interest rate adjustment may be on the horizon.
Tech Sector and Mining Stocks React
WiseTech Global (ASX:WTC) initially surged over 3% but pared gains to trade 0.5% higher by midday. The software firm reinstated founder Richard White as executive chairman after the abrupt departure of its chairman and three directors, which had previously triggered a steep selloff.
Mining stocks experienced pressure following reports that the U.S. may impose tariffs on copper. This development raised concerns over reduced demand, impacting major Australian miners. Fortescue Metals Group (ASX:FMG) slid 1.9%, Evolution Mining (ASX:EVN) fell 1.3%, and Newmont Corporation (ASX:NEM) dropped 1.6%.
Major Corporate Earnings Move Markets
Kelsian Group (ASX:KLS) faced a significant setback, tumbling 18% after reporting a 7.9% drop in underlying profit to $39.7 million. Investors reacted strongly to the earnings miss, making it one of the worst performers of the session.
Woolworths Group (ASX:WOW) declined 4.1% after the retailer posted a more than 20% fall in first-half net profit. The company reported a $240 million revenue impact due to strikes at its distribution centers before Christmas.
Flight Centre (ASX:FLT) also faced pressure, shedding 11.2% despite reporting a 7% increase in underlying profit to $117 million. The company highlighted gains in productivity through automation, but investor reaction remained cautious.
Winners of the Session
Light & Wonder (ASX:LNW) led the gains with a 5.2% rise after announcing a profit increase to $480 million, driven by strong growth in its gaming division. The company also revealed plans for a possible dual listing on NASDAQ and the ASX.
Bapcor (ASX:BAP) surged 16% after outlining its cost-saving initiatives, which are expected to be at the higher end of its target range of $20 million to $30 million for the 2024-25 period.
Worley (ASX:WOR) saw a strong rally, climbing 10.8% after announcing a $500 million share buyback and reporting a 72% surge in interim net profit to $183 million.
Meanwhile, PointsBet (ASX:PBH) skyrocketed 30.1% amid fresh takeover interest. The company received bids from Japanese firm Mixi and local competitor BlueBet, fueling investor optimism about its future direction.
Market Laggards
Scentre Group (ASX:SCG) slipped 4% despite reporting a significant turnaround in net profit, which rose to $1 billion from $174.9 million a year earlier. The decline was attributed to concerns about property valuation adjustments.
Lynas Rare Earths (ASX:LYC) also faced selling pressure, sliding 4.9% after reporting an 85% drop in first-half net profit to $5.9 million, despite increased production levels.
With inflation data aligning with expectations and corporate earnings taking center stage, market participants continue to assess economic trends and sector-specific developments.
