AUS
NZ
UK
CA
USA
IND
Highlights
- Woolworths profit warning impacts ASX consumer staples sector.
- Mining stocks rally, led by BHP and Fortescue gains.
- Mixed stock movement with Cettire and Star Entertainment facing sharp declines.
The Australian share market faced midday declines, primarily driven by challenges within the consumer staples sector following a profit warning from Woolworths (ASX:WOW). The S&P/ASX 200 Index was down, dropping 0.3% or 28.2 points to sit at 8221 points, with consumer staples falling by 3.4%. A dip in the quarterly consumer price index, slowing from 1% in June to 0.2% in September, briefly eased losses across the market.
Woolworths experienced a notable fall of 5.5% to $31 per share after announcing expected lower profits in the first half, ranging between $1.48 billion and $1.53 billion. This came as Woolworths ramped up promotional efforts to attract shoppers amid cost-of-living pressures, impacting profitability. The news influenced its competitor, Coles (ASX:COL), which saw a 3% drop.
On the upside, mining sector giants provided some stability for the market. BHP Group (ASX:BHP), Fortescue Metals (ASX:FMG), and Rio Tinto (ASX:RIO) all saw gains of around 1.5% each, benefiting from a rally in iron ore prices. This growth within mining helped counterbalance losses elsewhere on the ASX.
Other stocks experienced significant movement as well. Star Entertainment (ASX:SGR) took a 10% hit, trading at 23¢ following an 18% revenue dip in the September quarter, resulting in a quarterly loss of $18 million. In the materials sector, Pilbara Minerals (ASX:PLS) gained 4.9% to $2.99, despite adjusting its FY25 guidance and placing its Ngungaju plant under care due to challenges in the lithium market.
Meanwhile, Appen (ASX:APX) saw a 6.4% boost, reaching $2.10 after a turnaround to positive earnings in the September quarter, despite a revenue decline. Lynas Rare Earths (ASX:LYC), however, reported drops in sales and revenue as rare earth prices softened, leading to a 1.1% decrease in share value to $7.65.
Bega Group (ASX:BGA) also saw a slight dip of 1.3% to $5.24. CEO Peter Findlay highlighted that the company does not anticipate price hikes for its products in 2024-25 and instead focuses on cost-saving strategies to manage inflationary pressures.
In the luxury retail sector, Cettire (ASX:CTT) faced another 10% drop to $1.58, following a profit warning that previously caused a sharp 17% decline. The stock was further impacted by downgrades, reflecting concerns about its current financial outlook.
Lastly, Syrah Resources (ASX:SYR) rose by 6.1% to 30¢ after securing a significant $150 million loan agreement with the United States International Development Finance Corporation, offering financial stability amid operational expansions.
With sector-specific challenges and individual stock movements, the ASX continues to show mixed outcomes driven by sectoral pressures, company-specific adjustments, and broader economic indicators.
