AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
The Australian sharemarket took a hit on Wednesday afternoon, driven by a downturn in commodity stocks amid a busy day of corporate earnings reports.
The S&P/ASX 200 Index (ASX:XJO) dropped 29.6 points, or 0.4%, to 8,044.4 by 2:37 pm AEST. The decline was largely influenced by weaker performances in the energy, materials, and communication services sectors.
Energy Sector Slump
Energy stocks were among the most impacted, following a 2% drop in crude oil prices on Tuesday, despite a slight rebound on Wednesday. Woodside Energy (ASX:WDS) saw its shares fall by 1.2%, while Santos Ltd (ASX:STO) decreased by 0.7%. Uranium producers also faced challenges, with Paladin Energy (ASX:PDN) dropping 4% and Boss Energy (ASX:BOE) down 3%.
Mining Sector Weakness
The decline in commodity prices extended to the mining sector. BHP Group Ltd (ASX:BHP) shares fell by 1.9%, while Rio Tinto Ltd (ASX:RIO) dropped 1.5%. Fortescue Metals Group Ltd (ASX:FMG) also experienced a 2% decline, despite reporting a full-year underlying profit of $US5.7 billion ($8.4 billion) and increasing its dividend by 16%.
Woolworths Defies the Trend
In contrast, Woolworths Group Ltd (ASX:WOW) shares rose by 3.4% after the company announced a special dividend of 40 cents per share, exceeding market expectations. This is in addition to its final dividend of 57 cents per share, bringing the total dividend for the year to $1.44.
Tabcorp Faces Challenges
Tabcorp Holdings Ltd (ASX:TAH) saw a sharp decline of 12.9% after new CEO Gillon McLachlan informed investors that the company would not meet its cost-reduction targets or achieve a 30% share of the digital wagering market by next year. Additionally, Tabcorp recorded a $664.5 million after-tax asset write-down, the second in a year, reducing the value of its assets by $1.4 billion this year.
Mixed Results Across Other Sectors
Flight Centre Travel Group Ltd (ASX:FLT) shares gained 1.9% after reporting record earnings that surpassed pre-COVID levels, with total transaction value reaching $23.74 billion for the year ending June 30. This is $1.8 billion more than the previous year and slightly ahead of the 2019 financial year.
Kelsian Group Ltd (ASX:KLS) also saw a 1.9% increase in its share price following a 44.2% rise in revenue, reaching just over $2 billion. This growth reflects its acquisition of All Aboard America! Holdings, contributing to a 176.2% increase in profits, totaling $58 million.
APA Group (ASX:APA) experienced a 1.5% decline despite posting a 9.7% increase in underlying earnings for the full year. The company benefited from the expansion of its east coast gas pipeline network and early contributions from its newly acquired Pilbara Energy assets.
Nine Entertainment Co. Holdings Ltd (ASX:NEC) faced challenges in its television division, with revenue declining by $119 million due to a weak advertising market. This led to a 3% drop in revenue to $2.62 billion and a 22% decrease in profits, totaling $216.4 million. Despite these challenges, shares in Nine Entertainment rose by 1.5%.
Market Overview
While Wall Street provided little direction overnight, closing modestly higher, Australian investors are keenly awaiting the quarterly results from Nvidia, scheduled to be released early Thursday morning (AEST). The earnings report is expected to provide further insights into the global market outlook.
