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Highlights
- Property group (ASX:DXS) and energy giant (ASX:WPL) contribute to market losses.
- (ASX:HMC) sees a major gain with an increase in assets under management.
- Investors closely monitor the Reserve Bank of Australia’s potential rate cut.
The Australian stock market faced continued challenges on Tuesday, as several sectors posted losses, led by significant downturns in energy and real estate stocks. The S&P/ASX 200 dropped by 0.5% or 42.7 points, finishing at 8494.40, while the Australian dollar slipped to US63.44¢ after recently reaching a two-month high.
The energy sector saw significant losses, with (ASX:WPL) leading the decline among energy giants. The company saw its stock drop 1.9% after signaling that its final dividend could fall short of expectations by as much as 20%. This follows a pattern of losses from the previous session and added further pressure on the broader market.
Real estate stocks were also hit hard, primarily due to weak earnings from property group (ASX:DXS). The company cited several factors impacting its performance, including higher interest rates, lower trading profits, and the effect of increased incentives on its portfolio. These challenges contributed to an overall negative sentiment across the sector, with (ASX:SCG) dropping by 2% and (ASX:MGR) slipping by 1.6%.
In contrast, (ASX:CGF) faced a rough day despite posting a 12% increase in net profit, reaching $225 million. The company’s stock dropped 10.3%, reflecting investor concerns about the broader economic outlook despite solid profit growth.
On a more positive note, (ASX:HUB) emerged as a bright spot in the market. The company’s shares surged by 7.4%, driven by a 54% jump in profit. The increase in earnings allowed (ASX:HUB) to raise its interim dividend by 30%, signaling strength despite broader market declines.
(ASX:SEK) experienced a slight setback, down by 0.3% despite an impressive 26% increase in its interim dividend, which was fully franked at 24¢. The company’s earlier gains were reversed as analysts from UBS expressed concerns about potential future downgrades.
Meanwhile, (ASX:HMC) saw an impressive surge of 12.8%, fueled by a substantial rise in assets under management, which increased by 45% to $18.5 billion. A key driver for this performance was the strong contribution from its private equity division, helping the company stand out positively in an otherwise subdued market.
As investors await the Reserve Bank of Australia’s expected rate cut by a quarter percentage point, all eyes are on the press conference by Governor Michele Bullock. Her statements may offer further clarity on how the central bank plans to manage inflation risks in the current economic environment.
