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The Australian sharemarket faced headwinds on Thursday afternoon, following a weak performance on Wall Street and a sharp drop in Nvidia’s stock during after-hours trading. Nvidia's shares tumbled nearly 9% in New York after the company reported third-quarter guidance that fell short of expectations. This, coupled with local earnings reports, put pressure on the ASX.
The benchmark S&P/ASX 200 Index declined by 0.3%, or 23.5 points, to 8047.9, continuing its retreat from the record high of 8148.7 reached earlier this month. Out of the 11 sectors in the index, only financials and industrials managed to stay in the green, with the big four banks leading the gains. National Australia Bank Ltd (ASX:NAB) rose by 1.1%.
Broad Declines Across Consumer Stocks
Consumer-related stocks were at the forefront of the downturn. Wesfarmers Ltd (ASX:WES) fell by 3.4%, despite reporting higher profits and dividends for FY24. Online fashion retailer Cettire Ltd (ASX:CTT) saw a steep 20% drop in its share price after its annual profit declined by 34%, missing market expectations.
In the resources sector, Mineral Resources Ltd (ASX:MIN) plunged nearly 9% after the company decided not to pay a final dividend for the first time in over a decade, citing soft lithium prices. The sector was further dragged down by weaker base metal prices, with BHP Group Ltd (ASX:BHP) slipping 1% and Rio Tinto Ltd (ASX:RIO) decreasing by 0.6%.
However, South32 Ltd (ASX:S32) managed to reverse earlier losses, gaining 0.8% despite a significant drop in its annual profit. Mining company IGO Ltd (ASX:IGO) also bucked the trend, rising by 1.7% even as it announced a reduction in dividends.
Qantas Faces Challenges Despite Smaller Losses
Qantas Airways Ltd (ASX:QAN) managed to pare early losses after reporting a sharp decline in profit for FY24. The airline’s shares were down 0.2% in early afternoon trading. Market analysts noted that Qantas faces a challenging year ahead, with ongoing investigations and efforts to repair its reputation, alongside navigating increased operational costs.
Other Notable Movements
Elsewhere on the ASX, wagering group Tabcorp Holdings Ltd (ASX:TAH) extended its losses, falling by 5.2% following a 15% drop on Wednesday after the company wrote down the value of its assets for the second time this year.
Fund management giant Perpetual Ltd (ASX:PPT) also saw its shares decline by 3.8%, following announcements that chairman Tony D’Aloisio and two board directors would be stepping down.
Atlas Arteria Ltd (ASX:ALX) shed 1.8% after reporting a decrease in net profit, attributed to losses on its Chicago toll road operations.
On the positive side, dairy manufacturer Bega Group Ltd (ASX:BGA) was the top performer, with its shares surging nearly 10% after the company returned to profitability. IDP Education Ltd (ASX:IEL), the second most shorted stock on the ASX, rose by 2.3% after posting record revenue for FY24, driven by strong demand in student placement services.
