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Highlights:
- The S&P/ASX 200 Index (ASX:XJO) ended this week on a disappointing note.
- Many stocks within the ASX 200 index touched fresh 52-week lows today.
- Here are three such ASX 200 stocks that made fresh 52-week lows today for different reasons.
It has been a disappointing end to the trading week for the S&P/ASX 200 Index (ASX:XJO), which closed 2.3% lower, extending its weekly loss to 1.92% amid highly volatile trade. Except for utilities, most other sectors of the index ended with losses today, with energy, financial and materials leading the decline.
Given the overall weakness in the market, many stocks have touched their 52-week low today. Here are three midcap stocks from the ASX 200 basket that made fresh 52-week lows today.
Lynas Rare Earths Limited (ASX:LYC)
The rare earths miner fell to a fresh 52-week low of AU$7.075 today, breaking its previous yearly low of AU$7.26 recorded on Tuesday, 7 March 2023. In the last one month, the stock has fallen 23%, and in this week alone, it has lost nearly 9% of its value.
On Tuesday, the company notified the market of inking new agreements with Japan Australia Rare Earths. The new deals are expected to improve the balance sheet of LYC and assist in the funding of capital projects created to meet speeding up international demand for rare earth materials.
Despite this positive news flow this week, LYC shares could not withstand selloff as EV giant Tesla Inc's announcement on last Thursday dampened sentiments for rare earths stocks and that seems to have its impact this week as well.
The EV giant last week said its next-generation powertrain will use a permanent magnet motor, which will not use rare earths. Tesla's departure from rare earths seems to have dampened sentiments for LYC stocks. Not only LYC, but other rare earths stocks like Arafura Rare Earths Ltd (ASX:ARU) also fell massively on this news.
Prior to last week's development, LYC shares had already come under selling pressure on 27 February when it reported 32% increase in costs in its earnings announcement for the half year ended 31 December 2022. On 27 February, LYC stocks fell over 6%.
Cleanaway Waste Management Limited (ASX:CWY)
Shares of the waste management service provider made a fresh 52-week low of AU$2.480 on Friday before closing today's trade at AU$2.490, 1.97% lower compared to their previous closing price. This is for the second time this week the stock touched a 52-week low. On 7 March 2023, the stock had fallen to a yearly low of AU$2.51. Including today’s losses, CWY shares have fallen 4.6% this week and 8.5% in a month.
Although there is no recent announcement from the company or any specific industry development that could be linked to the recent fall in CWY shares, the stock has fallen 6.4% since 23 February, when it announced its half yearly earnings.
For the half-year ended 31 December 2022, Cleanaway Waste Management reported nearly 7% decline in its net profit at AU$49 million despite over 30% jump in revenue to AU$1,777.9 million as higher operating and finance costs weighed.
Despite the drop in profit, the company declared an interim dividend of 2.45 cents per share, higher than its earnings per share of 2.2 cents for the reporting period and this could be unsustainable in the longer term if its profits and cash flow do not grow on a sustainable basis.
Lendlease Group (ASX:LLC)
The real estate company ended Friday’s trading 1.38% lower at AU$7.150 after making a fresh 52-week low of AU$7.070 during intraday trading. Today, LLC stock broke its previous 52-week low of AU$7.11 touched on 20 December last year. In the last one month, the stock has declined 16.6% and 3.4% in one week.
Like the other two stocks above, LLC also does not have any latest updates, though, on 13 February, it released its 1HFY23 results ended 31 December last year, post which the stock fell by 6.14% to close the day at AU$7.79.
During the 1HFY23 period, core operating profit after tax, the company’s measure of underlying earnings improved by 275% to AU$105 million, and statutory loss after tax declined to AU$141 million from AU$264 million in pcp.
In the reporting period, its bottom line got impacted by a $200 million provision on account of UK Government's retrospective action on residential buildings and a AU$39 million property revaluation charges.
On the outlook front, the company anticipated core operating earnings to increase in 2HFY23, though market risks like inflation and interest rate hike continue to soften the speed of recovery.
