by Peter Milios
Consumer discretionary stocks dragged down Australian shares, causing a 0.3 per cent drop in the S&P/ASX 200, which has hit a six-week low.
However, the index recovered some losses as softer-than-expected wages data raised hopes that the Reserve Bank of Australia would not need to increase the cash rate to the extent previously feared.
Domino’s Pizza (ASX:DMP) suffered a record daily loss, dropping 23.8 per cent due to a profit slump, resulting in a 24 per cent dividend cut to 67.4¢.
Meanwhile, Santos (ASX:STO) reported significant profits, leading to a 3.1 per cent rally in its shares.
Woolworths (ASX:WOW) saw a 2 per cent increase in its shares after announcing a 14 per cent rise in net profit, and WiseTech’s (ASX:WTC) positive results led to a 4.3 per cent jump in its shares. Conversely, EML Payments’ (ASX:EML) shares plummeted by 9.4 per cent due to another profit miss.
At the closing bell, the S&P/ASX 200 was 0.3 per cent lower at 7,314.50.
Futures
The Dow Jones futures are pointing to a rise of 53 points.
The S&P 500 futures are pointing to a rise of 7.75 points.
The Nasdaq futures are pointing to a rise of 30.75 points.
The SPI futures are pointing to a fall of 11 points when the market next opens.
Best and worst performers
The best-performing sector was Utilities, up 4.79 per cent. The worst-performing sector was Consumer Discretionary, down 1.29 per cent.
The best-performing large cap was Origin Energy (ASX:ORG), closing 12.7 per cent higher at $7.90. It was followed by shares in WiseTech Global (ASX:WTC) and EBOS Group (ASX:EBO).
The worst-performing large cap was Domino’s Pizza Enterprises (ASX:DMP), closing 23.81 per cent lower at $54.37. It was followed by shares in James Hardie Industries plc (ASX:JHX) and Spark New Zealand (ASX:SPK).
Asian markets
Japan’s Nikkei has lost 1.28 per cent.
Hong Kong’s Hang Seng has gained 0.10 per cent.
China’s Shanghai Composite has lost 2.50 per cent.
Company news
Vintage Energy (ASX:VEN) has announced that their gas supply from the Vali gas field commenced yesterday. Vali is supplying gas to eastern Australia under a long-term gas supply agreement with AGL Energy (ASX: AGL). “Our expectation is Vali, and the Odin gas field nearby, will be supplying gas to eastern Australia for many years” – Neil Gibbins, Managing Director, Vintage Energy. Shares last traded 1.10 per cent higher at 9.2 cents.
Mandrake Resources (ASX:MAN) has secured a large-scale lithium project in the United States. In response, Managing Director James Allchurch commented: “Mandrake has organically secured a potentially world-class lithium project in the heart of the US, at a time when the US federal government is actively funding and supporting domestic sources of strategic and critical materials such as lithium.” Shares last traded 11.3 per cent higher 5.9 cents.
Charger Metals (ASX:CHR) has confirmed high-grade lithium at the Medcalf Spodumene Discovery. Charger’s Managing Director, David Crook, commented: “The first very encouraging drilling results are now to hand and drilling is continuing to intersect similar multiple-sheet pegmatites within a plunging, 100m-wide, structural zone.” Shares last traded 5.41 per cent higher at 39 cents.
Carnarvon Energy (ASX:CVN) has entered into a binding agreement to divest a 10 per cent interest in its Bedout assets to OPIC Australia Pty Limited, a subsidiary of CPC, which is Taiwan’s national oil and gas company. In response, Carnarvon Managing Director and CEO, Adrian Cook, commented: “Carnarvon will be in the enviable position of holding substantial cash and financial liquidity to fund its share of the world class Dorado development.” Shares last traded 1.61 per cent higher at 15.8 cents.
Commodities and the dollar
Gold is trading at US$1,844.70 an ounce.
Iron ore is 1.8 per cent higher at US$131.85 a tonne.
Iron ore futures are pointing to a 0.16 per cent rise.
Light crude is trading $0.11 lower at US$76.05 a barrel.
One Australian dollar is buying 68.31 US cents.
