ASX falls amid mixed results, CBA & Magellan tumble: Aus shares close 0.9% lower

Market Reports

by Lauren Evans

The Australian share market continued its losses in afternoon trade. At the closing bell, the ASX was 0.9 per cent or 72 points lower at 7,511.

Several big names released their full year results today, which resulted in a mixed reaction from investors. Meanwhile, Banks, Miners and Energy stocks continued to weigh on the index. 

Mining giant BHP (ASX:BHP) closed 1.2 per cent lower, ahead of its FY21 results still yet to be released. Rio Tinto (ASX:RIO) fell further in the afternoon, closing 1.7 per cent lower. Fortescue Metals (ASX:FMG) similarly closed 1.5 per cent lower.  

Onto banks, the Commonwealth Bank (ASX:CBA) and Westpac (ASX:WBC) both closed 3.1 per cent lower, ANZ (ASX:ANZ) closed 1.1 per cent lower and NAB (ASX:NAB) closed 0.9 per cent lower. 

The worst-performing stock was Magellan Financial Group (ASX:MFG), closing 10.2 per cent lower following its FY21 results. 

Onto Energy stocks, Woodside Petroleum (ASX:WPL) closed 1.9 per cent lower with its FY21 still yet to released. Santos (ASX:STO) closed 0.5 per cent lower and Mercury NZ (ASX:MCY) closed 5 per cent lower, following its FY21 results. 

In headlines, Domain Holdings (ASX:DHG) closed 4.7 per cent higher as the best-performing stock while Dexus Property Group (ASX:DXS) closed 1.5 per cent lower. 

NSW recorded 452 new Covid-19 cases, Victoria recorded 24 new cases and Queensland recorded 1 new case.

Local economic news

The Reserve Bank of Australia have released their meeting minutes which from their 3 August meeting keeping to their dovish tone in response to the pandemic.

As per the minutes, the RBA's bond purchase program will "continue to be reviewed in light of economic conditions and the health situation, and their implications for the expected progress towards full employment and the inflation target".

“The bond purchase program will continue to be reviewed in light of economic conditions and the health situation”.

“The Board would be prepared to act in response to further bad news on the health front should that lead to a more significant setback for the economic recovery”.

ANZ-Roy Morgan consumer confidence increased by 2.5 points to 101.1 this week after the short lockdown in South-East Queensland ended but the lockdown in Melbourne was extended and late on Saturday the entire State of NSW was put into lockdown.

Of the mainland States, consumer confidence is now lowest in NSW which is the only one of these States to have consumer confidence in negative territory below the neutral level of 100. Consumer confidence is second lowest in Victoria while the end of lockdown in south-east Queensland has seen the jump into positive territory now with the highest consumer confidence of any State.

Consumer confidence increased this week as people became more confident about their personal financial situations both compared to a year ago and looking forward over the next 12 months. There was also an increase in those saying now is a ‘good time to buy’ major household items.

Australian Bureau of Statistics released their overseas arrivals and departures figures for June. Total arrivals reached 102,480, a monthly decrease of 12,040 trips. Total departures reached 98,350, a monthly decrease of 8,890 trips.

Company news

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Electricity company Mercury NZ (ASX:MCY), reported its EBITDAF of $463 million for FY21, down $27 million from FY20.

Bailador Technology Investments (ASX:BTI) released their full year results. Net tangible asset (NTA) per share (pre-tax) was up 23 per cent over prior year to $1.53.

Real Estate company Domain (ASX:DHG) reached net profit of $37.9 million in FY21, up 66 per cent from the prior year.

Dexus Property Group (ASX:DXS) recorded net profit after tax of $1,138.4 million in FY21, up 17 per cent from the prior year. 

Magellan Financial Group (ASX:MFG), revenue for the year decreased by 2 per cent to $663.6 million due to the increase in the average Australian dollar exchange rates over the year.

Futures

The Dow Jones futures are pointing to a fall of 137 points.
The S&P 500 futures are pointing to a fall of 15 points.
The Nasdaq futures are pointing to a fall of 29 points.
The SPI futures are pointing to a fall of 54 points when the market next opens.

Best and worst performers

The best-performing sector was Health Care, up 0.4 per cent. The worst-performing sector was Financials, down 1.7 per cent.

The best-performing stock in the S&P/ASX 200 was Domain Holdings Australia (ASX:DHG), closing 4.7 per cent higher at $4.89. It was followed by shares in Steadfast Group (ASX:SDF) and Fisher & Paykel Healthcare (ASX:FPH).

The worst-performing stock in the S&P/ASX 200 was Magellan Financial Group (ASX:MFG), closing 10.2 per cent lower at $46.20. It was followed by shares in Breville Group (ASX:BRG) and Lynas Rare Earths (ASX:LYC).

Asian markets

Japan's Nikkei has lost 0.3 per cent.
Hong Kong's Hang Seng has lost 1.9 per cent.
China's Shanghai Composite has lost 1.7 per cent.

Commodities and the dollar

Gold is trading at US$1792.13 an ounce.
Iron ore is 0.9 per cent higher at US$163.52 a ton.
Iron ore futures are pointing to a fall of 0.5 per cent.
Light crude is trading $0.12 lower at US$66.93 a barrel.
One Australian dollar is buying 73.07 US cents.


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