Ansell tumbles on lower guidance, Banks weigh: ASX down 0.3% at noon

Market Reports

by Lauren Evans

The Aussie sharemarket has opened lower as financials and materials weigh on the index, while the technology sector is adding the most points.

Major banks are dragging, led by ANZ Bank (ASX:ANZ) declining 2 per cent. Macquarie (ASX:MQG) has fallen 1.8 per cent, National Australia Bank (ASX:NAB) is down 1.6 per cent, Commonwealth (ASX:CBA) is trading 1.4 per cent lower and Westpac (ASX:WBC ) is trading 1.3 per cent lower.

Health insurer Nib (ASX:NHF) is also weighing on the financial sector, down 7.5 per cent as the second worst stock.

Heavyweight miners are lower, except Fortescue Metals (ASX:FMG), which is up 0.7 per cent. Rio Tinto (ASX:RIO) is down 1.9 per cent lower and BHP (ASX:BHP) is trading 2.3 per cent lower.

Gold stocks are also mixed with Northern Star (ASX:NST) down 1.3 per cent and Newcrest Mining (ASX:NCM) down 0.3 per cent. Evolution Mining (ASX:EVN) is trading 0.9 per cent higher. 

Global brand Ansell (ASX:ANN) is leading the market lower, trading 16 per cent lower at $26.23 after downgrading its guidance for the 2022 financial year after a weaker than expected first half performance.

Energy stocks are higher, with Woodside Petroleum (ASX:WPL) up 0.9 per cent, Santos (ASX:STO) trading 1.1 per cent higher and Beach Energy (ASX:BPT) trading 3.2 per cent higher.

Elsewhere, data operator NEXTDC (ASX:NXT) increased contract utilisation by 5.5 megawatts since June 30 last year following increased customer wins. Shares are trading 1.7 per cent at $10.57.

Aerial technology company Nearmap (ASX:NEA) is up 6.6 per cent to $1.33 after appointing Penny Diamantakiou as chief financial officer effective from today.

At noon, the S&P/ASX 200 is 0.3 per cent or 20 points lower at 6,969. The SPI futures are pointing to a fall of 22 points.

Local economic news

The Reserve Bank said Private sector credit in Australia rose by 0.8 per cent month-over-month in December 2021, after an upwardly revised 1.0 per cent rise from the month before which is the strongest pace since March 2020.

Business credit growth slowed 1.1 per cent vs 1.6 per cent in November amid a continued rise in housing credit. Personal credit fell 0.8 per cent after gaining 0.6 per cent in November. Over the year to December, private credit rose 7.2 per cent as per the Reserve Bank

The Melbourne institute inflation gauge rose by 0.4 per cent in January from 0.2 per cent the month before, up 3 per cent on a year ago.

Best and worst performers

The best-performing sector is Information Technology, up 3.2 per cent. The worst-performing sector is Financials, down 1.5 per cent.

The best-performing stock in the S&P/ASX 200 is Zip Co (ASX:Z1P), trading 7.5 per cent higher at $3.16. It is followed by shares in Block (ASX:SQ2) and Life360 (ASX:360).

The worst-performing stock in the S&P/ASX 200 is Ansell (ASX:ANN), trading 16 per cent lower at $26.23. It is followed by shares in NIB Holdings (ASX:NHF) and Gold Road Resources (ASX:GOR).

Commodities and the dollar

Gold is trading at US$1788.24 an ounce.
Iron ore is 6.6 per cent higher at US$147.90 a ton.
Iron ore futures are pointing to a rise of 7.6 per cent.
One Australian dollar is buying 69.98 US cents.

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