Yahoo Finance Consumer stocks pull ASX lower
The sharemarket lost early gains on Wednesday, pulled lower by a sell-off in consumer-related stocks as fears mounted over a further slowdown in household spending.
At the closing bell, the benchmark S&P/ASX200 index shed just 3.6 points to 7848.1, while the broader All Ordinaries slipped just 1.9 points to 8118.3.
The Australian dollar edged slightly lower to buy US66.62 at 5pm.
With US chipmaker Nvidia releasing its result this evening, NAB Trade’s director of investor behaviour Gemma Dale said investors were “very much in a holding pattern”.
“You’ve got one big stock that everyone’s hanging on to, and it’s going to be quiet until we get those results,” Ms Dale said.
“If Nvidia falls over we are going to be in real trouble.”
With markets not pricing in rate cuts for at least another six months, Ms Dale said she expected investors would continue to move on stock specific news.
“The macro picture, it is weakening, but we’re not expecting rate cuts soon … you don’t have that as a driver,” she added.
On the benchmark, five of 11 industry sectors finished in the red, with telecom stocks the biggest laggards falling 2.5 per cent after sector heavyweight Telstra plunged 4.2 per cent.
On Tuesday, the telecom giant announced it would trim its direct workforce by 2800 positions as part of broader measures to enhance the company’s productivity.
Consumer discretionary stocks also fell, down 1.4 per cent.
Wesfarmers shed 1.8 per cent to $67.13, JB Hi-Fi slipped 0.5 per cent to $57.13 and Harvey Norman sank 0.5 per cent to $4.32.
Elsewhere on the index, materials and financials stocks supported gains, both adding 0.3 per cent.
Rio Tinto advanced 1.6 per cent to $136.17, Fortescue added 1.1 per cent to $27.30, while ANZ led the big four banks, finishing 1.1 per cent higher to $28.62.
In company news, digital travel business Webjet was the best performer, surging 7.7 per cent to $9.09 after the company reported net underlying net profit after tax of $128.4 million in the year to March 31.
The firm also unveiled plans to split its operations in two to individually focus on its consumer and corporate operations.
BHP pushed 0.4 per cent higher to $46.24 as its deadline of May 22 imposed by the UK Takeovers Panel to lob a takeover bid for copper miner Anglo American loomed.
Eagers Automotive was the worst performer, shedding 15 per cent to $10.36 after it warned that elevated inflation and interest rates were stifling demand for motor vehicle purchases.
Shares in Technology One advanced for a third consecutive session, rallying 6.6 per cent to $17.86 — a record high.
Analysts at Macquarie raised its rating to outperform with a price target set at $18.30.
Even as it reported that it was unaffected by an outbreak of bird flu, poultry producer Inghams dived 5.8 per cent to $3.60.
