ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (2024)

The ASX has clawed its way back to a 0.1pc gain after a sluggish start in the red.

Results dominated the session, with Lend Lease posting a $1.5 billion loss while Westpac supported the banking sector with a solid quarterly result. The good news was the troubled online retailer Booktopia was rescued from administration and jobs were saved.

Look back at how the day unfolded on our live markets blog.

Disclaimer: this blog is not intended as investment advice.

Key Events

  1. ASX closes up 0.1%

  2. ASX claws its way back up 0.1%

  3. Reece hammered despite a lift in profits

Live updates

Pinned

Market snapshot

By Stephen Letts

  • ASX 200: +0.1% to 7,980 points (live values below)
  • Australian dollar: +0.3% to 66.84 US cents
  • Nikkei: -1.8% to 37,404 points
  • Hang Seng: +0.9% to 17,584 points
  • Shanghai: +0.3% to 3,354
  • S&P 500 (Friday): +0.2% to 5,554 points
  • Nasdaq (Friday): +0.1% to 19,509 points
  • FTSE (Friday): -0.4% to 8,311 points
  • EuroStoxx (Friday): +0.6% to 498 points
  • Spot gold: -0.2% to $US2,501/ounce
  • Brent crude: -0.4% at $US79.37/barrel
  • Iron ore (Friday): -0.6% to $US92.90/tonne
  • Bitcoin: -1.4% to $US58,483

Live updates on the major ASX indices:

Key Event

ASX closes up 0.1%

By Stephen Letts

The ASX has clawed its way back from a weak opening to close up 0.1%.

Across the ASX 200 77 companies gained, 15 went nowhere and 108 ended underwater.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (1)

The interest-rate-sensitive utilities outperformed other sectors, as did banks and insurers while there was not much love for non-discretionary consumer or educational businesses.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (2)

The big banks all gained with Westpac (+2.5%) leading the way after a solid third-quarter update, NAB has also gained (+1.2%), while ANZ (+0.5%) and CBA (+0.8%) made rose across the session.

On the other hand, BHP (-0.7%) and Rio Tinto (-0.3%) steadily lost ground thanks to ongoing weakness in the iron ore market.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (3)

Across the region results were mixed, with Japan's Nikkei down 1.8% while the Hang Sang (+0.9%) and Shanghai Composite (+0.3%) gained.

Gold is still trading around $US2,500/ounce while oil slipped a tad to $US79.37 a barrel.

The Australian dollar was a bit firmer, mainly because the US dollar continued its recent downward trajectory

Looking ahead, futures trading points to a flat opening on Wall Street's S&P500.

Results will keep coming in tomorrow with Ingenia Communities, Judo, Hub24, Reliance Worldwide, ARB, Ansell, Monadelphous, Vicinity Centres, Dexus, Iluka reporting. - happy days for our blog team tomorrow.

Results scoreboad

By Stephen Letts

A quick look at how the major companies reporting have fared today.

  • Audinate: +19.9%
  • GPT: +1.7%
  • Westpac (Q3 update): +2.5%
  • Suncorp: +1.3%
  • Lend Lease: -0.8%
  • Ampol: -4.8%
  • BlueScope: -3.1%
  • Reece: -3.9%
  • A2 Milk: -18.7%

Lithium battery fires putting pressure on insurance premiums: Suncorp

By Stephen Letts

An interesting comment coming out of Suncorp's results conference call this afternoon noting while inflation is moderating, there were still some cost pressures coming through in personal lines of insurance, particularly home and contents policies.

Suncorp told the analyst and investor call there was an increased severity on fire claims due to lithium batteries being more prevalent in the home with the batteries acting as an accelerant for fires.

J.P. Morgan's Siddharth Parameswaran, who sat in on the call, so we didn't have to, said Suncorp also flagged homes are increasingly being built closer together, which increases footprint of damage.

Construction cost inflation for both materials and labour also continue to be problem for insurers, as does bad plumbing.

As Mr Parameswaran noted, insurers "are continuing to face stickiness in home inflation relating to escape of liquids, flexi-pipes and other damages within the home — due to the nature of the damage they are seeing elevated severity."

Despite the sticky mess caused by dodgy plumbing, the market liked Suncorp's result (and its higher-than-expected dividend) with shares up around 1.6% in afternoon trade.

How will falling iron ore price affect the miners?

By Stephen Letts

We've already heard from Treasurer Jim Chalmers that the falling iron ore price, driven by China's property crisis, could wipe around $3 billion from the federal budget.

So, what does it mean for Australia's big miners who dominate the global iron ore market, particularly the trade into China.

The immediate answer is profits will be lower, but interestingly the big three - BHP, Rio Tinto and Fortescue - are still trading at discounts implied by the current spot price, according to UBS analysis.

The spot iron ore price has traded as low as $US95/tonne and as UBS notes the signals coming out of China remain weak with the big steelmaker, China Baowu has warned of a "severe winter" for the steel industry.

Iron ore has traded below $US100/t seven times since the most recent peak of $US233/t in May 2021.

The UBS analysis notes each time prices have traded below $US100/t markets have adjusted through supply exits and prices and stocks have bounced back.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (4)

This time it may be different.

"Chinese stocks of iron ore at ports and mills are higher year-on-year and near 6-year highs," UBS wrote in a note to clients.

"This means that China's port inventories could meet domestic demand in the early stages of high-cost supply rationing out of the market, thereby delaying any iron ore price response, even as prices below costs pushes uneconomic supply out of the market."

If prices don't bounce back off the cost curve and keep falling where does that leave the miners?

"Taking latest closing (share) prices and factoring in spot for all but the iron ore price, BHP is pricing in ~$US90/t, RIO ~$US88/t, FMG (Fortescue) ~$US88/t and MIN (Mineral Resources) ~$US82/t," the UBS team said.

"While iron ore prices that the stocks are 'pricing in' are below spot, it's worth highlighting that spot is above to in line with UBSe long-term (estimate) of US$85/t."

UBS has a clear order of preference about which Australian iron ore stocks to invest in with neutral positions on BHP (it's preferred stock) and Rio Tinto, while Fortescue and Mineral Resources are rated as "sells"

Here's the rationale (in brief):

  • BHP has the highest iron ore margins
  • BHP and Rio Tinto have 30-40% EBITDA (earnings) outside of iron ore in next 1-2yrs (e.g. copper)
  • Fortescue is levered to benchmark prices but also low-grade discounts
  • Mineral Resources gearing is considerably more extended than peers at a time when iron ore and lithium prices are low and/or falling

With a spot price at $US95/t, UBS notes BHP would still have a margin of just under $60/t, Rio Tinto's margin would be closer $50, Fortescue $40 and Mineral resources would be losing money.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (5)

As always, this not intended as investment advice.

Turning the page, Booktopia back in business

By Stephen Letts

Here's a bit more on Booktopia being rescued from administration reported by my esteemed and very well-read colleagues, Lucia Stein and Emilia Terzon.

Is inflation about to go negative?

By Stephen Letts

For so long petrol prices have been helping to fuel Australia's stubbornly high inflation, but could recent price falls at the pump lead to negative inflation?

Independent economist Stephen Koukoulas certainly thinks so.

Loading Twitter content

Mr Koukoulas makes the point that a number of government-administered changes will kick in over the September quarter and bring inflation down from the previous quarter's 0.7% rise.

"We know they (the September CPI figures) are going to be distorted by the electricity subsidy — the $300 (grant) will slice around 0.6 percentage points (ppt) off," Mr Koukoulas said.

"The extension of rent subsidies, another 0.1 ppt. Then there are state government subsidies. In Queensland there's the electricity subsidy and 50 cent public transport fares. That's probably another 0.1ppt."

Mr Koukouklas said while there was still a way to run in August and petrol prices might rebound, petrol around current levels could slice another 0.2ppt off the headline CPI number.

All up, that could deliver a September quarter headline CPI number of -0.3%.

"The RBA will say, 'It's just a government-administered change,' but when you look at it, it's at least a bit of relief," Mr Koukoulas said.

"It's really interesting. The important thing will be what it does for inflation expectations, and they will be lower."

Results scoreboard

By Stephen Letts

A quick look at how the major companies reporting have fared so far this morning.

  • Audinate: +11.5%
  • GPT: +2.6%
  • Westpac (Q3 update): +1.7%
  • Suncorp: +1.5%
  • Lend Lease: -1.1%
  • Ampol: -2.8%
  • BlueScope: -2.9%
  • Reece: -4.2%
  • A2 Milk: -17.8%

(Prices current to 12:20pm AEST)

Key Event

ASX claws its way back up 0.1%

By Stephen Letts

The ASX has clawed its way back to be up 0.1% heading into the afternoon session.

Across the ASX 200 88 companies have made gains, seven have gone nowhere and 105 are underwater.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (6)

The interest-rate-sensitive utilities sector is outperforming the others, while there is not much love for non-discretionary consumer businesses.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (7)

The banks are mixed with Westpac (+1.6%) leading the way after a solid third-quarter update, NAB has also gained (+0.7%), while ANZ (-0.2%) and CBA (-0.4%) are softer.

BHP (flat) and Rio Tinto (-0.1%) are holding up despite ongoing weakness in the iron ore market.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (8)

Across the region results are mixed, with Japan's Nikkei down 0.3% while the Hang Sang (+1%) and Shanghai Composite (+0.8%) have made early gains.

Market snapshot

By Stephen Letts

  • ASX 200: +0.1% to 7,978 points (live values below)
  • Australian dollar: +0.2% to 66.68 US cents
  • Nikkei: -0.3% to 37,944 points
  • Hang Seng: +1.0% to 17,617 points
  • Shanghai: +0.8% to 3,373
  • S&P 500 (Friday): +0.2% to 5,554 points
  • Nasdaq (Friday): +0.1% to 19,509 points
  • FTSE (Friday): -0.4% to 8,311 points
  • EuroStoxx (Friday): +0.6% to 498 points
  • Spot gold: -0.3% to $US2,499/ounce
  • Brent crude: -0.4% at $US79.36/barrel
  • Iron ore (Friday): -0.6% to $US92.90/tonne
  • Bitcoin: -1.3% to $US58,506

Live updates on the major ASX indices:

Key Event

Reece hammered despite a lift in profits

By Stephen Letts

Plumbing supplier Reece is another casualty in the "profit fine, outlook cloudy" zeitgeist.

Reece announced an 8% increase in net profit to $419 million on the back of a 3% increase in sales revenue to $9.1 billion.

Reece CEO Peter Wilson joined the current "we delivered a solid result in a challenging environment" results season mantra.

"And whilst we expect FY25 to remain challenging, we continue to focus on the long term," Mr Wilson added.

UBS analyst Lee Power noted the result, in his view, was a marginal miss, with softness in the Australian business largely offset by sales in the US.

However, Mr Power said guidance for both regions remained challenging in the near term.

"While the USA continues to beat our expectations in terms of both sales and margins, we still see risk into FY25 given the rapid decline in Australia," Mr Power wrote in a note to clients.

"This likely weighs on the share price given REH's (Reece's)(earnings) multiple remains well above normal levels expectations in terms of both sales and margins," Mr Power said.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (9)

Key Event

A2 Milk shares tumble despite profit lift

By Stephen Letts

The dairy business A2 Milk has seen its share tumble this morning despite lifting its annual profit 8% to $168million.

Earnings and margins lifted in line with the market's consensus view, but investors were more worried about the company's outlook.

Shares were down 17% at 11:30 am AEST.

The revenue growth (5.2%) was driven by increased sales in China (+14.1%0 and the US (+8.2%), while sales across Australia and NZ fell (-14.6%).

UBS analyst Marcus Curley described the outcome in China as solid, but said the guidance was below what the market expected.

" FY25 outlook comments [were] probably conservative but point to single-digit EBITDA growth, which is below market consensus (+15%) with supply constraints impacting 1H25 sales and margins," Mr Curley wrote in a note to clients.

He said there would be no buyback or dividend until A2's supply chain transformation was further developed.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (10)

Key Event

ASX opens marginally lower as results dominate the day

By Stephen Letts

The ASX has started the day marginally down (-0.1%) despite a solid lead from Wall Street.

Most sectors were in the red, although financials were supported by Westpac (+2.4%) after posting a strong quarterly update.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (11)

BHP opened the day relatively flat, having headed off a strike at its big Escondida copper mine, while Rio Tinto was down 0.6%

Woodside (+0.3%) made gains despite a fall in oil prices, while Telstra (0.1%) was down.

The biggest winner so far is the audio-visual software business Audinate which is up 8.4% on strong results (see blog post below) while the market soured on A2 Milk's effort with its stock down almost 18%.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (12)

Market snapshot

By Stephen Letts

  • ASX 200: -0.1% to 7,963 points (live values below)
  • Australian dollar: +0.8% to 66.66 US cents
  • S&P 500 (Friday): +0.2% to 5,554 points
  • Nasdaq (Friday): +0.1% to 19,509 points
  • FTSE (Friday): -0.4% to 8,311 points
  • EuroStoxx (Friday): +0.6% to 498 points
  • Spot gold: -0.1% to $US2,506/ounce
  • Brent crude: -0.3% at $US79.42/barrel
  • Iron ore (Friday): -0.6% to $US92.90/tonne
  • Bitcoin: -1.5% to $US58,383

Key Event

Ampol reports big jump in interim profit to $235 million

By Stephen Letts

The fuel refiner and convenience store retailer Ampol has announced a big jump in first-half profit to $235.2 million, up from $79.1 million last year.

JP Morgan analyst Mark Busittil said there were limited surprises given much of it had been pre-announced.

However, Mr Busuttil noted the negatives, including a decline in earnings across all the Ampol's business segments, with EBIT at the Lytton refinery down 66%.

"Since the end of June, the high levels of reliability in the global refinery system seen in the first half have continued, keeping markets well supplied during the northern hemisphere summer and contributing to lower product cracks," Mr Busuttil said.

The maintenance and inspection work at Lytton commenced in mid-July and is currently on track with production expected to return to normal levels at the end of August.

Net capital expenditure in the first half was $185.2 million which included the receipt of a $100 million federal government grant to support fuel security.

Key Event

Booktopia sale confirmed, jobs saved

By Stephen Letts

The administrators of online book retailer Booktopia have confirmed they have secured a buyer for the troubled business.

McGrathNicol said it had organised the sale to a related entity of digiDirect.

McGrathNichol described digiirect as "a leading Australian-owned omnichannel consumer electronics retailer with a well-established national store network and a significant online presence".

The administrator said the sale enabled the immediate resumption of trading for the Booktopia business.

"The Purchasers have confirmed their intention to hire over 100 employees, with former Booktopia staff encouraged to rejoin the group," McGrath Nichol said in a statement to the ASX.

McGrathNicol partner and administrator Keith Crawford said:

"We are incredibly pleased to have completed the sale of the Booktopia business to the owner of digiDirect.

"The transaction will result in the retention of all remaining employees, the recruitment of some 100 additional employees and continuity of supply for Booktopia's trade creditors.

"The purchaser is also offering special arrangements to customers with unredeemed gift cards," he noted.

Key Event

Westpac Q3 profit up 6% to $1.8 billion

By Stephen Letts

Westpac has posted a 6% increase third quarter profit to $1.8 billion.

The bank reported a slight expansion in margins, while markets and treasury income, along with some hedging were a drag on the result.

The increase in net interest income (+2%) reflecting both higher margins and more loans being written.

Expenses increased by 2% due to a larger investment spend and inflation related costs on technology services.

Results season positive so far

By Stephen Letts

It's still early in the reporting season, but so far so good overall, despite a few ugly results that had investors heading for the exits.

J.P. Morgan's equity team went so far as to describe results so far as an impressive first round, with only around a third of major companies having reported.

On the broker's calculations, 33% of the results so far have beaten consensus expectations, while 20% have missed.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (13)

In terms of the analysts' favourite metric, Earnings Per Share (EPS), 18% of companies have seen their earnings forecasts upgraded, 38% have suffered a cut, leaving 43% flatlining.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (14)

Credit Corp and AMP seem to have provided the biggest positive surprises so far, both jumping 14% on the day of their results.

AMP has largely held on to those gains, while the likes of Bravura Solutions and J.B. Hi Fi have continued to gain momentum and are also up around 14% since reporting.

At the other end of the spectrum, Beach Energy (-13%) and Origin Energy (-10%) were smashed on their results and haven't recovered much since.

AMP's head of investment strategy, Shane Oliver, is a little less upbeat, describing the results so far as "okay'.

Dr Oliver notes there has been slightly less than normal upside surprises, but also less than normal downside surprise and an increase in the number of companies reporting profits or dividends up on a year ago compared to the December half reporting season.

"Consensus expectations are for a 3.6% fall in profits in 2023-24 with a big fall in energy sector profits on the back of lower oil, coal and gas prices and small falls in profits in the mining, consumer staples, IT and financial sectors but other sectors seeing profit gains," Dr Oliver said.

"The signal on consumer spending has been soft with sales generally down and media advertising weakening, although some like JB HiFi have come in better than expected.

"CBA reported a less than expected fall in profits, but both CBA and NAB reported increasing loan arrears albeit from a low base.

"The ongoing high level of interest rates is also evident in REA and Domain results benefitting from higher listings, an increasing amount of which are likely distressed.

"Overall, investors appear to be looking through the mixed picture with hopes for relief ahead from lower interest rates."

Dr Oliver also cautioned there is a tendency for companies with good results to report early so results may soften over the next couple of weeks.

Key Event

Lend Lease tumbles to $1.5 billion loss

By Stephen Letts

The big property developer Lend Lease has tumbled further into the red, announcing a$1.5 billion loss, a steep decline from last year's $232 million loss.

The bulk of the loss was made up of $1.3 billion in red ink of what the company called "strategy related impairments" such a write down in goodwill, development impairments and redundancy costs.

Lend Lease's preferred measure, core operating profit aft tax came in in at $263 million, up marginally from the year before.

CEO Tony Lombardo said significant progress had been made in creating a simpler, more focussed business.

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (15)

GWA profit up 3% to $45.6 million

By Stephen Letts

Plumbing supplies group GWA has posted a 3.4% increase in profit to $45.6 million.

The company described the result as "solid" and a declared a 15% increase in full year dividend to 15 cents per share.

Looking ahead, the company said most of its market segments such as supplying healthcare, volume home builders and maintenance plumbers "are facing headwinds."

ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (16)
ASX closes up 0.1pc as Lend Lease posted $1.5b loss and Booktopia rescued from administration — as it happened (2024)

References

Top Articles
Unveiling the Beauty of Orange Red Tulips - Mygardeninglife
Recipe This | The Ultimate Guide To The Philips Airfryer
Revolve 360 Extend Manual
Markz Blog
Supreme Source Dog Food Walmart
Equinox 63Rd Street Class Schedule Pdf
How To Pay My Big Lots Credit Card
Ebony Ts Facials
How Much Food Should I Buy For Christmas? | Gousto Christmas
O'Quinn Peebles Phillips Funeral Home
80 For Brady Showtimes Near Brenden Theatres Kingman 4
New Stores Coming To Canton Ohio 2022
College Basketball Predictions & Picks Today 🏀 [Incl. March Madness]
Jobs Hiring Start Tomorrow
Steve Bannon Issues Warning To Donald Trump
Sand Castle Parents Guide
Lowell Holiday Wrestling Tournament 2022
Itouch Spa Marana
Ems Isd Skyward Family Access
60 Days From May 31
5162635626
Palmetto E Services
ASVAB Test: The Definitive Guide (updated 2024) by Mometrix
Bay State Neurology
Ipayonline Azsdu Net
Unmhealth My Mysecurebill
7148646793
Marukai Honolulu Weekly Ads
Deshaun Watson Stats, News and Video - QB | NFL.com
Www Muslima Com
Are Huntington Home Candles Toxic
$200K In Rupees
Cooktopcove Com
Entourage Yearbook Login
Crystal Westbrooks Nipple
Texas Longhorns Soccer Schedule
Los Alamos Beach in Torremolinos: A Perfect Mediterranean Escape - Mama Málaga
Blackboard Bristol
10 Teacher Tips to Encourage Self-Awareness in Teens | EVERFI
2026 Rankings Update: Tyran Stokes cements No. 1 status, Brandon McCoy, NBA legacies lead loaded SoCal class
Ssndob Cm
Rabbi Raps
Erica Mena Net Worth Forbes
Craigslist Boats Rochester
Cambridge Assessor Database
8 Internet Celebrities who fell prey to Leaked Video Scandals
Parabroom Side Effects
Potassium | History, Uses, Facts, Physical & Chemical Characteristics
Lenscrafters Westchester Mall
Daniel 3 Nkjv
Latest Posts
Article information

Author: Trent Wehner

Last Updated:

Views: 5831

Rating: 4.6 / 5 (76 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Trent Wehner

Birthday: 1993-03-14

Address: 872 Kevin Squares, New Codyville, AK 01785-0416

Phone: +18698800304764

Job: Senior Farming Developer

Hobby: Paintball, Calligraphy, Hunting, Flying disc, Lapidary, Rafting, Inline skating

Introduction: My name is Trent Wehner, I am a talented, brainy, zealous, light, funny, gleaming, attractive person who loves writing and wants to share my knowledge and understanding with you.