Home / Daily Market Update / ASX down 1%, Megaport falls as tech weakness continues, Dixon in administration

ASX down 1%, Megaport falls as tech weakness continues, Dixon in administration

Daily Market Update

 The S&P/ASX200 couldn’t overcome another negative lead from the US, with bond rates and reporting season driving the market again.
 
Only two of the markets 11 sectors posted a positive result, with technology continuing its selloff falling 2.6% and the healthcare sector, down 1.6% also underperforming.
 
Once again, energy remains the highlight as oil moved towards multi-year highs with the likes of Origin (ASX: ORG) benefitting from the rally, finishing 1.4% higher.
 
The major detractor from the market today was Megaport (ASX: MP1) with the data centre service provider falling 16% after delivering weaker than expected revenue growth of just 8%.
 
Shares in E&P Financial Group (ASX: EP1) formally Evans & Dixon fell just 1.7% despite announcing that the Dixon Advisory business that focused on SMSF investors, had entered voluntary administration as legal cases, class actions and complaints mount about conflicted advisers over the last decade and ultimately threatened the group’s solvency.
 
BHP flags weaker quarter, Hub 24 gaining $1 billion per month, Lynas hits records
 
BHP (ASX: BHP) fell along with the market after reporting a better-than-expected finish to 2021, shipping 73.2 million tonnes of iron ore compared to the 71.4 million expected.
 
This was an improvement on Rio Tinto’s (ASX: RIO) weaker performance but management noted that disruptions were ahead as WA and Queensland loosen restrictions and the ongoing impacts of a train driver shortage.
 
Whilst exports were down 3%, the received price improved to US$113.54 per tonne, with the company also enjoying record coking coal prices amid a global energy crisis.
 
Production of coking coal fell 10%, whilst copper and Nickel production were also down double figures due to maintenance.
 
Shares in Lynas (ASX: LYC) fell 1.1% despite reporting record revenue of $200 million in the quarter, a 60% increase in September.
 
Production grew by around a third with demand for their key rare earths remaining ‘very strong’.
 
Hub 24 (ASX: HUB) gained 2.1% after reporting another $3.6 billion in platform inflows, taking total assets under administration to $68.3 billion.
 
The quarter saw 28 new agreements with financial advisory firms as the independent advisory space continues to expand.
 
US markets enter correction, investment bank profits grow, Proctor and Gamble upgrades
 
The US stockmarket is officially in a technical correction with all three benchmarks falling again overnight.
 
The Dow Jones underperformed once again, down 1.0%, the S&P500 down the same and the Nasdaq 1.1.
 
The key driver was another day of reporting season dominated by the investment banks, which make up a large portion of the index.
 
Bank of America (NYSE: BAC) was the highlight reporting a 29% increase in profit on a 10% increase in revenue, most importantly net interest income was significantly higher as both loans and deposits continued to surge.
 
Consumer banking grew earnings by 8%, and wealth management income hit a record after adding 16%; shares were up 0.4%.
 
Morgan Stanley (NYSE: MS) also beat estimates with profit up 10%, as the investment bank benefitted from a surge in acquisition and trading activity, shares were 1.9% higher.
 
Proctor & Gamble (NYSE: PG) gained 3.4% as the maker of Gilette razors and other consumer brands reported a 6% organic increase in sales and upgraded earnings expectations for 2022.
 
In a worrying sign, they warned of significant cost headwinds including $2.3 billion in input costs and $300 million in freight. 




Print Article

Related
Why taming the inflation tiger will be harder than the 1970s

Inflation is making a latter day comeback, and a financial system “sanitized by 15 years of free money” is totally unprepared. It’s time, once again, for tough medicine. Inflation hasn’t been this high in 40 years, but investors have become convinced that central banks can still tamp it down it with relative ease – a…

Lachlan Maddock | 27th May 2022 | More
Bragg offers a super manifesto (from opposition)

One of the Coalition’s few surviving  “super soldiers”, Andrew Bragg has called on his party to go further down the route of “flexibilising” super – if not abolishing it completely. Senator Andrew Bragg finds himself in a curious position following Labor’s election win. He’s one of the few super partisans to survive the teal clean…

Lachlan Maddock | 27th May 2022 | More
Appen left at the altar. Market heads lower. Good week continues for US markets.

Appen left at the altar A bizarre blink-and-you-missed takeover approach came and seemingly went for one of the local market’s tech leaders Appen, which develops the datasets for machine learning and artificial intelligence. Canadian company Telus International sprang a $9.50 a share bid on the company, which said it would talk to Telus to try to…

Drew Meredith | 27th May 2022 | More
Popular
1
News and OneVue go live with brightday
Alec Law | 11th Jan 2015 | More
2
Perrignon off to HK with Credit Suisse
Alec Law | 22nd Dec 2013 | More
3
Sports betting as a new asset class
Alec Law | 3rd Jul 2016 | More
4
BlackRock ahead of consensus with bullish view
Alec Law | 14th Jan 2017 | More
5
Statewide seeds bespoke Apostle fund
Lachlan Maddock | 23rd Mar 2022 | More
6
UniSuper’s VC foray a sign of things to come
Lachlan Maddock | 25th Mar 2022 | More