Australian Securities Exchange (ASX)
People walk past the Australian Securities Exchange (ASX) building in central Sydney October 20, 2008. Reuters/Daniel Munoz
  • Australian shares are reversing all of Monday’s improvements and falling back below the key 5500pt level. The ASX 200 is down 0.6 per cent after slumping by close to 4 per cent last week.
  • The major banks are the main drags, sliding by 1.25 per cent as a sector. Australia’s fifth biggest bank, Bendigo & Adelaide (BEN) is down 5.3 per cent; adding to the market’s disappointment in its profit result out on Monday. The big four banks are wiping out 19pts from the ASX 200.
  • Mining stocks are the best improvers, with BHP, RIO, Fortescue Metals (FMG) and South32 (S32) adding 8pts to the ASX 200.
  • Week two of the earnings season continues with Cochlear (COH), Transurban (TCL), Bradken (BKN) & Domino’s Pizza (DMP) posting results.
  • The world’s largest maker of hearing implants, Cochlear (COH), is down 10.5 per cent after posting a weaker than expected $145.8m profit for FY15. Sales missed forecasts while the final dividend was 21 per cent below a year earlier. The dollar’s depreciation against the greenback over the year boosted sales by $32.7m, as COH earned 83 per cent of sales offshore. Despite the 56 per cent surge in earnings, the result came off a low base with regulators stalling the release of its Nuclear 6 impact in FY14.
  • Domino’s Pizza (DMP) is down 5.7 per cent despite posting a 40 per cent rise in net profit to $64m. DMP added 59 new stores in ANZ, 54 in Europe and 64 in Japan. Its shares are up 55 per cent this calendar year.
  • Volume is above average at lunch, with 1.1bn shares traded worth $3bn. 428 stocks are up, 416 down and 322 unchanged.

Steven Daghlian - Market Analyst (Author)

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