ASX falls over 1pc as Woolies disappoints

The Woolworths result fast reversed market sentiment on Thursday. picture: Patrick Scala

client stocks led Australian shares sharply decrease on Thursday following a dreadful quarterly sales file from Woolworths, whereas ANZ said full-year profit numbers and Blackmores shares in brief hit $200 every.

The market began the day in sure territory following sturdy gains on Wall boulevard, which reached two-month highs. The Dow Jones lifted 1 per cent after the US Federal Reserve implied it used to be extra open to a December fee hike.

however, the Woolworths end result quickly reversed market sentiment, particularly as Wesfarmers shares were additionally bought off because of this. 

consumer staples was with the aid of the a ways the worst sector on the day, dropping 5.3 per cent. All sectors bar utilities shares have been within the pink because the benchmark ASX200 index fell 1.three per cent to 5266.9 and the broader All Ordinaries declined 1.2 per cent to 5310.2.

The banks had been also down, with ANZ falling 2 per cent to $28.17 after reporting report full-yr income of $7.2 billion, but in addition slowing earnings growth, flat dividends, and shareholder returns squeezed with the aid of the dilutive effect of its latest capital raising.

Commonwealth financial institution shed zero.6 per cent to $seventy seven.17 and nationwide Australia bank declined 4 per cent to $30.forty six but Westpac carried out slightly well, ending flat at $31.92.



Woolworths crashed 9.8 per cent to $24.70 after warning that web profits will fall as a lot as 35 per cent in the December half of to between $900 million and $1 billion.

similar-retailer Australian food and liquor gross sales fell for the 2d consecutive quarter –  down 1 per cent within the three months to October 4 – as Woolworths struggled to reverse purchaser perceptions that its prices are better than Coles.

The decline in first-quarter related-store meals and liquor gross sales adopted a zero.9 per cent drop in the June quarter, indicating that Woolworths supermarkets are continue to lose momentum. ​Analysts had been forecasting similar-retailer gross sales to fall between zero.5 per cent and 1.1 per cent.

Fears of persevering with worth wars in the grocery sector resulted in competitor Wesfarmers dropping four.3 per cent to $40.18, while Metcash used to be walloped even worse than Woolworths, losing 10.4 per cent to $1.20.

“there may be a tremendous query now over some of these consumer shares,” mentioned Invast Australia chief market analyst Peter Esho. “Woolworths can most effective battle its approach out of this thru pricing – and if they cut price the rest of the market has to cut price and it’s going to force down margins.

“Woolworths is not only a brief-time period cash thing. there may be giant questions now over the place strategy is at, the place administration’s at, where the board is at. the entire thing is falling aside.”

overnight, iron ore slumped 3 per cent to $US49.ninety five per tonne – beneath $US50 – even though oil recovered somewhat, with Brent crude up $US2.10 or 4.5 per cent, to $US48.91 per barrel.

BHP weakened 1.three per cent to $23.forty seven and Rio Tinto slipped 1.eight per cent to $51.14. Pure-play iron ore miner Fortescue gave up 2.2 per cent to $2.20 and Woodside Petroleum fell 1 per cent to $29.34 despite the bettering oil price. 

Telstra retreated 1.four per cent to $5.50.

Blackmores surged 12.9 per cent to $a hundred seventy five.51 after information it was once increasing past its core trade to enter the baby components market thru a partnership handle dairy staff Bega Cheese, as income proceed to surge from vitamins gross sales to China.

Blackmores has skilled an fantastic near 500 per cent upward push in its share worth over the past 14 months because of heavy demand for its vitamins and health supplements in China. 

Newcrest’s probabilities of meeting its full 12 months gold manufacturing guidance have taken a blow with the corporate confirming a massive piece of apparatus at its most essential mine will be out for longer.

an important part of the production process at the Cadia mine in NSW failed about 12 days ago, and Newcrest stated lately it will be “as a minimum 5 weeks” ahead of it was mounted. The gold miner crumbled 7.6 per cent to $12.seventy two.