The Match Out: Broad based selling knocks ASX off its perch

A sea of red today from Shanghai to Sydney with stocks pulling back from recent highs, the RBA’s dovish move yesterday a distant memory as local reporting stumbles into gear.

• The S&P/ASX 200 lost -96pts points / -1.29% to close at 7354
• IT (-0.45%), Healthcare (-0.57%) & Staples (-0.74%) were relative performers but all sectors finished lower.
• Utilities (-2.19%), Property (-1.95%) and Financials (-1.77%) the biggest drags.
• For what it’s worth, ratings agency Fitch downgraded the US credit rating to AA+ from AAA, reflecting expected fiscal deterioration over the next three years as well as a high and growing general government debt burden.
• Fitch have had the US on their top rating since 1994 so the move is a peculiar one. As Janet Yellen said this morning, it seems “arbitrary and based on outdated data”.
• Travel agency Helloworld (ASX: HLO) + 1.34% upgraded its FY23 earnings guidance for the 3rd time, saying underlying EBITDA would be between $42-45m. The market was already expecting $41m so not a big change (but positive none-the-less).
• AGL Energy (ASX: AGL) -4.8% hit today on a broker downgrade from Macquarie (to Neutral $11.43 PT)– we covered the stock this morning in a timely note – click here
• BWP Trust (ASX: BWP) -3.27% fell despite a broadly inline result – some value starting to emerge here after years of being too expensive.
• Calix (ASX: CXL) +2.66% signed off alongside Pilbara (ASX: PLS) +0.41% to move forward with their Lithium Spodumene processing demonstration plant. The project is aiming to reduce carbon emissions in the process by more than 80% and is just one of ~70 project Calix is currently working on. We own CXL, but it’s been weak of late.
• PSC Insurance (ASX: PSI) +2.08% after saying it now expects to deliver $111m in earnings in FY23.
• The Aussie Dollar was whacked 0.7% to 65.69c, it’s lowest level since February.
• Iron Ore was lower in Asia dragging down Fortescue (ASX: FMG) -1.96%.
• Gold was soft overnight before adding +$US5 in Asia to be $US1950 at our close
• Asian stocks were weak, Hang Seng off -2.03%, the Nikkei in Japan fell -2.36%, while China lost -0.65%
• US Futures are down, S&P -0.5% while Nasdaq Futures are off -0.76%.
• Reporting Tomorrow: Nothing of note while Block (ASX: SQ2) & Resmed (ASX: RMD) are out Friday
• Download the Market Matters Reporting Calendar Here

ASX200 chart

BWP Trust (ASX: BWP) $3.55

BWP -3.27%: The Bunnings landlord (85% of book leased to Wesfarmers) edged lower today in a soft market despite reporting FY23 results that were inline with expectations. Revenue of $158m v $157.7m expected with earnings per share (EPS) 17.68c v 17.9c consensus. The FY dividend of 18.29 as per programmed while they saw some slight revaluations lower of their portfolio, with reported NTA at $3.75. Nothing too much to turn the dial for BWP, although shares now trading ~20c below NTA which is a rare occurrence relative to a historical premium. Weakness across the broader property sector didn’t help shares.

BWP Trust (ASX: BWP)

Broker Moves

• AGL Energy Declines After Macquarie Downgrades to Neutral
• Pro Medicus Raised to Overweight at Wilsons; PT A$76.04
• EVT Cut to Neutral at Citi; PT A$13.30
• Sonic Healthcare Cut to Reduce at CLSA; PT A$36.40
• Netwealth Cut to Underweight at Jarden Securities; PT A$14.10
• Deterra Cut to Reduce at CLSA; PT A$4.90
• MoneyMe Raised to Speculative Buy at Morgans Financial Limited
• NTU AU Reinstated Speculative Buy at Argonaut Securities

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