Latest News

Local shares are continuing its decline on Tuesday as investors digest the implications of further lockdowns and restrictions related to the spread of the COVID-19 delta variant across the country and globe. The ASX 200 is around session lows, dropping 56 points or 0.74% to 7,526 at midday. Losses locally come despite the Dow Jones and S&P 500 in the US hit fresh record highs in the overnight session.

The decline has been spread across the majority of the market with nearly all sectors in the red. Weighing most has been the underperformance of the financials and materials, the two largest sectors of the ASX.

Commonwealth Bank (CBA) is the single largest individual weight, falling 2.8% and erasing ~15 points off the ASX 200 index, as the bank trades ex-dividend. It will pay a $2/share final dividend on 29 September 2021. CBA hit an all-time high last Wednesday after releasing profit numbers and has since fallen back ~9.5% since then.

Westpac (WBC) is down 1.5% after providing the market with a third quarter update. It is expecting margins to be lower over its second half compared to first half and expenses are also expected to be higher in FY21. WBC saw a relatively small number of new repayment deferrals related to the recent lockdowns.

It’s been another busy day on the profit reporting front. Breville Group (BRG) is tumbling 7.8% even as the home appliance maker saw FY21 net profit jump 42% to $91 million. Revenue improved 25% to $1.9 billion but the company decided to cut its final dividend by 34% to 13.5 cents per share.

Investment manager, Magellan Financial Group (MFG) is also down heavily, sliding 8.5% as FY21 net profit fell 33% to $265 million despite a lift in revenue and average Funds Under Management (FUM) rose 9% to $103.7 billion. Profits before tax and performance fees did rise 10%.

Santos (STO) is 1.7% softer after releasing half year earnings. Net profit came in at US$354 million as revenue jumped 22% to US$2.04 billion. STO will pay an interim dividend of 5.5 US cents per share.

Mining giant, BHP Group (BHP) is scheduled to release profit results after the market close today.

The AUD is weaker against the USD and now buys 73.11

Published by CommSec