Aussie shares are slipping for a second day following similar declines in the United States, with the ASX 200 index down 0.8 per cent to 6,960.9. This is enough to drag the market back below the 13.5-month high hit on Monday, but still keeps the index on track to lift for an eight consecutive month while remaining only ~3 per cent shy of a record high.
After around one hour of trade on Wednesday, all sectors are pulling back with the exception of healthcare and consumer staples.
BHP is down by close to 2 per cent after updating its FY21 production goals. The world’s largest miner has raised its copper guidance, cut its coal production estimates and kept iron ore & petroleum steady. It produced ~60Mt of iron ore over the quarter, with iron ore prices remaining near 10-year highs. BHP is most sensitive to iron ore price fluctuations. BHP estimates that a US$1/t move in iron ore prices over a year impacts its underlying earnings by ~US$236m.
Corporate Travel Management (CTD) is up 4 per cent after breaking even in March. The travel group expects to return to profitability in 4Q21, which will be led by the UK/EU and ANZ regions.
Splitit (SPT) is down 4 per cent despite recording a 247 per cent lift in 1Q merchant sales and a 292 per cent jump in revenue on last year.
Santos (STO) is down 2.5 per cent following a decline in oil prices overnight. STO has entered a new gas supply agreement with Rio Tinto, supplying up to 15 PJs of natural gas from late 2021.
Sigma (SIG), Carsales (CAR), Eureka (EGH) and Intega (ITG) are all set to pay investors dividends today.
Might Kingdom (MKL) – Australia’s largest independent game developer – makes its ASX debut. It has worked with the likes of Disney, Lego, Sony and Snapchat developing games for PC, console and mobile.
2.8bn shares have changed hands so far worth $1.6bn. 376 stocks are up, 784 down and 397 are unchanged.
Published by CommSec