AU Morning Wrap: ASX Slips, Weighed Down by Real Estate and Banks

Moomoo News AU wrote a column · May 9, 2023 00:35

G'day, mooers! Check out the latest news on today's stock market!
• US markets flat, Fed survey flags weaker demand for all loan types
• ASX slips, weighed down by real estate and banks
• Stocks to watch: Stockland, Commonwealth Bank, Pilbara Minerals
- Moomoo News AU

AU Morning Wrap: ASX Slips, Weighed Down by Real Estate and Banks

Wall Street Summary

Another slide in regional-bank stocks and data showing tightening lending conditions left major stock indexes little changed on Monday.

Shares of several smaller lenders spiked early Monday, lifted by a dividend cut from PacWest Bancorp that boosted investors' confidence in its survival odds. While PacWest added around 3.7% for the day, the broader gains unwound as a volatile session wore on, leaving the KBW Nasdaq Regional Banking Index down 2.8%.

Indexes were buoyed by gains in some large technology firms. Communication-services companies led the S&P 500, boosted to a 1.3% gain by advances in shares of MetaAlphabet

The $S&P 500 Index (.SPX.US)$ gained less than 0.1%, while the $Dow Jones Industrial Average (.DJI.US)$ lost 56 points, or 0.2%. The $Nasdaq Composite Index (.IXIC.US)$ added 0.2%. That was enough to push the tech-heavy index up 20% from its 2022 low and into bull market territory. The index had endured a 143-trading-day stretch in a bear market, the longest for the Nasdaq since 2008.

AU Market Watch

The $S&P/ASX 200 (.XJO.AU)$ was down 0.14 per cent at market open, led by losses in the energy, real estate and financials stocks.

The REITS sector was the worst performing, falling over 1 per cent. $Stockland Corp Ltd (SGP.AU)$ shares dropped 2 per cent. $Centuria Industrial REIT (CIP.AU)$ decreased 1.8 per cent.

All the major banks were the red. Commonwealth Bank shares fell 1 per cent after the bank reported its third quarter results. $Westpac Banking Corp (WBC.AU)$ shares dropped 2 per cent. $National Australia Bank Ltd (NAB.AU)$ decreased 0.9 per cent. ANZ fell 1.1 per cent.

$Woodside Energy Group Ltd (WDS.AU)$ shares were down 0.8 per cent. $Santos Ltd (STO.AU)$ fell 0.8 per cent.

Materials were the only sector in the green. $Pilbara Minerals Ltd (PLS.AU)$ surged 2.8 per cent. $Sayona Mining Ltd (SYA.AU)$ shares were up 2.5 per cent.

Stocks to Watch

$CommBank (CBA.AU)$: Commonwealth Bank has reported a 1 per cent increase in its cash profits to $2.6 billion in a third quarter trading update.

The major bank said that its operating income was flat, driven by volume growth and higher non-interest income and lower net interest margins from competitive pressures.

$The a2 Milk Co Ltd (A2M.AU)$: Baby formula manufacturer a2 Milk has announced leadership changes with executive general manager of its Australian and New Zealand division Kevin Bush to now lead the US business.

$Insurance Australia Group Ltd (IAG.AU)$: Insurance company IAG has announced that its chief financial officer Michelle McPherson will retire by the end of 2023.

McPherson will continue in her role as CFO while the company conducts an internal and external search to identify her replacement.

Trading Ex-div: None

Dividends Paid: $Duratec Ltd (DUR.AU)$

Listing: None

Source: Dow Jones Newswires, AFR

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