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ASX 200 set to fall – WBC, NUF & NCK shares in focus

The S&P/ASX 200 (ASX: XJO) fell throughout the day, finishing 0.1% lower with all eyes on the Morningstar Investment Conference.

The ASX technology sector carried most of the selling pressure, falling 5.9% in a single session, with utilities and materials the only sectors settling higher.

Xero, Novonix slump

Popular lithium miner Novonix Ltd (ASX: NVX) fell close to 15% despite any news on the company, with numerous other technology names not far behind.

Xero Limited (ASX: XRO) fell 5%, WiseTech Global Ltd (ASX: WTC) tumbled 8% and TechnologyOne Ltd (ASX: TNE) dropped 6.6% as investors desert the once popular growth names.

Westpac profit flat

Westpac Banking Corp (ASX: WBC) was the first bank to deliver a quarterly update, gaining 2.3% after reporting a 1% increase in cash earnings to $1.58 billion.

Investors welcomed the 7% cut to costs as the company seeks another $8 billion in reductions. However, Westpac’s net interest margin fell another 8 basis points to 1.91% as the RBA’s cheap funding program came to an end.

Nick Scali hit by closures

Furniture retailer Nick Scali Limited (ASX: NCK) was the latest e-commerce winner to deliver a weaker than expected result. That said, the Nick Scali share price managed to hold.

Revenue grew 5.4% for the half, despite 55% of its store network being closed due to the Delta lockdowns. Earnings fell 3.7% to $55.1 million as supply chain and staffing issues eat into the retailer’s profit margins.

Nufarm smashes expectations

Nufarm Ltd (ASX: NUF) was the top-performing stock on the day, adding over 20% after delivering a result that smashed expectations.

The crop protection and seed provider reported a 36% jump in quarterly revenue, with the company now on track to deliver full-year growth well ahead of forecasts.

The company is booming on the back of shortages and surging prices for agricultural commodities.

Aristocrat’s Playtech deal falls over

Aristocrat Leisure Limited’s (ASX:ALL) highly publicised deal to purchase UK gambling group Playtech for $3.9 billion is set to fall over, with the company not achieving a sufficient majority from current shareholders to push the deal through. Aristocrat shares fell 0.5 per cent on the news.

ASX 200 today

Looking ahead, the ASX 200 is heading towards a choppy session today after all three US benchmarks posted meaningful losses overnight.

The Nasdaq fared the worst, tumbling 3.7% after Facebook (NASDAQ: FB) shares were smashed by 26% on a weak earnings report.

The Golden Rules of Investing

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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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