{"id":101628,"date":"2025-02-22T08:30:00","date_gmt":"2025-02-21T21:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=101628"},"modified":"2025-02-22T01:39:16","modified_gmt":"2025-02-21T14:39:16","slug":"asx-200-tumbles-consumer-stocks-slide","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/asx-200-tumbles-consumer-stocks-slide\/","title":{"rendered":"ASX 200 Tumbles for Fifth Straight Session as Banks and Consumer Stocks Slide"},"content":{"rendered":"\n

Australia\u2019s ASX 200<\/strong> closed in negative territory for the fifth straight trading session on Friday, with consumer discretionary<\/strong> and financial stocks<\/strong> among the biggest drags on the index. According to News<\/a><\/em>, investors continued to react strongly to earnings reports, punishing companies that fell short of expectations.<\/p>\n\n\n\n

Asx 200 and All Ordinaries Post Losses<\/h2>\n\n\n\n

The ASX 200<\/strong> fell 26.6 points<\/strong> or 0.32%<\/strong>, closing at 8,296.20<\/strong>, marking a 20-day low<\/strong>. The All Ordinaries Index<\/strong> also declined, shedding 30.8 points<\/strong> or 0.36%<\/strong>, to finish at 8,570.90<\/strong>. Meanwhile, the Australian dollar<\/a><\/strong> weakened 0.17%<\/strong> to 63.90 US cents<\/strong>, reflecting broader market caution.<\/p>\n\n\n\n

Sector Performance and Major Stock Movements<\/h2>\n\n\n\n

Six of the ASX 200\u2019s eleven sectors closed in the red, with consumer discretionary stocks posting the largest losses of the session.<\/p>\n\n\n\n

Among the most affected stocks, Wesfarmers<\/strong> fell 1.93% to $76.12, Star Entertainment Group<\/strong> dropped 3.57% to $0.135, and Lovisa Holdings<\/strong> declined 2.81% to $29.30, ahead of its upcoming earnings report on Monday.<\/p>\n\n\n\n

The big four banks<\/a><\/strong> also extended their declines. Commonwealth Bank (CBA) <\/strong>lost 2.57%, closing at $151.73, while ANZ <\/strong>fell 1.43% to $28.79. NAB<\/strong> dipped slightly, down 0.085% to $35.08, and Westpac<\/strong> declined 0.60% to $31.03.<\/p>\n\n\n\n

Reporting Season Volatility<\/h2>\n\n\n\n

Despite the continued market downturn, AMP<\/a> chief economist Shane Oliver<\/strong> noted that more companies have exceeded earnings expectations than fallen short. <\/p>\n\n\n\n

\u201cWhile the reporting season started off strongly, results over the last week were softer, with disappointing bank results and falling earnings and dividend cuts for resource companies,\u201d Dr Oliver said.<\/p>\n\n\n\n

He pointed out that increased market sensitivity has led to heightened share price volatility<\/strong>, with individual stocks experiencing swings of more than 9% on average<\/strong> on their earnings release day.<\/p>\n\n\n\n

Guzman Y Gomez Leads Biggest Market Declines<\/h2>\n\n\n\n

The worst-performing stock on Friday was Guzman y Gomez<\/a><\/strong>, which plunged 14.24%<\/strong> to $38.58<\/strong>. The Mexican food chain reported strong same-store sales growth in Australia, but issued a cautious outlook for its US operations, where sales fell 12.7%<\/strong> to $4.9 million<\/strong>.<\/p>\n\n\n\n

Despite the positive performance in Australia<\/strong>, where same-store sales increased 9.4%<\/strong> to $573 million<\/strong>, the company struggled in other markets. Singapore sales<\/strong> rose 35.7%<\/strong> to $30.2 million<\/strong>, while Japanese sales<\/strong> increased 8.6%<\/strong> to $4.6 million<\/strong>.<\/p>\n\n\n\n

However, the underlying EBITDA<\/strong> loss in the US widened 62% to $5 million. Co-chief executive Steven Marks attributed the Australian growth to the company\u2019s delivery channel, marketing strategy, and demand for value menu items, including the $12 Chicken Mini Meal.<\/p>\n\n\n\n

Other Major Stock Movements<\/h2>\n\n\n\n

Jumbo Interactive<\/a><\/strong>, a lottery operator, fell 8.78%<\/strong> to $11.95<\/strong> after reporting lower earnings for the first half, citing a subdued jackpot environment<\/strong>. <\/p>\n\n\n\n

Block Inc (Afterpay\u2019s owner) <\/strong>also struggled, declining 5.87% to $124.08, despite reporting an 18% year-on-year increase in gross profit.<\/p>\n\n\n\n

The company\u2019s net revenue<\/strong> rose 4%<\/strong> to $6.032 billion USD<\/strong>, boosted by Cash App Bitcoin transactions<\/strong>.<\/p>\n\n\n\n

Nine Entertainment and Domain Group Surge<\/h2>\n\n\n\n

While the broader market struggled, Nine Entertainment<\/strong> was the best-performing stock<\/strong> on the ASX 200<\/strong>, soaring 20.13%<\/strong> to $1.73<\/strong>. The surge followed reports that US online real estate firm CoStar<\/strong> is looking to acquire Domain Group<\/strong> for $2.65 billion<\/strong>. <\/p>\n\n\n\n

Domain\u2019s shares<\/strong> surged 40%<\/strong> to $4.37<\/strong> following the announcement. However, competitors reacted negatively to the news, with REA Group<\/strong> losing 11.35%<\/strong> to $236.18<\/strong>, and News Corporation<\/strong> also declining.<\/p>\n","protected":false},"excerpt":{"rendered":"

The ASX 200 extends its losing streak, dragged down by financial and consumer stocks. Investors react sharply to earnings surprises\u2014what’s driving the market downturn?<\/p>\n","protected":false},"author":9,"featured_media":101629,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,28],"tags":[],"class_list":["post-101628","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-market-stock","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/101628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=101628"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/101628\/revisions"}],"predecessor-version":[{"id":101635,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/101628\/revisions\/101635"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/101629"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=101628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=101628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=101628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}