The S&P/ASX 200 (ASX: XJO) dropped the most in three months on Wednesday, finishing down 1.9% as a multitude of pressures hit the market.
The materials and energy sectors both fell by around 3.0%, the former sold off after Chinese representatives flagged their intention to reduce the country’s reliance on Australian iron ore, sending the price of BHP Group Ltd (ASX: BHP) down 3.4% and Fortescue Metals Group Limited (ASX: FMG) down 3.1%.
EML share price dumped
The news of the day, however, was EML Payments Ltd (ASX: EML), a gift card and fintech group, which fell 45.6% in a single session after the Central Bank of Ireland outlined major regulatory concerns.
The issues involve the Prepaid Financial Services business acquired in 2019, once again flagging the difficulties for Australian companies expanding overseas.
2-year EML share price chart
Appen rebounds
On the positive side was Appen Ltd (ASX: APX), which rallied 17.4% after reiterating previous guidance for revenue of US$260 million and earnings between $83 and $90 million.
The group will also be restructuring in an effort to simplify reporting, to be split into four units including Global, Enterprise, China and Government divisions.
Wage growth still anaemic
The latest wage growth data add little to the inflation theme, with wages increasing just 0.6% in the March quarter for a 1.5% annual advance.
Concerns remain around a ‘tight’ labour market with the big driver likely to be when the borders reopen to allow skilled labour to return.
Charter Hall continues to acquire
Property manager Charter Hall Group (ASX: CHC) has capitalised on increasing supply, announcing the purchase of $415 million in new acquisitions including an ATO Building in Box Hill, and Red Cross in NSW.
The group raised $169 million through their Long WALE REIT (ASX: CLW) at a price of $4.65 per share, with another $81 million expected through the retail offer. Charter Hall shares were down slightly for the 6% yielding trust.
United Malt profit tumbles
Spin-off United Malt Group Ltd (ASX: UMG) reported a 30% fall in profit to $13.2 million after revenue collapsed by 11% to $589.6 million.
Management cited higher supply chain and operating costs behind the weakness; United Malt shares finished 1.6% higher.
Webjet hands in full-year results
The pain at Webjet Limited (ASX: WEB) was on clear display as the online travel company handed in its FY21 results, which reflected the company’s new 31 March year end.
Webjet’s 9-month revenue hit just $38.5 million and turned into a loss of $156.6 million, which compares to full-year revenue to June 2020 of $266.9 million. Webjet shares edged higher on the result.
ASX 200 today
Looking ahead, the ASX 200 is expected to open flat according to the latest SPI futures. US markets provide a slightly negative lead, with the S&P 500 finishing 0.3% lower, the Dow Jones down 0.5% and the Nasdaq closing flat. For all the latest, check out Rask Media’s US stock market report.
