The S&P/ASX 200 (ASX: XJO) fell 0.2% on Wednesday, the third straight lower close.
The selling pressure once again turned to the iron ore sector, but primarily the most leveraged, with materials down 1.1% but the likes of Mineral Resources Limited (ASX: MIN) and Fortescue Metals Group Limited (ASX: FMG) falling 4.6% and 5.3%, respectively.
Nine of the 11 main sectors were actually positive, suggesting some divergence in performance and expectations with the real estate sector adding 1.6% as Vicinity Centres (ASX: VCX) was 3.0% higher.
Bank of Queensland share price hit on revenue
BOQ shares fell 4.3% despite reporting an 83% increase in cash earnings to $412 million and a tripling of profit to $369 million. Net interest margin also improved, albeit only slightly, with the dividend hitting 22 cents.
The group continues to grow its loan book above the broader industry, at 9% compared to 6%, but traders were clearly worried about the blowout in costs from $600 million to $645 million.
Challenger stakes claim
Assets under management increased 3% on the back of strong life annuity sales which grew 32% to $2.1 billion.
Assets under management are now $108 billion with strong momentum across every part of the business, according to the CEO.
Institutional demand remains strong following the release of the Retirement Income Covenant whilst the group now has excess capital that can be used to shield from unexpected volatility.
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Bubs & a2 Milk shares rocket
Goat milk formula marketing group Bubs Australia Ltd (ASX: BUB) was a standout on Wednesday, soaring 39% in a single session after reporting a turnaround in the first quarter following a near shutdown in 2020 as border closures hit.
Revenue was 45% higher to $18.5 million. Market share gains and scan sales growth were 35% higher, with the Daigou sales up over 6 times last year’s levels.
ASX 200 today
The ASX 200 is set to open higher on Thursday as US markets snapped a three-day losing streak overnight. The technology sector led the rebound as Apple (NASDAQ: AAPL) and JPMorgan (NYSE: JPM) shares made headlines. To find out more, check out my US stock market report.