It was a disappointing hump day for the local market, with the benchmark S&P/ASX 200 (ASX: XJO) index finishing 0.68% lower to 7,369 points.
Despite the lacklustre performance, the trading session was loaded with ASX news as several companies hosted annual general meetings (AGMs) and unveiled trading updates.
Let’s dive into all the ASX action from Wednesday 17 November.
CBA disappoints, loses $15 billion in value
Australia’s largest company, Commonwealth Bank of Australia (ASX: CBA) fell 8% after the business provided a lacklustre first-quarter update.
Margins are being squeezed by intense competition, impacting revenue and subsequently, profits.
CBA share price
As a result, investors heavily sold off the bank to the tune of $15 billion in equity value.
To put the fall into context, CBA lost the equity value equal to the 33rd largest company in the ASX, Ramsay Health Care Limited (ASX: RHC).
Battle for Link heats up
Link Administration Holdings Ltd (ASX: LNK) today announced it had granted due diligence to a second takeover candidate.
Pepper European Servicing Limited (PES) is only interested in Link’s Banking and Credit Management (BCM) division, however, signals strong interest by private buyers.
The other takeover candidate, Carlyle Group, also sees value in the sum of the parts of Link.
Its offer plans to spin-off Link’s 42% holding in digital property settlement platform PEXA Group Ltd (ASX: PXA).
Customers splash big as restrictions ease
Plus-size retailer City Chic Collective Ltd (ASX: CCX) saw its share price jump nearly 6% today after the business provided a positive trading update.
“We have achieved strong total revenue growth and comparable sales growth so far in FY22”.
The retailer’s latest acquisition Avenue in the United States is tracking nicely.
Moreover, the reopening across New South Wales and Victoria will boost sales going into the crucial holiday spending season.
Telcos on the rise
The share prices of Australian fibre builder Uniti Group Ltd (ASX: UWL) and nbn reseller Aussie Broadband Ltd (ASX: ABB) rocketed 8.3% and 7.3%, respectively.
Uniti confirmed it will meet and potentially exceed analysts forecasts of $144.5 million in underlying EBITDA for FY22. Key performance indicators came in ahead of internal budgets and the business will potentially buy back up to 10% of its shares.
Meanwhile, Aussie Broadband shares gained on no notable news.
No Europe, no worries
The EML Payments Ltd (ASX: EML) share price increased 4% today after the embattled payments facilitator delivered a positive AGM update.
The EML share price has sunk 50% from its high in April after the Central Bank of Ireland (CBI) launched an investigation into European activities.
However, the business achieved growth across its three divisions in 1Q22 despite the inability to gain any new projects from its European business (which accounts for ~30% of revenue).
“We are obviously very disappointed with the large drop in our share price related to the CBI matter. In our view, the present valuation significantly understates the fundamental value and the upside potential of EML”.
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