The S&P/ASX 200 (ASX: XJO) finished 0.7% lower on Wednesday, with market behemoth Commonwealth Bank of Australia (ASX: CBA) dropping over 8% and dragging the financial sector down 2.7% along with it.
Most other sectors were higher, led by the IT and communications sector which gained over 1% each.
CBA share price tumbles
CBA shares fell below $100 for the first time in months after delivering a solid first-quarter update but highlighting growing cost pressures.
The company saw profit increase 20% for the quarter to $2.2 billion on the back of loans remaining above banking system growth levels.
That said, analysts were clearly concerned about comments around the fall in the net interest margin amid growing home loan competition and more borrowers switching to lower margin fixed-rate loans.
The bank remains the standout in Australia but the report is evidencing the growing pressures facing the sector as the cost of capital increases and competition from fintechs grow.
CBA share price chart
Meanwhile, on a macroeconomic level, the Australian Dollar fell heavily after the RBA’s comments on wage growth were vindicated with weaker than expected growth of just 2.2% in the quarter.
Seven benefits from market share
Seven Group Holdings Ltd (ASX: SVW) shares gained close to 2% after management confirmed earnings for 2022 will be between 7-10% above consensus forecasts of $260 million.
The group has benefitted from growing its free to air market share to around 40% and sees continuing improvement in advertising spend as a result.
SEEK job ad records
SEEK Ltd (ASX: SEK) fell 1.3% despite indicating profit will be at the upper end of its $425-450 million forecast range, with revenue expected to near $1 billion for the full year.
The company highlighted strong job advertisement volumes as being central to the upgrade. However, the question remains whether there are enough workers willing and ready to take them or if this is a short-term surge in openings.
Plenti lending doubles
Shares in renewable energy and vehicle lender Plenti Group Ltd (ASX: PLT) fell by more than 4% despite announcing a record half year for revenue, which jumped 43% to $37 million.
The company has seen its loan book double in the last 12 months to $915 million with originals nearly tripling, up 183% over the same period.
ASX 200 today
Looking ahead, the ASX 200 is expected to open flat on Thursday despite all three US benchmarks finishing in the red overnight. To find out more, check out my US stock market report.
