The S&P/ASX 200 (ASX: XJO) wasn’t able to capitalise on the strong finish in the US on Friday, continuing to underperform the world’s largest market by falling 0.2% on Monday.
Financials were the biggest detractor, dropping 1.8% with the likes of Commonwealth Bank of Australia (ASX: CBA) and Macquarie Group Ltd (ASX: MQG) falling 2% each.
The rally was squarely in the beaten-down ASX technology and retailing sectors, up 3.7% and 1.3%, with Zip Co Ltd (ASX: Z1P) and Block Inc (ASX: SQ2) jumping 7.5% and 8.1%, respectively.
Ansell tanks on downgrade
But all eyes were on ‘blue chip’ healthcare product supplier Ansell Limited (ASX: ANN), with shares tanking by more than 14% after delivering an earnings downgrade.
Supply chain disruptions and challenging comparables for disposable glove sales were central to the downgrade. Earnings are now expected to be between $1.25 and $1.45 per share, down from $1.75 to $1.95 for the financial year.
Margins are also coming under pressure from higher manufacturing and input costs and broadly weaker demand.
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Origin delivers strong quarter
Shares in Origin Energy Ltd (ASX: ORG) gained 1.6% after the group reported that three shipments were made from its APLNG project, benefitting from the soaring LNG prices available in Asia; five more are expected in the March quarter.
The result was a 33% jump in sales to $2.25 billion, sending first-half revenue up 91% on the previous year and setting the company up for a strong year.
The average LNG price realised surged to US$11.80 MMBTU, still well below the US$28 prices available in North Asia but a near doubling of domestic prices. Production increased by just 2%.
Meanwhile, shares in BHP Group Ltd (ASX: BHP) fell 1.2% despite the iron ore price once again moving above US$150 per tonne as the Chinese are expected to ramp up steel production post the Lunar New Year celebrations.
ARB improves despite car shortage
ARB Corporation Limited (ASX: ARB) has been able to overcome a shortage of new cars to report a 26% increase in sales compared to 2021’s record level, hitting $359 million for the first half.
Profit is expected to be between $90 and $92 million, with improved inventory levels and strong customer orders both contributing. The ARB share price charged nearly 8% higher on the news.
Elsewhere, struggling hedge fund manager VGI Partners (ASX: VGI) is set to merge with small-cap specialist Regal Investment Fund (ASX: RF1).
ASX 200 today
Looking ahead, the ASX 200 is tipped to open higher this morning, following a positive lead from US markets overnight.
All three US benchmarks pushed higher, with the Nasdaq the standout, jumping 3.4%. To find out more, check out my US stock market report.
