News that Beijing was set to follow Shanghai into massive lockdowns to avert the threat of Omicron sent global share markets into shockwave in this shortened week.
The S&P/ASX 200 (ASX: XJO) fell another 2.1% with every sector lower, led by the materials and energy sectors which fell 5.1% and 4%, respectively.
Materials & energy slump
The drivers were a significant fall in the iron ore price, down 10%, on concerns of a slowdown in Chinese steel mills, and a pause in demand for oil amid lockdowns.
The losses were widespread with popular battery plays Mineral Resources Limited (ASX: MIN), Lynas Rare Earths Ltd (ASX: LYC) and Iluka Resources Limited (ASX: ILU) down 10%, 5% and 7%, respectively.
Those companies unlucky enough to be reporting were Woodside Petroleum Limited (ASX: WPL) and South32 Ltd (ASX: S32), with the former reporting a 17% fall in sales revenue in the first quarter despite further increases in oil and gas prices.
Production fell by 1% but management continue to expect the tailwind of oil-linked LNG prices to continue into the final quarter of the year.
On a sector basis, the industrials and real estate sectors both ‘outperformed’ on the day, delivering a return of 0.7% with Boral Limited (ASX: BLD) a standout, up 1.4%.
EML Payments share price crunched
Prepaid card and payments provider EML Payments Ltd (ASX: EML) picked the worst possible day for an earnings downgrade, with shares falling 38% after management reduced its earnings expectations by just 8%.
Management confirmed that the Australian and US businesses were performing well, but that execution issues in Europe were impacting on the launch of its planned new programs.
The top range of revenue guidance was cut from $250 million to $235 million, with profit cut by another 10%.
South32 flags higher costs
South32 fell another 7.8%, among the worst on the market, despite maintaining production guidance.
Investors are concerned about the warning around higher costs and lower profits due to unfavourable currency movements, higher raw material costs and increasing royalty payments.
Airtasker share price soars
Shares in outsourcing platform Airtasker Ltd (ASX: ART) gained more than 16% after the company reported a 25% jump in volume on its marketplace on the back of a surge in job ads for mould and waterproofing work.
Nufarm’s supply chain risk
Nufarm Ltd (ASX: NUF) gained 1.9% after confirming its Russian exposure was not material, but writing down $30 million in costs and reiterating earnings guidance of between $320 million and $340 million.
ASX 200 today
Looking ahead, the ASX 200 is set to tumble again this morning after US stock markets suffered another sell-off overnight.
The Dow Jones shed 2.4%, the S&P 500 dropped 2.8% and the tech-heavy Nasdaq sunk nearly 4%. To find out more, check out my US stock market report.
