CBA down; Baby Bunting drives retail slump, JB Hi-Fi and Harvey Norman decline

Selling in Australian shares accelerated on Thursday as investors worried about the impact of the rising cost of living on retail sales and banks’ loan books.

The reference point S&The P/ASX 200 ended the day down 1.1 per cent, or 82.9 points, to 7721.6, as six of the 11 industry groups fell.

The worst performing sector on the ASX was consumer discretionary. It slumped 2.6 percent after a series of weak trading updates from clothing and home goods retailers spooked investors.

‘Clear evidence’

“We believe there is clear evidence emerging of weakening trading in the discretionary (retail) sector… This is consistent with the Westpac data,” broker Jarden told investors.

The hardest hit retailer was Baby Bunting, which plunged 23.4 percent to $1.46 a share after it lowered its pro forma profit guidance to between $2 million and $4 million in the 2024 financial year. in the same stores of the strollers and baby clothing group they fell 7.4 percent. during the year until April 30.

“The trend of improving comparable store sales seen in the period to February has softened in the last two trading months, reflecting the continued cost of living pressures being experienced by new parents with young families,” it warned. Baby Bunting to the market.

Actions in JB Hi-Fi fell 4.5 per cent to $57.25 after the retail darling posted flat sales in the March quarter. Elsewhere, Super retailerl – the group behind Rebel Sports; Super cheap car; and Boating, Camping, Fishing – fell 5.5 percent in its March quarter sales update.

This week, the Australian Bureau of Statistics also noted that retail sales fell for the fifth time in six quarters from the March quarter, as investors dumped home goods retailers on Thursday. Harvey Norman lost 3.8 percent to $4.26 and Nick Scali fell 4.5 percent to $14.71.

Banks, Westfield

The financial sector dominated by the big four banks lost 1.7 per cent after Commonwealth Bank fell 2.2 per cent to $117.09 as its cash profits fell 5 per cent in the March quarter Compared to the same period of the previous year.

Home loan volumes grew 3.1 per cent in the March quarter compared to the December quarter, and it also reported that non-performing loans gradually increased across the consumer sector.

“We expect the result to be well received by the market from a fundamental perspective, although valuation remains very difficult from our perspective,” said broker Citi.

Westpac The shares fell 5.6 percent to $26.32 after losing the right to an interim dividend of 90 cents per share.

junior lender judo bench fell 0.4 percent after sticking to its guidance but warning that provisions for bad debts had increased in the March quarter.

Elsewhere, Westfield operator scent said it would shoulder rising operating costs as a result of the Westfield Bondi murders. He said he had increased security at the mall. Shares finished down 1.9 percent at $3.16.

Meanwhile, the explosives company orica firmed 0.6 percent to $18.40 after a 10 percent rise in gains over the six months to March 31.