Hello everyone! Good morning. This is Holly live from Kalkine Studio in Sydney.
And you’re watching the Early Trades. Let’s, get started with our market open report.
The S&P/ASX 200 fell 0.3 per cent in the opening minutes of trade with tech stocks plummeting 4.7
per cent. In 30 mins to the opening trade, Appen was down 5.56 percent and Polynovo was down
5.36 percent. Over the last five days, the index has gained 3.12 percent, but was down 5.28 percent
for the last year to date. Shares in Block’s ASX listing fell 8.7 per cent in the opening minutes
of trade to the lowest level on a closing price basis since the company was formally added to the
local market last month following the takeover of Afterpay. Computershare stock also fell,
declining 2.2 per cent in the opening minutes of the session after a strong day on Wednesday.
Let us look at the crucial announcements from ASX listed companies in detail.
Aristocrat Leisure’s proposed acquisition of Playtech has fallen through, with the deal not
expected to garner enough votes from shareholders to proceed. Aristocrat notes that Playtech has
issued a release announcing the voting results of the Playtech shareholder meetings held on 2
February 2022 for the purposes of considering the acquisition. As the votes cast in favour
fell short of the 75 percent threshold required to implement the acquisition.
Aristocrat made an AU$3.9 billion bid for Playtech in October, which was
backed by the board and at least 20 per cent of shareholders.
Westpac today announced an unaudited statutory net profit of $1.82 billion for the quarter ended 31
December 2021 up 80 percent on the quarterly average for the second half of 2021. The 1 percent
rise in the first quarter of 2022 cash earnings relative to the second half of 2021 quarterly
average primarily reflects lower expenses, and a strong contribution from Treasury and Markets.
The rise was partly offset by lower net interest margins, a turnaround
in impairment charges and the absence of revenue from businesses sold, particularly insurance.
Nufarm said in a presentation to be made to shareholders today that its revenue for the
December quarter jumped 36 per cent. It was supported by favourable weather conditions,
particularly in Australia and the continuation of strong customer demand in all regions for
Nufarm’s crop protection and seed products. While agricultural conditions and the outlook
for soft commodity prices remain favourable, Nufarm expects earnings in financial year 2022
will be heavily weighted to the first half of the financial year. They are
although confident of revenue and earnings growth for the full 2022 financial year.
Furniture retailer Nick Scali today reported its results for the half-year ended 31 December 2021,
with underlying EBIT of $55.1 million and an underlying net profit after tax of $35.6 million.
After a turbulent six months, the croup had to close
over 55% of the store network whilst managing widespread disruption to its supply chain.
Nick Scali’s profit fell by 6.6% compared to the prior corresponding period in 2021.
This morning, Nick Scali directors declared a fully franked interim dividend of 35 cents per
share, with a record date of the 7 March 2022 and a payment date of 28 March 2022.
This represents a payout ratio of 85 percent.
Emeco Holding announced that its first half operating earnings is within its guidance range,
giving the company the confidence to formalise its full year guidance.
Emeco advises first half of 2021 Operating EBITDA of $122 million which is within the
range of $120-125 million provided at the company’s AGM on 18 November 2021.
The board however notes that the ongoing impact of impact of tighter labour markets
and absenteeism as a result of COVID-19 will continue to be managed carefully.
Well, that’s all for now on the early trades! Stay
tuned to Kalkine TV, as we have many more shows lined up for you for sharing live
updates across the economy, markets, and sectors. This is Holly signing off!