ASX 200 weekly wrap: CSL, Domain, BHP, AMP & NAB shares on the move

The Australian share market ended last week flat, with gains across the energy and mining-related sectors helping offset losses among the heavyweight health care stocks.
ASX 200 - health sector led slump
Health sector stock and biotechnology company CSL closed lower last week. Source: Matej Kastelic (Shutterstock)

The benchmark S&P/ASX 200 finished the week 0.08% lower at 6,066 points, while the broader All Ordinaries index rose 0.21% to 6,149 points.

Canstar General Manager of Wealth Josh Callaghan said despite the market finishing flat for the week, there was a lot of movement in individual stocks as investors reacted to week two of the mid-year reporting season.

The health sector led the slump, down 3.03%, while the smaller energy sector made the biggest gains by far (+5%) followed by materials (2.91%).

Reflecting health sector losses, biotechnology company CSL experienced one of the biggest losses to its market value, shedding more than $4.3 billion.

Shares in CSL dropped more than 4% on Wednesday after the company announced its half year results for 2019, despite recording a solid $1.7 billion profit.

CSL shareholder Argo Investments’ Jason Beddow said the biotech company had a history of beating market expectations, but may not have beat them enough this time.

Mr Callaghan said the growth expectations around CSL were high which means some investors may have been expecting an upgrade in full-year profit guidance, which did not materialise.

Materials sector stocks Northern Star Resources, BHP Billiton and South32 finished in the green last week, with BHP leading market value gains by adding more than $3.3 billion.

Energy sector stock Beach Energy was up 15.3% at the close and Woodside Petroleum’s share price gained 5.6%.

ASX 200 Listed Companies – Top 5 Biggest Market Cap Gains and Losses  (08/02/2019 to 15/02/2019)
Biggest Gains Biggest Losses
Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price
1 BHP Group (BHP) $3,358,270,589 $36.47 3.2% 1 Commonwealth Bank of Australia (CBA) -$6,974,743,657 $70.81 -5.3%
2 Woodside Petroleum (WPL) $1,797,410,974 $36.06 5.6% 2 CSL Limited (CSL) -$4,316,752,171 $185.00 -4.9%
3 Goodman Group (GMG) $1,469,244,416 $12.84 6.7% 3 Westpac Banking Corporation (WBC) -$1,896,164,062 $26.24 -2.1%
4 Macquarie Group (MQG) $902,014,255 $124.22 2.2% 4 National Australia Bank (NAB) -$1,472,047,272 $24.22 -2.1%
5 SOUTH32 Ltd (S32) $858,749,787 $3.81 4.7% 5 AMP Limited (AMP) -$763,731,368 $2.18 -10.7%
Prepared by Canstar. Prices taken as of week to week close.

Investors in real estate website Domain took its price higher to top share price gains last week, despite the company reporting a net loss of $156.4 million at its half year results announced on Friday.

Domain attributed the write-down to lower-than-expected listings in the Sydney and Melbourne housing markets.

“Despite reporting losses, its interim results seemed to please the market and were in line with expectations which relieved some downward pressure on Domain’s price,” Mr Callaghan said.

He said Domain’s share price had been beaten down somewhat after softer listing numbers were reported by its main competitor REA.

ASX 200 Listed Companies – Top 5 Biggest Share Price Gains and Losses (08/02/2019 to 15/02/2019)
Biggest Gains Biggest Losses
Rank Company Closing Share Price % Change Rank Company Closing Share Price % Change
1 Domain Holdings Australia (DHG) $2.53 22.2% 1 Pact Group Holdings (PGH) $3.04 -22.8%
2 Breville Group (BRG) $14.00 21.7% 2 Bendigo and Adelaide Bank (BEN) $9.87 -11.5%
3 Northern Star Resources (NST) $9.76 15.5% 3 Spark Infrastructure Group (SKI) $2.24 -10.8%
4 Beach Energy (BPT) $1.89 15.3% 4 AMP Limited (AMP) $2.18 -10.7%
5 Cleanaway Waste Management (CWY) $2.15 14.4% 5 Orocobre Limited (ORE) $3.03 -9.0%
Prepared by Canstar. Prices taken as of week to week close.

Three of Australia’s major banks finished in the red last week, along with wealth management firm AMP.

AMP’s share price closed 10.7% lower to $2.18 and the business saw more than $7 million wiped from its market value.

Mr Callaghan said AMP’s shares took a tumble after reporting a $28 million profit which was down from $848 million the year prior and below market expectations.

“As prices, profits and dividends fall, it may become increasingly difficult for some investors to justify holding the stock which may mean there is more selling to come,” he said.

He said shares in Commonwealth Bank went ex-dividend last week, causing a drop in share price as dividend harvesters sold out their positions.

National Australia Bank saw more than $1.4 billion wiped from its market value last week.

A Roy Morgan research report claimed NAB was the biggest loser from the banking royal commission.

According to the research house, the number of Australians distrusting NAB increased from 36.9% in January to 53.7%  in the immediate wake of the royal commission’s report released earlier this month.

Bendigo and Adelaide Bank saw its share price drop 11.5% last week after announcing a 12% drop in profit at its half year results.

Mr Callaghan said this result failed to meet analyst expectations, adding to the downward price pressure.

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