Closing Bell: ASX feels the pinch as investors make bank on CBA shares
ASX falls from near all-time highs as sell down bites
Weakness in utilities and major resource stocks undercuts resistance
CBA leads sell down
Commonwealth Bank (ASX:CBA) lifted net profits 7% to $10.13 billion, cash profit 4% to $10.25 billion and net interest margin (the gap between interest paid and interest received) increased 0.09% to 2.08%.
Australia's favourite bank to splash money at is even offering a total yearly fully franked dividend of $4.85 per share.
Apparently, that's just not enough.
CBA's shares fell 5.1% today, sliding to $169 per share by the end of trade.
Unfortunately for the broader market, Commonwealth Bank is currently our biggest stock by value. It's worth about 12% of the total share market.
The ASX 200 consequently shed 0.61% or 53 points, now 0.71% below our all-time high.
Even though si of 11 sectors moved higher today, CBA's losses meant the broader ASX finished in the red.
Analysts are pointing to the bank's oversized valuation compared to earnings potential (30-times) and some early warning signs of retail banking weakness as the main culprits.
Most Aussie stocks carry a price-to-earnings ratio of about 20-times, with our major banks averaging closer to 15-times. No wonder CBA's mammoth ratio is raising some eyebrows.
'We think the market might be disappointed around guidance for FY26 and the lack of signs of acceleration in the key retail segment,' UBS analyst John Storey said.
With the ASX reaching all-time highs over the last couple of days, and UBS maintaining a 'sell' rating at a price target of $120, conditions are ripe for some profit taking.
The other banks didn't fare particularly well either. National Australia Bank (ASX:NAB) fell 2.6%, Westpac (ASX:WBC) 2.1% and QBE Insurance (ASX:QBE) 1.5%.
Energy and resource companies drag
CBA isn't the only culprit of today's weakness, of course.
AGL Energy (ASX:AGL) is also dragging utilities lower, shedding 13% after its profits fell 21%.
The electricity and gas supplier is pivoting into batteries, citing falling profits in the hydrocarbon-based energy sectors. Investors appear unconvinced.
While the greater materials sector moved higher today, two of its heavyweights also fell on the wrong side of the balance sheet.
Pilbara Minerals (ASX:PLS) slid 6.5% and Mineral Resources (ASX:MIN) 4.6%, neglecting to offer the market any support.
Now, let's take a look at which stocks did manage some upward momentum despite the sell down.
ASX Leaders
Today's best performing stocks (including small caps):
Code Name Last % Change Volume Market Cap
SFG Seafarms Group Ltd 0.002 100% 4509571 $4,836,599
OD6 Od6Metalsltd 0.068 94% 17549697 $5,616,378
BIT Biotron Limited 0.004 60% 19931164 $3,318,115
BMM Bayanminingandmin 0.13 51% 6993476 $9,391,665
BUY Bounty Oil & Gas NL 0.003 50% 203786 $3,122,944
AVE Avecho Biotech Ltd 0.007 40% 24342972 $15,867,318
CYQ Cycliq Group Ltd 0.007 40% 4050928 $2,302,583
CHM Chimeric Therapeutic 0.004 33% 5329334 $9,763,676
JAY Jayride Group 0.004 33% 762596 $4,283,667
RGL Riversgold 0.004 33% 1399329 $5,051,138
1TT Thrive Tribe Tech 0.009 29% 8359117 $711,105
SPL Starpharma Holdings 0.145 26% 1936112 $48,095,850
LIO Lion Energy Limited 0.015 25% 1563384 $5,426,013
THB Thunderbird Resource 0.015 25% 4046244 $4,676,897
THR Thor Energy PLC 0.01 25% 847068 $5,863,919
VEN Vintage Energy 0.005 25% 1075795 $8,347,655
FUL Fulcrum Lithium 0.062 24% 144944 $3,775,000
BCK Brockman Mining Ltd 0.022 22% 778498 $167,044,178
OEC Orbital Corp Limited 0.33 22% 3590728 $44,490,524
G11 G11 Resources Ltd 0.017 21% 3652235 $13,532,710
AXE Archer Materials 0.34 21% 1233874 $71,357,164
CP8 Canphosphateltd 0.08 21% 344036 $20,246,195
CRI Critica Ltd 0.018 20% 39857308 $40,472,732
STN Saturn Metals 0.45 20% 1417716 $172,522,583
JAV Javelin Minerals Ltd 0.003 20% 238288 $15,630,562
In the news…
OD6 Metals (ASX:OD6) is celebrating the production of a mixed rare earth carbonate product of about 56% total rare earth oxides and a mixed rare earth hydroxide product of 59% TREO using feedstock from the Splinter Rock project.
Management says the results are a major milestone for the project, demonstrating a simplified and scalable heap leach flow sheet process is suitable for producing high-quality, low-impurity rare earth products.
Bayan Mining and Minerals (ASX:BMM) had to stave off an ASX price query as its shares jumped today, swiftly releasing a project update for its rare earth, gold and lithium assets.
BMM's share price is likely benefiting from increasing interest in US-based rare earth projects like its own Desert Star Project in California's Mojave Desert. The company is awaiting results from 65 rock chips and 30 heavy mineral concentrate samples from its latest field work there.
Thor Energy (ASX:THR) has offloaded a 75% interest in its US non-core uranium and vanadium projects in return for cash and shares in a deal with Metals One PLC.
THR is set to bank £100,000 in cash alongside £1 million in Metals One shares, with a 12-month exclusive option for Metals One to purchase the remaining 25% interest at a price to be agreed upon at a later date.
G11 Resources (ASX:G11) is looking to buy several copper and gold projects through the acquisition of privately owned company Pacific State Metals (Holdings) Pty Ltd.
G11 is awaiting shareholder approval for a share sale agreement that would see it acquire the Sedgwick Bluff copper-gold, Packsaddle gold-copper, and NW Cobar copper projects.
ASX Laggards
Today's worst performing stocks (including small caps):
Code Name Last % Change Volume Market Cap
GGE Grand Gulf Energy 0.001 -50% 31455 $5,640,850
BEL Bentley Capital Ltd 0.015 -42% 4318593 $1,979,326
DTM Dart Mining NL 0.002 -33% 21263802 $3,594,167
PRM Prominence Energy 0.002 -33% 255120 $1,459,411
SKK Stakk Limited 0.005 -29% 8192 $14,525,558
AQX Alice Queen Ltd 0.003 -25% 151531 $5,538,785
AYT Austin Metals Ltd 0.003 -25% 4674800 $6,336,765
MRQ Mrg Metals Limited 0.003 -25% 691143 $10,906,075
AQC Auspaccoal Ltd 0.008 -20% 7558757 $7,004,676
ARV Artemis Resources 0.004 -20% 350432 $14,328,361
OSX Osteopore Limited 0.008 -20% 8341781 $2,372,600
TMX Terrain Minerals 0.002 -20% 1446699 $6,329,536
VRC Volt Resources Ltd 0.004 -20% 27625 $23,424,247
OZM Ozaurum Resources 0.062 -17% 2193670 $17,182,640
SRK Strike Resources 0.029 -17% 150000 $9,931,250
EVE EVE Health Group Ltd 0.03 -17% 115684 $8,863,557
IXC Invex Ther 0.075 -17% 1332 $6,763,846
1AD Adalta Limited 0.0025 -17% 2078341 $3,463,949
FBR FBR Ltd 0.005 -17% 2494829 $34,136,713
GLL Galilee Energy Ltd 0.01 -17% 300000 $8,486,315
MRD Mount Ridley Mines 0.0025 -17% 323599 $2,335,467
SPQ Superior Resources 0.005 -17% 7554456 $14,225,896
TMK TMK Energy Limited 0.0025 -17% 12258062 $30,667,149
BVS Bravura Solution Ltd 2.02 -17% 13434796 $1,085,016,685
FNX Finexia Financialgrp 0.17 -15% 145035 $12,460,793
In Case You Missed It
Petratherm (ASX:PTR) has appointed a head of project development to advance technical studies at the Rosewood titanium project in SA.
To drive the next phase of exploration, Waratah Minerals (ASX:WTM) has raised $30m in a placement, targeting extensive drilling at its emerging Spur gold-copper discovery.
Perpetual Resources' (ASX:PEC) drilling at the Igrejinha project in Brazil's Lithium Valley indicates the mineralised strike at the SE anomaly may extend to more than 300m.
Locksley Resources (ASX:LKY/ OTCQB: LKYRF) is preparing for extensive mapping later this month at Mojave, adjacent to the only producing rare earths mine in the US.
Antipa Minerals (ASX:AZY) has appointed industry veteran Neil Warburton as a non-executive director to its board.
Kingsland Minerals' (ASX:KNG) metallurgical test work at the Leliyn asset has made a significant breakthrough in identifying the potential to produce a gallium by-product.
DigitalX (ASX:DCC) has unveiled an ambitious plan to expand its Bitcoin holdings from approximately 500 BTC to 2,100 BTC by the end of 2027.
Childcare's evolution: Inside the education shift reshaping Australia's $15 billion early learning sector.
Last Orders
Albion Resources (ASX:ALB) has been issued the equivalent of $1.4m in Capricorn Metals (ASX:CMM) shares under a binding agreement for the sale of the Mongers Lake project in WA, bringing total consideration received to $1.5m.
There's potential for another $1.5m in additional payments should CMM field a JORC mineral resource of more than 75koz and initiate a standalone mining operation on the project.
Trading Halts
Adelong Gold (ASX:ADG) – Challenger Gold Mine JV dispute
Bayan Mining and Minerals – price query
EPX Limited (ASX:EPX) – cap raise
Falcon Metals (ASX:FAL) – cap raise
Siren Gold (ASX:SNG) – cap raise
Somerset Minerals (ASX:SMM) – cap raise
At Stockhead, we tell it like it is. While OD6 Metals and Albion Resources are Stockhead advertisers, they did not sponsor this article.
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