ASX inches lower as Wesfarmers dips; GQG sinks after Adani charged

In a choppy session, Australian shares inched lower on Thursday as investors struggled for direction following a mixed earnings report from the world’s largest listed company.

The S&P/ASX 200 closed largely unchanged, just 3.3 points lower at 8323 points. Shares had opened as much as 0.4 per cent higher but lost those gains shortly before midday.

A 1.4 per cent fall in Wesfarmers to $69.67 weighed on the index, pulling consumer discretionary stocks 0.8 per cent lower – the worst-performing of the ASX’s 11 sectors. The Bunnings owner was downgraded to a sell rating by analysts at Jarden.

US markets were similarly mixed overnight on Wednesday leading into the latest quarterly report from semiconductor giant Nvidia, which was released after US markets closed. The Dow Jones ended 0.3 per cent higher, the S&P 500 recovered early losses to end flat, and the Nasdaq inched 0.1 per cent lower.

Nvidia was 2.5 per cent down in after-hours trading despite its quarterly earnings result exceeding most forecasts. The stock has rallied more than 200 per cent since the start of the year and is seen as a bellwether for the emerging demand for artificial intelligence technology.

“While its results were largely in line with expectations, Nvidia’s fall in share price in post markets’ trading suggests investors were hoping for more ‘shoot the lights out’ numbers consistent with previous earnings,” said VanEck deputy head of investments Jamie Hannah.

The ASX tech sector closed 0.1 per cent higher following that result, having spent much of the session in the red.

Meanwhile, bitcoin topped $US97,000 for the first time, extending a rally in digital assets since the election of Donald Trump, who is seen as friendly to cryptocurrency policy.

Stocks in focus

Disgraced billionaire Chris Ellison fronted Mineral Resources shareholders at its annual meeting in Perth on Thursday for the first time since a series of scandals surrounding Mr Ellison’s conduct surfaced. The miner suffered a sizable protest vote against its remuneration report. Shares dipped 2.5 per cent to $33.84.

ASX-listed investment firm GQG Partners sank 19.3 per cent to $2.13. The Florida-based asset manager placed its large stake in Adani Group companies under review after US prosecutors charged Adani chairman Gautam Adani with helping drive a $250 million bribery scheme.

Accent Group fell 11.1 per cent to $2.25 after warning its gross margins were coming under pressure as retailers place heavy discounts on products to tempt back shoppers.

Web Travel Group, spun out from Webjet earlier this year, amended its previous financial reporting following questions from its auditor. The company said the changed were immaterial. Shares slipped 4.2 per cent to $4.31.

Amcor bounced 3.3 per cent to $16.02 after falling in the previous session on news of its proposed $13 billion buy-out of New York-listed packaging business Berry Group.

Pinnacle Investment Management rose 3.2 per cent to a record close $22.12. The wealth manager wrapped a $400 million cash raise to fund the purchase of strategic stakes in offshore fund managers VSS Capital and Pacific Asset Management.

IDP Education fell 4.1 per cent to $12.63. Major investors Bennelong Funds Management revealed late on Wednesday that it had sold down its stake in the international education services provider.