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Market Wrap: ASX drops as Spotless Group Holdings Ltd crashes

Credit: Thomas Hawk

The ASX took a breather today following yesterday’s strong gains.

Here’s a quick recap:

  • S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) down 0.1% at 5258 points
  • ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) down 0.1% to 5304 points
  • AUD/USD at US 73.07 cents
  • Iron Ore at US$42.24 a tonne, according to the Metal Bulletin
  • Gold at US$1,068.17 an ounce
  • Brent oil at US$44.21 a barrel

The Australian economy recorded a 0.9% lift in gross domestic product (GDP) during the September quarter which the Reserve Bank’s governor, Glenn Stevens, described as “not a bad outcome.” However, the figures didn’t help to lift the ASX. The local bourse ended the day slightly in the red.

Perhaps surprisingly, all four major banks ended the day in the black. They rose between 0.3% and 1% with Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) being the equal strongest performers.

Telstra Corporation Ltd (ASX: TLS) also lifted 0.6%, but their efforts were offset by falls between Woolworths Limited (ASX: WOW), Rio Tinto Limited (ASX: RIO) and CSL Limited (ASX: CSL). The trio lost 1.6%, 0.8% and 0.7% respectively.

JB Hi-Fi Limited (ASX: JBH) also fell 5%, likely due to speculation that Dick Smith Holdings Ltd (ASX: DSH) could hold something of a fire sale this weekend. Should Dick Smith sell goods for up to 70% off normal prices, JB Hi-Fi could be forced to sacrifice margins as well to maintain market share.

Slater & Gordon Limited (ASX: SGH) was the top performing stock, rising 6.8%. Cardno Limited (ASX: CDD), Spotless Group Holdings Ltd (ASX: SPO) and Metcash Limited (ASX: MTS) on the other hand, fell 43.7%, 39.8% and 7.1%, respectively.

Here are Wednesday’s top stories:

  1. Top stock picks for December
  2. CRASH: Why Spotless Group Holdings Ltd’s share price plunged 42% today
  3. Cardno Limited share price crashes down 46%
  4. What to expect when Santos Ltd shares exit the trading halt
  5. Samarco update: Here’s how much BHP Billiton Limited is being sued for
  6. Collins Foods Ltd share price jumps more than 12%

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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