ASX edges higher, new wave lenders drop
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A probe into buy now, pay later providers crushed their share prices on the ASX, while central banks tightening policy complicated the global outlook.
Afterpay dropped seven per cent on Friday after a US watchdog readied a probe into whether pay-by-instalment vendors pose dangers to consumers.
Meanwhile, rival Sezzle shed almost 10 per cent. Zip lost six per cent.
Gains for energy, materials and financial shares barely offset losses in other categories.
ASX technology shares fared worst. The Nasdaq had earlier plunged, perhaps influenced by the US Federal Reserve declaring a more rapid wind-up to its bond-buying.
European central banks tightened monetary policy. The Bank of England became the first major central bank to raise borrowing costs since the pandemic began. The European Central Bank will begin easing stimulus in March.
Yet AMP head of investment strategy Shane Oliver was not worried.
“The upshot is that key central banks are moving towards monetary tightening, but at different speeds,” he said.
Mr Oliver said monetary policy would still be easy next year, just less so than this year.
The benchmark S&P/ASX200 index closed up 8.3 points, or 0.11 per cent, to 7304 points on Friday.
The All Ordinaries closed higher by 7.7 points, or 0.1 per cent, to 7626.2 points.
The market had its fifth week of decline (0.67 per cent) in the past six.
In stock news and moves, National Australia Bank chairman Philip Chronican says he is yet to hear of fines from a watchdog investigating money laundering.
Mr Chronican told an annual general meeting he had not heard of any change to AUSTRAC comments that fines were not part of the probe.
Shares were up 0.28 per cent to $28.83.
The Commonwealth had the biggest gains of the banks. It rose 2.41 per cent to $99.12.
Magellan Financial Group’s woes continued after shares were paused from trading due to a lost contract.
Shares swapped higher by 1.77 per cent to $29.36 before the news.
Chief executive Brett Cairns resigned this month while chair Hamish Douglass refuted speculation he would sell his shares.
Transurban will pay $2.22 billion more for Melbourne’s West Gate Tunnel project after settlement between contractors and the Victorian government.
The dispute was about toxic soil discovered at the digging site.
The project, originally slated to be finished in 2022, has been extended to 2025.
Shares were down almost one per cent to $13.53.
Payments provider EML will defend a shareholder class action about how quickly it relayed information.
Ireland’s central bank earlier this year raised concerns about an EML subsidiary’s anti-money laundering controls.
Shares were down 6.75 per cent to $3.04.
Gold miners did well. Northern Star climbed 5.59 per cent to $9.45. Evolution gained 4.23 per cent to $3.94. Newcrest Mining improved by 3.73 per cent to $23.65.
Among the larger miners, BHP added 1.82 per cent to $41.40. Fortescue gained about one per cent to $18.98. Rio Tinto was even at $98.00.
Oil Search will disappear from the ASX after its $21 billion merger with Santos took effect.
Oil Search shares have been suspended from trading since Friday of last week.
In the latest trading day, Santos climbed 0.63 per cent to $6.42.
Sonic Healthcare bought a US pathology provider which will help its laboratory business.
However Sonic said the amount paid for Texas-based ProPath was not material and did not reveal the sum.
Shares were down 2.44 per cent to $43.15.
The Australian dollar was buying 71.73 US cents at 1727 AEDT, higher from 71.56 US cents at Thursday’s close.
ON THE ASX
* The benchmark S&P/ASX200 index closed up 8.3 points, or 0.11 per cent, to 7304 points on Friday.
* The All Ordinaries closed higher by 7.7 points, or 0.1 per cent, to 7626.2 points.
* At 1727 AEDT, the SPI200 futures index was higher by five points, or 0.07 per cent, to 7212 points.
CURRENCY SNAPSHOT
One Australian dollar buys:
* 71.73 US cents, from 71.56 cents on Thursday
* 81.44 Japanese yen, from 81.76 yen
* 63.27 Euro cents, from 63.43 cents
* 53.83 British pence, from 54.04 pence
* 105.77 NZ cents, from 105.75 cents.
