Plunge in Woolworths’ fortunes dents the Australian share market
A profit warning from supermarket giant Woolworths and its contagious impact on Coles-owner Wesfarmers have weighed on the share market.
Woolworths says its half year profit could plunge by up to 35 per cent on the back of poor food and liquor sales and efforts to compete on price.
The contagion from the “very dismal” trading update spread to Wesfarmers, Phillip Capital senior client adviser Michael Heffernan said. Woolworths plummeted $2.67, or 9.8 per cent, to $24.70 and Wesfarmers dropped $1.81, or 4.3 per cent, to $40.18.
ANZ’s record $7.2 billion annual profit also disappointed the market as it proved weaker than expected, compounding the negative sentiment sparked by National Australia Bank’s underwhelming annual cash profit of $$5.8 billion on Wednesday.
ANZ shed 58 cents to $28.17, National Australia Bank lost $1.26 to $30.46, Commonwealth Bank surrendered 47 cents to $77.17 and Westpac scraped off one cent to $31.92.
In the resources sector, BHP Billiton shed 31 cents to $23.47, Rio Tinto dropped 93 cents to $51.14 and Fortescue Metals descended five cents to $2.20. AAP