Australian shares lower lead by Woolworths and Coles
Australian shares fell on Wednesday as consumer and property sectors weakened
![Australia supermarket giant coles and woolworths](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/ig_trading_floor_5.jpg/jcr:content/renditions/original-size.webp)
Australia’s biggest supermarket chains, Woolworths and Coles reported their earnings this week, with Woolworths reporting less than expected firs half-year profits on Wednesday.
It comes after Australia's second-biggest grocery chain, Coles posted a sharper-than-expected fall in half-year earnings on Tuesday.
Woolworths H1 report lower than expected
Woolworths said that subdued spending moved through its checkouts, pushing liquor earnings lower as customers shopped smarter, counting pennies. The supermarket said that sales were dragged down due to customers' spending habits, squeezing profit margins.
Woolworths Ltd fell 6.5% on Wednesday to its lowest in two months after posting lower than expected first-half profits, due to a prolonged slump in consumer sentiment.
Net profit for continuing operations rose about 2% to A$920 million ($660 million) for the six months to December 30, missing market expectations.
Coles H1 report causes shares to fall sharply
Coles said costs were rising faster than sales, saying it needed a ‘’strategic refresh’’ after its first results since parting ways with Westfarmers Ltd last year.
Coles posted a 14% fall in net profit to A$738 million ($526 million) for the six months to December 30.
Coles shares fell almost 4% in early trade on Wednesday, dropping to a one-week low before recovering slightly to trade 3% under Monday's close, while the broader market rose 0.4%.
BHP earnings lead gains
Wednesday gains were also led by the world's biggest miner BHP Group, as they reported their H1 earnings after the bell on Tuesday. BHP shares rose 2.2 % to the highest level since 2011. Analysts said BHP's report missed expectations.
Upbeat sentiment supported strong gains from other top miners such as Rio Tinto, which was up 2.5 % to a more than 10-year high.
a2 Milk Company boosted New Zealand's benchmark S&P/NZX 50 index which was up 0.3% or 23.82 points to 9,248.08.
a2 Milk Co Ltd shares also climbed 8.6% to an 11-month high after it reported a 55 % surge in half-year profit, as the company expanded its market share in China despite a slowing economy.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/ContentImage/Shares global component NA banner.jpg/jcr:content/renditions/original-size.webp)
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only