The ASX was subdued today, shedding just 2.6 points or 0.07% to 6,854.30.
Hotter-than-expected inflation data tempered any bullish sentiments, raising the spectre of another potential interest rate hike from the RBA.
The sectors were therefore mostly in the negatives, with just Materials (+1.62%) and Comm Services (+0.78%) making any kind of showing.
Real Estate (-1.99%) and Consumer Staples (-1.43%) took the brunt. Property company Dexus fell 3.32% intraday, while supermarket giant Woolworths Group slid 1.98%.
Base metals were the standouts on the commodities front today, with copper, lead, tin and zinc all gaining alongside palladium, even as silver and nickel slid marginally.
West Texas Crude dropped 2.81% today, undoing recent gains to sit at -5.07% for the week and -6.89% for the month.
The worst performing stocks on the ASX200 today were healthcare company Healius Limited, which slipped 6.94%, and gold miner Bellevue Gold Limited, which slid 6.35%.
CPI data points to potential headwinds for ASX-listed companies
Investment relations company Diolog founder and CEO Amy Benson shares her view on CPI data and what recent market falls mean for ASX-listed companies.
“Today’s CPI data is significant for ASX companies, acting as a compass to map out the headwinds facing the retail investor community,” Benson wrote.
“With inflation rising a further 1.2% deepening fears of a potential RBA interest rate hike in 2 weeks’ time, retail investors can be expected to be more conscious of their investment strategies, looking for the most fruitful returns on investment.
“Additionally, the report shows what investors care about the most based on which industries have been hit the hardest.
“With stocks in real estate, consumer staples and healthcare experiencing a disproportionately negative fallout and resources, telecommunications and IT on the up, listed companies including Arena REIT, Alterra and Advanced Health Intelligence will have to pull out all the stops to keep their investors on their books.
“As a result of a turbulent market, ASX companies’ focus on retention strategies has far outweighed proactive pushes for investor acquisition.
“With AGM season in full swing, the CPI data lands at the perfect time for leaders to reinvigorate how they communicate with their shareholders.
“Increasingly, investors are becoming alienated by the companies they invest in through lengthy AGM notices - sometimes in the hundreds of pages - and a distinct lack of two-way communication.
“In fact, we found that 70% of investors are unlikely to read a notice beyond 25 pages and only 16% of investors attend the AGMs of ASX300 companies.
“With investor interest becoming harder to maintain in uncertain times, today’s 0.3% dip in the ASX should be the wake-up call listed companies need.
“The next step to buffer any further impact is to strengthen investor confidence by acknowledging the cost trends and subsequent business impact, enhance accessibility to the company and communicate the roadmap to delivering returns on investment.”
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