Qantas Group Ltd shares are crashing, but the ASX is higher today. The S&P/ASX200 gained 34.50 points or 0.47% to 7,312.80. Over the last five days, the index has gained 2.78% and is currently 3.37% off of its 52-week high.
The top-performing stocks in this index are Liontown Resources (ASX:LTR) Ltd and Paladin Energy Ltd (ASX:PDN) up 8.78%and 6.57% respectively.
Liontown’s shares swung higher after a sweetened $6.6 billion or $3 per share bid by the world's largest lithium producer Albemarle.
Previously, Liontown rejected Albemarle's $2.50 per share offer in March, however, it will accept the revised offer if Albermarle returns with a binding bid.
"Should Albemarle make a binding proposal at $3.00 per share, subject to agreement of a mutually acceptable binding scheme implementation agreement, the intention of the Liontown board is to unanimously recommend shareholders vote in favour of the proposal," the group told investors.
Looking at the sectors, Materials and Energy were the best performed up 1.90% and 1.69% respectively. On the downside, we saw Consumer Staples lose 0.71% and HealthCare drop 0.59%.
Qantas is down 2.92% to $5.65, taking the decline since Thursday's close to 5.92%.
Legal action by the ACCC against the flying kangaroo for allegedly selling already-cancelled flights in 2022 is having a big impact along with the Qatar Airlines optics.
Qantas has acknowledged the damage to its reputation on several fronts.
The ACCC alleges that Qantas engaged in false, misleading or deceptive conduct.
Qantas says it is fully cooperating with the investigation.
"The period of time that the ACCC's claims relate to, in mid-2022, was one of well-publicised upheaval and uncertainty across the aviation industry as Qantas struggled to restart post-COVID. We openly acknowledge our service standards fell well short and we sincerely apologise. We have worked hard to fix them since and that work continues," the airline stated.
"We want the community to know that we hear and understand their disappointment. We know that the only way to fix it is by delivering consistently. We know it will take time to repair and we are absolutely determined to do that."
RBA set to hold again
As we head into another Reserve Bank of Australia (RBA) meeting, the likelihood of another rate rise is slim.
Household spending fell 0.7% in July from a year earlier as inflation and interest rates cut deep into the consumer pocket.
The spending decline marks the first dip since February 2021, according to the Australian Bureau of Statistics (ABS).
ABS head of business statistics Robert Ewing noted spending on discretionary goods and services is down for the fourth straight month. "It fell 3.3% over the year, as households adapt to cost of living pressures.
"Non-discretionary spending rose 1.7%, which is the lowest growth rate since early 2021."
HSBC chief economist Paul Bloxham says RBA governor Phil Lowe's last board meeting will confirm that the Australian economy is on the 'narrow pathway to a soft landing.
"The RBA's tightening seems to have delivered a slowdown in activity, without a contraction, as well as a much-needed disinflationary impulse, pushing inflation towards the target band," Bloxham said.
"The jobs market is loosening, albeit gradually, and wages growth is steadying at a rate that should make the RBA fairly comfortable."
Over the last few months, inflation has averaged 2.9%, which is within the RBA’s 2-3% band.
Five at five
The S&P/ASX Small Ordinaries (XSO) is 0.25% higher today to 2,852.20 on a reasonably heavy news day.
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