ASX Shares Slide on Expense, Capital Management Guidance
By Alice Uribe
SYDNEY-- ASX shares slid Tuesday, after the company said it will make changes to its capital management policy and flagged higher expenses--partly relating to its CHESS trading system.
The stock was down 10% at 60.77 Australian dollars ($US40.21) after hitting a low of A$60.50 earlier. The securities exchange is currently the worst performer on Australia's S&P/ASX 200.
ASX said Tuesday that its FY 2023 dividend payout ratio policy was being maintained at 90% of underlying net profit after tax, but from FY 2024, its dividend payout ratio policy could be revised to a range of between 80%-90%.
As part of a new five-year strategy, ASX also guided for total expense growth, excluding significant items, of 12% for FY 2023, and between 12% and 15% for FY 2024. The company attributed some of the expense growth to CHESS-related regulatory and replacement costs.
"With a strong balance sheet, leading positions in key markets and structural tailwinds, ASX has an attractive core business, and we must continue to invest in order to grow and to support the financial markets effectively," said ASX CEO Helen Lofthouse.
"We recognize there are near term, situational challenges that we must address, including our regulatory commitments and our expanded technology modernisation program."
ASX shares are down 11% so far in 2023.
Write to Alice Uribe at alice.uribe@wsj.com
(END) Dow Jones Newswires
June 05, 2023 21:35 ET (01:35 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
What Does Nvidia’s Stock Split Mean for Investors?
-
5 Undervalued Stocks to Buy as Their Stories Play Out
-
Markets Brief: Return of the Meme Stocks
-
What’s Happening In the Markets This Week
-
It’s Been a Terrible Time for Bonds. Here’s Why You Should Own Them
-
Which AI Stocks Are Turning Hype Into Revenue?
-
Best- and Worst-Performing Stocks of May 2024
-
3 Stocks to Buy and 3 Stocks to Sell in June
-
Adobe’s Strong Quarterly Results Drive Share Gains
-
What Does Broadcom’s Stock Split Mean for Investors?
-
5 Ultracheap Stocks to Buy With the Best Returns on Investment
-
Broadcom Earnings: AI Sales Growth Accelerates
-
Oracle Earnings: IaaS Signings More Than Make Up for Miss
-
This Undervalued Stock Is a Buy After Its Dividend Increase
-
After Earnings, Is Nio Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Lululemon Stock a Buy, a Sell, or Fairly Valued?