Markets at a glance 27 August
In the news
Kicking things off with reporting season with a deluge of corporate numbers to get across. Australian listed shares of Woodside Energy (ASX: WDS) are marching higher after the company posted a better-than-expected profit as lower costs helped to offset the impact of weaker oil prices. Shareholders will get an interim dividend of 69 US cents per share, at the top-end of the company’s payout range.
It's a similar story for BHP Group (ASX: BHP), shares are higher after the mining giant posted a 2% rise in annual underlying profit, thanks to strong performance at its iron ore and copper businesses, with a 74 cent a share dividend declared taking the full year payout to $1.46.
Underlying attributable profit for the year ended June 30 came in at AU$13.66 billion, topping Visible Alpha consensus of $13.26 billion and ahead of the $13.42 billion profit a year ago.
On the outlook, BHP says it is pushing hard to expand in copper given the tougher environment for its top revenue generator iron ore, as China’s economic growth slows. Back in May the company walked away from a blockbuster $49 billion bid to take over Anglo America that would have significantly boosted its copper business.
Shares of Coles Group (ASX: COL) are among the day’s top performers, touching a two-year high, after the country’s second-largest grocer reported a 2.1% rise in net profit after tax of $AU1.13 billion, topping analyst estimates. Revenue from sales at its supermarket business was also higher, up over 4% to AU$39.04 billion.
The company declared a final dividend of 32 cents per share, up from the 30 cents a year earlier. The stock is up 14.6% this year, as of last close.
And freshly listed shares of Guzman Y Gomez (ASX: GYG) are sharply lower despite the Mexican food chain operator reporting a mega beat in annual profit up 94%, underpinned by strong restaurant sales and network expansion. Shares of GYG are up 19.5% since listing on June 20, as of last close.
Rounding it out, Australian listed shares of Johns Lyng Group (ASX: JLG) have dropped as much as 33% to touch the lowest level since 2021 after the company posted softer-than-expected full year numbers. Revenue dipped, missing company guidance, while underlying EBTIDA came in 2% below expectations. The stock is down 9% YTD, as of last close.
Around the grounds
Looking bigger picture, the Australian share market is holding onto yesterday’s momentum to trade in the green, driven by those strong BHP and Woodside earnings.
Mining stocks have jumped, supported by iron ore prices trading near a two-week high, while energy plays have climbed to their highest level since early August.
Caution though remains, as investors await key inflation data locally tomorrow, which is expected to set the tone for the central bank’s path of policy. The Australian dollar has consolidated as the market awaits those CPI figures, pulling back from 2024 highs and failing to break through the 67.98 US cent mark.
Going global
To the global stage, Tokyo’s Nikkei 225 has edged lower in today’s session tracking overnight falls on Wall Street with tech leading the drag as investors eye Nvidia (NASDAQ: NVDA) earnings. While the AI darling is expected to report a doubling of revenue in the second-quarter, investors used to its blockbuster results may be expecting even more. Currently the stock is valued at about 37 times its forward earnings, compared with an average of around 29 for the top six tech companies on the benchmark.
Finally, to the currency market, most global currencies are trading sideways as geopolitical risks keep early moves subdued. The yen is a tick lower, giving up some of its safe haven gains from the previous session when it touched a three-week high against the greenback, while the euro and sterling have dipped slightly, though remain in spitting distance of recent multi-month highs.
The CAD is little changed after scaling a five-month peak overnight as oil prices surged, and the green back is relatively flat, languishing near a 13-month low of 100.53 hit in yesterday’s trade.
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