Closing Bell
What's Affecting Markets Today
- Japan’s Factory Activity – Japan witnessed a slight easing in the contraction of its factory activity for the third month in August, with the au Jibun Bank flash manufacturing PMI rising marginally to 49.7 from July’s 49.6. Although manufacturing output and orders contracted, the rate was slower. Conversely, the service sector saw an expansion, with the composite PMI reflecting the service sector’s positive influence on the overall economy.
- Australian Dollar Update – The Australian dollar appreciated by 0.4% due to a rise in iron ore prices. Despite this uptick, the currency experienced a 4% decline this month, reaching its lowest in nine months. This fluctuation underscores the Australian dollar’s sensitivity to economic changes in China, its major export market.
ASX Stocks
ASX 200 -7148.4 +26.8 (0.38%)
What’s happening in reporting season?
A surge in tech stocks has rejuvenated the Australian sharemarket, pushing the S&P/ASX 200 up by 0.1% to 7123.6, despite an earlier dip to 7090. This tech rally, inspired by Wall Street’s momentum ahead of Nvidia’s upcoming earnings result, saw significant jumps in local stocks like Altium and Megaport, which both reported strong earnings. Conversely, the consumer staples sector faced a decline, with Coles’ disappointing earnings leading to a 5.7% fall in its share price.
Key Highlights:
The ASX experienced its most significant daily increase since July 27, rising 0.7%, even with a downturn in the tech sector. Woolworths stood out with a 4.2% jump following its 4.6% annual profit growth to $1.62 billion. Domino’s Pizza surged by 9.5% after announcing job cuts, though it reported a 74% drop in net profit and reduced its dividend. Tech stocks suffered, dropping nearly 6%, with WiseTech’s 20% decline being a significant contributor after its earnings missed projections.
Earnings Releases:
For more detailed summary click the earnings calendar here.
- Woolworths Group Limited (WOW: ASX) – Sales increased to $64.29 billion, but net profit plunged by 79.6%.
- WiseTech Global Limited (WTC: ASX) – Profits rose by 9%, with key acquisitions and a 29% revenue boost.
- Pepper Money Limited (PPM: ASX) – H1 profits dropped by 28% with a shift in focus to auto and equipment lending.
- Santos Limited (STO: ASX) – Profits decreased by 32%, countered by a 14% dividend rise.
- Lottery Corporation Limited (TLC: ASX) – Revenue grew by 7.2% despite a 23.6% profit dip.
- Apa Group (APA: ASX) – Acquired Alinta’s power assets for $1.8 billion.
- Worley Limited (WOR: ASX) – Global revenues rose by 17%, though profit fell 78% due to a sale loss.
- Domino’s Pizza Enterprises Limited (DMP: ASX) – A significant 74% dip in net profit was reported.
- Iluka Resources Limited (ILU: ASX) – Half-year profit declined by 45% with a sharp dividend cut.
- Corporate Travel Management Limited (CTD: ASX) – Revenue neared pre-COVID levels with a dividend increase to 22¢.
- Hmc Capital Limited (HMC: ASX) – Nearing the $10 billion assets under management mark.
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