Local shares have shrugged off a weak lead from global markets with lingering concerns over the weakness in the Turkish Lira and potential contagion, with financial instability spreading to other emerging market economies. The ASX 200 is rebounding from two straight losses, up 46 points or 0.75% towards lunch to 6298.
Heavyweight sectors, the financials and materials are leading the gains across the broader market. The four major banks are all higher between 1.2-1.9%. Both ANZ Bank (ANZ) and National Bank (NAB) released Q3 capital ratio updates while NAB also provided a Q3 trading update. Unaudited cash earnings came in at $1.65 billion, down 3% on the prior year with net interest margins declining slightly due to higher funding costs.
Miners BHP Billiton (BHP) and South32 (S32) are both climbing more than 1%, lifting the materials sector higher. Crop protection firm, Nufarm (NUF) is rebounding 4.5% after slumping 13% yesterday. Most other sectors are contributing to the positive momentum with only the healthcare weaker and real estate sector flat. The health sector is being weighed by losses in CSL and Cochlear (COH). Cochlear’s is down 5% despite lifting net profit by 10%, with investors disappointed by guidance for FY19 below market expectations.
Former market darling, Domino’s Pizza’s (DMP) shares are also sliding, down 9.5% after lifting FY18 net profit by 18% to $121.5 million. Despite this, same store sales growth for Aust/NZ and Europe fell short of the company’s own guidance. Investment manager, Challenger (CGF) and comparison site, iSelect (ISU) have declined 7.5% and 5% each on earnings results.
Whitehaven Coal (WHC) shares are surging 7% after the coal miner’s net profit for FY18 jumped 30% to $525.6 million. WHC also announced a final dividend of $0.27 including a $0.13 special dividend.
The release of the NAB Business survey for July has seen business confidence lift from June while conditions are slightly weaker on the prior month. The Aussie dollar is stabilising from its recent falls, buying 72.75 US cents.
So far today, 1.1B units have traded worth $2.4B with 526 stocks higher, 415 lower and 384 unchanged.
Published by James Tao – Media & Capital Markets Analyst (Author), CommSec