The Aussie sharemarket lifted for the first time in three days and finished near session highs, with the ASX 200 up by 86.5 points or 1.3 per cent, to 6086.4. Nine sectors and 71 per cent of stocks in the ASX 200 finished in positive territory. The mining sector did most of the heavy lifting today and posted a 2.7 per cent increase. The Big 4 banks all finished higher and averaged a gain of 1.6 per cent, with the broader Financials sector adding 1.3 per cent. Despite today’s rather strong rally, the ASX 200 is still down by around 10.7 per cent from its highs in April earlier this year.
In economic news, minutes from the RBA’s September Board meeting were issued. The Board discussed the case for lifting rates by either 25 or 50 basis points. Philip Lowe, the Reserve Bank Governor, stressed that household spending trends will be important in determining the size & timing of rate hikes.
In company news, New Hope Corporation (NHC) released its FY22 results. It posted a 143.5 per cent jump in its revenues to $2.6 billion, and increased its profits to $983 million (previous: $79.4 million). It declared a total final dividend of 56 cents-per-share, which includes a special dividend of 25 cents-per-share. Its results were largely supported by a sharp increase in the price of thermal coal, driven in part by Russia’s invasion of Ukraine. In Q4, NHC’s average realised coal price was A$493.5 per tonne, a sizeable jump from the A$101 per tonne it recorded over the prior financial year. NHC is the best performer today as it rose by 8.8 per cent.
Fortescue Metals (FMG) announced a US$6.2 billion capital investment plan, to ‘eliminate fossil fuel risk and reduce operating costs by US$818 million per year’ by 2030. The investment is ‘largely planned in FY24-28’. FMG shares fell by 0.9%.
AMP Limited (AMP) has been charged with a $14.5 million penalty in relation to ‘breaches concerning the historic charging of Plan Service Fees’. AMP says that by November 2019, it remediated approximately 2,500 customers who ‘continued to be charged a Plan Service Fee after transferring from their corporate super plan into a retail account’. AMP shares finished 2.1 per cent lower.
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IDP Education (IEL) has entered into an agreement to ‘acquire 100 per cent of Intake Education’ for up to approximately $83 million. Intake, established in 1993, is a student placement agency that operates globally. IDP will fund the acquisition using cash & debt.
Tabcorp (TAH) has announced the sale of the eBet business for ‘$62 million in cash’. eBet generated EBITDA of $4.4 million and an EBIT loss of $2 million in FY22. The sale is expected to result in a pre-tax gain on sale for Tabcorp, of around $39 million. TAH has also been awarded a 20 year monitoring licence in Tasmania.
In the US tonight, the US Federal Reserve Open Market Committee begins a 2-day meeting.
Today, 3.3bn shares were traded, worth $6bn. 730 stocks rose, 640 fell & 404 finished unchanged.
Originally published by Divik Nigam – (Author), CommSec
