Market snaps three-day winning streak

The local sharemarket has broken a three-session rally, easing in early trade. The ASX 200 is down 29 points or 0.4% to 7,502, while the All Ords is off 24 points or 0.3% to 7,786. The market is being weighed down by falls in the Materials, Financial, Utilities and Healthcare sectors, while gains in the Telco and Consumer Discretionary sectors are helping to limit the losses.

A raft of companies have released results this morning, including Appen (APX), The A2 Milk Company (A2M), Link Administration Holdings (LNK), Whitehaven Coal (WHC), Woolworths (WOW), Ramsay Health Care (RHC), St Barbara Ltd (SBM), Cromwell Property Group (CMW), Blackmores (BKL), Qube Holdings (QUB), IOOF Holdings (IFL), Qantas Airways (QAN), Flight Centre (FLT) and Ardent Leisure (ALG).

Woolworths (WOW) reported a 78% rise in FY net profit to $2.1b and announced a $2 billion off-market buy-back. Revenue from continuing operations rose 5% to $55.7b. WOW announced a final dividend of 55c – up 14% on a year earlier. The supermarket giant said “making any further predictions about the year ahead remains very difficult.” WOW shares are up 1.4% to $41.38.

Shares in The A2 Milk Co are down 8% to $6.31 after the company reported a 79.1% fall in FY net profit to $80.7m. Revenue dropped 30.3% to $1.21bn, within its guidance provided in May. No dividend was declared and the company said the impact of COVID-19 has been significant.

Qantas Airways (QAN) reported a FY net loss of $1.7b compared with a net loss of $1.9b in the previous year. Revenue fell 58% to $5.9 billion. No dividend was declared and the airline warned current COVID-19 outbreaks in Australia and New Zealand would impact its first-half underlying earnings by $1.4b. QAN shares are up 2.9% to $5.01.

Flight Centre (FLT) shares are up 3.6% to $16.94 after the travel agency narrowed its FY loss to $433m, compared to $662m in the prior year. Revenue fell 79.1% to $395.9m. No dividend was declare and FLT said it couldn’t provide any specific guidance due to uncertainty over border reopenings. For more earnings coverage, visit our Reporting Season website.

Finally, data out from the ABS shows total new capital expenditure rose by 4.4% in the June quarter, much higher than consensus forecasts for a 2.5% rise. The Aussie dollar is firmer, buying 72.68 US cents.

Published by CommSec