Gains subside; Miners & Telcos decline
The local sharemarket has failed to hang on to early gains, held back by weakness in the telco and materials sectors, and a slump in Woolworths (WOW) and Fortescue Metals (FMG) shares which are trading ex-dividend. The ASX 200 (XJO) is down 2 points 6,148.
In earnings news, Rio Tinto (RIO) shares are climbing 1.6% to $96.66 after the miner’s full year earnings – released after market close yesterday – beat analyst expectations. The miner reported a 2% rise in FY18 underlying earnings to US$8.81 billion and pledged returns to shareholders of $US7.2 billion from a series of divestments. RIO declared a final dividend of $US1.80 per share and a special dividend of $US2.43 per share.
Harvey Norman (HVN) has reported a 7.3% lift in first-half profit to $222.8 million helped by strong sales in Singapore and Malaysia. HVN will pay an interim dividend of 12 cents per share, fully franked. HVN shares are down 0.6% to $3.54.
Adelaide Brighton (ABC) shares are down 5.4% to $4.72 after the building firm reported a 1.4% rise in full year net profit to $185.3 million. Revenue climbed 4.6% to $1.63 billion. ABC expects demand for construction materials will remain stable despite a residential sector decline. The company will pay a special dividend of 4 cents per share on top of a final dividend of 11 cents a share.
Ramsay Healthcare (RHC) has reported a 9.6% lift in first half net profit to $270.4 million and reaffirmed its full-year earnings guidance. The private hospital operator says its result was boosted by volume growth and operational efficiencies in its Australian operations, which outweighed weakness in the UK. RHC will pay an interim dividend of 60 cents a share. Investors have cheered the result, sending its shares up 5.5% to $64.56.
1.26b shares have been traded, worth $2.36b. 463 shares are higher, 503 are weaker, while 341 are unchanged.
In economic news, Capital Expenditure rose 2% in the fourth quarter (consensus +1%)Publishde by CommSec
CommSec Daily Report Thursday
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