The Aussie sharemarket posted its fourth straight session of gains, with the ASX 200 rising 0.6 per cent or 40.4 points to 6999.3. Seven (of 11) sectors finished lower. Materials rebounded from yesterday’s losses, adding 2.5 per cent to be the best performing sector. Gold miners, St Barbara (SBM), Regis Resources (RRL) and De Grey Mining (DEG) were the top gainers rising by at least 9.4 per cent. Coal miners, Whitehaven Coal (WHC) and New Hope Corporation (NHC) were among the worst performers. Financials finished with a modest rise of 0.2 per cent, with declines from National Australia Bank (NAB) offset by the other major banks.

National Australia Bank (NAB) closed 0.9 per cent lower upon delivering its FY22 earnings. Cash earnings increased 8.3 per cent to $7.1 billion. Net interest margin decreased 5 basis points from September 2021 to September 2022 to 1.65 per cent, but increased by 4 basis points since March 2022. The bank noted FY23 headwinds will arise with ‘volume growth expected to slow, higher refinance activity as fixed rate loans mature and intense price competition’ as well as ‘ongoing costs related to compliance with the AUSTRAC Enforceable Undertaking’. A 78 cent dividend will be paid, trading ex-dividend on 15 November and paid on 14 December.

Whitehaven Coal (WHC) lost 8.5 per cent upon downgrading its FY23 coal production guidance range from 20.0Mt – 22.0Mt to 19.0Mt – 20.4Mt due to ‘flooding impacts arising from the continuing La Nina phenomenon’ which ‘hampered production at its open cut mines’.

News Corporation (NWS) released its quarterly results and recorded a 75 per cent decrease in net income to US$66 million from the prior year. NWS noted the results were driven by, ‘negative impact from foreign currency fluctuations and lower Book Publishing segment revenues’. The media distribution company fell 11.2 per cent. REA Group (REA), which is majority owned by NWS also released Q1 FY23 earnings and finished 4.3 per cent lower.

Orica (ORI) gained 7 per cent after announcing its FY22 earnings. Elevated commodity prices and strong mining activity drove a 29 per cent revenue increase to $7.3 billion. However the company noted, ‘Covid absenteeism and labour shortages continue to impact mining activity and supply chains’. It declared a 22 cent dividend which is payable on 22 December, and trading ex-dividend on 18 November.

 

Top Australian Brokers

 

Tonight in the US, markets will react to the 2022 midterm election outcome. D.R. Horton, Wendy’s and TPG are among the companies scheduled to report earnings.

Today, 3.7bn shares were traded, worth $7.7bn. 769 stocks rose, 597 fell & 392 finished unchanged.

Originally published by CommSec