The Australian sharemarket started the week in negative territory on Monday, extending last weeks losses. The S&P/ASX 200 index fell by 16 points or 0.2 per cent following a mixed lead from Wall Street on Friday.
In overseas markets on Friday, key indexes in the US were mixed with the Dow and the S&P 500 both up 0.5 per cent and 0.2 per cent respectively. The Nasdaq fell by 71 points or 0.6 per cent. European sharemarkets slid, with the European FTSEurofirst index falling 0.9 per cent.
In Australia on Monday, we saw four out of the twelve industry sectors posted gains. The energy sector was the best performer, rising by 1.8 per cent, while consumer discretionary fell the most by 1.4 per cent
Insurance Australia (IAG) rose 4.5 per cent after reporting a 170 per cent increase in net profits to $468m, and 7.5 per cent increase in gross written premiums on the previous corresponding period. An interim dividend of 6 cents will be paid to eligible shareholders. Net profit was boosted mainly by the release of $252m associated with COVID
business claims. Not including its impact, insurance profit rose by 24 per cent to $350m.
Star Entertainment Group (SGR) fell by 21 per cent and hit an intrasession all-time low of $1.465 after releasing its earnings update and outlook. It reported that it is anticipating a non-cash impairment charge in relation to its NSW business between $400M – $1.6B in the first half of 2023. Guidance for the remainder of 2023 remains dependent on a number of uncertain factors
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Retailer JB Hi-Fi (JBH) reported a 14.6 per cent increase in net profit, however sales growth has begun to slow down after its elevated levels in the first half of 2023 financial year. JBH fell 5.1 per cent. An interim of $1.97 was announced, up from $1.63 at the same time last year.
Endeavour Group (EDV) improved by 4.1 per cent after announcing net profits were up 17 per cent on the prior year, while Aurizon Holdings (AZJ) fell 6.5 per cent after profits fell 49 per cent in the first half of 2023 compared to the previous corresponding period. This was partly blamed on prolonged floods and a number of derailments.
3.1 billion shares were traded, worth $6.3 billion. Overall 514 stocks rose over the session, while 830 fell and 436 finished unchanged.
Looking ahead, earnings season continues to ramp up tomorrow with the likes of CSL Limited (CSL), Temple & Webster (TPW) and Seven West Media (SWM) releasing results.
Importantly in the US, an update on consumer inflation expectations will be released tonight.
Originally published by Steven Daghlian – Market Analyst (Author), CommSec
