Evening Report

Latest News

The Aussie market traded on a rather flat note throughout the session and finished in positive territory, with the ASX 200 up by a modest 9.2 points or 0.13 per cent, to 7029.8. Gains were broadbased, with the Consumer Discretionary, Technology, Real Estate and Telco sectors climbing by at least one per cent. However, this was in part offset by a 0.8 per cent loss in the financial sector – its largest decline in over a month. A key update on US inflation is due Wednesday night.

Lithium miners and explorers like Lake Resources (LKE) and Liontown Resources (LTR) were amongst some of the best performers today, rising by 15.3 per cent and 5.3 per cent, respectively. The US Senate passed a US$430 billion climate and economic package, the Inflation Reduction Act.

In company news, National Australia Bank (NAB), which fell by 2.9 per cent today, released its third quarter trading update this morning. The bank says that its net interest margin (NIM) was ‘slightly lower’, with the ‘benefit of a rising interest rate environment’ being partly offset by home lending competition and higher wholesale funding costs.

News Corp (NWS) posted an 11 per cent increase in its annual revenues, and nearly doubled (up 95 per cent) its net income. The media and publishing company said that contributions from recent acquisitions and a lift in its digital subscriptions helped drive its results. Shares lifted 5.9 per cent.

Coronado Global Resources (CRN) climbed by 5.6 per cent. The coal miner’s revenues and profits increased by 147 per cent and 685 per cent, respectively, driven by a 193 per cent increase in CRN’s average realised met coal price to US$292.8/t. CRN also revised its FY22 mining cost guidance upwards by around 14 per cent, due partly to inflationary pressures and weather.

REA Group (REA) rose by 6.7 per cent after handing down its full year results. The online real estate advertising company posted a 26 per cent increase in its revenues, a 19 per cent jump in its EBITDA, and a 25 per cent climb in its profits. Its core operating costs however also increased by 34 per cent and were largely driven by the acquisition of Mortgage Choice & REA India.

In economic news, the ANZ-Roy Morgan consumer confidence index fell by 4.5 per cent last week to 80.3 points, the lowest level since April 2020. The monthly Westpac-Melbourne Institute consumer sentiment index fell 3.0 per cent in August, to a two-year low of 81.2 points.

4.4bn shares were traded, worth $7bn. 794 stocks rose, 608 fell & 377 finished unchanged.

In the US, the NFIB business optimism index is released with IBD/TIPP economic optimism index, unit labour costs and nonfarm productivity.

Originally Published by CommSec