Evening report Friday

The Aussie sharemarket finished the week on a rather flat note, with the ASX 200 up by a modest 1.7 pts or 0.02 per cent, to 7114.5. The index was supported by a 4 per cent rally in the Energy sector,
its best daily improvement in around two months. The Financials sector however shed 0.8 per cent, with the Big 4 banks all posting losses. Retailers in the Consumer Staples industry rose for the
seventh straight day and Mining stocks improved by 0.8 per cent.

Over the week, the ASX 200 climbed by 1.2 per cent. This is the market’s fifth straight weekly improvement, and its longest winning streak since June 2021. Mining stocks (+3.4 per cent) posted their best weekly improvement this month, and Financials snapped fourstraight weeks of gains. Elsewhere in the market, the ASX Small Ordinaries index posted its first weekly decline since mid-June.

According to Bloomberg, Indonesia’s President Joko Widodo confirmed that he’s considering introducing a tax on nickel exports in a bid to refine more domestically. Indonesia is the largest producer of the metal. Stocks on the ASX 200 with nickel interests in Indonesia include Nickel Mines (NIC), which fell by 3.1 per cent.

In company news today, AGL Energy (AGL) released its annual results. It posted a 27 per cent decline in its underlying EBITDA to $1.2 billion, and more than halved (58 per cent) its underlying profits to $225 million – which it said was ‘within guidance’. The electricity & gas retailer also cut its final dividend by 71 per cent to 10 cents-per-share. AGL shed 3.9 per cent – its fifth straight decline – and posted a 7.8 per cent weekly loss, its largest since Sept 2021.

Newcrest Mining (NCM) announced its FY22 results today. It outlined a reduction in its revenues, EBITDA and underlying profit by 8 per cent, 16 per cent and 25 per cent, respectively, due in part
to ‘lower production volumes’. NCM halved its final dividend to US20 cents-per-share and estimates its all-in-sustaining costs to increase by around 7 per cent in FY23. Shares of NCM however
rose today by 4 per cent.

In its annual results, Cochlear (COH) noted a 10 per cent increase in its sales to a record $1.6 billion, and an 18 per cent lift in its underlying NPAT to $277 million, which is within their guidance. COH estimates its FY23 underlying NPAT to be between $290-$305 million, which is approximately 7.4 per cent higher than the prior year. Shares of COH finished 0.1 per cent higher, its first gain in over four days.

3.5bn shares were traded, worth $9bn. 704 stocks rose, 637 fell & 444 finished unchanged.

Next week will be a quiet week on the Aussie economic calendar with business surveys and job vacancies data of most interest. Overseas, US economic growth data and the PCE core deflator will
be handed down next week.

Reporting season continues next week, with over 40 companies in the ASX 200 expected to release their earnings results.

Originally published by Divik Nigam – (Author), CommSec