Australian shares ended higher on Wednesday, buoyed by better-than-expected corporate earnings from top firms such as the Commonwealth Bank of Australia and energy producer AGL Energy, while mining stocks fell on disappointing China data.
The S&P/ASX 200 index closed 0.3% higher to 7,850.7 points.
Commonwealth Bank of Australia’s full-year profit fell less than analysts feared due to lower provisions for bad debts. The company also upped its final dividend.
CBA’s shares ended 1.3% in the green, helping push the heavyweight financial index about 0.5% higher. The sectoral index marked its fifth straight session of rallying and was the top boost for the benchmark for the day.
Top Australian energy producer AGL Energy closed 2.3% higher after it reported a three-fold rise in annual profit.
Miners fell for the day, closing 2.1% lower to hit their lowest level since November 4, 2022, as iron ore futures fell on disappointing credit data from top consumer China.
Australian shares struggle for direction; CSL falls over 3% on weak forecast
Mining giant BHP Group fell about 2.8%, while Rio Tinto declined 2.6%.
Globally, investor hopes rekindled after U.S economic data signalled slowing inflation, with markets now anticipating that the Federal Reserve will start its easing cycle in September.
“Australian markets will continue to be guided by U.S. economic inflation-related data in the short term until we see a decisive turn in the U.S. interest rate cycle,” said Andrew Tang, an analyst at Morgans Financial.
Among other stocks, industrial services provider Seven Group rose about 6.8%, recording its best day since May 2020, after posting a 30% jump in full-year profit.
Healthcare informatics firm Pro Medicus jumped 7.2% to log its best day in nearly a year on a 36.5% rise in annual profit.
New Zealand’s benchmark S&P/NZX 50 index rose 2.1% to finish the session at 12,572.53 points, highest since January 2022, after the country’s central bank cut its benchmark cash rate for the first time since March 2020.
Comments