ASX Ends near Record; CBA’s Best Day Since 2020, CSL Dives
The Australian sharemarket rallied on Wednesday, lifted by strong earnings beats from major index heavyweights, including Commonwealth Bank, that helped offset a plunge in CSL’s share price.
The S&P/ASX 200 Index climbed 1.7%, or 147.40 points, to 9014.80, putting 1.1% off its record high of 9115.20 set in October. Eight of the 11 sectors were trading higher. Gains came after the dollar hit a three-year high as it rose above US71¢.
Financials buoyed the market as Commonwealth Bank jumped 6.8% to $169.56, its biggest one-day gain since its 10.9% rally in March 2020. That’s after cash profit for Australia’s largest lender came in $200 million ahead of market expectations for the half year, while its interim dividend at $2.35 topped market consensus for $2.31.
National Australia Bank added 3.4% to $45.49, Westpac 2.5% to $40.27, and ANZ 1.3% to $37.20.
Materials were also up, led by James Hardie after the company reported EBITDA of $US330 million in the December quarter, which was 6% ahead of expectations and above the guidance of between $US298 million and $US318 million. The shares jumped 10.9% to $36.87.
Further gains were seen by Evolution Mining, which added 8.7% to $16.28 after it declared a higher than expected interim dividend of 20¢ and stronger cash flow. Fellow gold miner Newmont rose 2.4% to $171.49, and BHP 1.6% to $51.07.
Those gains were tempered by CSL, which plunged 4.6% to $163.44 after it dumped chief executive Paul McKenzie in the final minutes of trading on Tuesday, and on Wednesday posted an 81% slump in half-year earnings to $US400 million ($566 million). Citi warned that the biotech’s full-year guidance was now at risk after first-half sales missed consensus by 2% and underlying profit by 4%.
In other corporate news, AGL Energy jumped 11.8% to $9.89 as it beat EBITDA consensus by 7%, and reported a half-year profit of $351 million, 21% above expectations. The interim dividend of $2.44 per share also surpassed forecasts, Citi said.
Aussie Broadband rocketed 14.8% to $5.20 on a deal to acquire AGL Energy’s telecommunications business and customer assets, which will have the company issuing $115 million in stock to AGL.
Market operator ASX Ltd fell 1.7% to $55.38 after chief executive Helen Lofthouse abruptly quit following a tenure marred by operational incidents, governance concerns and intense regulatory scrutiny.
SGH rose 3.6% to $50.91 as it lifted its interim dividend by 7% to 32¢ per share after delivering a 1% rise in net profit to $473 million for the first half.
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