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Healthcare giant CSL and software maker WiseTech helped steer the share market to a ten-week high following a record close on Wall Street and a rebound in the big banks.
The S&P/ASX 200 climbed 48 points or 0.8 per cent to 6172 by mid-session. CSL accounted for roughly half the gains as the index hit 6197, its strongest level since June 9 and just two points short of the post-pandemic meltdown peak of 6199.
The 104-year-old biotech formerly known as Commonwealth Serum Laboratories surged 8 per cent to a three-month high on news it booked a record US$2.1 billion full-year net profit in the face of supply chain problems caused by COVID-19. The company forecast a net profit after tax for this financial year in the range of US$2.1 – US$2.265 million.
WiseTech spearheaded a 2.7 per cent tech sector rally, spiking 28.7 per cent after hitting full-year revenue and earnings guidance. The software maker increased revenue by 23 per cent and earnings before tax by 17 per cent. The share price response helped offset a 12.7 per cent dive in Nearmap after the mapmaker’s full-year statutory loss after tax more than doubled to $36.7 million as the company invested in growth.
ANZ broke this reporting season’s run of disappointments in the financial sector. News the bank will pay a dividend of 25 cents a share helped lift the stock price 3.3 per cent. Westpac, which yesterday announced it was suspending its dividend, rebounded 0.8 per cent. CBA edged up 0.6 per cent despite trading without a 98 cent dividend. NAB gained 1.4 per cent.
Earnings winners
A huge morning of corporate updates produced the usual range of winners and losers. Corporate Travel Management gained 9 per cent after reporting a turnaround in Q4 revenue. Other winners included Vocus Group +9 per cent, NRW Holdings +8.3 per cent, Domino’s Pizza +7.9 per cent, Bapcorp +7.7 per cent, Megaport +5.1 per cent, Carsales.com +4.1 per cent, Oz Minerals +3.3 per cent, Dexus +1.4 per cent, Brambles +1 per cent and Crown Resorts +1 per cent. Tabcorp shares entered a trading halt after announcing an entitlement offer.
Earnings losers
Fleet manager McMillan Shakespeare sank 9.4 per cent after unveiling a 98 per cent slump in net profit to $1.269 million and scrapping its final dividend. Jeweller Michael Hill shed 7.6 per cent, the A2 Milk Company 5.4 per cent, Saracen Mineral 5 per cent, EML Payments 4 per cent, Evolution Mining 3.5 per cent, Vicinity Centres 3.2 per cent, Mineral Resources 3 per cent, Northern Star 2.9 per cent, Fletcher Building 2.2 per cent, Silver Lake 2.1 per cent and InvoCare 0.9 per cent.
Iron ore miners were mixed despite a six-and-a-half year high in the price of ore. Fortescue put on 0.3 per cent and Rio Tinto 0.6 per cent. BHP faded 0.8 per cent after narrowly missing earnings expectations yesterday.
On Asian markets, China’s Shanghai Composite slid 0.7 per cent, Hong Kong’s Hang Seng inched up 0.1 per cent and Japan’s Nikkei gained 0.2 per cent. S&P 500 index futures rose four points or 0.1 per cent.
Oil retreated ahead of tonight’s OPEC+ meeting to discuss cutting production caps. Brent crude dropped 28 cents or 0.6 per cent to $US45.18 a barrel. Gold declined $11.20 or 0.6 per cent to $US2,001.70 an ounce.
The dollar retreated 0.03 per cent to 72.38 US cents.
What’s hot today and what’s not:
Hot today: Smarthome security provider Scout Security (ASX:SCT) hit a 20-month high on news the company had integrated its Scout Alarm product with Amazon’s Alexa Guard. The combination means customers with Amazon Echo speakers can configure them to detect the sounds of burglaries or fires and use Scout Alarm to alert police. The SCT share price was up 90.8 per cent when the shares were placed in a trading halt to clarify details in the announcement.
Not today: Turmoil in Mali helped send shares in goldminer Resolute Mining (ASX:RSG) down 17.1 per cent. President Ibrahim Boubacar Keita resigned after being detained by soldiers in an apparent military coup following weeks of protests over corruption and the struggling economy. President Keita also announced he was dissolving the government. Resolute’s flagship project is the Syama goldmine in Mali.
