Yet another record close for Australian sharemarket, benchmark index cracks 7600 points for first time

The Australian sharemarket keeps surging to fresh record highs despite ongoing east coast Covid-19 lockdowns and worrying case numbers.

The benchmark S&P/ASX200 index cracked 7600 points for the first time ever – climbing to 7615 before closing 0.29 per cent higher at 7584.3 – while the All Ordinaries Index added 0.31 per cent to 7854.6.

CommSec analyst Steve Daghlian said the local bourse had hit record intraday highs on seven of the past eight trading days despite the lockdowns, with Melbourne’s being extended until at least August 19 and NSW recording 344 new locally transmitted infections.

It is also the fifth record close in the past six trading days.

Banks and resources stocks kept the ASX in the green, following a positive lead from Wall Street overnight, with the biggest local corporate news being Commonwealth Bank booking a near 20 per cent rise in full-year cash net profit to $8.65bn.

It also declared a final dividend of $2 per share, bringing the full-year payout to shareholders to $3.50, up 17 per cent. In addition, CBA announced an off-market share buyback of up to $6bn.

“It will basically reduce the amount of shares on issue by an estimated 3.5 per cent,” Mr Daghlian noted.

Yet another record close for Australian sharemarket, benchmark index cracks 7600 points for first time

Camera IconCBA shares have climbed to record highs, eclipsing $109 in intraday trade, but some analysts have given lower price targets, including JP Morgan’s $92. Sarah Marshall / NCA NewsWire Credit: News Corp Australia

CBA shares hit an all-time high of $109.03 in intraday trade before finishing 1.5 per cent firmer at $108.17.

OMG chief executive Ivan Tchourilov said the dividend and buyback amounted to about $10bn returned to equity holders.

“They’ll fund the spend with this year’s profits as well as cash held in contingency for Covid-19,” he said.

“The plan is not dissimilar to Suncorp’s laid out earlier in the week, albeit on a much larger scale.

“Commbanks’ payout will most likely be a one-off, as they’ve recently cut down a complex web of operations to adopt a more simplified model.”

ANZ lifted 1.2 per cent to $29.23, National Australia Bank rose 0.93 per cent to $27.22 and Westpac improved 0.74 per cent to $25.77.

“The price of oil bounced back from heavy losses on Monday, up about 3 per cent. That’s the reason why we’ve got Santos, Woodside, Oil Search and Beach doing well,” Mr Daghlian said.

Santos shares put on 1.43 per cent to $6.40, Woodside firmed 0.46 per cent to $21.91, Oil Search strengthened 1.29 per cent to $3.93 and Beach advanced 2.97 per cent to $1.21.

Yet another record close for Australian sharemarket, benchmark index cracks 7600 points for first time

Camera IconThe all-important iron ore price keeps falling. Credit: Supplied

Rio Tinto appreciated 1.29 per cent to $129.14 and BHP gained 1.47 per cent to $52.52.

That came despite a 5.5 per cent slide in iron ore prices, Mr Daghlian said.

“Over the past couple of weeks, we’ve had a significant drop in the iron ore price. It has fallen about 20 per cent, partly because of proposed steel production cuts in China in coming months,” he said.

Insurer IAG posted a $427m full-year net loss, blaming significant one-off corporate expenses mainly relating to business interruption, customer refunds and payroll remediation.

“These are historical issues we’ve identified, provisioned for and are fixing – and we are making investments to continue to lift our risk management and operational capabilities,” chief executive Nick Hawkins said.

But the company still declared a final dividend of 13 cents per share, bringing the full-year dividend to 20 cents, up from 10 cents for the previous financial year.

“They’ve decided to push ahead with a dividend on the back of a strong guidance forecast for the year ahead,” Mr Tchourilov explained.

Yet another record close for Australian sharemarket, benchmark index cracks 7600 points for first time

Camera IconDeserted roads have meant fewer car crash claims for insurers. Andrew Henshaw / NCA NewsWire Credit: News Corp Australia

“Its losses, including staff underpayment and refund issues, are a one-off and the company’s underlying performance is solid.

“Covid-induced lockdowns have led to significantly lower motor accident claim numbers, which has been of huge benefit to the industry, in contrast to the car crash of a time some of the other sectors are having.”

IAG shares retreated 2.65 per cent to $5.14.

Financial markets software company Iress got an improved takeover offer from EQT Fund Management, which has an implied value of $15.91 cash per share and has been backed by the target’s board.

“The revised offer, including a cash dividend, is now at a 45 per cent premium to the pre-offer price,” Mr Tchourilov said.

“Iress’ hard-to-get attitude looks to be paying off. Although the directors intend to recommend Iress shareholders vote in favour, EQT isn’t over the line just yet.

“But it’s hard to see why they would knock back the offer, and even harder to see where another offer might come from.”

Shares in Iress jumped 5.78 per cent to $15.19.

Yet another record close for Australian sharemarket, benchmark index cracks 7600 points for first time

Camera IconWell-known olive oil brand Cobram Estate is now on the ASX. Credit: Supplied

Cobram Estate Olives made its ASX debut, dipping 1 cent from an opening price of $1.87.

Its full-year results released on Tuesday under the company’s previous name, Boundary Bend, revealed a $32.m net loss due to a low harvest, high water prices and losses in its US and Wellgrove olive-based health and wellness businesses.

But in an update on Wednesday, Cobram Estates stressed olive trees naturally bore fruit in biennial cycles, with a higher yielding crop one year typically followed by a lower yielding crop the next year, so the true cost of production and performance of the business should be judged on two-year rolling average results, it said.

The Aussie dollar was fetching 73.36 US cents, 53.03 British pence and 62.6 Euro cents in afternoon trade.

Internet Explorer Channel Network
News Related


Tata Power, L&T Finance Holdings, IRCTC among 10 stocks under F&O ban on the NSE

Representative Image The National Stock Exchange has banned as many as 10 stocks from futures & options trading on October 21 as these securities crossed 95 percent of the market-wide position limit. On October ... Read more »

IMM PE primes pump for Able C&C deal

Shin Yoo-jung By Lee Kyung-min IMM Private Equity (IMM PE) is accelerating efforts to bolster the corporate value of Able C&C, a Seoul-based cosmetics and household goods manufacturer, in hopes ... Read more »

D-Street Buzz: Nifty IT underperforms dragged by Mindtree, Coforge; Infosys, HCL Tech shed 2% each

Indian shares were under pressure for the third day on October 21, weighed down by the IT sector that was trading 2 percent lower in the afternoon. Despite reporting a ... Read more »

Teeny gains for Australian sharemarket as investors digest torrent of quarterly updates and AGM remarks

The Australian sharemarket finished flat after a choppy session as a slew of quarterly reports were issued and annual general meetings held. The benchmark S&P/ASX200 index closed up just 1.7 ... Read more »

Global brokerage sees 42% upside in L&T Finance despite dip in Q2 profit, here's why

L&T Finance Holdings share price was trading over 4 percent lower in the morning session on October 21, a day after the non-banking financial company reported a 10 percent decline in ... Read more »

Broking houses upgrade ratings of these stocks. Do you own any of them?

After hitting fresh highs at the start of the week, the benchmark indices lost 1 percent from the record levels in the last two sessions amid profit-booking. Wipro | Brokerage: ... Read more »

Gold rises to Rs 47,545, but weak dollar, inflation woes weigh

Gold prices inched up on October 21, extending gains into a third session, as a softer dollar made the metal cheaper for buyers holding other currencies. On the Multi-Commodity Exchange ... Read more »

Bitcoin storms $66,000 for first time

A representation of the virtual cryptocurrency bitcoin is seen in this picture illustration taken Oct. 18. Reuters-Yonhap Bitcoin stormed above $66,000 for the first time on Wednesday, riding a wave ... Read more »

Trade Spotlight | What should investors do with Paras Defence, Bharti Airtel, SBI and Metropolis Healthcare?

The market extended losses for the second session, with the Sensex losing 456.09 points to close at 61,259.96 and the Nifty ending 152.20 points lower at 18,266.60 on October 20. ... Read more »

Wall St rises but supply woes linger

US stock indexes have edged higher helped by strong quarterly updates from healthcare companies including Anthem and Abbott, while worries remain about the impact of supply chain constraints and inflation ... Read more »

Natural gas futures trade flat in the afternoon session

Natural gas futures traded steady on October 20 as participants rolled over their long positions as seen by open interest. Gas price had soared 1.98 percent the previous day on ... Read more »

Nestle India's September quarter just about satiating. Higher input costs pose risk

Nestle India’s September quarter revenue was broadly in line with expectations, although margins were a sore point. The gross profit margin contracted by 242 basis points (bps) year-on-year to 55.5 percent ... Read more »

Tailim Paper IPO draws controversy

Stacks of corrugated sheets of cardboard. Korea Times file By Lee Kyung-min Criticism is mounting against a planned bid for an initial public offering (IPO) by Tailim Paper, a delisted ... Read more »

[ANALYSIS] US bitcoin ETF debut will not boost crypto growth in Korea

A digital banner for the newly listed ProShares Bitcoin Strategy ETF is displayed on the floor of the New York Stock Exchange (NYSE) on Tuesday in New York City. AFP-Yonhap ... Read more »

Australian sharemarket rises across the board, only energy and telco sectors lose ground

The Australian sharemarket lifted across the board amid a slew of quarterly trading updates and after a positive lead from Wall Street, with only energy and telco sectors losing ground. ... Read more »

IRCTC share price slide continues, falls 18%; expert says avoid buying on dips

Indian Railway Catering & Tourism Corp (IRCTC) stock remained under selling pressure for the second day on October 20 in a sudden slump that has followed record highs. IRCTC share ... Read more »

Gold Price Today: Yellow metal to remain volatile amid rising US bond yields

Gold was trading a tad higher in the Indian market on October 20 even as surging US bond yields dented the metal’s appeal in the international market and bets for ... Read more »

Trade Spotlight | What should you do with L&T Infotech, IRCTC, Bharat Dynamics and TTK Prestige now?

The bears have at last managed to sneak into Dalal Street, setting off a selling pressure in last hour of trade on October 19 after a seven-day bull run in the market. The benchmark indices, however, ... Read more »

Global growth numbers look good, but challenges remain multi-faceted and complex, says Indranil Pan

Economy Indranil Pan, Chief Economist at YES Bank The title of this piece broadly reflects the theme for the October 2021 World Economic Outlook (WEO). Compared to the July forecasts, ... Read more »

Hot Stocks | Sun TV Network, Apollo Tyres and UPL can give up to 38% return in short term

Nifty50 has faced resistance at a very important level of 18,600. Our research shows that it is going to be crucial for the index to sustain above the 18,350-18,400 range ... Read more »

Earnings whip up risk appetite on Wall St

US stock indexes have risen as upbeat results from Johnson & Johnson and Travelers fired up risk appetite, after big banks kicked off the third-quarter reporting period on a positive ... Read more »

Network 18 Media Q2 consolidated revenue up 31%

Network 18 Media & Investments has posted a consolidated revenue of Rs 1,387.2 crore for the versus Rs 1,061 crore in the same quarter last year – a jump of ... Read more »

HUL share price falls 5% as company reports September quarter earnings

Hindustan Unilever (HUL) share price fell 5 percent intraday on October 19 after company came out with September quarter earnings. FMCG major Hindustan Unilever on October 19 reported an 8.9 ... Read more »

Natural gas futures plunge 15.79% from last week's high on profit-booking

Natural gas futures plummeted for the second successive day on October 19 as participants increased their short positions as seen by open interest. Gas price had tumbled 7.8 percent on the ... Read more »

Australian sharemarket ends flat, with potash producer and whisky distiller among winners, but miners and banks weigh

The Australian sharemarket finished flat after a late sell-off, held back by weakness in resources and bank stocks. The benchmark S&P/ASX200 index closed 6.2 points lower at 7374.9, while the ... Read more »

Indian Energy Exchange share price surges 20% as board to consider bonus issue on Oct 21

Indian Energy Exchange share price touched a 52-week high of Rs 956.15, gaining 20 percent intraday on October 19 as the company is to consider a proposal for the declaration ... Read more »

HUL share price edges higher ahead of Q2 results

Hindustan Unilever (HUL) share price was up over 2 percent in the morning session on October 19 ahead of its Q2 results. Experts largely expect the company to grow its ... Read more »

Currency market shut today for Id-E-Milad

Indian currency market will remain shut on October 19 on account of Id-E-Milad. The Indian rupee ended marginally lower at 75.34 per dollar on October 18. It had closed at 75.26 ... Read more »

IRCTC market cap hits Rs 1 lakh crore after share price jumps 4% to 52-week high

Indian Railway Catering & Tourism Corporation (IRCTC) stock was in the focus once again in the morning trade on October 19 after the stock jumped 4 percent intraday. Indian Railway Catering ... Read more »

Policy Bazaar receives Sebi nod for listing, aims to raise Rs 6,017 crore: Report

As of March 2021, over 4.8 crore consumers have registered on Policybazaar platform and purchased over 1.9 crore policies from insurer partners. In FY21, the annual number of visits on ... Read more »

Blackstone-backed global handbag maker to go public next month

The headquarters of Simone Accessories Collection, located in Uiwang, Gyeonggi Province / Courtesy of Simone Accessories Collection By Anna J. Park Simone Accessories Collection, a luxury handbag maker that mainly ... Read more »

UltraTech Cement Q2 Result | Consolidated Profit rises to Rs 1,314 crore, consolidated revenue grows to Rs 12,017 crore

Representational Image UltraTech Cement Limited, world’s third largest cement manufacturer (excluding China) and largest in India, has reported consolidated profit after tax of Rs 1,313.53 crore for the quarter ended ... Read more »

Natural gas futures continue to fall after 3% drop last week, money managers cut net long positions

Representational image Natural gas futures slid on October 18 as participants raised their short bets as seen by the open interest. The gas price had slumped 2.72 percent last week ... Read more »

GPT Healthcare files draft papers with Sebi to raise funds via IPO

Representative image GPT Healthcare, which runs the chain of ILS Hospitals, has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial share-sale. The initial public ... Read more »

Miners and banks ‘soften the blow' for share market, lifting the ASX200 to a slight gain

The Australian share market edged slightly higher on Monday, as mining and financial shares “softened the blow” following concerns of an interest rate hike and weak Chinese data. Local shares ... Read more »

Slideshow | Foreign brokerages raise target of these 11 stocks, do you own any?

The Indian market continued to make the fresh record highs on positive September quarter earnings, better CPI inflation and IIP data. The BSE Sensex and the Nifty touched fresh record ... Read more »

Casino faces major class action after money laundering allegations revealed

Star Entertainment Group shareholders are forming a class action after alleged inadequacies were exposed in the casino’s systems related to the management of anti-money laundering and counter-terrorism financing risks. Maurice ... Read more »

Market LIVE Updates: SGX Nifty indicates a flat to positive start for the Indian indices

Read more »

Asia jittery ahead of China GDP; oil high

Asian shares are on edge ahead of the release of Chinese economic data for the third quarter, as investors fret about the health of the world's second-largest economy even as ... Read more »

Wall St climbs on strong bank results

US stocks have risen as Goldman Sachs was the latest big bank to report strong results and better-than-expected retail sales eased worries about demand. The three major stock indexes were ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic