Markets at a glance 29 August

Around the grounds

The Australian share market has slipped into the red on this Thursday session dogged by losses in the miners and investors continue to digest yesterday’s inflation print. July CPI data slowed to a four-month low but showed there is not much further progress on goods disinflation prompting investors to pull back some hopes of interest rate cuts.

Looking at the detail, miners are down 1%, as the price of iron ore slips ahead of key data out of China, while financials are higher with the ‘Big Four’ banks gaining between 0.2% and 0.5%.

Gold has climbed yet again, holding near record highs, while the price of oil has gained after straight sessions of losses as concern about demand in China and the U.S. counter supply disruptions out of Libya.

Across the Tasman the New Zealand share market is lower, with shares of Air New Zealand sliding after the country’s flagship carrier reported a 61% slump in annual profit and warned of a challenging outlook ahead.

In the news

Getting to the corporate calendar locally, and it’s another busy day for reporting season. Qantas Airways (ASX: QAN) has reported a 16% slide in full year underlying profit dented by rising fuel costs and lower air fares but came in line with analyst estimates. On a statutory basis profit after tax dropped by over 28% on the prior year, with no final dividend declared, continuing its five-year dividend drought.

Despite the dip, the carrier has unveiled an additional share buyback plan of up to AU$400 million.

Australian listed shares of South32 (ASX: S32) are marginally lower after a 59% tumble in annual profit, declining for the second straight year due to weak performance at its key operations.  

Underlying earnings were also lower, but a beat on consensus, with a AU$200 million share buyback unveiled with a final dividend of 3.1 cents per share declared, a tick lower than the 3.2 cents a year earlier.

Wesfarmers (ASX: WES) has reported a near 4% pop in annual profit, boosted by sales across all divisions, in particular its top retail units Bunnings and Kmart which contributed roughly 80% of the company’s total operating earnings and saw 2.3% and 4.4% growth in annual revenue respectively.

Looking ahead though the outlook is cloudy, with trading in the first eight weeks of fiscal 2025 moderating from the second half of FY24 with the company forecasting market-wide softness in building activity to continue in the year ahead.

Final dividend of AU$1.07 per share declared, higher than last years AU$1.03 payout.

Battery metal producer IGO Ltd (ASX: IGO) are also marching higher after full year underlying free cash flow came in 6% ahead of estimates and the company reiterated guidance. Final dividend also gets a boost at 26 AU cents per share, well above the 9 cent per share market forecast.

The stock though is down over 40% this year, as of last close.

Shares of Clinuvel Pharmaceuticals (ASX: CUV) have jumped, on track for their fifth day of consecutive gains if momentum holds as the company reports a 14% spike in full year profit, with an annual dividend of AU$0.05 per share, steady on a year earlier.

Rounding things out, Australian listed shares of Cettire (ASX: CTT) have dropped by over 19% as the luxury online retailer reported lower-than-expected full year earnings, with analysts flagging a “weak” start to FY25 compared to the market.

The stock is down 54% this year as of last close.

Going global

To the global stage and Nvidia’s third quarter results disappointment is dragging shares across the Asian region lower. Tokyo’s Nikkei 225 is under pressure as technology shares lead the decline, while MSCI’s broadest index of Asia-Pacific shares outside Japan have fallen 0.6%.

US futures are back online with the Nasdaq set to drop around 1% at the start of the Wall Street session.  

Investors now are focused on U.S. weekly jobless claims, as well as inflation readings form German and Span, for clues on rate-cut prospects beyond September.

Finally, to the currency market, the big dollar has steadied above one-year lows, while the euro has held around the $1.113 level after dropping 0.6% overnight and failed to break major resistance at $1.12.

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