Markets at a glance 30 August
Around the grounds
The Australian share market is set to end the week on solid ground, holding above that 8-thousand level milestone as stronger commodity prices continue to bolster the resource plays.
Gold stocks are the standout, up around 1.5% at the time of writing as the price of bullion remains lofty, little changed in today’s trade but poised for a monthly gain on the prospect of an imminent Fed rate cut in September. The broader sector is up nearly 46% so far this year.
The miners are also higher after iron ore prices closed higher yesterday, buoyed by renewed hope of improving demand in China in the coming weeks. Energy stocks are taking similar leads, up over 1% on a rise in the price of oil amid supply disruptions in Libya and plans to lower output in Iraq.
On the local currency calls, the Australian dollar is holding ground despite a flat retail sales data print in July, as spending on clothes and at department stores take a hit as shoppers tighten their purse strings.
The Australian dollar is set to close the month nearly 4% higher, marking four straight weeks of gains.
In the news
Getting to the corporate calendar and the end of reporting season is in sight for Australian listed companies. Today, firm focus on Harvey Norman (ASX: HVN). Shares of the Australian furniture and electrics retailer have sunk as the company logs a 35% slide in full year statutory net income and a miss on estimates. Total systems revenue and comparable sales were also down from a year earlier in most markets.
On the payout, investors will receive a fully franked 22 cent per share dividend, down 12% from the prior year.
The stock though is up over 12% this year, as of last close.
Shares of Ramsay Health Care (ASX: RHC) have taken a hit, languishing near 11-year lows on an underwhelming outlook with net interest expenses expected to be higher than market expectations. Full year post-tax underlying profit from continuing operations was up nearly 20% with a final dividend of 80 cents a share declared.
RHC is down 15.3% this year as of last close.
On the flip side, shares of Australia telco giant TPG (ASX: TPG) have surged as the company says it’s tracking towards the mid-point of its current EBITDA guidance range. Half year profit though slid 40% with an interim dividend of 9 cents per share declared.
The stock is down 11.6% this year, as of last close.
Downer EDI (ASX: DOW) shares have climbed to touch a two-year peak as the contracting firm swings to back to black in fiscal 2024, posting an over 34% pop in pro-forma EBITDA for the financial year ended 30 June, and a 24.5% jump in underlying NPAT. Final dividend of 11 cents per share declared.
Finally, Australian listed shares of Dicker Data (ASX: DDR) have tumbled to touch a 12-week low as the technology company posts a 5.7% drop in half year NPAT thanks to an over 2% fall in revenue from ordinary activities due to an increase in employee and finance costs.
The stock is down around 15% YTD, as of last close.
Going global
Getting to the global stage, and stocks around the Asian region are poised for a solid end to the month of August with MSCI’s broadest index of Asia-Pacific shares outside of Japan are higher, set for a gain of nearly 2% for the month.
Tokyo’s Nikkei 225 has recovered from its early month collapse which saw the biggest sell-off since the October Black Monday crash in 1987 but is still eyeing a 1.4% loss for the month.
US futures are back online, with stocks expected to extend Wall Street’s positive run when the session kicks off, both the Nasdaq and S&P 500 futures are in the black.
Rounding it all out with global currencies, the US dollar is set to snap a five-week losing streak, hovering near a one-week high versus its peers, after robust economic data state side pared bets for an aggressive FOMC interest rate cut next month.
The euro continues to wallow near a two-week low, as cooling inflation in Germany and Spain boosted the case for easing from the European Central Bank (ECB). And the yen is holding nearly the closely watched 145 per dollar level after weakening yesterday and has largely ignored CPI data that showed prices in Toyo are climbing faster than expected, coming in at 2.4% in August topping the Bank of Japan’s 2% target.
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