ASX Gains as Utilities and Real Estate Stocks Surge: APA Group, Lendlease Lead the Way

November 15, 2024 12:36 PM AEDT | By Team Kalkine Media

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ASX Gains as Utilities and Real Estate Stocks Surge: APA Group, Lendlease Lead the Way — Image source: shutterstock

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Highlights

ASX 200 rises with utilities and real estate sectors showing strong performance.

APA Group and Lendlease drive sector gains.

Perpetual and Corporate Travel also see notable increases.

The Australian stock market made notable gains at midday, supported by strong performances in the utilities and real estate sectors. The S&P/ASX 200 Index climbed by 0.3%, adding 24.7 points to reach 8,248.7. With ten of the eleven sectors showing positive movement, the market’s midday momentum came amid favorable results in key companies and stable sector guidance.

Leading the utilities sector was APA Group (ASX:APA), which rose 3.2%. The company upheld its 2025 fiscal year guidance, targeting a normalized EBITDA surpassing last year’s results. APA Group reported increased first-quarter revenue of $256.4 million, up from $237.6 million in the prior quarter, supporting investor confidence and bolstering sector performance.

The property sector also enjoyed gains, driven by a strong performance from Lendlease (ASX:LLC), which rose 4.8% after CEO Tony Lombardo hinted at a $500 million share buyback to return capital to shareholders. Lombardo highlighted that the buyback would commence soon, conditional on asset sales. This announcement positioned Lendlease as one of the top performers on the ASX 200, providing optimism within the real estate sector.

Despite mixed signals from Wall Street, where US Federal Reserve Chairman Jerome Powell indicated caution regarding potential rate reductions, the ASX maintained its upward trajectory. Expectations for a quarter-point rate cut by the US Federal Reserve next month dropped from 82.5% to 55.5%, reflecting the Fed's current cautious stance.

Meanwhile, in Adelaide, the Sohn Australia conference brought together leading industry figures, including billionaires, bankers, and fund managers. Among the stocks spotlighted at the event, Perpetual (ASX:PPT) and Corporate Travel Management (ASX:CTD) both saw significant activity. Shares in both companies rose over 3% following endorsements at the conference by prominent figures.

ASX Ltd (ASX:ASX) also experienced gains, climbing 1.3% after responding to claims from the Australian Securities and Investment Commission (ASIC). The company refuted allegations that statements made in February 2022 about its CHESS replacement project were misleading or deceptive, which ASIC had asserted contravened sections of the ASIC Act 2001.

This mixed but largely positive performance across the ASX 200 reflects the resilience of key Australian sectors and underscores the influence of corporate announcements and international economic indicators on the broader market trajectory.

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