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The Australian sharemarket saw a positive start today, buoyed by robust earnings results from AGL Energy Ltd. amid a busy week of corporate reports. The benchmark S&P/ASX 200 Index gained 0.6%, or 47.9 points, reaching 7874.7 in early trading, with the utilities sector leading the way.
Utilities Sector Leads with AGL Energy’s Surge
The utilities sector emerged as the top performer, climbing 1.5%. AGL Energy (ASX:AGL) led this rally with its shares increasing by 3.6%. The company’s underlying net profit for the 2024 financial year surged to $812 million, up significantly from $281 million in the previous year, surpassing its upgraded guidance.
Wall Street Influence and Market Reactions
The sharemarket's uplift was also supported by a strong performance on Wall Street, where the Nasdaq rose 2.4% following a US inflation reading that bolstered expectations of a Federal Reserve rate cut next month. The VIX, a gauge of market volatility, fell below 20, and swap traders are anticipating a near 40 basis-point rate cut in September and a total reduction of around 105 basis points for 2024.
Meanwhile, oil prices stabilized after a five-day increase, and Bitcoin saw a 3% rise overnight.
Stocks in Focus
- Commonwealth Bank (ASX:CBA): The bank's shares edged up 0.2% after reporting a $9.8 billion cash profit for the year ending June 30. Despite a 2% decline from the previous year, the result beat market expectations. CBA also announced a final dividend of $2.50 per share, surpassing analysts’ forecasts, and bringing the full-year dividend to $4.65 per share, representing 79% of its profits.
- Seven Group Holdings (ASX:SVW): The company’s shares rallied 5.5% following its positive FY25 outlook, projecting high single-digit growth in earnings before interest and taxes.
- ASX Ltd (ASX:ASX): Shares fell over 3% amid legal issues, with ASIC suing the company over alleged misleading statements related to its CHESS replacement project.
- Pro Medicus (ASX:PME): The imaging technology company saw its shares rise 2.9% after reporting a net profit of $82.8 million for the 12 months to June 30, marking a 36.5% increase from the previous year.
- Orora Ltd (ASX:ORA): Shares in the glass and can manufacturer surged 7.1% following a 9.5% increase in revenue to $4.29 billion. Despite rejecting a $3.3 billion buyout offer from Lone Star, Orora highlighted a challenging outlook due to reduced orders from major customers in the spirits, wine, and beer sectors.
- Evolution Mining Ltd (ASX:EVN): Shares climbed 7.4% after the company's full-year profits nearly tripled, driven by a surge in gold prices amidst geopolitical tensions and global economic uncertainty.
- Seven West Media (ASX:SWM): Shares rose 3.2% despite reporting a 4.9% decline in revenue to $1.4 billion for the year ending June 30, 2024, and a significant 68.9% drop in profit to $45.3 million.
Today's trading reflects strong corporate earnings and positive external market influences, setting a favorable tone for the Australian sharemarket.
