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The Australian sharemarket kicked off the day on a positive note, with the S&P/ASX 200 Index climbing by 0.4%, or 27.8 points, to 8072.9. This early rise was supported by strong performances in the energy and industrial sectors. Investors are keenly absorbing the final day of the earnings season, which has been marked by a flurry of company results.
Global Market Influence
The local market’s upward movement follows gains on Wall Street overnight. The Dow Jones Industrial Average advanced by 0.6%, reflecting a broad-based rally, while the S&P 500 remained relatively flat. The Nasdaq, however, slipped by 0.2%. Despite the S&P 500’s modest decline, approximately 75% of its constituent stocks ended the session in positive territory. The Nasdaq 100 showed little change, whereas the Russell 2000, which represents small-cap stocks, saw a 1% increase.
Nvidia experienced a notable drop, closing down 6.4% in line with its after-hours performance. The decline followed disappointing quarterly results released Thursday morning AEST. In contrast, Apple saw a 1.5% rise and is nearing the record high set in mid-July. Citigroup has recently highlighted Apple as its top pick for artificial intelligence investments, positioning it above Nvidia.
Key Stocks in Focus
Several companies drew attention on the Australian sharemarket today:
- Star Entertainment Group Ltd (ASX:SGR): Shares in Star Entertainment have been halted following a review by the NSW casino regulator. The review criticized former CEO Robbie Cooke for his role in the company’s management issues and lack of oversight.
- Ramsay Health Care Ltd (ASX:RHC): The private hospital operator’s shares fell more than 7% after it warned that patient growth would slow this year. Ramsay cited cost inflation as a significant factor affecting its margin recovery.
- Downer EDI Ltd (ASX:DOW): Downer EDI saw a 14% surge in its shares after reporting a $82 million annual profit, a notable turnaround from the $386 million net loss reported the previous year due to substantial writedowns.
- TPG Telecom Ltd (ASX:TPG): TPG announced it would cut 120 jobs to save $20 million following a 40% drop in interim net profit to $29 million. The company’s revenue remained flat at around $2.7 billion, but rising finance costs and new lease agreements impacted its financials. Shares in TPG increased by 6.3%.
- Harvey Norman Holdings Ltd (ASX:HVN): Harvey Norman’s shares dropped by 4.8% after the retailer reported a 35% decline in net profit to $352.5 million for the 2023-24 financial year. Despite the drop, the company maintained its final dividend payout at 12 cents per share.
- Appen Ltd (ASX:APX): Appen’s shares fell by 6.2% following a 18.4% decline in group operating revenue to $113.4 million for the half-year. The drop was attributed to the termination of a significant contract with Google.
The Australian market’s mixed reactions to these results highlight the varied responses of investors to the latest earnings reports. As companies navigate through economic challenges and adjustments, the overall market sentiment remains cautious yet hopeful.
