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Highlights
- ASX closes higher as technology and banking sectors gain momentum.
- Xero shines with impressive earnings growth, boosting tech sector.
- Mining giants BHP and Fortescue Metals see declines amid lower iron ore prices.
The Australian stock market closed with gains on Thursday, driven by strong performances in technology and banking sectors. The S&P/ASX 200 Index rose by 0.4 percent to 8224 points, while the broader All Ordinaries added 0.3 percent, showing resilience in a mixed trading environment. Out of 11 sectors, six saw gains, primarily led by technology and banking stocks, offsetting weaker performances in the mining industry.
The technology sector received a substantial boost, largely thanks to Xero (ASX:XRO), which surged 5.9 percent to $171. The accounting software provider reported impressive half-year results, with a 51 percent jump in earnings before interest, tax, depreciation, and amortisation (EBITDA) to $311.7 million. Xero’s net profit also grew significantly, rising 76 percent to $95 million for the six months ending September 30. This strong performance in the tech sector provided upward momentum to the broader market.
The banking sector also contributed to the market’s strength, with all major banks in positive territory. Commonwealth Bank (ASX:CBA) led the way, gaining 2.2 percent to close at $152.84, followed by National Australia Bank (ASX:NAB), which rose 1 percent to $38.70. Westpac (ASX:WBC) and ANZ (ASX:ANZ) also posted gains, climbing 1.3 percent to $32.44 and 1.2 percent to $31.63, respectively. This sector-wide lift in banking stocks was instrumental in supporting the day’s market performance.
In contrast, the mining sector faced challenges as iron ore prices dipped. Iron ore futures dropped 1.2 percent to $US99.40 per tonne, impacting key players in the industry. Fortescue Metals (ASX:FMG) fell by 1.9 percent to $17.94, while BHP (ASX:BHP) decreased by 1.3 percent to $40.01, reflecting the sector's sensitivity to commodity prices.
Among other notable movements, explosives manufacturer Orica (ASX:ORI) saw a marginal increase of 0.1 percent to $17.58 after announcing a full-year net profit of $525 million, accompanied by a 15 percent rise in EBIT to $806 million. Nufarm (ASX:NUF), a key player in agricultural chemicals, jumped 6 percent to $3.88 after better-than-expected FY24 results, though it reported a 29 percent decline in underlying EBITDA to $313 million. GrainCorp (ASX:GNC) experienced a 2.9 percent drop to $8.59 after its net profit fell sharply to $62 million for the 2024 financial year, resulting in a reduction of its special dividend.
Meanwhile, Cleanaway (ASX:CWY) gained 3.2 percent to $2.80 following news that the Australian Competition and Consumer Commission is scrutinizing its proposal to acquire the Citywide waste business, owned by the City of Melbourne council.
The ASX movements tracked modest gains on Wall Street, influenced by the latest US inflation data, which could potentially prompt a Federal Reserve rate cut in the coming month.
