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Australian shares were largely steady shortly after the market open, with the S&P/ASX 200 Index dipping 4 points to 7810.70. This follows a 0.5% gain on Monday, as the market continues to navigate earnings season amid Wall Street's struggle for direction ahead of key U.S. inflation data.
Seven out of the 11 sectors were in positive territory, led by advances in real estate and energy, which helped counterbalance a significant drop in health stocks. This decline in the healthcare sector was driven primarily by a 2.9% fall in shares of biotech giant CSL (ASX:CSL), despite the company’s forecast of double-digit earnings growth for the year.
Craig Wong-Pan, an analyst at RBC Capital Markets, commented, “The market will likely find the FY24 numbers somewhat disappointing due to higher than expected operating expenses. Although conservative FY25 guidance was anticipated, the NPATA [net profit after tax and amortisation] guidance may still be perceived as weaker than expected.”
In contrast, wealth management firm Challenger (ASX:CGF) saw a 4.8% rise in its share price after announcing a 10% increase in its dividend to 26.5 cents, fully franked.
Online recruitment platform Seek (ASX:SEK) experienced a 9% drop following a reduction in job advertisements across the region, impacting its financial performance.
Oil prices surged overnight, boosting shares of Woodside (ASX:WPL) and Santos (ASX:STO) by 0.7%, with Beach Energy (ASX:BPT) climbing 0.8%. Brent crude prices jumped over 3% to above $US80 per barrel due to concerns that a potential escalation in Middle Eastern conflicts could tighten global oil supplies.
Among the ASX’s major banks, Westpac (ASX:WBC) and ANZ (ASX:ANZ) both rose by 0.7%, while index heavyweight Rio Tinto (ASX:RIO) remained steady. BHP (ASX:BHP) inched up by 0.1%, and Fortescue Metals (ASX:FMG) gained 0.3%.
The Australian dollar held steady at US65.80 cents as investors awaited wage price index data at 11:30 a.m. AEST. The Reserve Bank is hoping that a moderation in wage growth will help bring inflation closer to its mid-point target of 2.5%.
Stocks on the Move
- Building products company James Hardie (ASX:JHX) fell by 2.1% despite reporting a 1% increase in first-quarter adjusted earnings.
- Online retailer Temple & Webster (ASX:TPW) surged 25% after posting a record revenue of $498 million for the 2024 financial year, a 26% increase compared to the previous year.
