AUS
NZ
UK
CA
USA
IND
Highlights
- Australian sharemarket rises on gains in tech and banking sectors.
- XRO climbs 6.4% on strong earnings, boosting the tech sector.
- NUF surges 10% despite a dip in annual earnings.
The Australian sharemarket saw positive momentum as the S&P/ASX 200 Index rose by 0.5% or 37.7 points, reaching 8231.1. Gains were recorded across eight of the eleven sectors, led by technology and major banks, while the Australian dollar continued its downward trend, dropping below US65¢ against the strengthening US dollar.
Leading the technology sector, accounting software company Xero (ASX:XRO) saw a 6.4% increase after reporting robust half-year results. Xero posted a 51% rise in earnings before interest, tax, depreciation, and amortisation (EBITDA) to $311.7 million, alongside a 76% jump in net profit to $95 million for the six months ending September 30. This significant performance provided a solid boost to the tech sector on the ASX, driving investor interest.
The banking sector also contributed to the ASX’s gains, with all major banks trading positively. Commonwealth Bank (ASX:CBA) rose by 1.6%, followed by ANZ Group (ASX:ANZ) at 1.2%, Westpac (ASX:WBC) with a 1.1% increase, and National Australia Bank (ASX:NAB) gaining 0.9%. This banking rally reflects optimistic market sentiment amid stable domestic economic indicators.
Overnight trends on Wall Street mildly influenced the local market, with US inflation data fueling speculation of an interest rate cut by the Federal Reserve next month. While the Dow Jones gained 0.1% and the S&P 500 rose by 0.2%, the Nasdaq slightly dipped by 0.3%.
Locally, recent data on employment revealed a net increase of 15,900 jobs in October, slightly below the forecasted 25,200, while the unemployment rate held steady at 4.1%.
In corporate movements, explosives manufacturer Orica (ASX:ORI) dropped by 1.7% after releasing its annual results. Orica reported a net profit of $525 million, with a 15% rise in earnings before interest and tax (EBIT) to $806 million. A final unfranked dividend of 28¢ per share was also declared.
Agricultural chemicals supplier Nufarm (ASX:NUF) jumped 10% despite announcing a 29% decline in its underlying EBITDA for the 2024 fiscal year to $313 million and recording a statutory net loss of $6 million.
Meanwhile, GrainCorp (ASX:GNC) dropped by 3.9% following a decrease in annual net profit to $62 million from the previous year’s $250 million. Although GrainCorp maintained its ordinary dividend, it reduced its special dividend by 6¢ per share.
In a regulatory update, Cleanaway Waste Management’s (ASX:CWY) proposed acquisition of Citywide, a waste management entity owned by the City of Melbourne, raised competition concerns. Cleanaway shares rose 5.7% as discussions progressed.
This diverse performance across sectors reflects ongoing shifts in market dynamics as economic conditions evolve.
