AUS
NZ
UK
CA
USA
IND
Highlights
- Technology and banking sector gains lifted the ASX.
- Major iron ore drop impacts mining stocks.
- Mixed performance across companies in spotlight.
The Australian stock market experienced a lift on Thursday, driven by technology and banking sector gains, while iron ore’s decline weighed on mining shares. By mid-afternoon, the S&P/ASX 200 Index rose 0.2%, increasing by 14.1 points to reach 8207.5, buoyed by advances in six of the eleven market sectors.
Leading the technology rally, accounting software provider Xero (ASX:XRO) saw a notable rise of 5.9%. The company reported a strong half-year performance, with earnings before interest, tax, depreciation, and amortization (EBITDA) soaring 51% to $311.7 million. In addition, Xero’s net profit increased by 76% to $95 million in the six months ending September 30, bolstering investor sentiment in the technology sector.
The banking sector also saw gains across the board, led by Commonwealth Bank (ASX:CBA) with a 1.3% increase. Other major banks followed, with National Australia Bank (ASX:NAB), Westpac (ASX:WBC), and ANZ (ASX:ANZ) each climbing by 0.7%. These financial institutions benefitted from the broader market’s positive momentum.
In contrast, the commodities market faced challenges, with iron ore prices declining by 1.2% to $US99.40 per tonne on December contracts. This dip impacted mining giants, with Fortescue Metals (ASX:FMG) dropping 1.4% and BHP (ASX:BHP) falling 0.9%. The drop in iron ore prices added pressure on these mining stocks, reflecting investor concerns over potential earnings impacts.
Meanwhile, economic data revealed that Australian employment grew by 15,900 in October, following a 64,100 increase the prior month. The unemployment rate remained steady at 4.1%, aligning with market expectations. These statistics indicate ongoing stability in the labor market.
Several companies posted notable movements based on their financial results. Orica (ASX:ORI), an explosives manufacturer, fell 1.7% despite reporting a full-year net profit of $525 million, with EBIT rising by 15% to $806 million. Nufarm (ASX:NUF), a farm chemical company, saw a 7% jump, even with a 29% reduction in underlying earnings to $313 million, along with a statutory net loss of $6 million for FY24.
GrainCorp (ASX:GNC) declined by 3.6%, reporting a significant drop in net profit to $62 million for FY24, down from $250 million the previous year. GrainCorp maintained its ordinary dividend but reduced its special dividend by 6¢ per share.
Additionally, Cleanaway (ASX:CWY) shares rose by 3.5% after the Australian Competition and Consumer Commission raised issues regarding its proposed acquisition of Citywide, a waste business owned by the City of Melbourne council. This regulatory update contributed to Cleanaway’s positive market reaction.
