AU Morning Wrap: Link Group Jumps on Profit Beat; a2 Milk Falls

The US's main indices finished mixed as the prospect of further rate hikes lifted treasury yields to their highest since November. Two more Federal Reserve policymakers joined the chorus calling for higher rates.

Megacap growth stocks weighed as the yields on two-year and ten-year US treasuries scaled three-month highs. Atlassian shed 3.49 per cent, Nvidia 2.79 per cent and Microsoft 1.56 per cent.

A strong rally since the start of the year continued to lose momentum last week amid signs inflation was receding more slowly than hoped. Both consumer and producers prices increased more than expected last month, delaying the decline of annual inflation.

Fed Governor Michelle Bowman said the central bank had a long way to go to reach its inflation target and would have to keep raising.

The sharemarket traded flat on Monday morning as Ampol climbed 4.1 per cent on a record dividend, while a2 Milk and BlueScope Steel both tumbled after earnings missed analyst expectations.

Shares in Link Group also added 5.3 per cent after earnings guidance beat expectations and news of a finalised impairment related to major problems in the UK.

Shares in private insurance business NIB lost 7.2 per cent on its profit report.

"Charter Hall Group continues to deliver sector leading returns for investors in our funds," chief executive David Harrison said.

"Our focus remains on curating sustainable and resilient portfolios that deliver earnings growth for investors through all market conditions. This focus on performance for our investors and our co-investment alongside them continues to attract capital to the platform."

Charter Hall reported statutory net profit of $226.5 million for the half year and an interim distribution of 20.84 cents per share.

It also declared a record interim dividend of 11 cents per share and said its $300 million share buyback is 42 per cent complete.

Interim net profit sank 64 per cent to $599 million from $1.64 billion and first-half underlying EBIT was down 61 per cent to $851 million from $2.2 billion.

China and Asia sales soared 54 per cent, with Australia and New Zealand sales down 24.6 per cent.

Cash earnings after tax climbed 22.9 per cent to $294.7 million on a return on equity of 8.79 per cent.

It also said it expected operating EBIT of $80.2 million for the first half of the 2023 financial year, topping guidance of between $75 million and $80 million.

• Gold logged a third straight losing week as the US dollar continued to strengthen. Gold for April delivery settled US$1.60 or 0.1 per cent lower on Friday at US$1,850.20 an ounce. The NYSE Arca Gold Bugs Index dipped 1.25 per cent.

Gold prices hit a 2023 intraday low of US$1,827.70 before a partial recovery. For the week, the yellow metal shed 1.3 per cent.

• Iron ore rose for a second week after China pledged to stimulate the housing market and encourage consumer spending. Benchmark prices in Singapore firmed 0.8 per cent to US$125.70 a tonne.

• Oil sagged for a fourth session as traders continued to fret about the impact of higher rates on demand. Brent crude settled US$2.14 or 2.5 per cent lower at US$83 a barrel. The loss extended the international benchmark’s weekly decline to 3.9 per cent.