AU Evening Wrap | ASX Rises on Gold Stock Rally; a2 Milk Tumbles
Market Performance
Australia's $S&P/ASX 200 (.XJO.AU)$ closed 0.1% higher at 7980.4 as the trajectories of its two largest sectors continued to diverge. The benchmark index rallied from a brief early dip into the red to record a seventh straight gain, its longest winning streak since June 2023.
Banks $ANZ Group Holdings Ltd (ANZ.AU)$, $CommBank (CBA.AU)$, $National Australia Bank Ltd (NAB.AU)$ and $Westpac Banking Corp (WBC.AU)$ added between 0.5% and 2.5% as the financial sector improved its chances of a fourth straight monthly rise. Materials, the No. 2 sector by market capitalization, stayed on track for a third straight monthly decline as iron-ore miners $Rio Tinto Ltd (RIO.AU)$, $BHP Group Ltd (BHP.AU)$ and $Fortescue Ltd (FMG.AU)$ fell by between 0.25% and 1.9%. $The a2 Milk Co Ltd (A2M.AU)$ lost 19% on weaker-than-expected guidance, while audio-visual tech provider $Audinate Group Ltd (AD8.AU)$ jumped 20% after releasing its annual earnings report.
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Top News
Suncorp Shares Rise Despite Weaker FY24 Results
$Suncorp Group Ltd (SUN.AU)$ shares rose on Monday following a relatively weaker-than-expected FY24 result. The company reported a 28.8% increase in general insurance underlying profit after tax to $1.10 billion and an 11.8% rise in net profit after tax to $1.19 billion. Cash earnings grew by 16.6% to $1.37 billion, although this figure was 3.5% below consensus expectations of $1.42 billion. Suncorp announced a final dividend of 44 cents per share, bringing the total dividend for FY24 to 78 cents per share. Additionally, the company noted net proceeds of $4.1 billion from the sale of the Bank, with the majority expected to be returned to shareholders around the first quarter of 2025.
Westpac Shares Rally on Strong Quarterly Profit
$Westpac Banking Corp (WBC.AU)$ shares surged 2.5% to $30.40 after reporting an unaudited net profit of $1.8 billion for the three months ending June 30, marking a 6% increase compared to its average quarterly return in the first half. The bank also indicated that profit margin pressures are easing.
Gold Stocks Surge as Investors Anticipate US Rate Cut
Investors are flocking to gold stocks ahead of the first anticipated US rate cut. Gold prices have reached a new record, poised to climb further to $2,600 this year, driven by looming US interest rate cuts, a weakening dollar, and central bank purchases. The rally in gold has surpassed analysts' expectations, with the spot price up 21% this year, reaching $2,509.65 an ounce on Friday.
Source: Dow Jones Newswires, AFR, ASX
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