AU Weekly Wrap | ASX 200 Ends Week with 0.12% Loss; The Information Technology And Utilities Sectors Shine

Over the past week, the $S&P/ASX 200 (.XJO.AU)$ closed with a 0.12% decline, reaching 8285.20. The market exhibited a varied performance, as seven of the eleven sectors faced downturns, reflecting the overall negative movement of the index. Notably, the information technology and utilities bucked the trend, achieving gains of 4.63% and 3.43%, respectively.

$James Hardie Industries PLC (JHX.AU)$ saw a 12% drop in adjusted net income to $157 million in Q2 of the fiscal year, down from $178.9 million in the corresponding quarter the previous year, as per their latest report filed with the Australian stock exchange on Wednesday. This result exceeded the Visible Alpha consensus estimate of $145.7 million. The company's adjusted earnings per share (EPS) decreased to $0.36 from $0.41 year-over-year, as stated in the filing. This figure was higher than the $0.34 expected by analysts surveyed by Visible Alpha. For the quarter ending September 30, net sales dipped by 4% to $960.8 million, compared to $998.8 million in the same quarter of the previous year. This was slightly below the $967.2 million forecast by Visible Alpha-pollinated analysts.

$Mineral Resources Ltd (MIN.AU)$ announced its decision to place the Bald Hill mine into care and maintenance mode due to high cash costs and low lithium prices, affecting approximately 300 employees. Macquarie Bank anticipates that the Bald Hill lithium mine, operated by Mineral Resources, may remain idle for an extended period, citing weak price realization as another barrier to restart operations. Macquarie stated that in the first quarter of the 2025 fiscal year, Bald Hill's production achieved $675 per ton, which was a 10% discount to the grade-adjusted benchmark price.

$Paladin Energy Ltd (PDN.AU)$ responded to the reduced forecasts for uranium production from the Langer Heinrich mine in Namibia, which had resumed operations. However, this may have also reflected concerns about its merger and acquisition strategies. Citi noted in an analysis that the sharp decline in Paladin's shares could have complicated the company's deal to acquire Canada's Fission Uranium for more than $800 million.

$HMC Capital Ltd (HMC.AU)$ secured a deal to purchase iseek, a co-location data center platform boasting 6 megawatts of power capacity. The platform, which spans across seven locations in Queensland, South Australia, and New South Wales, was announced to have been acquired by HMC Capital for $400 million, equating to 19 times the target company's projected 2025 operating earnings. The transaction commenced with an initial payment of $150 million, and the remaining $250 million was structured as a share offer in HMC's DigiCo REIT during its initial public offering (IPO).

$Xero Ltd (XRO.AU)$ reported operating expenses of NZD 708.9 million (equivalent to USD 416.8 million) for the first half of the year, accounting for 71.2% of its operating revenue. This figure came in below the average analyst forecast of 74%, based on data compiled by Visible Alpha. The Australia-listed company maintained its full-year cost ratio guidance at around 73%, which some analysts described as conservative. Citi's Siraj Ahmed suggested that Xero's actual target could be as low as 71%. Xero's subscription base in North America declined by 8% year-on-year, dropping to 365,000. Meanwhile, the region's operating revenue grew by 25% on a constant currency basis.