TSLA
Tesla
-- 355.840 NVDA
NVIDIA
-- 138.850 INTC
Intel
-- 23.600 NBIS
NEBIUS
-- 44.490 PLTR
Palantir
-- 119.160 AU Weekly Wrap | ASX 200 Ends Week with 1.1% Loss; Only Tech and Materials Sectors Shine
Market Review
Over the past week, the $S&P/ASX 200 (.XJO.AU)$ concluded with a 1.1% decline, settling at 8118.80. The market exhibited a varied performance, as nine of the eleven sectors faced downturns, reflecting the overall negative movement of the index. Notably, the information technology and materials sectors bucked the trend, achieving gains of 2.48% and 0.42%, respectively.
Macro News
Australian Inflation Rate Cools But Not by Enough to Trigger Rate Cuts
Australia’s inflation rate has dropped to 2.8% in the third quarter, aligning with the Reserve Bank of Australia's (RBA) target band of 2% to 3% for the first time since mid-2021, according to the Australian Bureau of Statistics. However, this decline is primarily supported by temporary factors, such as government rebates aimed at mitigating the impact of increased power prices on households. The central bank is likely to concentrate on core inflation, which, although reduced to 3.5% from 4.0% in the previous quarter, remains above the target range. The RBA has indicated that all policy options remain viable due to persistent inflationary pressures and robust employment growth that has consistently exceeded expectations throughout the year.
"We do not think the decline in trimmed mean inflation will be enough to convince the RBA it should begin the easing cycle this year, particularly as there does not appear to be an urgent need to support the labor market, given its resilience over recent months," said Catherine Birch, senior economist at ANZ Research.
Australian Manufacturing Activity Edges Up From Recessionary Lows
In October 2024, Australia's manufacturing sector showed signs of improvement, with the Judo Bank Australia manufacturing PMI rising to 47.3 from September's 46.7, marking the ninth consecutive month of decline. Despite this slight uptick, the sector remains near recessionary levels, and businesses have continued to reduce workforce throughout the year. Output and new orders saw positive movement, indicating a halt in the previous four-month deterioration, but the overall trading conditions remain weak.
Economist Matthew De Pasquale highlighted that the improvement in manufacturing has not been bolstered by household stimulus measures like income-tax cuts, which contrasts with the robust performance of the services sector. The manufacturing labor market continues to shrink, unlike the services sector, which faces high labor demand and shortages, particularly in healthcare and education.
Australian Care Sector Jobs Boom to Continue
Australia's labor market is outperforming expectations, showing robust employment growth despite minimal economic expansion. Adam Boyton, ANZ's Head of Australian Economics, highlights that the care sector is a significant contributor to this trend. Over the past year, the number of carers and aides surged by 80,100, marking the largest increase among occupational groups. This growth aligns with the demands of an aging population, as jobs in residential care and social assistance services increased by 108,600. Looking ahead, Boyton anticipates sustained employment growth in the care sector, driven by continued expansion in the federal National Disability Insurance Scheme and aged care expenditures.
Company News
Macquarie Lifts Dividend, Extends Buyback After 1H Profit Rises
$Macquarie Group Ltd (MQG.AU)$ reported a 14% increase in its fiscal first-half net profit, reaching A$1.61 billion, driven by strong annuity-style activities, particularly in Macquarie Asset Management. This performance prompted the bank to raise its interim dividend to A$2.60 per share and extend a share buyback program by 12 months, reflecting its robust capital position. The asset management unit was a standout, with a 68% rise in profit contribution fueled by higher performance fees, while markets-facing activities saw a 10% decline due to reduced client hedging in commodities. Although Macquarie Capital experienced a 14% drop in profit contribution, the bank’s financial health remains strong, with assets under management growing to A$917 billion and a CET1 Level 2 ratio of 12.8%. Looking forward, Macquarie maintains a conservative approach to capital management, positioning itself for sustained performance across its diverse business lines.
Mineral Resources to Sell Two Perth Basin Exploration Permits for Over AU$1 Billion
$Mineral Resources Ltd (MIN.AU)$ announced it has agreed to sell its exploration permits 368 and 426 in the Perth Basin to Hancock Prospecting for an initial payment of AU$804 million, as stated in a recent filing with the Australian Securities Exchange. The agreement includes potential additional adjustments of AU$327 million, contingent upon achieving specific resource benchmarks for the Moriary Deep prospect, as well as the Lockyer Gas and Erregulla Oil discoveries. Furthermore, Hancock will obtain a 50% interest in Mineral Resources' remaining permits in both the Perth and Carnarvon Basins upon transaction finalization, with Mineral Resources retaining the remaining 50% stake and continuing as the operator.
Pilbara Minerals Cuts Output, Cost Guidance as It Suspends Lithium Plant
In response to declining lithium prices, $Pilbara Minerals Ltd (PLS.AU)$ announced it will temporarily close its higher-cost, lower-capacity Ngungaju plant starting December 1, 2023. This decision is part of a strategy to optimize operations by consolidating production at the more efficient Pilgan plant, which is part of the Pilgangoora operation. Consequently, the company now anticipates producing between 700,000 and 740,000 metric tons of spodumene concentrate in fiscal year 2025, down from its earlier projection of 800,000 to 840,000 tons. Additionally, Pilbara Minerals expects both unit operating costs and capital expenditure to be reduced compared to prior estimates.
Zip stock soars on strong Q1 earnings
Australian installment-payment provider $Zip Co Ltd (ZIP.AU)$ has reported a significant boost in its first-quarter earnings, driven by a substantial increase in its U.S. operations. The company's cash earnings before tax, depreciation, and amortization for the quarter ending in September soared to A$31.7 million (US$20.9 million), more than tripling from the same period last year. This growth was largely fueled by a 40% year-on-year surge in usage within the U.S., which is the world's largest economy. In terms of revenue, Zip experienced a 19% rise to A$239.9 million for the quarter. While revenue from Australia and New Zealand saw a slight decline of 1.5% to A$102.5 million, the U.S. market showed a robust increase, with revenue climbing over 40% to A$137.4 million. Additionally, the total number of transactions on Zip's platform rose by 18% to 21.3 million, with U.S. transactions alone increasing by 40% to 10.3 million.
Coronado Global's Q3 Run-of-Mine Production Down Nearly 15%
$Coronado Global Resources Inc (CRN.AU)$ reported a significant decline in its run-of-mine output, which dropped nearly 15% to 6.3 million tonnes in the third quarter, compared to 7.4 million tonnes in the previous quarter, as per its filing with the Australian stock exchange. The decrease was primarily driven by a substantial 31% reduction in Australian production, which fell to 2.6 million tonnes, while US output saw a slight increase of 1.7% to 3.7 million tonnes. Consequently, the group's saleable production decreased by 6.9% to 3.8 million tonnes, and sales volumes fell by 3% to 3.9 million tonnes. This reduction in output and sales was reflected in the mining company's revenue, which dropped 9.7% to $608.2 million from $673.8 million in the previous quarter. Looking ahead to 2024, Coronado Global projects saleable production between 15.4 million and 16 million tonnes, underpinned by a capital expenditure plan ranging from $220 million to $250 million.
Premier Investments to Sell Apparel Unit to Myer in All-Stock Deal
Australian retail giant $Premier Investments Ltd (PMV.AU)$ plans to divest its apparel brands—Just Jeans, Jay Jays, Portmans, Dotti, and Jacqui E—to $Myer Holdings Ltd (MYR.AU)$ in exchange for a substantial 51.5% stake in the 124-year-old department store. Premier, currently Myer's largest shareholder with a 31% stake, will distribute the new shares to its own shareholders as part of a capital return and dividend strategy, offering approximately 7.2 Myer shares for each Premier share held. This strategic move allows Premier to concentrate on its rapidly expanding Peter Alexander sleepwear and Smiggle stationery divisions, while continuing to hold its 25% interest in Breville and various property assets.
The transaction, anticipated to conclude in early 2025, is expected to bolster Myer's retail footprint and capabilities, adding significant revenue and enhancing its competitive edge. The apparel brands contributed A$791 million in revenue during Premier's last fiscal year, and Myer forecasts an annual earnings boost of at least A$30 million from the merger. If approved by shareholders, Myer will operate over 780 stores in Australia and New Zealand, further solidifying its position in the retail landscape as it adapts to evolving market dynamics.
AU Market Weekly Movers
Upcoming Economic Events
Source: Investing.com, AFR. CNBC
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo News AU
Moomoo News Official Account
Australian stock market news that is available at your fingertips
5586
Followers
6
Following
201K
Visitors
Follow
Discussing
Trump 2.0 Era: How will global markets evolve?
🎙️Discussion: 1. How will tariff policies affect the movement of key assets such as U.S. stocks, gold, and Bitcoin? 2. Given this context,
Moo Live
Jan 23 16:54
MicroStrategy Q4 2024 earnings conference call
DepoDoherty : Woo wee maybe we can do a whole bunch of stuff on making this information very easy for free on helpfulness and kindness in the latest version for free on making this information very easy for me and my life with the best regards to your company may you keep building your foundation to stand tall on and rise to top I'm hoping that we can get the same the same and let them selves have to understand what is intended for free on making this information very much appreciated and I am writing to express my interest in your eyes to shine like a diamond in the ruff and the best only pull though I hope I am one of them finger crossed I wanna change everything about how we make money and put it back into nature like they say went they chopp down the last tree and poison they lasted fish's water ways we all will realise we cannot eat money.
151453268 witso : That was very deep and poignant depo keep on keeping on mate
