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Market Wrap

ASX closes higher while James Hardie sheds 28%

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The news: The Australian sharemarket finished higher as big gains for property groups along with a rally from Australia’s four biggest banks offset a share price rout for building materials producer James Hardie.

The benchmark ASX 200 rose 0.25% to end at 8,918 with seven out of 11 sectors finishing in green.

Materials (-2.3%) was the worst performing sector as James Hardie’s (-27.8%) share tanked after it reported a 60% drop in first-quarter net profit and downgraded its full-year guidance.

Consumer discretionary (+1.9%) was the best performing sector, driven in part by The Lottery Corporation (+7%) which posted a 12% year-on-year drop in net profit but declared a higher final full-year dividend.

The finance sector (+1.4%) also gained as Commonwealth Bank (+0.8%), Westpac (+2.5%), NAB (+3.7%) and ANZ (+2%) all finished higher.

Biggest movers:

  • HMC Capital (+17.7%) – Morgans analysts upgraded their position to 'buy' on the stock even after the investment manager flagged lower earnings per share guidance for FY26 alongside the release of full-year earnings.
  • Centuria Capital (+11.6%) – UBS and Macqaurie analysts raised their target price on the stock after the company reported a 6.5% increase in full-year operating profit.
  • Stockland (+7%) – Reported a 171% leap in full-year profit and issued FY26 guidance in line with estimates.
  • Yancoal (-11.4%) – Reported on Tuesday evening that first-half profit after tax had slipped 61% year on year amid weak coal prices.
  • Iluka Resources (-7%) – Reported a 31% decline in first-half net profit after tax as managing director Tom O'Leary flagged "subdued" conditions in the mineral sands market.

Other earnings news:

  • APA Group (+3.4%) – Statutory revenue grew 4.7% year on year while underlying earnings were up 6.4%, hitting the top end of guidance.
  • Vicinity Centres (+2.8%) – Reported an 83.6% increase in full-year profit. Also announced higher FY26 guidance for funds from operations and dividends.
  • Transurban (+2.1%) – Delivered a full-year net profit after tax fall of 68.9% year on year. The full-year results and FY26 distribution guidance roughly met expectations.
  • Magellan Financial (+1.6%) – Announced a 31% year-on-year decrease in net profit after tax but declared a special dividend. Assets under management increased by 8.2%.
  • VG1 (+1.4%) – Regal Funds Management chief investment officer Phil King will step back from managing VGI's global listed investment vehicle VG1, with PM Capital founder Paul Moore to take on the portfolio amid poor performance. VG1 is managed by Regal Partners (-3.8%).
  • Breville (-2.2%) – Posted a 14.6% uplift in full-year profit, but deferred provision of FY26 guidance due to uncertainty surrounding the impact of the US tariff regime.

Other companies that reported earnings were Cleanaway (-1.4%), Dexus (-0.5%), Fletcher Building (0%), Spark New Zealand (+3%) and Superloop (-0.9%).

Other news:

  • Perpetual (+1%) – Expects to recognise a non-cash impairment charge of $153.7 million post-tax for financial year 2025, with the loss mainly driven by the carrying value of goodwill and contracts with its JO Hambro boutique asset management business.
  • Bendigo and Adelaide Bank (-1.4%) – Flagged a goodwill impairment of $539.5 million in its consumer cash generating unit and additional restructuring costs of $9 million ahead of its full-year earnings release next week.
  • Elanor Investors Group – Family office Lederer Group has hit back at the Elanor Investors Group board regarding its strategy for the Elanor Commercial Property fund (+4.44%), which Lederer has issued a takeover bid for. Elanor Investors Group remains in a trading suspension.

What’s ahead:

  • The US Federal Reserve will release the minutes from the latest meeting of the Federal Open Market Committee on Thursday at 4:00am AEST.
  • S&P Global will release flash data on Australia’s manufacturing and services purchasing managers’ index for August on Thursday at 9:00am AEST.
  • Thursday is the final day of the Albanese government’s economic reform roundtable.

By Brandon How