ASX ends higher, Boral shares surge
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The news: The Australian sharemarket ended the week higher amid the Reserve Bank of Australia reiterating its position that inflation is too high and the S&P500 briefly hitting 5,000 for the first time.
The numbers: The benchmark ASX 200 inched 0.07% higher to 7,644.8, with seven out of 11 sectors finishing in green.
The IT sector gained the most at 1.13%, followed by health care (1%), communications (0.8%), and AREITs (0.38%).
Energy fell the most during trading on Friday with a loss of 1.3%, followed by utilities (-0.86%).
Construction materials firm Boral was the top ASX 200 performer as its shares leapt 7.95%, following a profit jump of 36% and upgraded earnings guidance for the first half of the financial year.
Across the wider sharemarket, Liontown Resources gained 11.14% as investors continue to speculate about a possible takeover by Gina Rinehart. The mining billionaire’s forced wait, under the Corporations Act, on an attempt to buy Liontown ends on Sunday.
REA Group shares rose 5.52%, gaining back losses from Thursday when its share price fell 3.93% following its earnings report. Its higher cost guidance was a negative for analysts but its growth profile was solid.
On the energy side giants were down including Woodside (-1.42%), Santos (-0.48), Yancoal Australia (-1.7%), and Whitehaven Coal (-2.1%).
The context: The RBA’s Governor Michele Bullock fronted the House of Representatives Economics Standing Committee today and reiterated her message from earlier in the week that inflation is still too high and that the central bank would be data-driven in their focus on when to change rates.
While she answered questions from senators for three hours on productivity, new board arrangements, and stage three tax cuts, her remarks did not move the dial on shares.
In the United States, the S&P 500 briefly crossed 5,000 during intraday trading but slipped to 4,998 before markets closed.
Markets in China were closed today and will remain shut throughout next week for Lunar New Year celebrations.
Next week will see AMP, CBA, Domain, Car Group, JB Hi-Fi, CSL, Seven West Media, James Hardie Industries, Seek, Challenger, Downer EDI, Fletcher Building, Computershare, Goodman Group, Magellan, Origin Energy, South32, Wesfarmers, QBE and Telstra post earnings.
