ASX rallies; News Corp jumps
Make us a preferred source
Make us a preferred source on Google
The news: The Australian sharemarket ended higher after a broad rally led by the big banks.
The benchmark ASX 200 gained 1.23% to end at 8,520.7, with 10 out of 11 sectors finishing in green.
Biggest movers:
- News Corp (5.77%) — Its second-quarter earnings beat estimates due to strong performances in its digital real estate and Dow Jones publishing segments.
- Financial sector (2%) — Was the best performing sector as ANZ (2.59%) CBA (2.57%), NAB (2.51%), and Westpac (2.16%) all rallied strongly.
- Pexa Group (-3.04%) — Announced the resignation of its Australia CEO Les Vance, who was only appointed last year, and downgraded its specified items and income tax guidance.
- Energy sector (-0.31%) — Was the worst performing sector after global oil prices tumbled overnight on news that China is set to impose a 10% tariff on US oil. Beach Energy (-4.95%), Karoon Energy (-1.87%), Ampol (-1.19%) and Santos (-0.57%) all fell.
Earnings:
- REA Group (1.21%) — Announced its CEO Owen Wilson is stepping down after six years and reported a 26% lift in net profit for the half year.
- Beach Energy (-4.95%) — Narrowed its full-year production guidance despite output climbing during the first half.
Other news:
- Wesfarmers (3.16%) — UBS upgraded Wesfarmers from 'sell' to 'neutral' as they are confident sales growth at the hardware chain can accelerate.
- Contact Energy (2.65%) — Reiterated the "clear benefits" of its takeover of Manawa Energy to New Zealand, after the country's competition regulator outlined concerns over the proposed acquisition.
- Magellan (2.02%) — Reported that its funds under management grew 1.3% in January.
- BWP Trust (1.45%) — Citi upgraded its rating on the company to ‘neutral’ and raised its target price following its first-half results.
- Woodside (0.2%) — Morningstar added the company to its global ‘best ideas list’ of shares that are trading at a deep discount to their fair market value estimate.
The Australian dollar is buying 62.66 US cents.
What’s ahead: Overnight will see the Bank of England make its next monetary policy decision.
Friday morning will see Amazon release its Q4 earnings result. Locally, Nick Scali and Charter Hall Long Wale REIT will post their half-year results.
