The S&P/ASX 200 (ASX: XJO) finished flat on Thursday with Rio Tinto Limited’s (ASX: RIO) massive dividend dragging the stock 6.9% lower and proving too much for a resilient communications sector (+2.3%) to overcome.
It was a broadly positive day with more sectors gaining than losing and ASX reporting season ultimately driving performance, with utilities down 1.7% behind AGL Energy Limited (ASX: AGL) and financials flat as they balance positive and negative news.
Telstra share price nears $4
All eyes were on Telstra Corporation Ltd (ASX: TLS) with CEO Andy Penn finally appearing to have turned around sentiment towards the company. Telstra shares added 3.7%, nearing $4 after management reported a 3.4% increase in profit to $1.9 billion despite an 11.6% fall in revenue.
Importantly, the dividend remained at 8 cents as promised with $1.35 billion to be allocated towards an on-market share buyback that will benefit shareholders in the longer term.
Patient investors are being rewarded as the group’s simplification strategy sees a turnaround in profitability and growth, with a decidedly more digital focus. The company flagged single-digit earnings growth for FY22 and continued divestments offer the potential for capital returns.
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QBE doubles dividend
The insurance sector remains under immense pressure, highlighted by QBE Insurance Group Ltd’s (ASX: QBE) announcement that catastrophe claims had increased 7% to $462 million.
Despite this, the group reported a 14% increase in revenue to US$9.1 billion and profit of US$441 million, a stunning recovery from last year’s US$712 million loss.
Premium increases continued to recover, jumping 9.7%, but pandemic claims remain an underappreciated issued. QBE shares jumped 8.1% after reporting an 11 cent per share dividend, up from 4 cents in 2020.
AMP ready to recover?
Embattled asset manager AMP Ltd (ASX: AMP) climbed 3.2% after announcing HY21 results, revealing a 28% fall in profit to just $146 million.
Assets under management continued to fall, down $1.7 billion excluding pension payments but total assets increased 6% to $131 billion.
New CEO Alexis George has a significant task on her hands, with the dividend remaining on hold and the demerger of AMP Capital set for 2022.
NAB’s Q3 report
Shares in National Australia Bank Ltd (ASX: NAB) were just 0.2% higher on the bank’s Q3 report, announcing a 10% increase in cash profit to $1.7 billion following a 1% fall in revenue.
Net interest margin remain flat with the RBA’s massive stimulus program keeping borrowing costs low.
AGL looks to renewables
Shares in AGL Energy tanked, falling 5.5% after the company reported a 33% fall in underlying profit and a $2 billion loss when write-downs are included, with wholesale electricity prices the major detractor.
ASX 200 today
Looking ahead, the ASX 200 is expected to push higher when the market opens on Friday. This comes following a positive lead from US markets overnight, with all three benchmarks finishing in the green.