The S&P/ASX 200 (ASX: XJO) lost ground on Tuesday, finishing 0.5% lower at 7,206.90 points as it followed a negative lead from US markets.
BHP cash river pours onto market
Tuesday’s market highlight came before the opening, when diversified miner BHP Group Ltd (ASX: BHP) reported a bumper half-year result.
Strong commodity prices – in particular, record iron ore and coking (steelmaking) coal prices, and buoyant copper prices – enabled BHP to pay a record interim dividend for the third straight year.
Revenue rose by 27%, to US$30.5 billion ($42.7 billion), while underlying net profit surged 57% to US$9.7 billion ($13.6 billion), enabling the mining heavyweight to lift its interim dividend by 49 US cents, or 49%, to $US1.50 ($2.10) a share, fully franked.
But BHP warned investors that it was also grappling with record costs, and the BHP share price managed to lose ground for the day, easing 0.3% to $48.18. Rio Tinto Limited (ASX: RIO) fell 2.3% to $118.75, and Fortescue Metals Group Limited (ASX: FMG) was down 5.1% to $21.59.
Despite BHP’s largesse, investors focused on iron ore futures prices, which fell as much as 13% in Singapore on signs that authorities in China will ramp up efforts to squash surging prices – up 60% since mid-November – by cracking down on speculation and hoarding.
The market also saw the minutes of the first RBA board meeting of the year, released on Tuesday, in which the RBA acknowledged that most market economists were now “expecting the first increase towards the latter part of 2022.”
Sims off the scrap heap
Scrap metal recycler Sims Ltd (ASX: SGM) brought out a stellar half-year result, with revenue up 74% to $4.27 billion, and net profit more than quadrupling, to $253.2 million, as Sims enjoyed a 72% increase in average selling prices for its Australian products.
Operating cash flow increased by 95% to $290.8 million. That enabled Sims to more than triple its interim dividend, to 41 cents, 44% franked. In response, investors pushed the Sims share price $2.05, or 13.7% higher, to $17.04.
Brambles on the block?
Meanwhile, pallets, crates and containers heavyweight Brambles Limited (ASX: BXB) jumped 6.2% following a report in The Australian Financial Review that said global private equity giants, including KKR & Co, were “running numbers on the Australian pallets group to see if they can make a $15 billion-plus buyout stack up.”
Adore Beauty fails to fire
Shares of beauty and personal care products specialist Adore Beauty Group Ltd (ASX: ABY) tumbled 8.1% to $2.48, as its second-half trading update for the first six weeks of the June reporting period indicated sales growth of 14%, healthy but below analyst expectations of 19.9%.
The ASX retailer also announced half-year results, with revenue up 18% to $113.1 million but profit down 22% to $2.0 million as marketing spend continues to ramp up.
ASX 200 today
Looking ahead, the ASX 200 is tipped to push higher this morning, following a strong lead from US markets overnight. The Nasdaq led the way, jumping 2.5%, while the S&P 500 finished the session 1.6% higher.
