Surges from CSL Limited (ASX: CSL) and BHP Group Ltd (ASX: BHP) powered the S&P/ASX 200 (ASX: XJO) to a three-week high on Thursday – but the market is likely to struggle today following overnight falls in the US.
The ASX 200 gained 11.3 points, or 0.2%, to 7296.2, its highest level since 20 January. The ASX healthcare sector led the rise, up just under 3%, led by CSL, which saw its strong result on Wednesday flow into broker upgrades, as Morgan Stanley, RBC Capital Markets and JPMorgan all upgraded the stock to a “buy.” CSL gained $13.31, or 5.1%, to $277.00.
ASX resources shares mixed
Resources shares were also generally on the rise, with BHP Group Ltd (ASX: BHP) adding 1.4% to $47.97 and Rio Tinto Limited (ASX: RIO) rising 1.2% to $119.94, as the iron ore price stabilised somewhat as Chinese inflation data came in lower than expected.
However, Fortescue Metals Group Limited (ASX: FMG) failed to follow suit, down 65 cents, or 3.1%, to $20.50, as the market worried about price discounts applied to its lower-grade ore.
Former BHP spin-off South32 Ltd (ASX: S32) delivered a record $US1 billion ($1.4 billion) in underlying half-year earnings on the back of rising base metals and steelmaking coal prices, and investors would perhaps have looked for more of a gain in the share price than 1.1%.
Woodside Petroleum’s turnaround
Woodside Petroleum Limited (ASX: WPL) shares rose 4.1% to $27.72 after turning in a terrific 2021 full-year result, enabling a $US6 billion ($8.3 billion) turnaround in bottom-line profits from last year’s $US4 billion loss to a US$2 billion profit. Underlying profit more than tripled to $US1.62 billion, and the final dividend was lifted from 12 US cents to US$1.05.
Chief executive Meg O’Neill described the year as “transformative” for Woodside, given the deal in November to merge with BHP’s petroleum business and the final decision to build the $16.5 billion Scarborough and Pluto-2 gas projects in Western Australia.
Wesfarmers, Telstra slump on HY22 results
On the downside, Wesfarmers Ltd (ASX: WES) shares slumped by 7.5% to $50.81 after it was forced to cut its interim dividend, following a fall in profit on the back of supply chain disruptions, rising costs and store closures driven by COVID-19.
Telstra Corporation Ltd (ASX: TLS) shares fell 4.2% to $3.90 as its half-year revenue slid by 4.4% and net profit was slashed by one-third. The telco giant did maintain its dividend, and kept its full-year guidance in place, but the market was disappointed.
Domain Holdings Australia Ltd (ASX: DHG) lifted revenue by 28% and net profit by 2.4%, but paid the price for rising cost expectations, with the shares down 6.2% to $4.37.
IPH & Challenger shares rally
Intellectual property services firm IPH Ltd (ASX: IPH) was the star, jumping 9.2% to $9.03 as the company reported revenue growth of 6%, with a strong performance from both its Australian and New Zealand intellectual property activities, and its Asian franchise.
Financial services firm Challenger Ltd (ASX: CGF) also had a good day, up 6.7% to $6.74 after reporting a 21% rise in underlying net profit and a 20% lift in assets under management. The company also confirmed its guidance for the full year, and declared an 11.5 cents per share interim dividend.
ASX 200 today
Looking ahead, the ASX 200 is set to tumble when the market opens this morning after US stock markets were rattled overnight. To find out more, check out my US stock market report.
