The All Ordinaries (INDEXASX:XAO) finished the week on a positive note, gaining 0.1%, once again on the back of a rally in the energy and utilities sectors, which gained 1.3% and 1.6%. The standout was Origin Energy Ltd (ASX: ORG) which added 2.8% as the market continues to digest the likelihood of the most complicated acquisition in recent years. It was a similar story for the energy sector, with Woodside Energy Group Ltd (ASX: WDS) adding 1.4%, as the oil price gained following reports that several OPEC+ members were seeking further output cuts at the next meeting.
Origin Energy share price
Almond producer Select Harvests Ltd (ASX: SHV) fell by more than 10% after Select Harvests reported a 30% reduction in production for the year, blaming poor weather conditions, which sent the company to a $115 million loss as the value of the group’s assets were written down.
Virgin Money UK CDI (ASX: VUK) also fell 6% after the UK bank reported a 42% fall in profit, on the back of a jump in provisions for potential bad debts.
Across the week, the energy sector outperformed, gaining 2.1%, while tech fell 3%, with the S&P/ASX 200 (INDEXASX: XJO) falling 0.1% over the five days.
US markets cap another strong week: NVIDIA weakens
US markets capped a Thanksgiving-shortened session with another gain, as the Dow Jones Industrial Average (INDEXDJX: .DJI) added 0.3%, and the S&P 500 (INDEXSP: .INX), 0.1%.
The Nasdaq Composite (INDEXNASDAQ: .IXIC) weakened 0.1% on the back of a near 2% fall in AI chip giant NVIDIA Corp (NASDAQ: NVDA), despite the company delivering a forecast beating result for the quarter.
NVIDIA share price
Another strong week, which saw the Dow Jones and S&P 500 both gain 1.3% and the Nasdaq 0.9%, capped the best four-week stretch for the market in more than a year.
Among the highlights on Friday was news that European bond yields had fallen on concerns that the German economy may be slowing and rate cuts may lie ahead.
All eyes will be on Black Friday results this week, with many suggesting a return to pre-COVID days, with Amazon.com Inc (NASDAQ: AMZN) finishing flat but both Walmart Inc (NYSE: WMT) and Target Corp (NYSE: TGT) adding 0.9% and 0.7%, respectively.
Power of pension funds grows: Oil remains in focus
Despite reporting record revenue and eye-watering growth, NVIDIA’s result wasn’t enough to spur another rally in the share price, having more than doubled in value already this year.
NVIDIA is expected to continue benefitting from the rollout of AI-powered computing equipment for several decades, but has hit a speed bump this month as investors digest growing uncertainty around the economy.
Australian Super’s power is on full display amid the takeover of Origin Energy, with the group all but forcing either a higher offer or ending of the deal, that they say does not fully value the company.
This is a story that is likely to continue as Australia’s large pension funds grow ever larger with default contributions.
Despite hopes that the energy price may garner less headlines, a falling price is likely to trigger production cuts in the coming months, which may once again pressure prices.