Christmas has come early for the bank’s shareholders with the decision to slightly increase the 2024 dividend – despite a single-digit decline in the net profit and cash earnings.
Beating the market benchmark is never easy, with 72 per cent of Australian actively managed global equity general funds trailing the S&P World Index in the six months to June 30, 2024. Domestic equity funds performed slightly better, albeit against a significantly lower bar set by the S&P/ASX 200 Index.
ASX gains 0.3%; Mineral Resources jumps 9%
Earnings resilience boosts ASX, Telstra’s big deal, ANZ takes on BNPL
The S&P/ASX200 (ASX: XJO) gained another 0.3% with the mining and energy sector providing a significant boost to begin the week, up 1.1 and 2.6% respectively.
Mineral Resources (ASX: MIN) was the standout gaining 9% after announcing their mothballed Wodgina lithium mine would be restarting in light of the boom in the price of the commodity in recent months.
Technology and the increasingly digital industrials sectors were the only detractors as concerns remain on the valuation hit of higher bond rates.
Telstra (ASX: TLS) delivered the news of the day, gaining 2.1% after confirming they had teamed up with the Australian Government to purchase Digicel’s South Pacific telecommunications business for US$1.6 billion.
The deal keeps the company out of Chinese hands, with Telstra contributing just US$270 million in equity, supported by a significant amount of government loans.
The business is seen to be ‘commercially attractive’ with the government essentially underwriting the geopolitical risk.
ANZ Bank (ASX: ANZ) has taken the opposite route to the 500 plus BNPL groups, lobbing a $100 million bid for Cashrewards (ASX: CRW).
CRW is a membership style business offering cash back to consumers for spending on certain products but has struggled to become profitable.
Origin sells part of AP LNG, Smart Group deal pulled by private equity
Origin Energy (ASX: ORG) gained another 3.9% after announcing the sale of a strategic 10% stake in the Australia Pacific LNG project for $2.12 billion.
Origin will retain 27% of the business after the deal which allows the group to crystalise an investment they have held since construction and now into operation.
The decision de-risks their position, allows for further capital into the business and will support the expansion of their renewable energy program.
Shares in Smart Group (ASX: SIQ) fell by more than 10% after the TPG-led private equity consortium looking to take over the business decided to reduce their offer to $9.25 per share from $10.35.
The board rebuked the downgrade and ultimately the offer was pulled, with investors querying what they saw in the due diligence process that resulted in such a devaluation.
Woodside (ASX: WPL) gained close to 4% after announcing they will build a $1 billion hydrogen plant in Perth in an effort to begin exporting low carbon energy.
US markets breach all-time highs, Facebook ahead, PayPal steps back from deal
US markets once again finished at all-time highs ahead of some 150 of the S&P’s 500 companies reporting this week.
The Dow Jones underperformed, gaining 0.2%, with consumer discretionary and materials shares the biggest beneficiaries sending the S&P 500 and Nasdaq up 0.5 and 0.9% respectively.
As has been the case for several years, it now appears a tax targeted at billionaires and large corporate may now have the support of Congress, with policy earmarked to support Biden’s ambitious climate and social package.
Shares in Tesla (NYSE: TSLA) gained over 12% after hire company Hertz (PA: HTZ) announced plans to purchase 100,000 cars from the company.
PayPal (NYSE: PYPL) also gained 3% after announcing they would not be proceeding with the offer for Pinterest (NASDAQ: PIN).
