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.
Miners push market into the green
The miners led the local market higher on Monday, with the S&P/ASX 200 Index advancing 1.5 per cent, or 102.6 points, to 6779.4, while the broader All Ordinaries gauge ended up 108.5 points, or 1.6 per cent, to 6978.4.
Gold stocks were prominent in the rise, after the yellow metal’s 1.8 per cent gain to $US1,658 an ounce in New York trading on Friday. Evolution Mining was up 14 cents, or 7.7 per cent, to $1.95 and Gold Road Resources surged 8 cents, or 6.4 per cent, to $1.32. Among the bulk miners, BHP rose 99 cents, or 2.6 per cent to $39.06; Rio Tinto added $1.09. or 1.2 per cent to $92.59; iron ore heavyweight Fortescue Metals was up 41 cents, or 2.5 per cent, to $16.77; and South32 was down 7 cents, or 1.9 per cent, to $3.65. Champion Iron, which is developing iron ore mining operations in Canada, advanced 29 cents, or 5.9 per cent, to $5.19.
In lithium, producer Pilbara Minerals was up 31 cents, or 6.1 per cent, to $5.38, and fellow producer added 27 cents, or 1.8 per cent, to $14.92. US-based lithium project developer Piedmont Lithium, which has sales contracts with Tesla, jumped 9.5 cents, or 11.2 per cent, to 94 cents; project developer Lake Resources was up 3 cents, or 2.9 per cent, to $1.08;
IGO, which mines nickel and lithium, gained 27 cents, or 1.7 per cent, to $16.09; Mineral Resources, which produces iron ore and lithium, rose $1.98, or 2.7 per cent, to $76.08; and rare earths miner Lynas rallied 42 cents, or 5.7 per cent, to $7.86
Novonix turning heads
Battery technology developer Novonix surged a further 74 cents, or 33.5 per cent to $2.95 after saying last week it was in the running to participate in the Biden administration’s clean-energy grants. Novonix stands to receive US$150 million ($236 million) from the US Department of Energy to fund expanded production of its synthetic graphite anode materials. However, it would have to match the value of the grant itself. Novonix has gained almost 60 per cent in the past week – but the stock is showing a 72 per cent fall year-to-date.
In coal, sector star Whitehaven Coal added 36 cents, or 3.4 per cent, to $10.85; New Hope Corporation gained 24 cents, or 3.5 per cent, to $7.10; Stanmore Resources rose 12 cents, or 4.4 per cent, to $2.88; and Terracom jumped 5 cents, or 5 per cent, to $1.06.
Among the big banks, CBA advanced $1.20, or 1.2 per cent, to $100.48; NAB added 23 cents, or 0.7 per cent, to $31.63; Westpac was up 14 cents, or 0.6 per cent, to $23.87; and ANZ gained 4 cents to $25.59. Investment bank Macquarie Group put on $3.77, or 2.4 per cent, to $161.46. Biotech heavyweight CSL gained $3.87, or 1.4 per cent, to $273.05; Wesfarmers moved 89 cents, or 2.1 per cent, higher to $44.18; Woolworths was up 39 cents, or 1.2 per cent, to $33.32; and rival Coles lifted 15 cents, or 0.9 per cent, to $16.48. Telstra was unchanged at $3.85.
The yield on the Australian 10-year government bond pushed above 4 per cent, to 4.16 per cent, threatening to return to the levels of 4.3 per cent reached in June, which was the 10-year yield’s highest point in more than eight years, as prospects of tightening financial conditions worldwide continued to give bond investors the heebie-jeebies. Bond yields rise as their prices fall.
US markets shrug off weak data
In the US overnight, stocks continued the momentum seen last week, with the 30-stock Dow Jones Industrial Average adding 417.1 points, or 1.3 per cent, to end the session at 31,499.6. The broader S&P 500 gained 44.6 points, or about 1.2 per cent, to close at 3,797.3. The Nasdaq Composite advanced 92.9 points, or almost 0.9 per cent, to end at 10,952.6. US-listed China stocks gave up 15 per cent as a group as China’s power reshuffle under President Xi Jinping was formalised.
The benchmark US 10-year Treasury yield – considered the world’s risk-free asset – added 3 basis points, or 0.03 per cent, to trade at 4.242 per cent, after touching a 14-year high of 4.337 per cent. The more policy-sensitive 2-year US Treasury yield was down by about 2 basis points at 4.451 per cent.
Investors were busy assessing US manufacturing and services data from S&P Global. The firm’s Composite PMI (purchasing managers’ index) – which factors-in activity from the manufacturing and services sector – fell to a two-month low of 47.3. PMI data indicates whether an economy is expanding or contracting, and by how much. A number above 50 indicates expansion; a number below 50 shows contraction, so last night’s “print” was viewed as weak.
European markets closed higher, with the Stoxx 600 index adding 1.4 per cent, with all sectors and major markets in positive territory. London’s FTSE-100 gained 0.6 per cent on the news that former Chancellor Rishi Shunak has now become the next Prime Minister.
Gold lost some shine, down US$11.66, or 0.7 per cent, to US$1,649.55 an ounce. Brent crude oil eked out a 1-cent gain, to US$93.51 a barrel, while the US benchmark grade, West Texas Intermediate, shed 47 cents to US$84.58 a barrel. The Australian dollar is buying 63.06 US cents this morning, steady on the local close yesterday.
