ASX Weekly Report for 19 Feb to 23 Feb 2024

Last week was all about one stock, $NVIDIA(NVDA.US)$, the powerhouse US-based AI stock that has topped a $US2 trillion valuation and that delivered an earnings result so powerful, its market capitalisation increased by a record $US277 billion in one trading day. Nvidia's market capitalisation has risen by more than $US700 billion in 2024.

The strong sentiment it generated helped propel the $Dow Jones Industrial Average(.DJI.US)$ to close above 39,000 for the first time up 1.30% for the week. The $S&P 500 Index(.SPX.US)$ closed up 1.66% to another record high. The $Nasdaq Composite Index(.IXIC.US)$ gained more than 1.42%.

In Australia the major focus was on the earnings season where dozens of companies reported their half year earnings to December 31. There were a number of hits and misses but overall the $S&P/ASX 200(.XJO.AU)$ lost 0.19% for the week. The All Ordinaries Index closed down 0.08%.

IT stocks bathed in the Nvidia glow with the sector gaining 3.29% for the week. $WiseTech Global Ltd(WTC.AU)$'s has year result was strong and the stock made a new record high, rising 9.92% for the week. Block Inc saw sales increase and announced a plan to integrate Afterpay into a new Cash App in the US. Shares rose 14.4% on the week. Superloop rose 15.1% after increasing its revenue and reducing its loss from the previous corresponding period. $BrainChip Holdings Ltd(BRN.AU)$ continued its good run rising another 36%.

Utlities rose 1.86%, Consumer Discretionary rose 1.17%, Financials lifted 0.94% and Industrials gained 0.71%. Sectors losing ground included Consumer Staples down 3.41% where the $Woolworths Group Ltd(WOW.AU)$ CEO resigned after a number of missteps that has seen the company lose 11.9% in 2024. Energy stocks lost 1.34%, Real Estate dropped 2.44% and Materials shed 2.71%.

$Rio Tinto Ltd(RIO.AU)$ lost 5.00%, $BHP Group Ltd(BHP.AU)$ dropped 3.24% and $Fortescue Ltd(FMG.AU)$ lost 0.67% after announcing its results. Fortescue lifted its dividend 44% after a 41% rise in first-half net profit.

· $Qantas Airways Ltd(QAN.AU)$ announced a $400m buyback (it's stock fell 7.50% for the week)

· $Lovisa Holdings Ltd(LOV.AU)$ – one of the ASXs most shorted stocks – announced a strong result that saw significant short covering. Shares were up 14.3%

· $Pilbara Minerals Ltd(PLS.AU)$ announced a slump in profits reflecting the Lithium price crash

· $Mineral Resources Ltd(MIN.AU)$ looked to offload a $230m parcel of shares in Azure Minerals (that is currently under a joint bid from Chile's SQM and Gina Rinehart)

· $Insignia Financial Ltd(IFL.AU)$ (formerly IOOF) rose 11.8% on the back of a good half year result

· $MA Financial Group Ltd(MAF.AU)$ shed 23% after its poor half year result

· $Medibank Private Ltd(MPL.AU)$ lost 4.47%

· Building supplies company $CSR Ltd(CSR.AU)$ gained 25% as it received a $9 cash takeover bid from the French company Saint Gobain. Shares started the week at $6.70

· Plumbing products business $Reliance Worldwide Corp Ltd(RWC.AU)$ gained 12% as it announced a plan to convert half of its dividend into a share buyback perhaps signalling internal thoughts on valuation

· Mining tech company $Imdex Ltd(IMD.AU)$ saw strong buying just prior to its result that turned out to be quite prescient. Shares are up 27.3% since Feb 15

· $Seven Group Holdings Ltd(SVW.AU)$ announced a cash/scrip bid for the 28.4% of building products company $Boral Ltd(BLD.AU)$ that it does not own

· $The a2 Milk Co Ltd(A2M.AU)$ rose 3.16% after an earnings beat

· $Bendigo and Adelaide Bank Ltd(BEN.AU)$ shares fell 1.95% after releasing soft earnings

· $Westpac Banking Corp(WBC.AU)$ shares rose 2.77% after mixed results

· $Cochlear Ltd(COH.AU)$ shares rose 4.85% after strong growth and a dividend increase

· $Brambles Ltd(BXB.AU)$ increased its dividend and lifted profit forecasts for FY2024

· $Aussie Broadband Ltd(ABB.AU)$ jumped 16.75% on increasing subscribers and rising sales

· $Newmont Corp(NEM.AU)$ the worlds largest gold producer is looking to sell six mines in a bid to generate over $3 billion in cash. The stock is down 63.8% from its peak in April 2022 despite the gold price being close to a record level

· $PEXA Group Ltd(PXA.AU)$ shares rose despite announcing a statutory net loss of $4.6 million.

In the coming week we have earnings reports from $Coles Group Ltd(COL.AU)$ and $Woodside Energy Group Ltd(WDS.AU)$ (Tues), $Suncorp Group Ltd(SUN.AU)$ (Mon), $Worley Ltd(WOR.AU)$ (Wed), $Harvey Norman Holdings Ltd(HVN.AU)$, $Ramsay Health Care Ltd(RHC.AU)$ (Thur).