AU Morning Wrap: ASX Opens Flat; CBA Leads Banks Higher
G'day, mooers! Check out the latest news on today's stock market!
• US stocks resume slide after bank downgrades
• ASX opens flat, CBA leads banks higher
• Stocks to watch: CBA, ResMed, Syrah Resources
- Moomoo News AU
• US stocks resume slide after bank downgrades
• ASX opens flat, CBA leads banks higher
• Stocks to watch: CBA, ResMed, Syrah Resources
- Moomoo News AU
Wall Street Summary
A credit downgrade for 10 smaller U.S. banks sent stock indexes down on Tuesday. The $S&P 500 Index(.SPX.US$ lost 0.4% and the $Dow Jones Industrial Average(.DJI.US$ declined about 0.5%, or 159 points. The $Nasdaq Composite Index(.IXIC.US$ lost 0.8%. The declines mostly negated Monday's blue-chip-driven gains and resumed the slide stocks have been on since the start of August.
AU Market Watch
The Australian sharemarket has opened largely flat, as the region awaits the next batch of inflation data out of China.
The $S&P/ASX 200(.XJO.AU$ opened just 2.4 points, or 0.03 per cent, down to 7308.7. The All Ords is down 4.8 points, or 0.06 per cent to 7514.9 points.
The financial sector is the largest upward mover, gaining 0.6 per cent, with Commonwealth Bank contributing much of the rise, up 2.4 per cent following the bank's full-year financial results.
The other three large Australian Banks are following CBA's lead. $ANZ Group Holdings Ltd(ANZ.AU$ is up 0.3 per cent, $National Australia Bank Ltd(NAB.AU$ is up 1 per cent and $Westpac Banking Corp(WBC.AU$ is up 0.6 per cent.
Healthcare stocks are the worst performing, down 0.74 per cent, with dual-listed $ResMed Inc(RMD.AU$ sinking 3.67 per cent at open.
Stocks to Watch
$Dexus Industria REIT(ADI.AU$: Dexus Industria REIT has reported falling net profits hit by writedowns across its real estate portfolio.
The trust generated $300,000 in statutory net profit after tax in the 2023 financial year, brought down by $56.3 million of net fair value losses on its investment properties. That equates to a 3.5 per cent decline in the trust's book value.
Dexus confirmed a 16.4¢ full-year distribution for shareholders.
$CommBank(CBA.AU$: Commonwealth Bank has lifted its cash profits to $10.16 billion – in line with expectations – for the full year but reported that net interest margins had fallen off their late 2022 peak to 2.05 per cent in the six months to June.
This is 5 basis points lower than the 2.10 per cent it reported for the half-year to December.
$Suncorp Group Ltd(SUN.AU$: Suncorp says the delayed sale of its banking arm is among the reasons for keeping a tight rein on dividends, with its payout at the lower end of its guidance to investors.
The delay in the bank's proposed sale – which the Australian Competition and Consumer Commission blocked last week – is also among factors that will trigger almost another $100 million in separation costs, Brisbane-based Suncorp said on Wednesday.
The insurance-banking giant made the comments as its cash profits for the full-year came in at $1.254 billion, up $673 million on the previous year. Part of the gain was linked to mark-to-market losses hitting the bottom line in 2022.
Suncorp is now paying a final dividend of 27¢, meaning its full-year payout ratio was 60 per cent of cash earnings.
$Syrah Resources Ltd(SYR.AU$: Battery materials producer Syrah Resources is in talks to develop an offtake agreement with Korean-listed battery manufacturer Samsung SDI.
Under the non-binding memorandum of understanding, the two companies will evaluate the natural graphite active anode material supply from Syrah's Vidalia AAM facility in Louisiana, USA.
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Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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