ASX at six-year high despite BHP plunge

NAB and Westpac gained 0. 9 and 0. 3 per cent to $34. 24 and $34. 88, respectively. “The banks are still implying earnings growth of about 9 per cent across the sector going into their own reporting season at the end of September,” Mr Lakos said. “The market is pretty comfortable with that. 2 BHP Billiton posts $US13. 4b profit, pushes ahead with … 3 Stockland says double-digit house price growth not … 5 ” /> Macquarie’s dirty little secret: Select clients were …

Ord Minnett senior investment adviser Tony Paterno said investors had snapped up BHP last week on the expectation that the company would launch a share buyback or some other capital management strategy. “They bought on a rumour and sold on a fact,” Mr Paterno said after the hopes of investors failed to eventuate. “This is second time around that they haven’t delivered in terms of capital management.

Elsewhere, Coca-Cola Amatil plunged 2 per cent to $9. 54 after it reported a 16 per cent fall in first-half net profit and warned that its full-year profit would be “materially lower” than last year. “We have not been that positive on Coke for a while,” Mr Lakos said. “It’s a pretty mature business so it’s going to take a while for it to really turn around.

Patersons Securities strategist Tony Farnham said investors were attracted to Wesfarmers’ solid earnings growth at Coles, Bunnings and Officeworks, which would put “more money in their pocket”. “They announced a capital management plan that will deliver a return of $1 a share in addition to a final dividend,” Mr Farnham said.

Read more here: SMH

    

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