Australia: Shares climb for fifth straight week

AUSTRALIAN shares ended little changed on Friday (Aug 19) but posted their fifth consecutive weekly gain on robust earnings, local jobs and wages data and the central bank’s cautious rate hike stance.

The S&P/ASX 200 index ended the session 0.02 per cent higher at 7,114.50, weighed down by weak earnings reports. The benchmark rose 1.2 per cent for the week.

“The fact that investors want to buy quality stocks at cheap valuations drove the market rebound since mid-June. But after this rally, valuation comfort is no more there. So, from here on, the market direction will depend on how the economy is shaping up,” said Kunal Sawhney, chief executive officer, Kalkine Group.

“One should not forget the fact that strong earnings reported by companies such as BHP were because of favourable economic conditions, which may not be there in the coming quarters amid a slowdown in global consumption,” he added.

Domestic energy stocks surged 4 per cent to close at their highest level since Jun 10. The sub-index rose 2.8 per cent for the week.

Whitehaven Coal and New Hope Corp climbed 6.2 per cent and 4 per cent, respectively, on Friday as thermal coal prices soared on rising demand from Europe, which is looking for alternative suppliers to Russia.

Miners and gold stocks firmed 1 per cent and 1.1 per cent, respectively.

Newcrest Mining jumped 3.6 per cent after the country’s largest gold miner topped annual profit estimates.

Heavyweight financial stocks fell 0.8 per cent and were the biggest drag on the benchmark. The so-called “big four” banks declined between 0.7 per cent and 2 per cent.

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Australia: Shares struggle for direction as weak earnings weigh

Pressuring the index on Friday were a bunch of weak earnings reports.

AGL Energy tumbled 3.9 per cent after Australia’s top power producer said annual profit more than halved and also missed analysts’ estimates.

TPG Telecom dropped 12.4 per cent as half-yearly earnings fell short of estimates, while poultry producer Inghams Group fell 9.4 per cent on reporting a lower annual profit.

New Zealand’s benchmark S&P/NZX 50 index ended 1.1 per cent lower at 11,684.81. It lost 0.4 per cent for the week. REUTERS