Australia: Shares struggle for direction as weak earnings weigh

AUSTRALLIM shares were set for a fifth consecutive weekly gain, even as the market struggled for direction on Friday as mining, energy and gold stocks offset losses in a slew of blue chips including AGL Energy over weak earnings.

The S&P/ASX 200 index flitted in and out of positive territory and was last up 0.04 per cent at 7,115.5, as traders assessed comments from a string of US central bank officials that the Federal Reserve needed to keep raising borrowing costs to bring high inflation under control.

The benchmark index has risen 1.1 per cent so far in the week.

Elsewhere, Japan’s Nikkei was up 0.33 per cent on Friday and S&P 500 E-minis futures were down 0.16 per cent.

Among top losers in Australia, AGL Energy slipped 3.1 per cent to hit its lowest in more than four months after the country’s top power producer said its annual profit more than halved, falling short of analysts’ estimates.

TPG Telecom dropped 10.4 per cent after its half-year profit came in below consensus due to higher costs, while poultry producer Inghams Group fell 9.4 per cent on reporting a lower profit.

However, the energy sub-index jumped 3.6 per cent to hit a two-week high, supported by higher crude oil prices. Santos and Woodside Petroleum led gains in the sector, rising 3.8 per cent each.

Gold stocks gained more than 2 per cent, helped by a 2.8 per cent rise in heavyweight Newcrest Mining despite the company posting a profit drop and announcing a lower dividend.

Moves in Australian miners this week were seen largely independent of iron ore prices. The sector firmed 1.7 per cent on Friday despite tumbling iron ore prices, and was on track for a weekly gain of 4.1 per cent.

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Australia: Shares end lower after Fed minutes, local jobs data

New Zealand’s benchmark S&P/NZX 50 index fell more than 1 per cent, pulled down by a near 10 per cent slide in Fisher and Paykel Healthcare on weak outlook. REUTERS