Australia: Shares end at record high as CBA boosts financials

[SYDNEY] Australian stocks closed at a record high on Wednesday, buoyed by financials as Commonwealth Bank of Australia doubled its dividend payout and announced a record US$4.41 billion share buyback.

The S&P/ASX 200 index settled 0.3 per cent higher at 7,584.6. Commonwealth Bank of Australia (CBA) hit a new peak before closing 1.5 per cent higher as the country's largest lender also posted a 20 per cent jump in annual profit.

Smoling Stockbroking managing director Brad Smoling said CBA's stellar result made a lot of people happy given the low cash rates, getting good dividends and the promise of a share buyback.

The financial sub-index gained 0.9 per cent, hitting a more than four-year high, with the remaining "big four" lenders up between 0.9 per cent and 1.2 per cent.

Investors now await the earnings results of National Australia Bank and Westpac.

Miners rose 1.2 per cent, heavy-lifted by Rio Tinto and BHP Group, both climbing more than 1 per cent as iron ore eked out gains after five straight sessions of losses.

US inflation data is due later in the day, and investors believe a higher reading can benefit commodity and related stocks in Australia.

Gold stocks remained the biggest drag on the main index, even as bullion prices edged higher on worries over a surge in the Delta variant cases.

Meanwhile, Australian authorities extended lockdowns in Melbourne for seven days until Aug 19 as the country continues its fight to get on top of the highly infectious Delta variant.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.07 per cent to 12,772.9.

REUTERS