That will be it for today. Thanks for joining us.
We'll be back early tomorrow morning, to catch you up with developments in markets overnight.
Until then, take care of yourselves.
That will be it for today. Thanks for joining us.
We'll be back early tomorrow morning, to catch you up with developments in markets overnight.
Until then, take care of yourselves.
Prices current around 4:50pm AEST.
Live updates on the major ASX indices:
Among the top movers on the ASX200 were ARB Corporation (up $3.11, +8.55%, to $39.49), Seek (up $2.05, +7.99%, to $27.72), and JB Hi-Fi (up $2.70, +2.33%, to $118.65).
Among the worst performers were CSL (down $45.82, -16.89%, to $225.5), Reliance Worldwide Corporation (down 31 cents, -6.74%, to $4.29), and Computershare (down $1.19, -2.98%, to $38.73).
Trading has finished on the ASX for the day, and the ASX200 index has lost 63 points (-0.7%) to close on 8,896.2 points.
Amid concerns from some business groups that the Federal Court's $90 million penalty imposed on Qantas for taking "adverse action" against around 1,800 ground staff whom it illegally terminated, Finance Minister Katy Gallagher told Radio National Breakfast that there is one clear message.
"I think the message is, don't illegally sack your workers. That's pretty clear," she said.
"And I think the TWU [Transport Workers Union] went out essentially on a limb for their workers, funded a court case that was very expensive and unpredictable about its outcome, but was set on the principle that this should not have occurred, and the court has found that it shouldn't have occurred, and they've awarded damages. That's how the court system works."
"Does it show that there's a gap in enforcement there, that it was the union who got up to push this case through, which took a number of resources, rather than this kind of case being fought otherwise?" asked presenter Sally Sara, referring to the fact the Fair Work Ombudsman did not intervene in the case on behalf of the sacked workers.
"Well, I think we have the industrial relations system in the country, we have updated those laws since that case. So, we have our legislation," Ms Gallagher responded.
"We have various dispute mechanisms. But I think, ultimately, this found its way into the courts, and the court has found in the workers' favour, and have acknowledged that in relation to the representatives of their union who took that action.
"We've always stood with the Qantas workers. We always believed that this was not right to sack people in the middle of a pandemic and outsource it all. And I think the message it would send to me, if I was in the business sector, is don't do that."
Although Qantas shares ended only 0.4% lower yesterday and are off another 1.4% today, with most analysis suggesting the airline has more than recouped the $210 million in fines and compensation plus its legal fees through savings from outsourcing ground handling.
I wrote this analysis of Justice Michael Lee's penalty judgment against Qantas yesterday.
Santos shares are down 2.5 per cent less than an hour from the close, taking the stock to just shy of $7.77.
It follows news the takeover proposal by XRG Consortium will not be finalised by this Friday, when the exclusivity period for due diligence ends.
The $36 billion cash takeover offer is the biggest in Australia's history.
XRG Consortium is led by a subsidiary of Abu Dhabi National Oil Company (ADNOC).
As chief business correspondent Ian Verrender wrote yesterday, while the Middle Eastern energy giant has spruiked its commitment to the Australian gas market, some financial market insiders have doubts.
ADNOC has responded, with a spokesperson reiterating its position to ABC News:
"The XRG-led consortium is committed to long-term, strategic investment in developing Australia's gas resources. Our extensive experience in investing in domestic gas supplies, gas exploration and production projects in the UAE and elsewhere has enabled greater investment in these markets. Our proposed investment is made with a long-term horizon in the Australian gas market, which we consider is in the national interest.
"The reality is clear: the best outcome for domestic gas customers is investment for the benefit of the Australian economy. This will require strategic investors who have capital that will drive growth to meet the rising demand for energy.
"With the capital strength, proven capability, track record and balance sheet to unlock new gas supply for Santos' customers, the XRG consortium will bolster both investment in domestic energy and Australia's role in global energy markets.
"We are advancing thorough due diligence and will provide further comment at the appropriate time."
The consortium's offer price is around $8.89 per share. The Santos share price has only risen above $8 once since the bid was announced, when it closed at $8.01 on Friday, and today has slid further in the other direction.
Analysts at UBS have a 12-month price target of $7.90 on the stock.
You can read the full piece from Ian here:
Thanks for sharing your thoughts.
Bendigo Bank is closing 10 country branches over the next two months.
Residents of country towns have criticised the move, saying it will impact individuals and businesses alike.
Hi,
DT jumping into the blog again.
The company earnings reporting season highlights a phenomenon when it comes to stock prices — share prices moving in surprising directions following results announcements.
In short, it's all about expectations.
That is, a company can deliver weak earnings, but if the result exceeds expectations or forecasts, the share price may well rise.
On the flipside, a company could produce a bumper profit result, but if it falls short of expectations, the share price could be hammered.
Today offered up two classic examples of this.
Biotech giant CSL dived more than 15 per cent to $230.49, despite reporting its underlying profit rising by 14 per cent to $3.3 billion.
But CSL's guidance for 2026 fell short of consensus expectations.
While BHP’s share price gained 1.57 per cent to $42.12 despite its FY25 revenue falling by 8 per cent to US$51.3 billion from the prior corresponding period.
It, however, surprised investors with a better-than-expected dividend payout.
Any "surprise" is going to move the share market, good or bad.
Tony Sycamore from IG has circulated his afternoon report.
He says the ASX200 is on track for its biggest one-day decline since the start of August, as a robust beginning to the earnings season faltered, and as key stocks like Suncorp and Computershare went ex-dividend.
Inflicting pain on the index today, bio tech giant CSL dived more than 15% to $230.49, despite reporting its underlying profit rising by 14% to $3.3bn.
Its falls came after the company announced plans to demerge influenza vaccine company CSL Seqirus as a separate ASX200 listed entity and as its guidance for 2026 fell short of consensus expectations.
Plumbing supplies company Reliance Worldwide was another to meet with investor disappointment as its share price fell 7.72% to $4.25.
Its falls came after it reported a FY25 profit of US$110.1 million, below market forecast of US$136.1 million. The company noted that US tariffs are expected to reduce its FY26 operating earnings by $25–30 million as nearly half of its Americas cost of goods sold are sourced outside the US.
In contrast, BHP’s share price gained 1.57% to $42.12 despite its FY25 revenue falling by 8% to US$51.3 billion from the prior corresponding period, while its underlying profit fall by 26% to $US10.2bn, both driven by lower iron ore and coal prices due to weaker demand from China. However, the Big Australian put a smile on shareholders faces after it announced a higher final dividend payout ratio of 60% which saw its share price surge towards multi month resistance at $42.30/50ish. A sustained break above $42.30/50ish would likely open up a move towards resistance at $46.00/50 in the sessions ahead.
Tomorrow brings another busy day of earnings, with reports expected from companies including James Hardie, Stockland, Santos, Magellan, Transurban, Iluka Resources, Breville Group, and Dexus.
In today’s other positive news, Consumer Confidence for August rose by 5.7% to 98.5 points to its highest level since February 2022. It is now just 1.5% below the 100 level, above which signals optimistic consumers outnumber pessimistic ones.
With 75 basis points of RBA rate cuts already delivered this year, inflation falling towards 2%, on top of the ASX200 hitting record highs, consumer spending and economic growth appear well placed to gain. Kogan surged 3.97% to $4.06, JB Hi-Fi added 1.62% to $117.80, and Nick Scali gained 1.27% to $22.40.