At noon, the S&P/ASX 200 is 0.13 per cent lower at 7,347.80.
The ASX remained relatively stable as investors processed a series of corporate earnings reports. The market was impacted by a decline in energy and mining stocks, which counteracted the gains made in the consumer discretionary sector.
Notable events included BlueScope Steel (ASX:BSL) experiencing a 3.4% decrease due to its approval of a $415 million expansion of its metal products factory. South32 (ASX:S32) also dropped by 0.9% due to a week-long industrial action at the Illawarra coking coal mines. Similarly, shares of Rio Tinto (ASX:RIO), BHP Group (ASX:BHP), and Fortescue Metals (ASX:FMG) experienced declines.
On a positive note, Star (ASX:SGR) saw a significant 23% increase following a tax reprieve from the NSW government. Baby Bunting (ASX:BBN) managed to recover from early losses, ending with a minimal 0.2% dip. The company announced profit and dividend reductions, along with substantial cost-cutting measures. Nick Scali (ASX:NCK), on the other hand, surged by 12.3% after achieving a record net profit of $101.1 million.
However, REA Group (ASX:REA) shares decreased by 1.1% due to weaker national real estate listings and a lower full-year dividend. Fonterra (ASX:FSF) saw a modest 0.8% increase on the back of its plans to deliver FY2023 earnings and dividends at the upper end of the forecast range. The performance of banks varied, while gold miners experienced heightened demand.
The SPI futures are pointing to a fall of 6 points.
Best and worst performers
The best-performing sector is Consumer Discretionary, up 0.78 per cent. The worst-performing sector is Energy, down 1.47 per cent.
The best-performing large cap is QBE Insurance Group (ASX:QBE), trading 2.3 per cent higher at $15.765. It is followed by shares in SEEK (ASX:SEK) and Allkem (ASX:AKE).
The worst-performing large cap is BlueScope Steel (ASX:BSL), trading 2.97 per cent lower at $20.425. It is followed by shares in Whitehaven Coal (ASX:WHC) and Mercury NZ (ASX:MCY).
Asian news
Asia-Pacific markets rose on Friday after inflation in the U.S. came in lower than expected, raising hopes markets could see a “soft landing” in the inflation fight.
July consumer prices gained 3.2% on an annual basis, less than the 3.3% consensus from economists polled by Dow Jones. On a month-to-month basis, inflation increased 0.2%, in-line with estimates.
The report also said real average weekly earnings were unchanged last month in another positive sign.
However, the core inflation rate — which strips out prices of food of energy — was at 4.7%, the lowest since October 2021 and lower than the 4.8% expected.
South Korea’s Kospi was up 0.34% and the Kosdaq gained 0.11%. Japan’s markets are
closed for a public holiday.
Futures for Hong Kong’s Hang Seng index stood at 19,292, pointing to a stronger open compared to compared to the HSI’s close of 19,248.26.
Company news
Allkem (ASX|TSX:AKE) has updated their James Bay Lithium Mineral Resource in Québec, Canada by 173% to 110.2 million tonnes. Managing Director and CEO, Martin Perez de Solay said, “James Bay is now one of the largest spodumene lithium assets and clearly has the potential to grow even further as the boundaries of mineralisation are tested through an additional drilling program commencing later in the year." Shares are trading 0.97 per cent higher at $14.64.
Cosmos Exploration (ASX:C1X) will commence its maiden helicopter-assisted rock sampling exploration program at the highly prospective lithium projects in the James Bay district in Quebec, Canada, near that of Allkem's. Exploration is scheduled to commence on 11 August 2023. Shares are trading 18.9 per cent higher at 44 cents.
Nick Scali (ASX:NCK) has released their results for the year ended 30 June 2023, with a record net profit after tax of $101.1m. The company will now increase their dividend per share by 7.1%. Commenting on the result, the Managing Director, Anthony Scali, said, “In FY23 we completed the full integration of the Plush operations and processes with the sales order process the last key process to be integrated in December 2022.” Shares are trading 12.4 per cent higher at $12.03.
Commodities and the dollar
Gold is trading at US$1947.10 an ounce.
Iron ore is 1.4 per cent lower at US$103.35 a tonne.
Iron ore futures are pointing to a 0.2 per cent rise.
One Australian dollar is buying 65.23 US cents.
