Market expects new highs amid upbeat results
- Reading on The Australian Financial Review
On August 16th, the local share market is expected to have new highs this week after last week upbeat results.
Last week, most companies reporting solid numbers to June, reflecting the economic recovery by a rampant property market and a strong recovery in the US & China. CBA with underlying earnings in line called bigger buyback than expected moving on from the royal commission pressures; Rio Tinto has a solid result; Insurance companies, like QBE & Suncorp, operate better; Telstra is also showing earnings growth.
This week, more results will be announced. BHP will be the biggest one and is expected to pay a record dividend while the iron ore miner may also announce the selling of its petroleum assets to Woodside to exit from oil and gas. However, CSL is expected with weaker 2022 Financial Year guidance. While the lockdown hits the retail group, such as JB Hi-Fi, Super Retail Group, Vicinity Centres and Stockland, they will be a bit cautious on things, but a decent result this half is expected, like Myer’s. Also, lots of companies are in the middle of mergers and acquisitions, such as Santos, Tabcorp, Iress and Sydney Airport. Qantas won’t be so good in the Travel sections but not a big part of the market.
Despite lockdown still bother most populous states in Australia, the sharp increase in the vaccination rate brings forward the timing of international border re-openings and is the key driver of earnings recovery in the market ahead.
