BHP Rises, Lifts ASX; Tech Stocks Fall; Santos Case Dismissed

The Australian share market has shown resilience, buoyed by significant gains from BHP following a strong half-year report. As of lunchtime, the S&P/ASX 200 index increased by 56.3 points, reflecting a 0.6 percent rise, with materials leading the charge.

BHP’s Strong Performance

BHP reported a remarkable 28 percent increase in half-year profit, totaling $US5.64 billion (approximately $8 billion). This surge was driven primarily by a rise in copper revenues, marking copper as the company’s leading product this period. Following the announcement, BHP’s stock price rose by 6.9 percent.

Market Reactions

• Rio Tinto and Fortescue both experienced slight gains of 0.2 percent.
• Gold miners faced challenges, with Northern Star decreasing by 1.2 percent and Evolution Mining down 2 percent.
• South32, a leader in silver production, climbed by 2.2 percent.
• Judo Bank’s profits surged to $59.9 million, a 46 percent increase, leading to a 7 percent jump in its stock.

Banking Sector Performance

The big four banks displayed mixed results. Commonwealth Bank fell by 0.4 percent, while ANZ Bank increased by 0.1 percent. National Australia Bank gained 0.2 percent, and Westpac rose by 0.5 percent.

Energy Stocks Today

Energy shares showed a mixed performance. Woodside Energy declined by 0.1 percent and Yancoal dropped by 0.2 percent. Conversely, Santos saw a small uptick of 0.2 percent after a legal case against it was dismissed.

Legal Developments for Santos

A Federal Court case initiated by an activist shareholder group aimed at Santos was dismissed. The group had accused Santos of misleading claims regarding “clean energy” initiatives.

Tech Stocks’ Rocky Path

The technology sector continued to experience fluctuations. Seek, an online employment company, reported net revenue of $601 million, marking an 11 percent rise. However, its shares fell by 2.7 percent due to ongoing market scrutiny. Other tech stocks also faced declines:

• WiseTech dropped by 4.1 percent.
• Xero declined by 2 percent.
• NextDC saw a 1.4 percent decrease.

Baby Bunting and Maggie Beer Holdings

Baby Bunting’s stock soared by 10 percent following a sales growth of 6.7 percent and a notable increase in gross margins. In contrast, Maggie Beer Holdings indicated a potential sale of its hampers business, following unsolicited interest.

Aussie Dollar and Broader Market Outlook

The Australian dollar was trading at US70.68 cents by midday. Global markets saw minimal movement, attributed to the recent US inflation data, which has fueled speculation of future interest rate cuts by the Federal Reserve.

Looking ahead, investors will watch for upcoming ADP payroll numbers and insights from the Federal Reserve’s January meeting minutes for economic clarity.