The Australian sharemarket retreated from early gains as weakness in mining stocks and profit-taking in banks offset a rebound in technology shares. The S&P/ASX 200 pushed higher at the open before paring back, with eight of the 11 sectors in positive territory by midday. Trading was subdued by global holiday conditions, with US markets closed for a public holiday and China shut for the Lunar New Year. Wall Street ended mixed on Friday after softer inflation data lifted expectations of a US rate cut.
Technology stocks led the recovery after last week’s AI-driven sell-off, with WiseTech, Xero and TechnologyOne all posting strong gains. Materials were the main drag, as Rio Tinto suspended operations at its Simandou iron ore project in Guinea following the death of a contractor, while Fortescue and BHP fell amid sliding iron ore futures driven by oversupply concerns and rising Chinese stockpiles. Financials also eased after their strongest weekly gains since 2022, with ANZ, National Australia Bank and Westpac lower, while Commonwealth Bank edged higher. Bendigo Bank declined after Citi flagged concerns over its balance sheet growth.
In company news,
Genesis to acquire Magnetic in $639m gold consolidation
Genesis Minerals (ASX:GMD) has agreed to acquire Magnetic Resources (ASX:MAU) via a scheme of arrangement valuing Magnetic at approximately $639 million. Magnetic shareholders will receive $1.40 cash and 0.0873 Genesis shares per share, implying $2.00 per share and a 25 per cent premium to last close. The deal adds the 2.2Moz Lady Julie gold project to Genesis’ Laverton hub, lifting pro forma Mineral Resources to 21Moz and strengthening its growth pathway. The transaction is expected to complete in June 2026, subject to shareholder and regulatory approvals.
a2 Milk upgrades guidance after strong first-half growth
The a2 Milk Company (ASX:A2M) has reported strong first-half FY26 results, lifting full-year revenue guidance to mid double-digit growth after delivering an 18.8 per cent increase in revenue to NZ$993.5 million and an 18.4 per cent rise in EBITDA to NZ$155 million. Infant Milk Formula revenue rose 13.6 per cent, driven by 20.9 per cent growth in English label sales and record China label market share, while Other Nutritionals surged 42.9 per cent and Liquid Milk increased 18.5 per cent. Net profit after tax climbed 9.4 per cent to NZ$112.1 million and the company declared an interim dividend of 11.5 cents per share. Management said the upgraded outlook places the group on track to reach its NZ$2bn medium-term sales ambition a year ahead of plan
JB Hi-Fi posts record half as dividend payout lifted
JB Hi-Fi (ASX:JBH) reported record HY26 sales of $6.10 billion, up 7.3 per cent, with EBIT rising 8.1 per cent to $454 million and NPAT increasing 7.1 per cent to $305.8 million. The interim dividend was lifted 23.5 per cent to 210 cents per share, reflecting a higher payout ratio of 75 per cent. Strong growth was recorded across Australia, New Zealand and The Good Guys division, supported by solid comparable sales and disciplined cost control. The group closed the period with net cash of $489.5 million.
