The Australian sharemarket experienced gains on Tuesday, primarily driven by BHP’s exceeding expectations with a US$5.64 billion first-half profit. This surge propelled the mining giant’s share price to a record high. The S&P/ASX 200 Index rose by 34.7 points, or 0.4 per cent, to 8971.80. Market volumes were subdued due to Wall Street’s closure for President’s Day and China’s week-long Lunar New Year holiday. BHP is a leading global resources company that extracts and processes minerals, oil, and gas from its production operations located primarily in Australia and the Americas.
Materials emerged as the top-performing sector on the ASX, buoyed by a 6.1 per cent jump in BHP shares. This increase added nearly $16 billion to BHP’s market capitalisation. BHP’s first-half profit increased by 28 per cent to US$5.64 billion, which was supported by robust copper earnings and margins. The company also secured a US$4.3 billion upfront payment through a long-term silver financing agreement with Wheaton Precious Metals. However, Sims, a metals recycling company, declined by 5 per cent after reporting a half-year loss of $29.9 million.
Technology stocks displayed volatility amid concerns about the potential impact of artificial intelligence on software companies. WiseTech Global decreased by 2.9 per cent, while Xero and NextDC fell by 0.8 per cent and 1.3 per cent, respectively. JB Hi-Fi stood out with an 8.2 per cent increase, driven by upgrades from UBS and Morgans following the company’s half-year report.
In other corporate news, Judo Bank saw a modest gain of 0.5 per cent after raising its net interest margin guidance to 3.15 per cent, surpassing market forecasts, as first-half profit rose 46 per cent to nearly $60 million. Baby Bunting rose 5.2 per cent after narrowing its full-year profit guidance to $17.5 million to $19.5 million. Challenger fell 1.9 per cent after reporting a half-year net profit of $229 million, which was below consensus. Reliance Worldwide dropped 8.1 per cent after posting a tougher-than-expected first half, with adjusted EBITDA falling 5 per cent to $US111 million, below consensus of $US118 million. Jobs listings site Seek fell 3.9 per cent as it flagged downside risks from weaker volume growth after a reported loss of $178 million from its continuing operations for the first half.
