The Australian sharemarket surged toward a new record on Thursday, buoyed by a strong performance from the banking sector. This was largely fueled by ANZ, which reported a better-than-expected $1.94 billion cash profit for the first quarter. The S&P/ASX 200 Index climbed 52.20 points, or 0.6 per cent, to 9067 by mid-afternoon, edging closer to its all-time high of 9094.71. Five of the eleven sectors experienced gains.
Financial stocks rallied, with ANZ leading the charge after its shares jumped 8.7 per cent to a record $40.14. ANZ, one of Australia’s ‘big four’ banks, provides a range of banking and financial products and services. The company’s recent success is attributed to CEO Nuno Matos’s restructuring efforts, which have resulted in significant cost savings through staff layoffs. Commonwealth Bank also rose 5 per cent, building on gains from the previous day, while Westpac and National Australia Bank added 2.5 per cent and 2.7 per cent, respectively.
However, not all companies shared in the market’s positive momentum. AMP experienced a significant drop, sinking 30.8 per cent after reporting a decline in full-year profit and disappointing investors by not announcing a share buyback or other capital return initiatives. Temple & Webster, an online retailer of homewares and furniture, saw its shares plunge 30.1 per cent following a 36 per cent slump in half-year net profit. Pro Medicus also dived 22 per cent, and the ASX Ltd fell 2.4 per cent despite reporting an increase in half year net profit.
In contrast, the materials sector contributed to the overall positive sentiment, with Northern Star rising 4 per cent after reporting a substantial increase in half-year net profit and an interim dividend. BHP and Rio Tinto also saw gains, rising 2.4 per cent and 1.9 per cent, respectively. Origin Energy lifted the utilities sector following an upgrade to its full-year energy markets EBITDA forecast, despite a drop in half-year profit. Lendlease edged up 0.3 per cent, and Breville rose 2.5 per cent, showing that the market had mixed results on Thursday.
