The S&P/ASX 200 (ASX: XJO) delivered another positive day, adding 0.5% as the trifecta of iron ore miners including Fortescue Metals Group Limited (ASX: FMG), Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) all hit record highs.
This sent the materials sector 1.5% higher, beaten only by the tech sector which added 2.6%.
ASX iron ore miners in the spotlight
It’s been a big few days for iron ore miners and their dividends, with Rio’s result backed by a 71% increase in sales to US$33.1 billion and a 156% increase in earnings to US$12.2 billion; shares climbed 1.5%.
On Thursday it was all about Fortescue, with management reporting it had exceeded iron ore shipment guidance, delivering a record 49.3 million tonnes in just three months.
Average revenue was US$168 per tonne, well below the current spot price, with its primary cost now just US$15.23 per tonne showing the massive profit margin and benefits of scale.
The group has guidance to even higher shipments next year, shares jumping 1.9% with the dividend expected to be around the top of its range at 80% of profits, to be announced next month.
Property hit by Vic government
The property sector was the biggest detractor, falling 1.3% with retailers seemingly outperforming industrial and office assets.
Vicinity Centres (ASX: VCX) was flat after the Victorian Government announced new legislation forcing landlords to reduce their rent demands.
Equity Trustees bids for IRESS, Macquarie’s year starts strongly
Shares in technology platform owner IRESS Ltd (ASX: IRE) jumped 13.9% after announcing it had received an unsolicited bid for its entire business on the 4th of July.
The bidder was funds represented by Equity Holdings Ltd (ASX: EQT) with the price being $15.50 per share.
IRESS, which operates the XPLAN platform used by financial advisers, has a near-monopoly over this software and is apparently facing two bidders down.
Even after the rally, the IRESS share price remains at $14.25, a solid discount to the offer and potential arbitrage for those confident of a deal.
Thus far, the Board has suggested the offer does not represent ‘compelling value’ as is the par for the course in these types of offers.
Macquarie’s year starts strongly
Investment bank Macquarie Group Ltd (ASX: MQG) offered a market update on Thursday, confirming ‘improving trading conditions’ in its first fiscal quarter, with profit contributions ahead of 2020 levels.
Its annuity-style businesses, being banking and funds management, were up only slightly with the capital markets, mergers and acquisitions division said to be significantly higher than a year ago.
This has been supported by the sale of the group’s UK smart meter portfolio, a positive sign for the all-important exits that allow the release of performance fees. Macquarie shares finished the day 0.3% higher.
ASX 200 today
Looking ahead, the ASX 200 is set to edge higher when the market opens on Friday, following a positive lead from US markets overnight as earnings season heats up.
