It was another banner day for the share market with the S&P/ASX 200 (ASX: XJO) adding another 0.3%, driven higher by an incredible rally in the lithium or ‘green energy’ sector.
Green energy powers ahead
Whilst the materials sector was down 0.1% for the day, the likes of Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) were enough to support the market, jumping 11% and 9% respectively after JPMorgan upgraded its views on the sector.
This follows yesterday’s release of the UN’s Climate Change report suggesting massive investment in green energy will be required, none of which can occur without battery storage.
Transurban trends lower, NAB buys up
Elsewhere, the IT sector continued its strong rally, adding 1.6% whilst the industrials sector was hit after Transurban Group (ASX: TCL) dropped another 2.9% following Monday’s difficult FY21 earnings update.
As reported yesterday, whilst the likes of the Commonwealth Bank of Australia (ASX: CBA) invest in the BNPL sector, National Australia Bank Ltd (ASX: NAB) has doubled down on credit cards, announcing the purchase of Citigroup’s Australian consumer business, which includes $8 billion of mortgages and $3.7 billion in credit card balances at a cost of $1.2 billion.
James Hardie sees renovation boom
James Hardie Industries PLC (ASX: JHX) hit a record high exceeding $50 per share for the first time, jumping 1.9% after delivering an elevenfold increase in profit to US$121 million for the financial year; that’s 1191%.
The result was powered by a strong performance in all three key divisions, including building products and fibre cement with US sales up 28%, Europe 37% and Australia 33%, the ninth consecutive quarter of growth according to management.
Interestingly, sales revenue jumped 35% despite the volume of products only increasing by 25%, in a sign it had benefitted from short-term shortages through higher prices.
Challenger reverses losses
Challenger Ltd (ASX: CGF) added 1.9%, continuing its recent recovery even as the CEO Richard Howes announced he would be stepping down.
Shareholders looked beyond the announcement towards the improving financials with profit hitting $592 million – a stunning turnaround from last year’s $416 million loss.
The result was driven by a 14% increase in its life annuity book along with another $16 billion in inflows into its fast-growing Fidante asset management business, which hit $110 billion in assets under management.
Both retail and institutional annuity sales improved, up 19% and 53% respectively, as the disruption of the financial advice sector reduces and industry funds become more focused on delivering retirement solutions; all this whilst a strategic buyer has acquired 18% of the company.
ASX 200 today
The ASX 200 is set to open higher on Wednesday despite a mixed lead from US markets overnight.
All eyes will be on CBA today as the company releases its full-year FY21 results, as per Rask Media’s ASX reporting season calendar.
