The S&P/ASX 200 (ASX: XJO) continued a recent strong run, gaining another 1.1% on Wednesday with Commonwealth Bank of Australia (ASX: CBA) a key contributor.
The financial and technology sectors are seeing strong support as ASX reporting season steps up another gear, adding 2.6% and 4.2%, respectively.
In an about-face from recent weeks, the energy and material sectors underperformed after BHP Group Ltd (ASX: BHP) fell due to another warning on the iron ore price by the Chinese Government.
CBA boosts dividend
The CBA share price rallied close to 6% after the company reported a $4.7 billion half-year profit, an improvement of 23% on the prior year.
The result was driven by an acceleration in personal and business lending, which reported 8.5% and 12.% growth compared to 2020 levels. This was some 20% and 70% higher than the rest of the big four banks.
The strong volumes were able to overcome a further weakening in CBA’s net interest or profit margin to 1.92%, with management seeing fit to report a $1.75 dividend, 16% higher than the prior year.
Costs hit MinRes amid lithium boom
Popular iron ore and lithium miner Mineral Resources Limited (ASX: MIN) felt the full brunt of underdelivering in earnings season, falling 8.9%.
The company reported a sharp drop in earnings and a net loss of $36 million, representing a 108% fall from the prior year’s profit.
The collapse in iron ore prices and widening discounts on commodity sales, combined with a 60% surge in the cost of exporting products, was the major driver.
According to management, the issues have been widespread, including shipping and haulage prices as well as staffing issues at its new mine. The result was a cancellation of the dividend and growing concerns about the outlook for the uber-popular lithium sector.
Magellan jumps
Magellan Financial Group Ltd (ASX: MFG) continued its turnaround from the shock departure of the CIO with shares gaining 5.6% after a number of research houses held fire on recommending the sale of the Global Fund.
Temple & Webster shares soar
Temple & Webster Ltd (ASX: TPW) was another winner, jumping 9.7% after delivering record revenue that was 46% higher than the prior year. Active customers are now nearing 1 million with revenue gaining 10%.
ASX 200 today
Looking ahead, the ASX 200 is expected to open higher this morning, following a positive lead from US stock markets overnight. The Nasdaq outperformed, gaining more than 2%.
Today will see the likes of National Australia Bank Ltd (ASX: NAB) and AMP Limited (ASX: AMP) release results. To keep up to date this February, be sure to bookmark Rask Media’s ASX reporting season calendar.
