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Australian shares were little changed on Tuesday as investors worked through a flood of earnings from some of the ASX’s biggest companies, with a sharp rally in healthcare stocks offsetting weakness across financials, retail and gaming.
The S&P/ASX 200 Index was up 0.2 per cent intraday, with six of the 11 sectors in the red.
Healthcare was the standout, climbing more than 6 per cent as CSL surged more than 16 per cent after the blood plasma giant said it expected to return to underlying earnings growth this year. The result came despite a near $3.7 billion annual loss, with weakness in its Vifor kidney and iron deficiency business and US vaccine rates continuing to weigh on the recovery.
Pro Medicus was another major mover, jumping 12 per cent after reporting a 22.9 per cent increase in full-year revenue to $261 million and a 130 per cent lift in net profit to $265 million. The medical imaging software company said it secured 10 new contracts during the year worth $407 million, with most awarded by major US hospitals.
The resources sector also strengthened, with BHP up nearly 3 per cent after announcing its biggest dividend in four years, supported by booming copper prices. Rio Tinto and Fortescue were flat, while Woodside and Santos gained more than 1 per cent as oil prices pushed above $US90 a barrel.
Financials, meanwhile, weighed on the benchmark, with all four major banks trading lower. Bendigo and Adelaide Bank fell 9 per cent after APRA imposed licence conditions following findings of “longstanding and pervasive weaknesses” in its risk management framework.
Judo Capital bucked the banking weakness, rallying 12.6 per cent after reporting a 29 per cent increase in full-year net profit to $111 million. Its net interest margin rose to 3 per cent, 20 basis points higher than the previous year and above guidance.
Retail remained under pressure following JB Hi-Fi’s earnings-driven sell-off on Monday. Aristocrat, The Lottery Corporation and Light & Wonder all fell more than 1 per cent, while Wesfarmers dropped 1.2 per cent. JB Hi-Fi itself recovered 2 per cent.
Beyond the major sectors, takeover activity was a major source of action. Reliance Worldwide jumped 24 per cent after Brookfield Capital Partners increased its offer for the plumbing supplies company to $4.75 a share, representing a 31.6 per cent premium to its previous closing price and valuing the company at about $4.1 billion. Reliance said the proposal followed three earlier offers from Brookfield and that it had agreed to proceed with the latest proposal, although there was no certainty a deal would ultimately be completed.
Ausgold also surged, climbing nearly 24 per cent after agreeing to an all-share takeover by Canada’s OceanaGold valuing the Western Australian gold developer at $776 million.
Equity Trustees jumped nearly 21 per cent after US private equity firm TPG Global made a $657.9 million takeover bid for the wealth services company. The proposal comes as Equity Trustees faces legal action connected to the Shield and First Guardian investment schemes.
Elsewhere, Challenger rose 8.5 per cent after flagging a $450 million share buyback and a special 1.5¢ dividend alongside a $506 million annual net profit, while HUB24 fell 7.5 per cent despite reporting a 42 per cent increase in full-year net profit to $120.2 million.
Sims fell 10.9 per cent despite more than tripling net profit to $289 million for FY26, while EML Payments dropped 14 per cent after reporting a narrower annual net loss of $19.7 million and forecasting a return to profit in the coming year.
In commodities, gold held a two-day gain near $US4420 an ounce as softer US economic data and reduced expectations for another Federal Reserve rate increase weighed on the US dollar.
Meanwhile, Brazilian Rare Earths fell 2.3 per cent after retracting its Rocha da Rocha production target and associated forecast financial information. The company said the proportion of inferred mineral resources scheduled in years nine to 14 meant there was no reasonable basis for the relevant forward-looking statements.
With earnings season now driving a large portion of market activity, investors are getting a fresh look at company earnings, guidance, capital returns and takeover prospects across the ASX.
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