Market buoyed by rate outlook, earnings season accelerates, Nearmap gets a bid

The local bourse opened the week on a positive note, gaining 0.5 per cent despite a more mixed day across the sectors.

Energy and financials were the primary detractors falling 0.8 and 0.2, with reversals in Beach (ASX: BPT) and Bendigo Bank (ASX: BEN) which were down 11.1 and 8.4 per cent on weak updates.

Bendigo held its dividend payment flat after reporting a 7 per cent fall in profit to $488 million, with revenue also falling more than 5 per cent as the net interest margin continues to collapse.

It was the opposite story for Beach Petroleum, with a 13 per cent jump in revenue and 58 per cent increase in profit to $500 million not enough to reverse a significant decline.

Investors were clearly concerned about weaker than expected production levels, with short-term price increases offset by concerns about management.

Shares in Nearmap (ASX: NEA) remain among the most volatile in the market after the company gained 25 per cent on news of a takeover bid from private equity group Thoma Bravo.

The bid of $2.10 per share was at a 39 per cent premium to the prior share price with management also confirming revenue will finish the year at the top end of guidance.
 
JB Hi-Fi resilience continues, BlueScope records to power expansion, GPT profit falls
 
Despite a growing chorus of doubters, retailer JB HiFi (ASX: JBH) managed to deliver another 3.5 per cent in revenue growth during the financial year, hitting $9.23 billion.

The benefit of scale saw earnings jump 6.9 per cent and profit 7.7 per cent to $544 million. The key driver was a 52 per cent increase in online sales, which have moved beyond 10 per cent of the total.

Importantly, management announced a 43 per cent increase in the dividend on the back of the strong result noting it was ‘pleased’ with FY23 momentum; shares fell just 1 per cent.

Shares in diversified property group GPT (ASX: GPT) gained more than 5 per cent despite the group reporting a significant fall in profit and a small cut to the dividend.

Net tangible assets jumped to $6.26 per share, more than 30 per cent above the current share price.

BlueScope (ASX: BSL) has been a rare winner from the Ukraine war with the company reporting a record financial year result, a 135 per cent increase sending profit to $2.8 billion and the highest in more than 20 years of operation.

Surging demand saw revenue increase 47 per cent, however, management flagged serious challenges from the global energy crisis.
 
US benchmark gains, meme stock fever hits again, rally gathers steam
 
All three main benchmarks posted another positive day, with the 0.6 per cent gain in the Nasdaq taking it to a 23 per cent jump off the bottom in June.

The S&P500 and Dow Jones also finished 0.4 and 0.5 per cent higher on hopes that a recession may be averted, marking the best winning streak in three months.

The positive moves came despite signs the Chinese economy had stalled once again with retail sales, industrial production and investment all slowing in July, but the People’s Bank of China responded by cutting key interest rates to drive credit growth.

The energy sector fell by close to 3 per cent on the threat of weaker Chinese demand.

Shares in Tesla (NYSE: TSLA) gained 3.1 per cent after management confirmed the company has now produced 3 million cars, one-third of which were made in China.

The meme stock frenzy may be gathering steam again, with shares in Bed Bath & Beyond (NYSE: BBBY) gaining 23.6 per cent on the back of a massive surge in volume from ‘Reddit’ traders.

Drew Meredith

Drew is publisher of the Inside Network's mastheads and a principal adviser at Wattle Partners.