BHP reports reasonable numbers – stock up +1.09% (BHP)
A reasonable session for stocks with the market ticking up on good results, however the frustratingly stubborn 14 week trading range on the index continues to hold firm. The Industrial & Materials stocks did best today while most weakness was felt in the Consumer Staples courtesy of the Wesfarmers dividend of $1.20 fully franked, with the stock down $1.25 (so a good result).
Woolies reports tomorrow which will be interesting after Coles showed a better sales trend in their announcement last week – could be an issue for WOW. Overall we had a range of +/- 22 points, a high of 5750, a low of 5728 and a close of 5750, up +24pts or +0.42%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
Mkt reactions to company reports today
Aconex: down 5.5% at $4.36
Amcor: up 0.7% at $16.11
BHP: up 1.3% at $26.03
Cedar Woods Properties: up 1.2% at $5.15
Corporate Travel: down 4.4% at $22.08
Greencross: down 3.8% at $5.90
Ingenia: up 0.4% at $2.61
Monadelphous: up 0.4% at $13.82
Northern Star: down 0.5% at $4.95
Oil Search: up 3.3% at $6.60
Rural Funds: unchanged at $2.10
Seven Group: up 7.4% at $12.67
Sydney Airport: up 2.8% at $7.05
Western Areas: up 3.63% at $2.57
BHP result - They missed expectations in terms of earnings (3% miss) and dividend which came in at 83cps versus 84cps consensus. The only offset to this is lower debt of $16bn versus the market at $18bn so it seems like they have focussed on debt reduction in the first instance, over and above dividends. The market liked commentary from the CEO that said…..“ALL shale assets are NON CORE. Independent advisers engaged, and will exit acreage.” Which is one of the areas Elliot Advisers had targetting, so clearly they are getting some cut through with their message – which is a credible one. We own BHP and are comfortable with it, however will be sellers nearer $28.
Anyway, as Peter O’Connor, Shaw’s very good resource analyst suggested this morning…. the result is important but not as important as what Ken (Chairman elect) says/does/hints/ tweets/twerks when he starts on 1 September.
BHP Daily Chart
Have a great night
The Market Matters Team
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