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ASX 200 to start the week higher, earnings season heats up

Published 12/08/2024, 08:46 am
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Investing.com - The Australian sharemarket is poised to open higher on Monday as a busy week of earnings kicks off, featuring some of the ASX’s largest companies, including JB Hi-Fi Ltd (ASX:JBH), AGL Energy Ltd (ASX:AGL), Commonwealth Bank Of Australia (ASX:CBA), and Telstra Group Ltd (ASX:TLS).

Futures on the S&P/ASX 200 rallied 1.3% in the last session. However, the local bourse is still recovering from a recent downturn that saw the index drop by 2% over the week.

On Friday, Wall Street saw a rebound with the S&P 500 and NASDAQ Composite both edging up by 0.5%, and the Dow Jones Industrial Average inching up by 0.1%.

The ASX’s rebound could face tests from the upcoming earnings data, which may reveal whether consumer spending has remained subdued and if higher financing costs are impacting profits.

Among local companies, Online vehicle marketplace Carbonxt Group Ltd (ASX:CG1) reported a 41% increase in revenue, reaching $1.1 billion for FY24. However, the company's net profit fell to $250 million, down from $646 million the previous year.

JB Hi-Fi Ltd (ASX:JBH) declared a special fully franked dividend of 80¢ per share in its full-year results. The white goods retailer recorded total sales of $9.59 billion for the 12 months ending June 30. Earnings before interest and tax were $647.2 million, with a net profit of $438.8 million.

Rail haulage group Aurizon Holdings Ltd (ASX:AZJ) announced a share buyback of up to $150 million after reporting a 25% rise in annual net profit to $406 million. Coal haulage volume increases and income from Queensland rail networks drove group revenues up by 9% to $3.8 billion.

On the bond markets, 10-year rates were at 4.067% and 2-year rates were at 3.793%.

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