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FIVE at FIVE AU: Flat day on ASX amid heap of earnings reports

Published 22/02/2024, 04:05 pm
© Reuters.  FIVE at FIVE AU: Flat day on ASX amid heap of earnings reports
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The ASX 200 ended the day flat amid a busy day of earnings reports. Strength in Utilities and the Tech sectors contrasted against weakness in Consumer Discretionary and Telcos and the banks.

Stronger-than-expected iron ore prices were behind Fortescue’s 41% lift in first-half net profit to US$3.33 billion ($5.1 billion) — which exceeded analysts’ expectations. It also declared a fully franked $1.08 interim dividend, which represents a 44% lift. Fortescue (ASX:FMG) gained 1.61% to $27.69 today.

Following Rio Tinto’s report of a US$11.8 billion ($18 billion) underlying full-year profit yesterday, broker Citi has kept a buy rating on the miner with a price target of $145. Rio fell 1.25% today to $124.23.

Qantas reported a 13% drop in underlying earnings for the half-year to December 31. Underlying profit before tax met analyst expectations at $1.25 billion, while the company flagged a $400 million share buyback and a plan to boost spending on planes in 2025 to $3.5 billion - $3.7 billion. Qantas shares lost 6.26% to $5.24.

In the lithium space, Pilbara Minerals’ profit fell as a result of the lithium price crash over the half year to December 31, while IGO said its profits were down 53% on the back of the weak lithium price.

Interestingly, Japanese shares have hit their highest level since 1989 as shares in technology and semiconductor chips rallied across the Asia Pacific, and a weak Yen supported corporate profits.

Five at five

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Miramar Resources makes positive progress in nickel-copper-PGE quest at Bangemall

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On your six

Investment spotlight turns to West Pilbara, particularly its battery metals bounty

The massive iron ore mines of BHP (ASX:BHP), Rio Tinto (ASX:RIO) and Fortescue might be the first thing that comes to mind when thinking of the Pilbara In WA, but is also in the spotlight for other minerals including gold, copper, base metals, manganese and increasingly the key battery metal of lithium.

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One to watch

Orthocell raising $3.5 million; adds heavy hitters to register

Orthocell Ltd (ASX:OCC, OTC:ORHHF) managing director Paul Anderson sits down with Jonathan Jackson in the Proactive studio to discuss the company’s $3.5 million capital raise and the addition of some heavy hitting investors to the share register.

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