MENU

Investor sentiment rides on blue-chip earnings this week

The Australian stock market looks set to receive a welcome boost this week on the back of strong leads from the US and European markets while a number of Australia’s largest companies are also due to present their interim results.

Amongst the big names are Cochlear Limited (ASX: COH), which will start the ball rolling on Tuesday, followed by Commonwealth Bank of Australia (ASX: CBA) and biopharmaceutical giant CSL Limited (ASX: CSL) on Wednesday. Thursday is also set to be a huge day as mining heavyweight Rio Tinto Limited (ASX: RIO) and Telstra Corporation Ltd (ASX: TLS) take the stage, while gold miner Newcrest Mining Limited (ASX: NCM) will be the biggest company to report on Friday.

Australia and New Zealand Banking Group  (ASX: ANZ) will also deliver a quarterly update on Tuesday, while National Australia Bank Ltd  (ASX: NAB) will do the same next week. Westpac Banking Corporation  (ASX: WBC) will not provide the market with an update this month.

According to AMP Capital, it is expected that we will see 13% earnings growth this financial year, which will be driven by 35% growth in resources’ profits thanks to a lower Australian dollar and reduced capex.

Foolish takeaway

Strong results from the above stocks would act as a driver for the local market. So far in 2014, poor performances from the big four banks and other blue chips have acted as a drag on the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) which has lost over 3% following on from last year’s rally.

Attention bank shareholders!

Fact: Australia's large banks had an incredible run in 2013. But some top analysts are saying the trend could stop dead! Get the inside scoop in The Motley Fool's brand-new FREE investment report, "What Every Bank Shareholder MUST Know."

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.