ASX 200 midday update: CBA results and $6bn buyback, IAG falls

It has been a very busy day on the ASX 200 on Wednesday…

At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is on form again and reaching new highs. The benchmark index is currently up 0.5% to 7,602.4 points.

Here's what has been happening on the ASX 200 on Wednesday:

stock market gaining

Image source: Getty Images

CBA delivers strong profit growth and $6 billion share buyback

The Commonwealth Bank of Australia (ASX: CBA) share price is pushing higher today after delivering a strong full year result. For the 12 months ended 30 June, the banking giant reported a 19.8% increase in cash earnings to $8,653 million. This compares to the analyst consensus estimate of $8,464 million. This strong form and its even stronger balance sheet allowed the bank to announce a $6 billion off-market share buyback.

IAG lower on FY 2021 results

The Insurance Australia Group Ltd (ASX: IAG) share price has given back its morning gains and is now trading lower. This follows the release of a mixed full year result by the insurance giant. IAG reported a 3.8% increase in gross written premium to $12,135 million but a net loss after tax of $427 million. The latter was driven by a range of one-offs. Excluding these one-offs, its cash earnings was up 170% to $747 million.

Computershare shares higher following full year results

The Computershare Ltd (ASX: CPU) share price is rising today after investors responded positively to its full year results. The stock transfer company reported an 0.8% decline in full year management revenue to US$2.3 billion and a 7.3% fall in management earnings per share to 52.03 US cents. The latter was just ahead of its guidance for an 8% decline. Looking ahead, management is guiding to a stronger year in FY 2022. It expects management earnings per share growth of 2%.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the IRESS Ltd (ASX: IRE) share price with a gain of over 5%. This follows the receipt of an improved takeover proposal. The worst performer on the ASX 200 has been the Megaport Ltd (ASX: MP1) share price with a 5% decline. This morning analysts at Ord Minnett downgraded the company's shares to a sell rating with a lower price target of $15.00. This follows the release of its FY 2021 results yesterday.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Insurance Australia Group Limited. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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