The S&P/ASX 200 Index (ASX: XJO) wrapped up another week of earnings season last week, which saw the ASX 200 shake off the malaise of the previous week to end higher. But only just. The ASX 200 managed a 0.37% rise for the week, finishing up at 7,488.3 points.
The ASX 200 was once again dominated by some blockbuster earnings reports last week. We saw big moves from some ASX 200 shares off the back of earnings. These included WiseTech Global Ltd (ASX: WTC) and Blackmores Ltd (ASX: BKL). But we also saw some negative reactions from investors for companies ranging from Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES) to A2 Milk Company Ltd (ASX: A2M) and Appen Ltd (ASX: APX).
Even though ASX blue chips like Wesfarmers and Woolies doled out massive dividend hikes and (in Wesfarmers’ case) a $2 billion capital return program, it wasn’t enough to stop investors worrying about these companies’ forecasts for a potentially difficult year ahead.
ASX banks and miners stage a recovery
Apart from the companies reporting, we saw a few steady moves from some of the ASX 200’s biggest blue-chip shares. The ASX banks all had a strong week after a meaningful pullback the week prior. Commonwealth Bank of Australia (ASX: CBA) was the major beneficiary, rising more than 2% last week. But both Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB) both managed rises of just under 1%.
The ASX’s big iron ore miners in BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) also both staged muted recoveries after their shellacking over the previous week, due to a slight rebound in the iron ore price. As did ASX energy shares like Woodside Petroleum Limited (ASX: WPL), backed by stabilising crude oil prices.
It’s also worth pointing out the impressive week that ASX travel shares enjoyed. Qantas Airways Limited (ASX: QAN) seemed to give the entire sector a boost when it announced it’s planning on resuming international flights by December this year. That’s despite the ongoing coronavirus crisis most of the country (as well as New Zealand) is currently facing, as cases of the Delta variant continue to vex New South Wales and Victoria in particular.
How did the markets end the week?
Decently, but nothing to write home about. Monday saw the ASX 200 start things off on a positive note with a gain of 0.39%. Tuesday and Wednesday backed this up, with additional gains of 0.17% and 0.38%, respectively.
But a more pessimistic Thursday and Friday saw the ASX 200 give up some of its mid-week gains. Thursday saw the ASX 200 retreat by 0.54%, which was augmented by a more feeble 0.04% sell-off on Friday.
Overall, the ASX 200 started the week at 7,460.9 points and finished up at 7,488.3 points – a rise of 0.37%
Meanwhile, the All Ordinaries Index (ASX: XAO) managed a decent week too. The All Ords started the week at 7,725.1 points but ended up at 7,760.1 points – a rise of 0.45%.
Which ASX 200 shares were the biggest winners and losers?
It’s time for our Foolish answer to the old gossip pages, where we check out the ASX 200’s biggest winners and poorest losers of the week. So put the kettle on as we, as always, start with the losers:
|Worst ASX 200 losers||% loss for the week|
|Austal Limited (ASX: ASB)||(19.4%)|
|NIB Holdings Limited (ASX: NHF)||(16.7%)|
|Kogan.com Ltd (ASX: KGN)||(16.1%)|
|Link Administration Holdings Ltd (ASX: LNK)||(15.6%)|
As you can see, our ASX 200 wooden spooner last week was shipbuilding company Austal, with a nasty 19.4% drop over the week that was. As you might expect at this time of year, this seems to be a reaction to the company’s FY21 earnings report, which Austal dropped on Tuesday. With revenues and earnings both down by double digits, it’s not hard to see what spooked investors here, even if net profits were up.
Next, we had private health insurer NIB. Again, we seem to have NIB’s FY21 earnings to blame here. The insurer reported increases in both revenue and net profits, but this seemed to fall short of investors’ expectations.
Kogan was yet another victim of its own earnings report, which the e-commerce company announced on Tuesday too. Although revenues jumped a healthy 56.8% for Kogan, investors were not too impressed, it seems, by the company’s diminutive reported net profit after tax of $3.5 million.
And finally, we had Link Administration, which… also reported earnings last week. Investors were hitting the sell button after the company divulged that its revenues shrank by 6% last financial year, which accompanied an 18% fall in net profits.
Now with the losers out of the way, let’s take a look at the winning ASX 200 shares from last week:
|Best ASX 200 gainers||% gain for the week|
|WiseTech Global Ltd (ASX: WTC)||29.3%|
|Blackmores Limited (ASX: BKL)||28.4%|
|Clinuvel Pharmaceuticals Limited (ASX: CUV)||25.8%|
|Flight Centre Travel Group Ltd (ASX: FLT)||22.9%|
As is evident, we had a big week for ASX 200 winners last week. Topping the pile was ASX 200 tech and WAAAX share WiseTech Global. WiseTech lit the ASX on fire when it reported its own FY21 earnings on Wednesday. The company bulldozed expectations across the board, with a 63% leap in earnings, a doubling of its net profits after tax and some bullish guidance for FY2022. Investors reacted accordingly.
As mentioned earlier, vitamin purveyor Blackmores also smashed expectations with its earnings report, which was delivered on Thursday. Although revenues were ‘only’ up by 1.3%, net profits after tax came in at a robust $25.4 million, up 51.7% on last year’s numbers.
Pharma company Clinuvel also impressed with its earnings, which included a 43% jump in revenues.
And Flight Centre also got a major boost with its own report. That was despite this ASX travel share reporting an underlying loss of $364 million for the financial year just gone.
A wrap of the ASX 200 blue-chip shares
Before we go, here is a look at how the ASX 200’s blue-chip shares are faring as we prepare for the final week of August earnings:
|ASX 200 company||Last share price||Trailing P/E ratio||Trailing Dividend Yield||52-week high||52-week low|
|CSL Limited (ASX: CSL)||$311.06||43.36||0.99%||$320.42||$242|
|Commonwealth Bank of Australia (ASX: CBA)||$101.54||21.57||3.45%||$109.03||$62.64|
|Westpac Banking Corp (ASX: WBC)||$25.99||22.24||3.42%||$27.12||$16|
|Australia and New Zealand Banking Group Ltd (ASX: ANZ)||$28.32||17.16||3.71%||$29.64||$16.40|
|National Australia Bank Ltd (ASX: NAB)||$27.64||21.21||3.26%||$27.84||$16.56|
|Macquarie Group Ltd (ASX: MQG)||$165.60||20.08||2.84%||$166.66||$118.36|
|Fortescue Metals Group Limited (ASX: FMG)||$20||7.04||12.35%||$26.58||$15.62|
|BHP Group Ltd (ASX: BHP)||$44.70||14.54||9.16%||$54.55||$33.73|
|Rio Tinto Limited (ASX: RIO)||$109.70||6.91||8.27%||$137.33||$90.04|
|Newcrest Mining Ltd (ASX: NCM)||$24.53||12.53||3.14%||$33.32||$23.08|
|Woodside Petroleum Limited (ASX: WPL)||$20.28||39.36||2.86%||$27.60||$16.80|
|Telstra Corporation Ltd (ASX: TLS)||$3.86||24.72||4.15%||$4.02||$2.66|
|Woolworths Group Ltd (ASX: WOW)||$40.96||36.56||2.47%||$44.06||$35.96|
|Wesfarmers Ltd (ASX: WES)||$62.20||37.51||2.65%||$67.20||$43.50|
|Coles Group Ltd (ASX: COL)||$17.89||23.76||3.41%||$19.04||$15.28|
|Transurban Group (ASX: TCL)||$14.08||–||2.59%||$15.64||$12.36|
|Sydney Airport Holdings Pty Ltd (ASX: SYD)||$7.90||–||–||$8.04||$5.34|
|Afterpay Ltd (ASX: APT)||$130.35||–||–||$160.05||$70.06|
And finally, here is the lay of the land for some leading market indicators:
- S&P/ASX 200 Index (XJO) at 7,488.3 points.
- All Ordinaries Index (XAO) at 7,760.1 points.
- Dow Jones Industrial Average Index (DJX: .DJI) at 35,455.8 points after rising 0.69% on Friday night (our time).
- Bitcoin (CRYPTO: BTC) going for US$48,423 per coin.
- Gold (spot) swapping hands for US$1,818 per troy ounce.
- Iron ore asking US$157.63 per tonne.
- Crude oil (Brent) trading at US$72.70 per barrel.
- Australian dollar buying 73.14 US cents.
- 10-year Australian Government bonds yielding 1.19% per annum.
That’s all folks. See you next week!