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As it happened: ASX investors cautious ahead of Jackson Hole speech

Summary

  • The ASX 200 finished 0.2% higher, but trimmed gains in the afternoon as investors looked to tonight's key risk event: The Jackson Hole speech by US Federal Reserve chair Jerome Powell
  • Afterpay reported a 97% increase in revenue to $519.2m and nearly halved its net loss to $22.9m. Shares in the company topped $95 at the open but cooled to end 0.6% ahead at $91.26
  • Fortescue Metals shares hit a new record high $19.53 on improved iron ore prices. BHP and Rio Tinto were also well ahead on Thursday
  • The ASX was outperforming major Asian markets before its late dip. US futures were down 0.2% at the 4pm close 

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Markets Wrap: All eyes offshore as investors take profit

By Alex Druce

The Australian sharemarket gave up its early lead to finish narrowly in front on Thursday as investors took a cautious position ahead of the Jackson Hole address from US Fed chair Jerome Powell.

The ASX 200 finished 9.8 points, or 0.2 per cent, higher at 6126.2 as the index eased back in the final 90 minutes.

The market had been as much as 0.7 per cent higher in late-morning trade as the big miners surged on improved iron ore and gold prices. BHP and Rio Tinto gained 1.1 per cent and 0.8 per cent respectively, while Fortescue Metals touched a new record high $19.53 and closed 3.1 per cent ahead at $19.30.

The ASX 200 eased as the afternoon progressed, finishing just 0.2 per cent higher. Credit:Louie Douvis

Woolworths was a big earnings season winner, with shares in the $49 billion supermarket jumping 2.8 per cent to $40.38 on its full-year result. The reporting Bega Cheese was the best of the top 200 stocks, adding 7.8 per cent to close at a near three-month high of $5.24.

The big banks, however, ignored a strong Wall Street lead to drag throughout the session, while energy, property, and utilities also ended in the red.

Whitehaven Coal lost heavily for a second straight session, down 8.8 per cent to a new four-year low of 93 cents.

EY Partner and investment banking veteran Duncan Hogg said it was clear ASX investors had chosen to ease back ahead of the release of US GDP and jobs data and the landmark symposium in Wyoming.

“People are profit-taking and just waiting to see how that plays out,” Mr Hogg said.

Nonetheless, he said the mood among equities investors was buoyant.

“There’s a level of optimism at the moment in the investing community across the board,” Mr Hogg said. “We’re not out of the woods yet, particularly in relation to what is happening in Victoria and what is happening globally, so it is going to be an interesting six months as to see whether we do have that resilience and sustainability around the earnings that people have seen.”

CSL helped health stocks end Thursday in the black with a 0.9 per cent rise to $293.55. There were also gains for Fisher and Paykel, up 0.8 per cent to $33.99, though Ramsay Health Care slipped 0.5 per cent to $65.27 following its earnings result.

Mesoblast clocked a new six-year high when it rose 1 per cent to $5.20 while ResMed was flat at $24.98.

The closely watched Afterpay finished 0.6 per cent higher at $91.26 after a tumultuous session that saw the firm rise 5.8 per cent to a new record of $95.97 at the open, before plunging as much as 6.3 per cent lower to $85.02.

The company’s full-year report showed a doubling of revenue and a halving of its net loss.

Payment platform rival Zip Co lost steam to close 4.7 per cent lower at $9.20 while, for the top 200 tech sector, Appen shed 11.2 per cent and Link dropped 9.6 per cent.

Megaport, NextDC and Xero all set new record highs but Bravura was punished for a second straight day, dropping another 6.2 per cent.

Nine Entertainment, owner of this masthead, fell 2 per cent to $1.72 on its earnings release.

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