ASX hits record high; BlueScope slumps; Kaili Resources soars 2900%

Infant milk formula business A2 Milk rose 3.1 per cent after recording strong revenue (up 13.5 per cent to $1.9 billion), net profits after tax (up 21.1 per cent to $202.9 million) and earnings (EBITDA up 17.1 per cent to $274.3 million). The company has also declared a company dividend for the very first time of 20¢ per share, with a final dividend of 11.5¢ per share, fully franked.

The New Zealand-headquartered company has also announced the acquisition of a manufacturing facility in Pokeno, on the North Island, for $282 million, as well as the divestment of its 75 per cent shareholding in Mataura Valley Milk for $100 million.

Most of the banks had a strong day, after National Australia Bank’s quarterly trading update was well received by the market. NAB raised its cost guidance by $130 million because of past underpayments of wages and staff entitlements, while reporting that its overall profits were almost $1.8 billion in the three months to June, a flat performance compared to a year ago.

NAB shares gained 2.6 per cent, Commonwealth Bank rose 1.2 per cent and Westpac rose 0.7 per cent. ANZ Bank bucked the trend and fell 1.5 per cent.

The laggards

Australia’s biggest steelmaker, BlueScope Steel, slumped 3.1 per cent as it announced profit had dived for the full year of 2025, after it suffered a big writedown on one of its key business units and a global glut of steel weighing down prices. BlueScope, which operates the Port Kembla steelworks in NSW, posted a net profit of $83.8 million for the period, a far cry from the $805.7 million posted in fiscal 2024.

The miners retreated. Rio Tinto fell 1.5 per cent and BHP lost 1.2 per cent, while Fortescue was 0.6 per cent weaker.

Qantas shares fell 0.4 per cent after the airline was hit with a $90 million penalty, though not the maximum $121 million penalty sought by the Transport Workers Union (TWU). Justice Michael Lee ordered that $50 million be paid directly to the Transport Workers Union, while a further $40 million penalty was to be held for future payment that could be made directly to the affected workers.

The lowdown

As well as keeping a close eye on corporate earnings, investors have turned their attention to the talks between US president Donald Trump and Ukrainian President Volodymyr Zelensky, after a summit with Russia concluded without escalating geopolitical tensions.

Moomoo market strategist Michael McCarthy said the outlook for US interest rates could also be in focus this week, as global central bankers gather for an annual meeting in Jackson Hole.

“The annual talkfest has seen the US Federal Reserve announce major shifts in policy in the past, with profound implications for markets,” McCarthy said.

On Friday, US stocks edged back from their record levels in a quiet finish to another winning week.

The S&P 500 slipped 0.3 per cent from the all-time high it set the day before, as it closed its fourth winning week in the last five. The Dow Jones flirted with its own record, which was set in December, before ending just below the mark with a rise of 34 points, or 0.1 per cent. The Nasdaq composite dipped 0.4 per cent, though it’s still near its record set on Wednesday.

The US stock market reached all-time highs this past week as expectations built that the Federal Reserve would deliver a cut to interest rates at its next meeting in September. Lower rates can boost investment prices and the economy by making it cheaper for US households and businesses to borrow to buy houses, cars or equipment, but they also risk worsening inflation.

With AP, AAP

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