The Australian sharemarket advanced on Tuesday, buoyed by a stronger-than-expected first-half profit from BHP, the world’s largest mining company. The S&P/ASX 200 Index rose 34.7 points, or 0.4 percent, to 8971.80 as of 2:00 PM AEDT, with materials leading the gains.
BHP’s shares surged 6.1 percent, adding nearly $16 billion to its market capitalization – a figure roughly equivalent to the entire value of Qantas – and approaching a record closing high of $54.20. The gains followed the release of the company’s first-half results, which showed a 28 percent increase in profit to $US5.64 billion (approximately $8 billion AUD).
The improved performance was driven by stronger earnings from copper, which for the first time surpassed iron ore as BHP’s largest contributor to profit. This shift reflects changing global demand and the increasing importance of copper in emerging technologies, particularly those related to artificial intelligence and renewable energy infrastructure. A $US4.3 billion upfront payment from Wheaton Precious Metals, stemming from a long-term silver financing deal, also contributed to the positive results.
The strong showing from BHP reverberated through the broader market. Rio Tinto and Fortescue Metals Group both saw modest gains of 0.2 percent. However, gold miners experienced a downturn, with Northern Star losing 1.2 percent and Evolution Mining falling 2 percent. Silver major South32 bucked the trend, rising 2.2 percent.
Beyond the mining sector, Judo Bank also posted strong gains, jumping 7 percent in early trade after reporting a 46 percent increase in profits to $59.9 million for the December half. The bank’s gross loans grew by 15 percent to $13.4 billion, and its return on equity rose to 6.9 percent, up from 5.5 percent in the previous half. The “Big Four” banks presented a mixed picture, with Commonwealth Bank declining 0.4 percent, while ANZ Bank edged up 0.1 percent, National Australia Bank added 0.2 percent, and Westpac climbed 0.5 percent.
Energy stocks were mixed, with Woodside Energy losing 0.1 percent and Yancoal dipping 0.2 percent. Santos, however, gained 0.2 percent after a Federal Court dismissed a case brought by activist shareholders alleging misleading claims about “clean energy.”
In the technology sector, Seek’s venture capital arm is divesting its stake in Employment Hero, a human resources startup, following the settlement of a competition dispute between the two companies. Seek reported net revenue of $601 million, an 11 percent increase, and adjusted profit of $104 million, a 35 percent jump, prompting an upgrade to its full-year guidance. Despite the positive results, Seek shares fell 2.7 percent. Other tech stocks also experienced declines, with WiseTech falling 4.1 percent, Xero losing 2 percent, and NextDC retreating 1.4 percent.
Property group HCW, landlord to Healthscope, announced it is exploring the sale of its hampers business, acquired five years ago for $40 million, following unsolicited interest from potential buyers. The company cautioned that it would not provide future earnings guidance or resume distributions to investors until the Healthscope situation is resolved. HCW shares rose 5.5 percent in early afternoon trading.
Baby Bunting also saw a positive day, rising 10 percent after reporting total sales growth of 6.7 percent and comparable store sales growth of 4.7 percent. Gross margins increased by 124 basis points to 41 percent, boosted by exclusive and private label brands, which now account for nearly half of its total sales. The company plans to refurbish six stores and open two new large-format stores in the second half of the financial year.
Gourmet foods manufacturer Maggie Beer Holdings signaled its intention to sell its hampers business, which it acquired in 2021 for $40 million, following a number of unsolicited offers. The company’s share price remained unchanged at 7.7¢ after markets opened.
The Australian dollar was trading at US70.68¢ at 12:43 PM AEDT. Global markets were subdued due to the President’s Day holiday in the United States and the Lunar New Year celebrations in China, resulting in lower trading volumes. Gold dipped below $US5000 an ounce as traders took profits, and Bitcoin fell 1.4 percent to $US67,849 after four consecutive weekly losses.
Traders are now focused on upcoming economic data releases, including ADP private payrolls numbers and the minutes from the Federal Reserve’s January meeting, for further insights into the trajectory of US interest rates.
