Australian sharemarket bounces back, new record for Afterpay and smaller rival Zip Co

The ASX bounced back from Tuesday’s tumble, with buy now pay later stocks hitting record highs.

The Australian sharemarket went back into the green after the previous session’s “breather” with buy now pay later juggernauts hitting record highs.

The S&P/ASX200 finished 0.52 per cent firmer at 6856.9 while the All Ordinaries Index added 0.45 per cent to 7133.8.

Zip Co rocketed to an intraday peak of $10.79 before settling back to $10.70, up 12.16 per cent, and has doubled so far this calendar year.

Bigger rival Afterpay climbed as high as $159.50 before closing at $158.47, up 4.19 per cent, and is up almost 35 per cent for the year-t0-date.

Commonwealth Bank reported its first half result, which wealth management group Ord Minnett said was very close to its forecast, with cash net profit from continuing operations of $3.886bn in line with its estimate of $3.905bn.

OpenMarkets Group chief executive Ivan Tchourilov said the bank’s profit drop of 10.8 per cent and dividend of $1.50 per share slightly beat other analysts’ expectations.

Commonwealth Bank’s profit dropped more than 10 per cent but either met or beat analyst expectations. Picture: NCA NewsWire/James Gourley

“The share price however is down roughly 1.5 per cent off the back of the announcement,” Mr Tchourilov said, closing at $86.12.

“CBA has enjoyed a great recovery since the March 2020 lows and is now trading at pre-COVID levels.

“The increased dividend will also be music to investors’ ears. They still face a number of pandemic-related headwinds going forward so it’s not surprising to see investors take a bit off the table.”

ANZ inched 0.36 per cent lower to $24.84 and National Australia Bank softened 0.2 per cent to $24.98 but Westpac appreciated 0.27 per cent to $22.23.

Crown Resorts emerged from a trading halt entered into on Tuesday as it braced for the findings from the NSW inquiry into alleged money-laundering at its Melbourne and Perth casinos, shedding 3.35 per cent to $9.81 after two shock announcements.

First, James Packer’s lieutenants from his private company Consolidated Press Holdings, Guy Jalland and Michael Johnston, resigned from the embattled gaming giant’s board.

Then, Crown confirmed John Poynton’s consultancy arrangement with CPH had been terminated — effectively removing all influence of the reclusive billionaire and biggest shareholder over the company.

Mr Tchourilov said it was not surprising to see the executives walk away after the inquiry recommended revoking Crown’s gaming licence for its new Sydney venue at Barangaroo.

After damning inquiry findings, executives have walked from Crown Resorts. Picture: NCA NewsWire/Penny Stephens

“Management appear to have quite a lot of explaining to do,” he said.

IAG rose 4.55 per cent to $5.29 after reporting its first half results, showing the huge impact of COVID-19, but Ord Minnett applauded its underlying insurance margins, which were in line with guidance but better than rival Suncorp.

Rio Tinto put on 0.74 per cent to $117.43 and BHP rose 1.03 per cent to $45.06 but Fortescue eased 0.59 per cent to $23.75.

Mineral Resources dipped 0.54 per cent to $36.80 after reporting a surge in first half earnings, with managing director Chris Ellison saying the result vindicated the decision to invest heavily in iron ore over the past few years, and declaring a $1 per share interim dividend.

In a conference call, Mr Ellison accused Fortescue of bullying the company by staging legal action over an iron ore project in Western Australia.

The Aussie dollar was buying 77.38 US cents, 55.98 British pence and 63.80 Euro cents in afternoon trade.

Originally published as Australian sharemarket bounces back, new record for Afterpay and smaller rival Zip Co