ASX gains ground, investors back Bega, Woolies earnings reports

Investors responded positively to full-year earnings reports from Bega, Woolworths and gold miner Perseus, pushing the market higher.

The Australian share market closed in positive territory, with miners among those gaining ground, while investors responded favourably to earnings reports from Woolworths, Bega Cheese and others.

The S&P/ASX200 finished 0.16 per cent higher at 6126.2 while the All Ordinaries Index rose 0.26 per cent to 6310.6.

Bega Cheese was a clear standout performer after delivering higher full-year earnings, despite the impact of drought and bushfires on the dairy industry.

The company, which bought Vegemite in 2017, reported strong growth in exports along with continued growth in the domestic grocery business, sending its shares 7.82 per cent higher to $5.24.

Woolworths booked a full-year profit plunge after rising supermarket sales during the coronavirus pandemic failed to counter financial pain from hotel closures.

Its shares gained 2.83 per cent to $40.38, however, as S&P Global Ratings said grocery sales and takeaway liquor demand would remain elevated over the next 12 months.

Woolworths shares rose despite the retail giant booking a profit plunge. Picture: John Gass

Full-year financial results from buy now, pay later giant Afterpay showed plenty of impressive numbers, including a more than doubling of its active customer base to 9.9 million as more consumers turn to instalment payments rather than credit cards.

But its shares finished only marginally higher, up 0.6 per cent to $91.26.

Afterpay’s rival Zip Co booked a disappointing annual result revealing higher bad debt expenses and seemingly more to come.

Shares in Zip, which now has more than 2.1 million customers, slid 4.66 per cent to $9.20.

“When you look at Zip and Afterpay, and the way that investors or traders are reacting to the results, we have to keep in mind how the companies have moved recently,” CommSec analyst Steve Daghlian said.

“Both Zip and Afterpay have tripled in price this year. They’ve both been sitting at record highs in the last couple of days.”

Gold miner Perseus reported a big full-year profit jump largely driven by higher prices for the precious metal, sending its shares 4.74 per cent higher to $1.435.

Gold producer Perseus Mining was a standout performer on the ASX after delivering a bumper 2019-20 profit report.

Fellow gold producer Newcrest put on 1.64 per cent to $32.16.

Rio Tinto added 0.84 per cent to $100.12 and BHP was up 1.10 per cent to $38.44 while Fortescue gained 3.1 per cent to $19.30.

The big banks were all weaker, with ANZ down 1.13 per cent to $18.33, Commonwealth Bank 0.83 per cent softer at $69.07, National Australia Bank 1.11 per cent lower at $17.80 and Westpac 1.25 per cent cheaper at $17.40.

The Aussie dollar was fetching 72.36 US cents, 54.78 British pence and 61.16 Euro cents in afternoon trade.