Market wrap: ASX finishes higher in mixed session

The banks buoyed the Australian share market on Wednesday, after the Commonwealth Bank posted its full-year report.

The Commonwealth Bank’s record profit announcement has helped the ASX finish up following a mixed session on Wednesday.

The S&P/ASX200 was up 26.9 points, or 0.37 per cent, at the close, on a flat 7,338, while the All Ords was up 0.32 per cent at 7,543.4.

The CBA did much of the heavy lifting, while the other Big Four banks rallied late in the session.

Wednesday saw the ASX finish up at the end of trade, after a mixed session. Picture NCA Newswire/ Gaye Gerard

CBA posted a full-year profit of $10.2bn, boosting its share price 2.58 per cent to $104.85 a share.

The other three followed suit: NAB rose 2.1 per cent to $28.62, Westpac was up 1.8 per cent to $22.10, and ANZ finished up 0.9 per cent at $25.45.

Suncorp, however, failed to live up to analyst’s predictions by posting a full-year net profit of $1.2bn — their share price dropping 1.53 per cent to $13.54.

Shares of Beach Energy $BPT fall as much as 3% to $1.615 on Wednesday. The oil and gas explorer says CEO Morne Engelbrecht has left company after the end of tenure. $BPT has appointed former Santos $STO COO Brett Woods as MD & CEO.

— CommSec (@CommSec) August 9, 2023

CommSec economist Tom Piotrowski told Sky News the shareholders faith is clearly being repaid with the result.

“The important metrics that the markets are quite focused on at the moment … are things like the net interest margins,” Mr Piotrowski says.

“The net interest margin came in at 2.07 per cent for the full year, so that was a good outcome.”

Net interest margin is essentially the difference between where a bank can raise money and where it can lend it.

“The problem is the market is looking at this through the lens where they are anticipating conditions to become more challenging over the next three months, so that restraint might be reflected in the share price today.”

CBA posted a full-year profit of $10.2bn on Wednesday, boosting its share price 2.58 per cent to $104.85 a share. Picture NCA Newswire/ Gaye Gerard

CommSec chief economist Craig James says only three sectors posted declines during the session.

“They were in fairly defensive areas like real estate and utilities,” Mr James said, with healthcare also down 0.89 per cent.

“The only significant news of the day was out of China, with the nation reporting deflation in July – that is a drop in consumer prices over the past year.”

Funeral services company Invocare, miner Coronado, health Nanosonics, and commercial and professional services companies Link Administration and Seek were the best performers of the day.

Meanwhile, miner Lake Resources, medical device manufacturer Resmed, jewellery retailer Lovisa, the Star Entertainment Group and real estate investor CLW were Wednesday’s worst performers.

The Aussie dollar also finished up a firm 0.53 per cent to be worth $US0.6567.