Big earnings winners lift sharemarket

The ASX was flat at noon as gains in resources and banking were offset by falls in Wesfarmers and Telstra.

The ASX 200 index could test recent highs at 5611 at some stage this week.

The share market was steady at noon as strong gains in the resources and banking sectors are offset by falls in retail giant Wesfarmers and Telstra.

At noon (AEST), the benchmark S & P/ASX 200 index was up 1.2 points, or 0.02 per cent, at 5,555 points. The broader All Ordinaries index was up 0.4 points, or 0.01 per cent, at 5,647.5 points.

Shares in Coles and Bunnings owners Wesfarmers were down three per cent after its full year profit dropped 83 per cent due to massive writedowns on its Target business.

Telstra was 3.55 per cent weaker as it began trading ex-dividend.

Among the stocks offsetting those falls was Qantas, which is giving $500 million back to shareholders after its full year profit soared to $1.03 billion. Qantas shares were up 2.5 per cent, while the big four banks were between 0.6 per cent 1.1 per cent higher, and BHP Billiton and Rio Tinto were closer to two per cent stronger.

Among other companies to release earnings reports, Blackmores had dropped 15 per cent because it signalled a volatile market would hit sales in the current year, and Boral was four per cent lower after reporting a steady annual profit.

AAP