Shares inch higher as Nine, Qantas soar

The local bourse has booked a modest rise as big earnings-related gains for were offset by other firms going ex-dividend.

A pedestrian is reflected in the window of the Australian Securities Exchange (ASX) showing stocks gains during opening trading in Sydney on November 10, 2016. Australian stocks surged 2.85 per cent at the open on the back of a rally in commodities with investors betting US president-elect Donald Trump will pursue business-friendly policies. / AFP PHOTO / PETER PARKS

The Australian share market has posted a modest rise as big gains for Qantas, Crown Resorts and Nine Entertainment were partly offset by big ex-dividend retreats for AGL Energy and Woodside Petroleum.

The benchmark S&P/ASX200 index rose 0.1 per cent to 5,950.9 points. Citi director of equities sales Karen Jorritsma said financial results dominated the session.

“Earnings are really what this market is moving on today,” Ms Jorritsma said. “Confession season was incredibly quiet from a profit warning perspective and as a result we were upbeat on reporting season and that has largely come to fruition.” Qantas shares gained 5.9 per cent to $5.58 after the airline announced a $378 million share buyback and 18 per cent growth in half-year profit. Crown Resorts lifted 4.4 per cent to $13.05 as its half-year normalised profit increased and its key international VIP gambling business recovered from the fallout from the detention of Crown staff in China.

Free-to-air broadcaster Nine Entertainment soared 16.2 per cent to a two-and-a- half year high of $1.97 as stronger ratings and a bigger slice of a larger free- to-air advertising pie contributed to half year profit growth. Flight Centre upgraded its full year profit guidance after its half-year profit improved by 23 per cent, and its shares gained 10.4 per cent to $55.26. Shares in online retailer Kogan.com jumped 19 per cent to a record $8.60 as its growing customer numbers and expanding range of services delivered strong half year profit growth.

A2 Milk hit fresh highs, rising another 7.1 per cent as analysts upgraded their rating on the stock following Wednesday’s announcement of its partnership with Fonterra.

Infant formula maker Bellamy’s Australia was one of the few stocks to fall after reporting, dropping 5.9 per cent because of its warning of a softer second half of the year.

Blackmores also lost ground, falling 14.7 per cent to $136.00, after the vitamins producer’s 20 per cent half year profit growth came with warnings of a softer second half of the year.

Anchoring the market were Woodside Petroleum and AGL Energy, which both traded ex-dividend.

Woodside shed 3.3 per cent and AGL was 4.45 per cent lowery.

The Australian dollar fell back below US78 cents early in the day following more interest rate hike signals out of the US Federal Reserve, which lifted the US dollar, before recovering some ground late in the local session.

AAP