Australia Market edges to new high

The Australian share market finished higher for seventh straight session on Thursday, 12 August 2021, on following rallies on Wall Street overnight as fears receded of inflation increases in the United States. Meanwhile, strong corporate earnings reports from Telstra, AMP, and QBE also underpinned sentiments.

At closing bell, the benchmark S&P/ASX200 was up 3.88 points, or 0.06%, to 7,588.19. The broader All Ordinaries added 5.95 points, or 0.08%, to 7,860.52.

Stocks opened higher after the Dow Jones Industrial Average increased to a record high for the second straight day, as the consumer price index data showed slowing inflation in July, which eased worries of an early tapering of monetary stimulus.

Meanwhile, buying momentum also received supported by corporate earnings season which continued to meet the market's lofty expectations, with cash-rich companies rewarding shareholders with dividend hikes and share buybacks.

Telstra shares gained 3.7% with its results broadly in-line with company guidance for the year. Revenue fell by 9.6% to $21.5bn, however net profit rose by 3.4% to $1.9bn. The telco declared an 8c per share dividend and announced a $1.35bn on-market share buy-back.

QBE shares rose by 8.1%, after announcing its net profit swung to US$441m (following a US$712m loss a year earlier). It declared an 11c interim dividend. Gross Written Premiums rose by 20% to US$10.2bn.

Downer EDI shares gained 4.2% after the engineering group recorded a full-year profit of its own, and re-introduced its final dividend for the year.

AMP gained 3.2% even after reporting a profit slip and withholding a payout, as management spruiked better times ahead.

Commonwealth Bank shares snapped a six-day winning streak, sliding by 2.1% after hitting a record high on Wednesday. Australia's largest bank posted a near 20% lift in annual earnings, a doubling in its dividend and announced a $6bn offmarket buy-back yesterday.

CURRENCY NEWS: The Australian dollar changed hands at $0.7361, strengthening from levels above $0.732 seen yesterday.

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