Afternoon (PM) Market Report

Details

Published on Tuesday, 20 September 2016 07:00

The Australian market lost its momentum shortly after open as the index heavyweight TPG plunged after the release of disappointing earnings

Tuesday, 20th September 2016

The ASX 200 remained in losing territory for the most part and climbed back above 5,300 points just before the closing bell, helped by a late rally in the big banks. Most sectors performed positively, with only energy and telecommunication services ending in the red. The Australian dollar appreciated against most major currencies, with the exception of the New Zealand dollar.

The All Ordinaries rose 3.60 points (0.07%) to 5,397.30 while the S&P/ASX 200 added 8.80 points (0.17%) to 5,303.60.

TPG Telecom announced its financial results for the year ended 31 July 2016. EBITDA for the year increased by 75% to $849.4m. NPAT for the period was $379.6m, an increase over FY15 of 69%. EPS increased by 61% to 45.3cps. An increased final dividend of 7.5cps has been declared bringing total FY16 dividends to 14.5cps (fully franked), an increase of 26% over FY15. This EBITDA growth includes a maiden contribution from iiNet of $248.9m for the eleven and a quarter months' post acquisition. The Company's Consumer Division's EBITDA for FY16 was $255.7m compared to $239.7m for FY15. The Group delivered another strong cashflow result in FY16 with $759.2m cash generated from operations (pre-tax). TPG slumped $2.55 (-21.56%) to $9.28. Sydney Airport Reports Traffic Performance for August 2016. International passenger growth for August 2016 was very strong, increasing 7.6% on the prior corresponding period (pcp) and a 9.5% in the year to date. The international result benefited from a seat capacity increase of 13.0% and inbound demand (+10.3%). Hainan Airlines' Sydney-Changsha route commenced on 13 September and its previous high season Xi'an service recommenced year round on 14 September. Combined these routes bring 104,000 seats annually. Air Niugini announced a third weekly flight on the Sydney-Port Moresby route effective 1 November 2016. SYD fell 0.5 cents (-0.08%) to $6.61.

The NZX added 30.33 points (0.42%) to 7,308.45 while the Nikkei lost 27.14 (-0.16%) to close at 16,492.15.

The Australian dollar was last quoted at 75.55 US cents.