Banking sector gains help push ASX higher

Derek Rose | December 13, 2022

A strong performance by the banking sector has boosted the Australian share market this morning.

At noon AEDT on Tuesday, the benchmark S&P/ASX200 index was up 38.6 points, or 0.54 per cent, to 7219.4, while the broader All Ordinaries was up 35.4 points, or 0.48 per cent, to 7406.

All the banks were up significantly after Bendigo and Adelaide announced that its cash earnings were up 22 per cent to $245 million in the five months to November 30, compared to a year prior.

“To date in the first half of FY23 we have delivered strong growth in cash earnings and an improved return on equity,” said Marnie Baker, Bendigo’s chief executive officer and managing director.

The regional lender was up 6.4 per cent to an almost four-month high of $9.62, while Bank of Queensland had gained 2.2 per cent, NAB had climbed 1.8 per cent CBA was up 1.5 per cent, ANZ had gained 1.6 per cent and Westpac had added 1.1 per cent.

The heavyweight mining sector was moving in the other direction, however, with BHP down 1.0 per cent, Fortescue dropping 3.3 per cent and Rio Tinto declining 1.1 per cent.

CSL was down 0.4 per cent to $296.99 after announcing that chief operating officer Dr Paul McKenzie will replace Paul Perreault as CEO when Mr Perreault retires in March.

The tech sector was the strongest performer, climbing 2.1 per cent as Xero gained 2.8 per cent and Wisetech Global added 2.0 per cent.

Tyro Payments had recouped some of Monday’s losses suffered after talks ended on two possible takeover offers, rebounding 15 per cent to $1.38. 

The eftpos provider’s biggest shareholder, Mike Cannon-Brookes’ Grok Ventures, said in a statement it was disappointed Tyro’s board had rebuffed Potentia Capital Management’s $1.60-per-share offer.

“The board has a fiduciary duty to act in the best interests of shareholders but instead appears to be ignoring them,” Grok said.

But Tyro chairman David Thodey told the Australian Financial Review the board was only trying to do “what it’s paid to do, which is represent all shareholders”.

Starpharma was up 12.9 per cent to 57c after its partner AstraZeneca presented positive data from an early-stage, ongoing clinical trial involving an AstraZeneca leukaemia drug reformulated using Starpharma’s nanoparticle drug-delivery technology.

The Australian dollar was buying 67.59 US cents, down from 67.72 US cents at Monday’s close.