At lunch on Thursday the S&P/ASX 200 index has fought back from morning declines to be in the black. At the time of writing the benchmark index is up 0.2% to 6,532.9 points.
Here’s what has been happening on the market today:
AGL Energy guidance disappoints.
The AGL Energy Limited (ASX: AGL) share price has sunk over 5% lower following the release of its full year results this morning. Although the energy company’s FY 2019 result was reasonably strong, its guidance for FY 2020 has disappointed investors. It expects underlying profit after tax to be between $780 million and $860 million in FY 2020, which will be a 17.3% to 25% decline on FY 2019’s result.
Insurance Australia Group tumbles lower.
The Insurance Australia Group Ltd (ASX: IAG) share price has also come under pressure after disappointing investors with its full year results. The insurance giant’s shares are down 5% after reporting cash earnings of $931 million. This was down 10% on FY 2018’s cash earnings. In addition to this, it declared a final dividend of 20 cents per share, compared to the market’s expectations of 22.7 cents per share.
Gold miners surge higher.
One of the best performing areas of the market again has been the gold industry. The likes of Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) have charged notably higher after increasing demand for safe haven assets sent the gold price hurtling beyond the US$1,500 mark. At lunch the S&P/ASX All Ords Gold index is up over 1%.
Mirvac result impresses.
One result that has gone down well with investors today was the Mirvac Group (ASX: MGR) full year result. The diversified property group’s shares are up over 3% after reporting a 4% increase in operating profit to $631 million. This was at the top end of its guidance range. Looking ahead, management expects earnings growth of 3% to 4% in FY 2020 and intends to lift its distribution by 5%.
Best and worst performers.
The best performer on the ASX 200 index on Thursday at lunch is the Orocobre Limited (ASX: ORE) share price with a gain of 7%. All of the lithium miners are climbing higher today after lithium giant Albemarle lifted its profit guidance. Going the other way is the AGL share price which is the worst performer with a decline of almost 6%.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Insurance Australia Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019