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ASX this week: Key resources stocks to report results

ASX this week: Key resources stocks to report results

BHP Billiton, Fortescue Metals Group and Woodside Petroleum are some of the largest resources companies slated to report earnings results this week.

Australian shares posted a second consecutive weekly gain last week, with the S&P/ASX 200 index climbing 1.5% over five days to 5,805.8 on 17 February, boosted by the financial and material sectors.

On Friday:

  • Brent oil rose 0.3% to US$55.81 a barrel; down 1.6% for the week.
  • WTI crude added less than 0.1% to US$53.40 a barrel; down 0.9% for the week.
  • Iron ore with 62% content delivered to Qingdao, China, gained 0.3% to US$90.37 a dry metric tonne, surging 4.3% for the week. Iron ore closed at above US$90 per tonne for all five trading days last week.
  • Spot gold dropped 0.4% to US$1,234.60 an ounce; up 0.1% for the week.
  • Australian dollar traded at 76.64 US cents, falling 0.1% over the week; the currency edged up to 76.68 US cents at 10:56am Sydney time today.

What to watch this week

A number of major ASX 200 resources companies are scheduled to release their latest financial results this week, including BHP Billiton (ASX: BHP) and Oil Search (ASX: OSH) on Tuesday, and Fortescue Metals Group (ASX: FMG) and Woodside Petroleum (ASX: WPL) on Wednesday.

Other results expected to be released this week include those from retailer Woolworths (ASX: WOW) (Wednesday) and Australian national carrier Qantas (ASX: QAN) (Thursday).

Shares in WorleyParsons (ASX: WOR), which provides professional services to the mining and energy sectors, plummeted 12.6% to $8.62 at about 11:30am Sydney time, after saying it won't pay an interim dividend to shareholders after first-half earnings slumped.

The company swung into the red with a statutory net loss after tax of $2.4m for the six months to 31 December 2016, while underlying net profit after tax was down 23%, it said in a statement to the stock exchange this morning.

Meanwhile, logistics group Brambles (ASX: BXB) tumbled 8.6% to $9.61, after lowering its earnings forecasts for the 2017 financial year. 

Key economic data from the Australian Bureau of Statistics this week includes the Wage Price Index, the main gauge of wage costs in the country, and the estimates on business investment, which is an important element in the calculation of economic growth.

CommSec expects wages to lift by 0.5% in the three months to end-December, taking the annual growth to about 2%.

"Lower growth of wages has encouraged employers to take on more staff. And while low nominal growth of wages is positive for employers, wages are still growing at a faster pace than prices - positive for consumers," it said.

With the nation's inflation sitting at 1.5%, and wages increasing at a 1.9% annual rate, CommSec pointed out that real wage gains are still boosting consumers' purchasing power.

On business investment, CommSec said an improved global economic outlook and business conditions should help lift investment by 1% for the December quarter.

Stock movers

Below are the five best- and worst-performing ASX 200 stocks for the week ended Friday, 17 February.

Company/Index

ASX code

Weekly price change

Monadelphous Group

MND

+7.5%

Seek

SEK

+7.2%

Resolute Mining

RSG

+6.9%

Seven Group

SVW

+6.5%

Independence Group

IGO

+6.2%

S&P/ASX 200

XJO

+1.5%

Galaxy Resources

GXY

-6.9%

Seven West Media

SWM

-7%

IOOF Holdings

IFL

-7.7%

Domino's Pizza Enterprises

DMP

-12.4%

Primary Health Care

PRY

-16.2%

Past performance is not a reliable indicator of future performance. Source: Bloomberg

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. The inclusion of companies in this article does not constitute a recommendation and it’s vital to remember that the value of shares in any company can fall as well as rise, which means you could lose money by investing in them. Investors should consult a range of resources, and if necessary, seek professional advice, before making investment decisions in regard to their objectives, financial and taxation situations and needs because these have not been taken into account. Any securities or prices used in the examples given are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not indicative of future performance. Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 and a Participant of the ASX Group and Chi-X Australia.