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What to watch on the ASX this week

What to watch on the ASX this week

Cochlear, JB Hi-Fi and Telstra are some of the ASX 200 companies scheduled to release their financial results this week.

Australian stocks fell in the first trading week of August, shedding 1.2% over five days to August 5.

The S&P/ASX 200 index dropped 64.9 points last week to 5,497.4, with eight of the 10 sectors within the index reporting declines.

Healthcare companies led the losses (-2.66%), followed by utilities (-2.11%) and telecommunication services (-2.06%).

Energy and materials stocks advanced 1.97% and 1.36% respectively, as prices of oil and iron ore climbed.

Over a week to August 5:

  • Brent oil gained 4.3%
  • WTI crude added 0.5%
  • Iron ore rose 2.3%
  • Spot gold slipped 1.1%
  • Australian dollar strengthened 0.3% against the US dollar

What to watch this week

The August profit reporting season enters its second week.

Some of the bigger Australian companies scheduled to release their earnings this week include Cochlear, Commonwealth Bank, JB Hi-Fi, Telstra and Transurban. A more detailed list is available on CommSec's reporting season page.

Meanwhile, Bendigo & Adelaide Bank announced this morning that its cash earnings rose 1.6% to $439.3m for the full year to June 30, even as the net interest margin fell from a year ago.

The lender declared a final fully franked dividend of 34 cents per share, taking the full-year dividend to 68 cents a share, or 3% higher than in the 2015 financial year.

In terms of economic data, the Australian Bureau of Statistics will release the June housing finance figures on Wednesday. CommSec said new lending may have risen 4% in June after dropping 1% in May.

"The home loan market has been softer in recent months despite super-low interest rates," said CommSec. "The cooling in the property market is a welcome sign given the ramp up in property over the past couple of years," it added.

There's a speech by the Reserve Bank of Australia governor Glenn Stevens on Wednesday, his final official speech as the head of the central bank, CommSec said. Stevens will step down in mid-September and pass the baton to current deputy governor Philip Lowe.

Other Australian economic data expected this week include figures for housing, personal, business and lease loans, as well as credit and debit card lending for June, all of which is scheduled for Friday release.

Overseas, the market's focus will be on US retail sales for July, which will be released on Friday, while China will publish data on imports and exports, inflation, retail sales and industrial production.

Stock movers

Below are the best- and worst-performing ASX 200 stocks for the week ended Friday, August 5.

Company/Index

ASX code

Weekly price change

Credit Corp

CCP

+18.4%

Downer EDI

DOW

+13.9%

Bellamy's Australia

BAL

+12.6%

Seven Group

SVW

+11.5%

Cover-More Group

CVO

+10.2%

S&P/ASX 200

XJO

-1.2%

REA Group

REA

-7.8%

Navitas

NVT

-7.9%

Iron Mountain

INM

-8.6%

Nine Entertainment

NEC

-10%

Seven West Media

SWM

-21.7%

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.