Banks recover losses, ASX little changed

Banks were recovering losses from the previous day on the Australian share market and helping the indices inch higher.

National Australia Bank shares were up more than four per cent on Wednesday after posting a booming full-year profit a day earlier.

However, the big miners offset the financials’ gains. BHP, Fortescue and Rio Tinto each slipped by less than two per cent.

Information technology and energy shares had the next most losses.

The benchmark S&P/ASX200 index was higher by 11.8 points, or 0.15 per cent, to 7446 at 1200 AEDT.

The All Ordinaries was up 3.9 points, or 0.05 per cent, to 7760.2.

Wall Street closed lower, ending a stretch of consecutive record closing highs as worries over inflation fuelled a broad sell-off.

A producer prices report showed inflation continues to rise as goods and labour supply challenges send price growth further beyond the US Federal Reserve’s average annual two per cent inflation target.

In Australia, consumers are also keen to spend more.

A large majority of Australians intend to spend the same amount of money or more this Christmas shopping season than last year.

The findings were in the Westpac-Melbourne Institute monthly consumer sentiment survey.

In company news, a merger of Santos and Oil Search may be delayed due to a postponed court hearing.

Papua New Guinea’s national court has deferred its hearing of the merger to Thursday.

Oil Search shares were down 0.70 per cent to $4.25.

Santos shares were down half a per cent to $6.91.

Chalice Mining shares continued to do well after Tuesday’s news of the discovery of a large nickel sulphide deposit.

The finding was made at the company’s Julimar site outside Perth.

Shares were up 6.78 per cent after a gain of 28.51 per cent a day earlier.

Shaver Shop investors were happy to learn year-to-date sales were only marginally down, given lockdowns in some states.

Total sales were down 0.9 per cent on the same period last year.

The company did not give an earnings forecast.

Shares were up 3.15 per cent to $1.06.

Coles has opted not to follow Woolworths in requiring all employees be vaccinated against COVID-19, instead relying on health orders in some states.

Company leaders outlined how they are encouraging staff to be vaccinated but stopped short of enforcing it.

Shares were down 0.11 per cent to $17.66.

The Australian dollar was buying 73.74 US cents at 1200 AEDT, lower from 74.14 cents at Tuesday’s close.