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ASX 200 reporting season
Resource stocks rally as James Hardie and CSL navigate setbacks
This reporting season saw resource sector gains driven by high lithium and iron ore demand, while James Hardie and CSL faced notable setbacks due to industry challenges.
(AI video summary)
This video was created on 1 September for IG audiences by ausbiz.
Challenges for James Hardie and CSL Limited
James Hardie (ASX:JHX)
James Hardie faced a steep 30% drop in its share price after revising full-year earnings expectations downward, attributed to a slowdown in United States (US) housing sales.
CSL Limited (ASX:CSL)
CSL experienced a 17% decline on the day of its report, as investors reacted to announcements about job cuts and spinning off its vaccine business. CSL, traditionally a strong market performer, faced harsh scrutiny for even minor missteps.
Resource sector shines
The resource sector rose 10% this month, boosted by rising lithium prices, rare earth support from US floor pricing, and strong iron ore demand. Improved supply-demand dynamics and geopolitical interest in rare earths helped. Iron ore prices remained strong, benefiting major companies like BHP Group. Analysts suggest some resource stocks may now be undervalued.
Stable REITs and consumer spending trends
In real estate investment trusts (REITs), companies like Stockland and GPT Group delivered stable results, attracting investors. Many REITs still trade below net tangible asset (NTA) levels.
Commonwealth Bank of Australia (CBA) data shows increased spending by those under 35, suggesting a boost for discretionary retailers in financial year (FY) 2026.
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