Hundreds of Australia's biggest companies will report their half-year or annual earnings.After reporting "abnormally high" earnings during the COVID-19 pandemic, Australia's 200 largest companies are now expected to announce falling profits for a second straight year.
Back then, interest rates weren't as high — and many people had savings, which hadn't depleted as much as they have now. Commonwealth Bank's market value is around $213 billion, which is slightly higher than BHP's valuation of $208 billion.In fact, most analysts have attached a "sell" recommendation for CBA shares, according to data from Refinitiv.
"This is the scenario which has long been a fear over the Australian economy and equity market. And it explains why some companies like BHP are seeing their share price down 20 per cent year to date."On the flip side, insurance companies are likely to be the "star performers off the back of their pricing power", according to Mr Schellbach.
"And there have been a lot of discounts at the retailers recently, which is certainly helping to grow sales within some of these companies."Mr Hannah said this extended period of discounts may hurt some some of these companies' profitability."We still don't think we're out of the woods," she said. Despite the short-term risks, some analysts are feeling more upbeat about next year's reporting season .
Australia equals its highest gold medal tally in Olympic history, as Kennedy and Denny look to join the Paris party