Hello everyone, great to have your company on Kalkine TV. I'm Rachaels
and you’re watching Buzzing Trends. Today we will be looking at Five
ASX-listed blue-chip stocks that can be considered in this earnings season.
Thanks to the uncertainty created by the spread of Omicron virus, the market outlook appears to
be cloudy. Inflation and rising interest rate in the West are making investors jittery. In
such a situation, investors usually flock to blue-chip companies with stable cash flows,
a proven track record of share price performance and experienced management. The December quarter
earnings have started to pour in. Let’s have a look at five ASX-listed blue-chip stocks.
First up. Rio Tinto. The mining giant on Tuesday released its production update
for the December quarter of last year. On a full-year basis, Pilbara iron shipments
fell 3% while productions declined 4%. On a year-on-year basis, Quarter 4 Bauxite
production was down 2%, Aluminium production was down 7%, and copper production was flat.
The company further mentioned that commissioning and ramp-up of Pilbara growth and brownfield
mine replacement projects have been impacted by labour access and supply chain quality issues
amid the ongoing COVID restrictions. Rio Tinto is also looking to grow its exposure in lithium,
given the high demand for the battery mineral. Due to protests and delays at its large lithium-borate
project, the company now expects first saleable production not before 2027. The company is also
buying the Rincon lithium project in Argentina for US$825 million. Worth mentioning here is that Rio
Tinto shares have already gained about 12% in the last one month as iron ore prices are recovering
from the lows seen in November 2021. Rio shares are currently trading at AU$111.53 apiece.
Next ASX giant is Telstra. Shares of the telecom services provider have been on a roll since the
last one year and have rallied 36%. Its worth mentioning that on Tuesday, Telstra shares
ended at AU$4.26, near their 52-week high. The stock has significantly outperformed
its sector benchmark ASX 200 Communication Index, which has gained 23.62% in the past
year. According to Morgans, dynamics of the telecom industry have turned positive
with NBN and mobile tariff increasing after five years of decline. The street expects the
Digicel acquisition to bode well for the company. Telstra is currently trading at AU$4.13 per share.
Next is blue-chip stock CSL. Shares of the biotechnology company witnessed a roller-coaster
ride in the past year and gained just 1% compared to a 13% jump in the benchmark ASX 200 index.
Though CSL shares did not perform well last year, its financial performance was good
considering the challenges the company faced amid the Covid-19 pandemic. According to the company,
it spent over US$1 billion on research and development activities--including on new
product development, market development, and life cycle management products--in the past financial
year. Recently, the Biotherapeutics giant announced the acquisition of Vifor Pharma
for AU$17 billion and plans to raise AU$ 6.3 billion through an institutional placement
to finance this acquisition. CSL share price witnessed a massive fall of 8.16%
when it announced a trading halt on 16 December. Amid these developments,
all eyes are on this telecom major. The stock is currently trading at AU$271.25 per share.
And now, before we look at more updates from the ASX listed
blue-chip stocks, its time for a small break
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Welcome back. We are discussing ASX listed blue-chip stocks.
Lets look at Macquarie Group. Last week, Macquarie Group became Australia's
third-biggest bank, surpassing Westpac. Market capitalisation of the lender is now over
AU$80 billion. In the last one year, shares of Macquarie have rallied 49%,
reflecting its earnings growth and track record of superior execution. Brokerages
are optimistic about its performance in 2022 as well. Macquarie Group is a core holding in
several managed accounts as the company witnessed strong growth in mortgage volumes and outperformed
its peers like ANZ and Westpac. The stock is currently trading at AU$271.25 per share.
And now, the last blue-chip stock -- Woodside Petroleum. This energy
stock has been buzzing over the last one month, during which it has delivered over 19% return.
Strong crude oil price is a positive for this Company. On Wednesday, 19th of January, crude
prices touched a seven-year high following an attack in the UAE, which caused regional tension.
This leading petroleum exploration and production company has struck a flexible, long-term deal
to acquire LNG from a US Gulf Coast LNG export project. The heads of agreement signed with
Commonwealth LNG includes buying 2 million tonnes of LNG per year from Commonwealth’s proposed
export terminal in Cameron over 20 years. Purchases are scheduled to commence in the
June quarter of 2026. Woodside Petroleum on Tuesday announced that it completed the sale
of a 49% non-operating participating interest in the Pluto Train 2 Joint Venture to Global
Infrastructure Partners. The stock is currently trading at AU$25.31 per share.
Well, that’s all for now. We will be back soon with our Buzzing Trends
show to share the latest market insights with you. Till then,
Stay tuned with Kalkine TV for more stock, business and economy related hot trends.