Macquarie,which uses a March financial year,did not disclose its actual profits for the quarter,but it said commodities and global markets business had enjoyed a bumper December quarter,prompting analysts to lift earnings forecasts for the group.
“Varied market conditions have resulted in a good quarter for the group reflecting the diversity of our activities,” chief executive Shemara Wikramanayake said in a statement.
Opal Capital portfolio manager Omkar Joshi said Macquarie was known for being highly conservative with its guidance,but the company was clearly on track for a strong financial year. “Unless the fourth quarter is very weak,it’s likely they will equal last year’s profit,if not exceed it,” Joshi said.
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Morningstar analyst Nathan Zaia said he was forecasting full-year earnings would be slightly lower than last year,but he said predictions were tricky because the key source of recent strength was the commodities business – which has benefited from volatility.
Zaia pointed out commodity and energy markets had been affected by factors including the Ukraine war,severe weather and disruptions caused by COVID-19. With the energy transition under way,he said it was possible there would be further bouts of volatility that worked in Macquarie’s favour. “The environment could be favourable for Macquarie for a number of years,” Zaia said.
Investors responded favourably to the update,lifting Macquarie shares 1.5 per cent higher,to $191.82.