SYDNEY (Reuters) – Australian group Macquarie said on Tuesday that it plans to continue to profit from short-term market volatility, as it revealed third-quarter earnings from its commodities trading and trading units had risen sharply, pushing its shares up nearly 8%.
The country’s largest investment bank and asset manager said commodity hedging and trading activity from November to January was strong due to high volatility in oil, gas and commodity markets. precious metals.
The Sydney-based company, which derives nearly 40% of its profits from its Commodities and Global Markets unit, said market dislocations had boosted the trading and hedging activities of its growing client base, which it said. expected her to continue.
“This has happened in all of our sectors, so gold and precious metals, oil, gas and electricity in North America and Europe,” Managing Director Shemara Wikramanayake told investors at the meeting. a briefing.
“We expect the second half of the year to continue to be more favorable than expected, given the increased level of volatility we have experienced in this third quarter,” she added.
That would mean profits for the entire year in the unit should now be slightly, not significantly, lower, she said. Overall, he expects the group’s annual results to be âslightlyâ lower than in fiscal 2020.
âWe see this as a 5% drop,â Goldman Sachs analysts said. This contrasts with the US broker’s forecast of a 23% drop in profits for fiscal 2021.
Macquarie shares jumped 7.9% to AU $ 144.9, their highest level in nearly a year, while the market as a whole was slightly lower.
At Macquarie Capital, its trading arm, the partial realization of the company’s interest in data analytics firm Nuix through an initial public offering in November, which valued the company at AU $ 1.8 billion helped offset lower commission income in debt capital markets.
The company said Macquarie Capital completed 100 transactions globally during the quarter under review, valued at A $ 58.4 billion.
Macquarie Infrastructure and Real Assets, which made an A $ 3.42 billion offer to fiber optic network owner Vocus Group on Monday, said it has A $ 25.7 billion in equity it needs. wanted to invest.
Reporting by Paulina Duran in Sydney and Nikhil Kurian Nainan and Rashmi Ashok in Bengaluru; Editing by Ramakrishnan M. and Sonya Hepinstall