On Friday, October 23, the Australian share market saw heavy pre-market and periodic trading updates covering major corporate earnings, macroeconomic indicators, and operational shifts across multiple sectors.

Private Sector PMI Contraction and Corporate Updates

Data released by S&P Global showed Australia’s private sector slipping back into contraction in October. The flash Composite PMI fell to 47.7 from 51.3 in September, marking the first decline in five months and the lowest reading since March. Both services and manufacturing experienced mounting inflation pressures, with S&P Global noting that elevated costs could continue to threaten short-term demand.

Meanwhile, individual companies experienced volatile trading sessions following quarterly reports and updates:

    Zip: Experienced heavy volatility after an external US fraud event impacted its September quarter. Shares opened 49% lower before rallying and later settling down 30%, with the company reporting a cash EBTDA miss and $10.1m in fraud-related costs while reaffirming its FY27 guidance. Temple & Webster: Shares rose 28% to $5.21 near noon following a trading update that showed improved run-rate revenue growth and reaffirmed its FY27 EBITDA guidance. Fortescue: Highlighted warnings that it may cut output if ongoing discussions with Beijing's state-backed China Mineral Resources Group are not resolved by the end of the calendar year. Santos: Reported robust third-quarter all-in free cash flow of US$957m, with Macquarie noting the company has entered a harvest phase ahead of a potential final investment decision on Papua LNG. Mineral Resources: Maintained its FY27 guidance across all divisions despite lower realised iron ore prices, while noting that net debt fell by $200m to roughly $4.1bn.

Market analysts also turned their attention to the major banking sector, with Morgan Stanley pointing out that capital buffers and upcoming dividend payout ratios will remain under close scrutiny during reporting season.