AU Morning Wrap: ASX opens up; Collins Foods, Tassal jumps

Wall Street Summary
US stocks pared last week's strong rebound as robust economic data and a recovery in commodity prices supported the case for higher interest rates. Wall Street has slumped this year on concerns surging inflation will drive rates so high the economy will fall into recession.

The $S&P 500 Index(.SPX.US)$ stuttered to a loss of 12 points or 0.3 per cent. The $Dow Jones Industrial Average(.DJI.US)$ eased 62 points or 0.2 per cent. The $Nasdaq Composite Index(.IXIC.US)$ shed 83 points or 0.72 per cent.

AU Market Watch
Australian stock futures are pointing to a flat open for the S&P/ASX 200 following its best day since January. ASX futures are flat, suggesting a pause after Monday's 1.9% rise. The benchmark index is still down 7.0% this month and 11% for the June quarter.

Australian shares opened higher this morning. The $S&P/ASX 200(.XJO.AU)$ gained 0.19 per cent to 6719 as of 10:18 am.

Stocks to Watch
$BWX Ltd(BWX.AU)$: ASX-listed natural products player BWX has announced a fully underwritten $23.2 million capital raise.BWX now expects a net loss between $10 million and $14 million on revenue up 6 per cent to $206 million in financial year 2022. EBITDA is set to plunge 76 per cent to between $6 million and $10 million.

$Tassal Group Ltd(TGR.AU)$: Tasmanian salmon farming company Tassal has rejected a third buyout proposal from Canadian aquaculture company Cooke, and is refusing to engage in talks, arguing the latest $4.85 a share offer still undervalues the company.

$ALS Ltd(ALQ.AU)$: Australian laboratory testing giant ALS has confirmed it submitted a confidential non-binding proposal to acquire 100 per cent of smaller listed rival HRL Holdings for 16¢ per share in cash.

$Collins Foods Ltd(CKF.AU)$: Broker Wilsons has labelled KFC merchant's Collins Food's full-year profit report as strong, with EBITDA 5 per cent above the broker’s forecasts and net profit an 8 per cent beat.

Dividends paid: $Champion Iron Ltd(CIA.AU)$

Commodities
• Iron ore futures trade higher; outlook remains uncertain. Buying sentiment for August-laycan cargoes remained lukewarm, sources told Fastmarket.
• Oil prices remain volatile as tight supplies could see the G7 reveal price caps on Russian crude.
• Gold prices are steadying around US$1,820 as investors question whether or not yields have peaked or ready to make another run.

Source: Dow Jones Newswires, AFR