AU Morning Wrap: ASX bounces higher; WiseTech jumps

Wall Street Summary
US stocks struggled for a third night as data showed the economy was slowing, sharpening recession fears ahead of this week's address by Federal Reserve Chair Jerome Powell.

The $S&P 500 Index (.SPX.US)$ faded to a loss of nine points or 0.22 per cent after seesawing in and out of positive territory. The $Dow Jones Industrial Average (.DJI.US)$ shed 154 points or 0.47 per cent. The $Nasdaq Composite Index (.IXIC.US)$ finished barely changed, down less than a point.

AU Market Watch
Aussie shares were poised for their first positive start in five days as a rebound in commodity prices helped offset a third straight loss for the Dow and S&P 500. ASX futures rose 15 points or 0.22 per cent as mining giants BHP and Rio Tinto advanced in overseas trade.

Australian shares opened higher this morning. The $S&P/ASX 200 (.XJO.AU)$ gained 0.33 per cent to 6984.5 as of 10:19 am.

Stocks to Watch
$APA Group (APA.AU)$: APA Group reported a 3.9 per cent increase in FY22 underlying EBITDA to $1.7 billion driven by gains in energy infrastructure and a positive leverage to inflation. A full year distribution of 53¢ per security, also up 3.9 per cent on FY21, will be paid and was in line with guidance. FY23 distributions are anticipated to increase 3.8 per cent to be 55¢.

$G8 Education Ltd (GEM.AU)$: G8 Education has reported a statutory net profit after tax of $8.5 million for the half-year ended June 30, down from the $23.5 million profit recorded in the prior corresponding period (pcp).

$Worley Ltd (WOR.AU)$: Worley posted an 18 per cent increase in underlying earnings to $547 million in FY22 with basic earnings per share also up 18 per cent to 62.8¢ in the same period. Statutory profit more than doubled to $294 million in FY22.

$Coles Group Ltd (COL.AU)$: Coles declared an improved final dividend of 30¢ up from 28¢ after growing its 2022 profit 4.3 per cent to $1.05 billion. Revenue increased 2 per cent to $39.75 billion; supermarkets were up 2.2 per cent to $34.62 billion and liquor lifted 2.5 per cent to $3.6 billion with gross margin expansion achieved in both categories, but cost of doing business pressures eroded EBIT margins. Express fell 5 per cent to $1.13 billion.

$WiseTech Global Ltd (WTC.AU)$: WiseTech increased FY22 revenues by a quarter to $632.2 million in a result that was in the top end of guidance. Earnings more than doubled to $319 million, up 54 per cent from FY21. Net profit leapt 72 per cent to $181.8 million. The company declared a final dividend of 6.4¢, up 66 per cent on FY21, taking full-year dividend to 11.15¢, up 71 per cent from the previous year.

$Tabcorp Holdings Ltd (TAH.AU)$: Tabcorp Holdings reported a 4.3 per cent loss on revenues to $2.4 billion in FY22 because of COVID-19. Net profit jumped to $6.7 billion for the full year, up from $269 million in 2021, but that was largely because of the demerger gain of $6.5 billion. Tabcorp announced a fully franked final dividend of 6.5¢ a share.

Ex-dividend: $Pact Group Holdings Ltd (PGH.AU)$, $SG Fleet Group Ltd (SGF.AU)$, $Telstra Group Ltd (TLS.AU)$, $BlackWall Ltd (BWF.AU)$, $Thorn Group Ltd (TGA.AU)$

Dividends paid: $Janus Henderson Group PLC (JHG.AU)$

Commodities
• Iron ore futures rose 0.7% to US$ 105.1 a tonne. China's mid-August daily steel output rises further, up 88,500 tonnes a day or 3.4% to 2.7m tonnes a day on average, according to Mysteel.
• Oil prices rallied as the US dollar rally fizzled. "A weakening US economy should be bad news for oil, but today's soft economic readings suggest that OPEC+ will easily be able to justify production cuts soon," said Oanda senior market analyst, Ed Moya.
• Gold also rallied thanks to a weaker US dollar. Another round of weak US economic data suggests that the Fed might not be able to maintain an aggressive tightening stance for much longer.

Source: Dow Jones Newswires, AFR