AU Morning Wrap: ASX bounces higher; Woodside jumps

Wall Street Summary
Friday’s market rout extended into the new week as investors rotated out of sectors most exposed to higher borrowing costs. The Dow and S&P 500 briefly recouped their opening losses before fading again in the final hour.

The $S&P 500 Index (.SPX.US)$ finished 27 points or 0.67 per cent in the red. The $Dow Jones Industrial Average (.DJI.US)$ lost 184 points or 0.57 per cent. The $Nasdaq Composite Index (.IXIC.US)$ shed 124 points or 1.02 per cent.

AU Market Watch
Australia's S&P/ASX 200 looks likely to steady at the open after its heaviest one-day sell-off since mid June. ASX futures are up by 0.3%, pointing to at least some buying following the benchmark index's week-opening 1.95% tumble amid renewed expectation of global interest-rate hikes.

Australian shares opened higher this morning. The $S&P/ASX 200 (.XJO.AU)$ gained 0.47 per cent to 6998.4 as of 10:15 am.

Stocks to Watch
$Flight Centre Travel Group Ltd (FLT.AU)$: Flight Centre has responded to media reports that it is considering an acquisition of US travel business Altour International.

"While it is company policy to not respond to media speculation, the company has had, and continues to have, various discussions with a number of parties regarding strategic opportunities," Flight Centre said in a statement.

$Sandfire Resources Ltd (SFR.AU)$: Sandfire Resources posted a net profit of $US111.4 million in FY22, down from $US128.6 million the year before, translating into earnings per share of 32.05¢ (basic and diluted). The company said it had an impact from a five-month ownership period and 2021 share issue relating to the MATSA Copper Operations acquisition in Spain.

$IGO Ltd (IGO.AU)$: IGO posted a 34 per cent jump in full-year revenue to $903 million and record underlying earnings of $717 million, up 51 per cent.

$Link Administration Holdings Ltd (LNK.AU)$: Link's net loss after tax improved to $67.6 million in FY22, from $162.7 million in FY21. Link said the improved result reflects: higher operating EBIT contribution; higher equity accounted profit after tax relating to the stronger operating result of PEXA; and lower impairment expenses in FY2022.

$BUBS Australia Ltd (BUB.AU)$: Bubs Australia posted record revenues and earnings thanks to innovation and margin growth in China and an accelerated entry into the US. Gross revenue more than doubled to a record $104.3 million in FY22, generating earnings of $4.8 million thanks to a 32 per cent increase in gross margins.

$Woodside Energy Group Ltd (WDS.AU)$: Woodside Energy declared an interim dividend of $US1.09 fully franked in its first result since merging with BHP Petroleum. Net profit for the half was $US1.64 billion from $US317 million, or $US1.82 billion on an underlying net profit basis up from $US354 million. Operating revenue more than doubled to $US5.81 billion from $US2.5 billion.

Ex-dividend: $Bapcor Ltd (BAP.AU)$, $Beach Energy Ltd (BPT.AU)$, $Capral Ltd (CAA.AU)$, $Domino's Pizza Enterprises Ltd (DMP.AU)$, $Downer EDI Ltd (DOW.AU)$, $Evolution Mining Ltd (EVN.AU)$, $Netwealth Group Ltd (NWL.AU)$, $Perpetual Credit Income Trust (PCI.AU)$, $Sunland Group Ltd (SDG.AU)$, $360 Capital Mortgage REIT (TCF.AU)$, $Teaminvest Private Group Ltd (TIP.AU)$, $Ventia Services Group Ltd (VNT.AU)$, $Winton Land Ltd (WTN.AU)$

Dividends paid: $Australian Foundation Investment Co Ltd (AFI.AU)$, $BKI Investment Co Ltd (BKI.AU)$, $Dexus (DXS.AU)$

Commodities
• Iron ore futures fell -0.25% to US$105.10 a tonne. Prices briefly rallied 2.9% to a session high of US$108.5 on Monday.

• Oil continues to rally amid rising risks of civil war in Libya and the increasing likelihood of OPEC+ positioning for a production cut. The Iran nuclear deal - which could bring millions of barrels of oil back into global markets - is facing some pushback from Iran.

Iran has not backed down from its demands that an inquiry into nuclear particles found at its nuclear sites be dropped.

• Gold is starting to feel more like a risk asset than a safe haven. The non-interest bearing metal is getting smashed as markets try to price in an overly hawkish Fed.

Gold prices briefly tumbled -0.95% to US$1,720 but bounced back towards breakeven.

Source: Dow Jones Newswires, AFR