AU Morning Wrap: Shares tumble; Bravura craters 55%, Perpetual soars on takeover bid
G'day, mooers! Check out the latest news on today's stock market!
• Wall St plunges after Powell crushes pivot hopes
• The S&P/ASX 200 Index is down 2.09 per cent
• Stocks to watch: Perpetual, a2 Milk, Bravura
- moomoo News AU
Wall Street Summary
US stocks skidded after Powell doused hopes that a change of language from the central bank signalled smaller rate hikes from next month. The Fed Chair said the strength of recent economic data meant rates may have to go higher than previously expected.
US stocks skidded after Powell doused hopes that a change of language from the central bank signalled smaller rate hikes from next month. The Fed Chair said the strength of recent economic data meant rates may have to go higher than previously expected.
The $S&P 500 Index (.SPX.US)$ fell 96 points or 2.5 per cent. The $Dow Jones Industrial Average (.DJI.US)$ dropped 505 points or 1.55 per cent. The $Nasdaq Composite Index (.IXIC.US)$ shed 366 points or 3.36 per cent.
The Fed raised the target federal funds rate by 75 basis points, as widely expected. Stocks initially rallied as the accompanying statement hinted at a possible slowdown from next month.
AU Market Watch
The benchmark $S&P/ASX 200 (.XJO.AU)$ is down 2.09 per cent after Fed chair Powell warned US interest rates will go higher than expected. The tech sector has tumbled 3.6 per cent, with materials off 3.2 per cent.
Software platform Bravura has plunged 55 per cent in early trade after a huge downgrade delivered to investors late on Wednesday night.
Perpetual has added 9 per cent after it revealed Regal Partners and a Barings consortium lobbed it a takeover bid at $30 per share.
Perpetual has added 9 per cent after it revealed Regal Partners and a Barings consortium lobbed it a takeover bid at $30 per share.
a2 Milk has jumped 7.6 per cent after it said the US FDA approved its application to sell infant formula in North America.
Stocks to Watch
$MA Financial Group Ltd (MAF.AU)$: Asset manager and financial services group MA Financial has stuck to guidance for underlying earnings per share growth between 30 per cent and 40 per cent in financial 2022.
Stocks to Watch
$MA Financial Group Ltd (MAF.AU)$: Asset manager and financial services group MA Financial has stuck to guidance for underlying earnings per share growth between 30 per cent and 40 per cent in financial 2022.
$Woolworths Group Ltd (WOW.AU)$: Woolworths Group has posted a 1.8 per cent gain in first quarter sales, with growth dragged down by its Australian Food businesses where sales fell moderately, but average prices surged 7.3 per cent due to double-digit inflation in fresh fruit and vegetables.
$Perpetual Ltd (PPT.AU)$: Fund manager Perpetual has rejected an unsolicited takeover offer from a consortium comprising BPEA Private Equity Fund VIII and Regal Partners Limited.
$AUB Group Ltd (AUB.AU)$: Insurance broker AUB Group has lifted its adjusted profit guidance for financial 2023 to between $107.5 million and $115 million. The new guidance accounts for the Tysers acquisition completed on September 30, 2022.
$The a2 Milk Co Ltd (A2M.AU)$: New Zealand-based a2 Milk has gained approval to import infant milk formula into the US. The deal follows similar approval for goat-based infant formula producer Bubs Australia.
It said it expects to sell around 1 million infant formula cans over the second half of financial 2023 thanks to the deal.
$Bravura Solutions Ltd (BVS.AU)$: Broker Wilsons is unimpressed with "very soft guidance" provided by software player Bravura (BVS) last night.
"Regarding the downgrade, BVS now expect FY23e Revenue to be $270m-$275m (WILSe: $277m, Consensus: $296m), up only +2% vs. FY22 (at the mid-point of guidance); ii) EBITDA of $10-$15m (WILSe: $51m, Cons: $49m) vs. $53m in the pcp; and iii) NPAT to be between a -$5m loss and breakeven (WILSe: $22m, Cons: $27m)," the broker told clients.
"Regarding the downgrade, BVS now expect FY23e Revenue to be $270m-$275m (WILSe: $277m, Consensus: $296m), up only +2% vs. FY22 (at the mid-point of guidance); ii) EBITDA of $10-$15m (WILSe: $51m, Cons: $49m) vs. $53m in the pcp; and iii) NPAT to be between a -$5m loss and breakeven (WILSe: $22m, Cons: $27m)," the broker told clients.
$Domino's Pizza Enterprises Ltd (DMP.AU)$: Domino's Pizza Enterprise chairman Jack Cowin - who turned 80 years old in July - says he will stick around for another three years.
He says the board is not deficient in skills and understanding to make the company prosper, should something ever happen to him, after being asked about if there is any family likely to step in to manage the family empire.
Commodities
• Iron ore futures rose 0.4% to US$82.5 a tonne.
Commodities
• Iron ore futures rose 0.4% to US$82.5 a tonne.
"Chinese steel prices are likely to drop further during November under the pressure of a slowing global economy and the mismatch domestically between steel supply and demand," said Wang Jianhua, chief analyst at Mysteel.
"While steel prices lost ground last month, prices of some raw materials including coking coal and coke had been standing largely stable, causing profit margins among steelmakers to keep shrinking."
• Oil prices held onto gains in the face of a more hawkish Fed.
• Oil prices held onto gains in the face of a more hawkish Fed.
The US Energy Information Agency reported a 1.26m barrel fall in gasoline inventories, which was slightly below analyst estimates.
The Pentagon predicts that Iran will attack Saudi Arabia in 48 hours, while Iran dismisses the report.
• Gold briefly rallied to US$1,700 after Powell's initial dovish remarks before catering to the US$1,630 level.
Source: Dow Jones Newswires, AFR
• Gold briefly rallied to US$1,700 after Powell's initial dovish remarks before catering to the US$1,630 level.
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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