AU Morning Wrap: ASX extends gains; Fortescue leaps 9% as miners rally
G'day, mooers! Check out the latest news on today's stock market!
• US stocks rounded out their best week since June with further gains on Friday
• ASX extends gains
• Stocks to watch: Fortescue, Elders, Flight Centre
- Moomoo News AU
Wall Street Summary
US stocks rounded out their best week since June with further gains on Friday as pro-growth measures in China added to market optimism after inflation eased in the US.
US stocks rounded out their best week since June with further gains on Friday as pro-growth measures in China added to market optimism after inflation eased in the US.
The $S&P 500 Index (.SPX.US)$ put on 37 points or 0.92 per cent. The $Nasdaq Composite Index (.IXIC.US)$ gained 209 points or 1.88 per cent. A 4.06 per cent slump in UnitedHealth limited the $Dow Jones Industrial Average (.DJI.US)$'s rise to 32 points or 0.1 per cent.
AU Market Watch
The $S&P/ASX 200 (.XJO.AU)$ jumped 0.28 per cent in the opening minutes of trade as miners rally on higher commodity prices.
$Fortescue Ltd (FMG.AU)$ jumped 8.3 per cent to $19.24, $Champion Iron Ltd (CIA.AU)$ rose 7.7 per cent to $5.75, $Rio Tinto Ltd (RIO.AU)$ climbed 4.6 per cent to $107.34 and $BHP Group Ltd (BHP.AU)$ added 4.4 per cent to $43.96.
Elders plunged 13.4 per cent to $11.47 after reporting its annual results and announcing that its chief executive Mark Allison will retire next year.
Flight Centre declined 3.5 per cent to $16.41 after saying it's too early to provide full-year guidance due to uncertainty around the industry's recovery.
Stocks to Watch
$Telix Pharmaceuticals Ltd (TLX.AU)$: Telix Pharmaceuticals has entered into an agreement with Sacramento-based Northern California PET Imaging Center to acquire radiochemistry development business Optimal Tracers.
$Syrah Resources Ltd (SYR.AU)$: Syrah Resources will resume operations at its Mozambique Balama Graphite project after a temporary suspension caused by security concerns in the region.
$Beach Energy Ltd (BPT.AU)$: Beach Energy has agreed to acquire $Warrego Energy Ltd (WGO.AU)$ for 20¢ a share.
That represents a 36 per cent premium to Warrego's one-month volume-weighted average price (VWAP) to November 9.
$Orica Ltd (ORI.AU)$: Orica has agreed to acquire a 5 per cent equity interest in Alpha HPA.
Alpha said the funds would be used to accelerate final engineering and product marketing for its full-scale first project at Gladstone.
$ALS Ltd (ALQ.AU)$: ALS forecast 2023 underlying net profit of between $300 million to $320 million, or growth of 17 per cent assuming the mid-point of that range.
ALS reported a 16.7 per cent increase in first-half revenue to $1.19 billion and a 99 per cent jump in net profit to $147.4 million. Underlying profit rose 29.3 per cent to $164.3 million.
$Nearmap Ltd (NEA.AU)$: Nearmap is deferring previously planned hiring activity during the first half and is focusing on cash collections, due to broader economic uncertainties impacting customers.
As a result, Nearmap is anticipating a 2023 financial year closing cash balance of between $71 million and $76 million, compared to previous guidance of $66 million to $71 million, excluding litigation and scheme transaction costs.
$Perenti Ltd (PRN.AU)$: Perenti has upgraded its 2023 financial guidance following favourable movements in the US dollar to Australian dollar exchange rate, and improved operational and commercial conditions.
The company now expects full-year revenue of between $2.6 billion to $2.7 billion, EBIT(A) of between $215 million to $230 million, net capital expenditure of around $340 million and leverage of between 1.1 times and 1.2 times.
$Perpetual Ltd (PPT.AU)$: The Supreme Court of New South Wales will have a hearing on Wednesday about whether the meeting of Pendal shareholders to approve Perpetual's takeover should be convened and the scheme booklet dispatched to investors.
$Flight Centre Travel Group Ltd (FLT.AU)$: Flight Centre has told its annual general meeting that it's too early to provide full-year guidance due to ongoing uncertainty around the industry’s recovery.
The company is targeting $70 million to $90 million in underlying EBITDA profit for the first half.
$Elders Ltd (ELD.AU)$: Agricultural business Elders has lifted its full-year net profit 9 per cent to $162.9 million after a 35 per cent jump in sales to $3.4 billion.
The company will pay a final dividend of 28¢ per share, taking its full-year dividends to 56¢ per share on earnings of 97.3¢ per share. Dividends are up 33.3 per cent on the prior year.
Ex-dividend: None
Dividends Paid: $Harvey Norman Holdings Ltd (HVN.AU)$
Commodities
• Iron ore futures rose 2.1% to US$90.90 a tonne and up 4.0% last week.
• Oil prices rallied after China eased some of its Covid measures including shortening the quarantine times for close contacts and inbound travellers to five days at a centralised location plus three days at home, from seven days centralised and three days at home.
"Brent remains in the middle of its $90-$100 range for now but more bullish developments like this, or a further relaxation of Chinese restrictions on Saturday may test the upper end of that." - Oanda senior market analyst, Ed Moya.
• Gold continues to enjoy gains from the cooler-than-expected CPI print. The yellow metal has rallied 8.7% in the last six sessions to a near three month high.
• Gold continues to enjoy gains from the cooler-than-expected CPI print. The yellow metal has rallied 8.7% in the last six sessions to a near three month high.
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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