AU Morning Wrap: ASX opens 0.2% higher, gold miners rally

Moomoo News AU wrote a column · Nov 24, 2022 07:37

G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 hits 2-month high, Fed signals slower rate hikes
• ASX opens 0.2pc higher
• Stocks to watch: Tyro Payments, Kogan, Harvey Norman
- Moomoo News AU

AU Morning Wrap: ASX opens 0.2% higher, gold miners rally

Wall Street Summary
Wall Street closed solidly higher on the eve of the Thanksgiving holiday as investors welcomed the prospect of smaller rate hikes. Declines in treasury yields and the dollar boosted rate-sensitive sectors and multinationals whose earnings fluctuate with currency movements.

The $S&P 500 Index (.SPX.US)$ rallied 24 points or 0.59 per cent. The $Dow Jones Industrial Average (.DJI.US)$ put on 96 points or 0.28 per cent. The $Nasdaq Composite Index (.IXIC.US)$ added 111 points or 0.99 per cent.

The main indices added to their gains after the latest Fed minutes showed the central bank preparing to slow the pace of rate hikes after four consecutive increases of three-quarters of a percentage point.

"A substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate,” the minutes stated. “The uncertain lags and magnitudes associated with the effects of monetary policy actions on economic activity and inflation were among the reasons cited regarding why such an assessment was important."

AU Market Watch
The $S&P/ASX 200 (.XJO.AU)$ climbed 0.24 per cent in the opening minutes of trade, buoyed by further gains for the materials sector.

An increase in the gold price overnight boosted miners of the precious metal; $Chalice Mining Ltd (CHN.AU)$ added 5.9 per cent to $5.24, $Silver Lake Resources Ltd (SLR.AU)$ climbed 2.9 per cent to $1.23 and $Evolution Mining Ltd (EVN.AU)$ firmed 2.7 per cent to $2.64.

Stocks to Watch
$GPT Group (GPT.AU)$: GPT Group has sold two logistics assets in Sydney and Melbourne for $256.2 million.

The company exchanged contracts for the sale of Rosehill Business Park, Camelia, NSW and Citiport Business Park, Port Melbourne, Victoria.

The sale represents a 1.5 per cent discount to book valuation at June 30, and a 9 per cent premium to book valuation at December 31.

$Tyro Payments Ltd (TYR.AU)$: Tyro Payments has flagged that it's made a "very strong" start to the 2023 financial year.

Results from Tyro's payments business to October 31 are trending towards the top end of guidance for all operating metrics provided on October 10, the company said.

Transaction value for the period was $14 billion, up 52 per cent on the prior corresponding period (pcp).

$AGL Energy Ltd (AGL.AU)$: AGL Energy has announced it will close the Torrens Island "B" power station on June 30, 2026, and will continue to progress the transformation of its Torrens Island site into a low-carbon industrial energy hub.

The company said the decision followed "careful consideration" and extensive consultation with stakeholders, including the South Australian government.

$Harvey Norman Holdings Ltd (HVN.AU)$: Harvey Norman reported that aggregated sales revenue for the period July 1 to October 31 increased 6.9 per cent compared to the prior corresponding period (pcp).

Comparable sales were up 6.3 per cent during the period compared to the pcp.

$AF Legal Group Ltd (AFL.AU)$: Privately held legal services firm GTC Legal has terminated a proposed merger with ASX-listed law firm AF Legal Group (AFL), citing "information that has come to light that renders the transaction untenable".

The proposed merger was intended to create one of the largest personal services legal firms in Australia.

$Regis Resources Ltd (RRL.AU)$: Regis Resources says its underlying business continues to strengthen despite the "very disappointing" performance of its share price.

Chairman James Mactier told Regis' annual general meeting that the decline in the company's share price was largely due to sector-wide concerns caused by COVID-19.

$Kogan.com Ltd (KGN.AU)$: Kogan says its drive to sell through the final balance of its excess inventory has left the company in a positive cash position.

The business currently has $20.1 million in net cash after having paid the third tranche of its Mighty Ape acquisition consideration.

$Pointsbet Holdings Ltd (PBH.AU)$: PointsBet has launched online sports betting operations in the US state of Maryland.

Maryland represents the company's 13th online sports betting operation in the US following launches in New Jersey, Iowa, Indiana, Illinois, Colorado, Michigan, West Virginia, Virginia, New York, Pennsylvania, Kansas, and most recently Louisiana.

Ex-dividend: $ALS Ltd (ALQ.AU)$, $Nufarm Ltd (NUF.AU)$, $Australian Vintage Ltd (AVG.AU)$, $TerraCom Ltd (TER.AU)$

Dividends Paid: None

Commodities
• Iron ore futures fell 0.25% to US$92.20 a tonne.

• Oil prices tumbled close to year-to-date lows as G7 nations seek to lock in a price cap on Russian oil.

G7 nations are looking at a price cap between US$65-70 a barrel compared to Russian production costs of around US$20 a barrel, according to Reuters.

The price cap ensures that Russian producers still turn a profit and prevents a global supply shortage.

US EIA data showed a 3.7 million barrel draw in crude inventories compared to analyst expectations of a 1.1 million barrel build.

• Gold prices rallied after FOMC minutes pointed towards a slower path for rate hikes.
Source: Dow Jones Newswires, AFR

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