AU Morning Wrap: ASX Rises; 29Metals Crashes 20% on Production Outlook
G'day, mooers! Check out the latest news on today's stock market!
• US stocks rally, FedEx and Nike earnings beat
• ASX 200 openes 0.6 per cent higher
• Stocks to watch: BHP, 29Metals, Kelsian
- Moomoo News AU
Wall Street Summary
Bargain hunters dominated Wednesday's action on Wall Street, sending the major averages higher. Well-received earnings from $Nike (NKE.US)$ and $FedEx (FDX.US)$contributed to improved sentiment, as stocks bounced back from losses posted over the previous couple weeks.
Bargain hunters dominated Wednesday's action on Wall Street, sending the major averages higher. Well-received earnings from $Nike (NKE.US)$ and $FedEx (FDX.US)$contributed to improved sentiment, as stocks bounced back from losses posted over the previous couple weeks.
The $Nasdaq Composite Index (.IXIC.US)$ finished +1.5%, the $S&P 500 Index (.SPX.US)$ closed +1.5% and the $Dow Jones Industrial Average (.DJI.US)$ ended +1.6%.
AU Market Watch
$BHP Group Ltd (BHP.AU)$ rose 0.8 per cent to $46.71. It has completed due diligence on its OZ Minerals deal, which is headed for a scheme meeting in 2023.
In the All Ords, $29Metals Ltd (29M.AU)$ plunged 20 per cent to $1.90 following its after-market update on Wednesday after issuing production guidance for 2023.
Kelsian is up 3.4 per cent to $6.15 after expanding its contracted bus services with Transport for NSW out to 2030.
Stocks to Watch
$Synlait Milk Ltd (SM1.AU)$: Synlait Milk has sought to clarify its profit expectations for first-half 2023, which will be lower than the same time last year, despite increased volumes in nutrition, consumer and food services.
Net debt and interest costs will be higher than forecast due to the impact of delayed sales on cashflows. This is because of late shipments of ingredients, reduced lactoferrin volumes, an un-repeated foreign exchange benefit, and higher business costs.
The full-year 2023 debt-to-EBITDA ratio of 2 to 2.5 times is intact in terms of Synlait’s target. Synlait intends to release 2023 net profit guidance at the company’s first-half result on March 27.
$Perenti Ltd (PRN.AU)$: Perenti secured a contract extension for surface mining activities, including load and haul, drill and blast, grade control and crusher feed, at Resolute Mining's Mako gold mine in Senegal.
The contract is worth $US185 million over four years, from January 1 this year, according to the statement.
$Kelsian Group Ltd (KLS.AU)$: Kelsian extended its contract work for Transport for NSW, adding a new South-West Sydney region to its bus services network that – combined with existing services coverage – is worth $800 million over seven years.
$Kogan.com Ltd (KGN.AU)$: Kogan paid $1.5 million in cash to acquire the collapsed online furniture business Brosa out of administration, beating more than 30 other parties in the KordaMentha process.
$SILK Laser Australia Ltd (SLA.AU)$: Silk Laser Australia will buy Eden Laser Clinics, the owner of nine cosmetic clinics across NSW and one in ACT, for $8.4 million. The deal is expected to be earnings accretive ahead of any transaction synergies, but excluding integration costs.
$ReadyTech Holdings Ltd (RDY.AU)$: ReadyTech Holdings, under offer from Pacific Equity Partners, said PEP pulled its proposal and is working on an alternative offer for the education and workforce software group.
$Oz Minerals Ltd (OZL.AU)$: OZ Minerals shareholders will vote on its agreed $9.6 billion enterprise value takeover by BHP Group at a scheme meeting scheduled for late March to early April 2023.
The board of OZ Minerals unanimously recommends investors vote in favour of the $28.25 a share cash deal.
Ex-dividend: None
Dividends Paid: $Orica Ltd (ORI.AU)$, $GQG Partners Inc (GQG.AU)$
Commodities
• Iron ore futures rose 2.7% on Wednesday to US$112.30 a tonne.
"The arrival of winter in China and rising numbers of COVID-19 infections will likely negatively impact the country's steel demand going forward." - China Iron & Steel Association
• Oil prices rallied after US crude oil inventories fell by more than three times what consensus expected for the last week.
Crude inventories fell 5.894m barrels compared to expectations of a 1.657m barrel draw.
• Gold prices started to stall after reaching a fresh six month highs on Wednesday.
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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