AU Morning Wrap: ASX Rises 0.4%; Super Retail, Tyro Rally

Moomoo News AU wrote a column · Jan 16, 2023 07:30

G'day, mooers! Check out the latest news on today's stock market!
• US stocks close at one-month highs, bank earnings begin
• ASX 200 climbed 0.43 per cent in the opening minutes of trade in a broad advance lifting all 11 sharemarket sectors
• Stocks to watch: Super Retail, Tyro Payments, Ioneer
- Moomoo News AU

AU Morning Wrap: ASX Rises 0.4%; Super Retail, Tyro Rally

Wall Street Summary

The major stock indices posted their best weekly returns since November as a new earnings season kicked off in earnest. Buyers were also encouraged by signs Americans were growing less pessimistic about the outlook for inflation.

The $S&P 500 Index (.SPX.US)$ climbed 16 points or 0.4 per cent on Friday. The advance extended the benchmark's gain for the week to 2.67 per cent.

The $Dow Jones Industrial Average (.DJI.US)$ rallied 113 points or 0.33 per cent on the day and 2 per cent for the week. The $Nasdaq Composite Index (.IXIC.US)$ led all week for a tally of 4.82 per cent after rising 78 points or 0.71 per cent on Friday.

The S&P 500 and Nasdaq logged their strongest closes in a month after overcoming early pressure as investors assessed earnings from the big banks. The S&P 500 banks index climbed 1.6 per cent after results showed Wall Street's biggest hitters preparing for a possible recession this year.

AU Market Watch

The $S&P/ASX 200 (.XJO.AU)$ climbed 0.43 per cent in the opening minutes of trade in a broad advance lifting all 11 sharemarket sectors.

Super Retail Group rallied 7.1 per cent to $12.28 and PolyNovo climbed 2.8 per cent to $2.61 after both companies posted record first-half sales.

Tyro Payments surged 10.7 per cent to $1.51 after upgrading its FY23 earnings guidance.

Ioneer soared 24.2 per cent to 56.5¢ following news that it has secured a $US700 million ($1 billion) loan from the US Department of Energy to develop its lithium-boron project at Rhyolite Ridge in Nevada.

Stocks to Watch

$Ioneer Ltd (INR.AU)$: Australian miner Ioneer has secured a $US700 million ($1 billion) loan from the US Department of Energy to develop its lithium-boron project at Rhyolite Ridge in Nevada, renewing the Biden administration's pledge to expand production of critical minerals for technology such as electric vehicle (EV) batteries.

$Macmahon Holdings Ltd (MAH.AU)$: Mining services provider Macmahon Holdings has finalised a load and haul services contract with Talison Lithium Australia for the Greenbushes lithium project in Western Australia.

The contract involves open cut mining activities of load and haul, and crusher feed, which will commence on 1 July 2023 for a seven-year period with an option to extend for up to two years.

$Super Retail Group Ltd (SUL.AU)$: Super Retail Group has delivered record sales for the first half of the 2023 financial year.

Sales were up 15 per cent in the first 26 weeks of FY23 compared to the prior year, while like-for-like sales grew 11 per cent.

Group first half revenue is expected to be $1.96 billion and first half normalised profit before tax is expected to be between $212 million and $218 million.

$Baby Bunting Group Ltd (BBN.AU)$: Baby Bunting reported total sales of $254.9 million for the first half of FY23, up 6.6 per cent on the prior corresponding period.

The company's gross profit margin fell by 2.1 per cent to 37.2 per cent.

$Tyro Payments Ltd (TYR.AU)$: Tyro Payments has upgraded its FY23 earnings guidance, with forecast transaction value increased to a range of $42.5 billion to $43.5 billion, up from $40 billion to $42 billion.

This is expected to result in an improvement to gross profit of between $187 million to $191 million and a targeted operating leverage of around 79 per cent.

$Polynovo Ltd (PNV.AU)$: PolyNovo has reported record sales of $27.3 million for the first half of the 2023 financial year, up 67.5 per cent on the same period last year.

That was fuelled by record sales in the US of $22.8 million, which was 61 per cent higher than the prior corresponding period (pcp)

$Wesfarmers Ltd (WES.AU)$: Wesfarmers and $Telstra Group Ltd (TLS.AU)$ want to sell corporate bonds directly to retail investors, if the red tape around such deals could be cut, aiming to attract new sources of capital as yields surge to their highest levels in over a decade.

Commodities

• Iron ore prices closed at their highest in China since August 2021 in anticipation of a rebound as the economy gains traction after the zero-Covid years. The most-traded May contract on China's Dalian Commodity Exchange ended daytime trade 3.4 per cent ahead at 881 yuan (US$130.96) a tonne after trading as high as 883 yuan.

• Gold settled above US$1,900 an ounce for the first time since April, supported by a decline last week in the US dollar. Gold for February delivery finished US$22.90 or 1.2 per cent ahead at US$1,921.70 an ounce. The NYSE Arca Gold Bugs Index firmed 1.28 per cent.

• Oil sealed a weekly rise of 8.5 per cent with further gains on Friday. Brent crude settled US$1.25 or 1.5 per cent higher at US$85.28 a barrel.

Source: Dow Jones Newswires, AFR

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