AU Morning Wrap: ASX Rises 0.3%, Boral Leaps, BWT Trust Falls
G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 soars on Powell's declining inflation remarks
• ASX 200 rises in early trade, lead by gains in the energy sector
• Stocks to watch: Suncorp, Boral, Fortescue
- Moomoo News AU
Wall Street Summary
US stocks advanced after Fed Chair Powell said he expects "significant declines in inflation" this year. The main indices overcame a brief dive into negative territory when he warned the central bank might have to raise rates more than markets have priced in if labour markets and inflation do not slow.
The $S&P 500 Index (.SPX.US)$ finished 53 points or 1.29 per cent ahead. The $Dow Jones Industrial Average (.DJI.US)$ put on 266 points or 0.78 per cent after swinging through a 535-point range. The $Nasdaq Composite Index (.IXIC.US)$ added 226 points or 1.9 per cent.
AU Market Watch
Suncorp advanced 0.3 per cent after lifting its dividend to 33¢ thanks to a massive jump in car and home insurance.
Boral shares rocketed 11.4 per cent on higher revenues in the six months to December even though it decided to pay no dividend.
Dexus Industria stock slipped 0.4 per cent after net profit dived to $1.4 million in the first half of its reporting year.
$Fortescue Ltd (FMG.AU)$ rallied 1.4 per cent. It signed a convention for an iron ore project with the government of Gabon with first mining planned in the second half of calendar 2023.
BWP Trust fell 0.8 per cent following a 68 per cent drip in net profit.
The major banks and mining heavy weights rose.
Stocks to Watch
$Suncorp Group Ltd (SUN.AU)$: Suncorp net profit jumped 44.3 per cent to $560 million, taking earnings 63 per cent higher to $588 million.
It declared interim dividend of 33¢ per share, representing a payout ratio of 71 per cent of cash earnings. Suncorp maintained its commitment to a 60 per cent to 80 per cent dividend payout ratio.
$Insurance Australia Group Ltd (IAG.AU)$: Insurance Australia posted a gross written premium of $4.8 billion, up 9 per cent, driven by the pricing response to inflation and increased natural hazard and reinsurance costs.
It said the operating environment continues to be challenging and expects a modest increase in the frequency of natural hazard events.
$Boral Ltd (BLD.AU)$: Boral net profit from continuing operations soared 53 per cent to $56.8 million in the six months to December, lifting earnings per share to 5.1¢, 50 per cent higher than in the prior period.
On a statutory basis, net profit was 91 per cent lower to $89.5 million for the six-month period.
$Dexus (DXS.AU)$: Dexus Industria net profit dived to $1.4 million in the six months to December, from $113.7 million in the prior period due to value losses on investment properties, compared with gains in the first half of the year.
The group confirmed a distribution of 8.2¢ per security.
Funds from operations (FFO) rose to $27.1 million, thanks to the contribution of Jandakot Airport industrial precinct and rental increases.
$BWP Trust (BWP.AU)$: BWP Trust net profit plunged 68 per cent to $111.3 million in the six months to December, compared with the same period a year ago, but interim distribution remained at 9.02¢.
The group's total income rose 4 per cent to $78.6 million thanks to rental growth.
Commodities
• Oil rallied after Saudi Arabia increased prices for oil shipped to Asia, indicating improved demand since China reopened. Supply out of Turkey was expected to be disrupted by this week's devastating earthquake.
Brent crude settled US$2.70 or 3.3 per cent higher at US$83.69 a barrel.
• Gold rose for a second session as Fed Chair Powell's comments kept the greenback in check. Gold for April delivery settled US$5.30 or 0.3 per cent higher at US$1,884.80 an ounce. The NYSE Arca Gold Bugs Index bounced 1.23 per cent.
• Iron ore dropped to its lowest in three weeks after port stocks in China reached their highest since December. Prices fell for the fifth time in six sessions amid concerns that demand has failed to recover following the Lunar New Year break.
The most-traded May ore on the Dalian Commodity Exchange ended daytime trade 0.7 per cent lower at 840.50 yuan (US$123.86) a tonne after trading as low as 828.50 yuan.
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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