AU Morning Wrap: Star Entertainment Posts A$1.3b Loss; BHP Falls 3.2%
G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 fades on FOMC minutes, some Fed officials favour a 50 bp hike
• ASX slides at the open
• Stocks to watch: Qube, Platinum Asset, Humm Group
- Moomoo News AU
Wall Street Summary
Two of Wall Street's three main indices turned negative following the publication of a summary of this month's Fed meeting. The minutes showed the central bank wants "substantially more evidence" of progress in lowering inflation before pausing the current rates cycle.
The $S&P 500 Index (.SPX.US)$ faded to a loss of six points or 0.16 per cent. The $Dow Jones Industrial Average (.DJI.US)$ dropped 85 points or 0.26 per cent. The $Nasdaq Composite Index (.IXIC.US)$ held on to a gain of 15 points or 0.13 per cent.
The central bank minutes confirmed the Fed remains committed to bringing down inflation that is still "well above" target levels.
AU Market Watch
Australian shares opened down on Thursday, buffeted by falls on Wall Street overnight and a slew of earnings announcements.
The $S&P/ASX 200 (.XJO.AU)$ fell 0.28 per cent at the open, weighed by steep declines in the materials sector. Health care led the gainers, with industrials, tech, comm services and utilities all higher.
$BHP Group Ltd (BHP.AU)$, $Fortescue Ltd (FMG.AU)$ and $Rio Tinto Ltd (RIO.AU)$ all fell more than 2.9 per cent.
Qube traded up 11 per cent after its interim net profit doubled to $111 million. The logistics group moved higher volumes of grain, steel and cars in and out of Australia and passed through higher transport and handling costs to customers.
Also trading higher on results were $Eagers Automotive Ltd (APE.AU)$ (8.5 per cent), $Smartgroup Corporation Ltd (SIQ.AU)$ (9 per cent) and Lottery Corp (6.6 per cent).
$Platinum Asset Management Ltd (PTM.AU)$ dove 10 per cent as it reported a 37.4 per cent slide in interim profits to $37.6 million as declining funds under management slashed revenues from base and performance fees.
$Humm Group Ltd (HUM.AU)$ dropped 11.3 per cent, $Insignia Financial Ltd (IFL.AU)$ fell 6 per cent and $IDP Education Ltd (IEL.AU)$ 5 per cent.
Stocks to Watch
$The Star Entertainment Group Ltd (SGR.AU)$: Embattled casino group Star Entertainment has sunk to a $1.3 billion loss, impacted by penalties and costs associated with the regulatory reviews and contribution towards the Bell Review.
Revenue rose 75.6 per cent to $1 billion in the first half of FY23, rebounding from COVID-19 closures and restrictions.
No dividend was declared.
$Blackmores Ltd (BKL.AU)$: Blackmores Group net profit rose to a statutory $25.55 million in the six months ended December 31 from a year ago, even as revenue slipped 1.6 per cent to $338 million because of lower international sales.
The company flagged a cautious outlook as inflation and rising interest rates influence consumer sentiment and shoppers' behaviour.
$Ramsay Health Care Ltd (RHC.AU)$: Ramsay Health Care said its first-half net profit rose 22.3 per cent to $194.4 million. Statutory revenue in the six months ended December 31 gained 10.7 per cent to $7.4 billion from the year-earlier period.
$Qube Holdings Ltd (QUB.AU)$: Qube's interim net profit doubled to $111 million as the logistics group moved higher volumes of grain, steel and cars in and out of Australia and passed through higher transport and handling costs to customers.
Underlying earnings before interest taxation and amortisation (EBITA) rose almost 70 per cent in Qube's logistics and infrastructure business, which manages grain and automotive terminals as well as container parks, to $118.5 million.
$Tabcorp Holdings Ltd (TAH.AU)$: Tabcorp spin-off Lottery Corp has declared a special dividend at its half-year result.
Shareholders will see a maiden 8¢ interim dividend plus a 1¢ special dividend. The company has also lifted its dividend payout ratio target to 80-100 per cent of full-year NPAT before significant items.
The company posted a 13 per cent decline in net profit to $173 million weighed by pre-tax separation costs and finance costs relating to the demerger.
The current period also includes the results of the Keno segment following the acquisition in May 2022.
Group's revenue rose 15.4 per cent on the prior corresponding period to $1,920.2 million.
$Qantas Airways Ltd (QAN.AU)$: Qantas has posted a record underlying pre-tax profit of $1.42 billion in the half year to December, a big turnaround from its $1.2 billion loss in the prior corresponding period and towards the top end of its guidance.
Revenue tripled to $9.9 billion in the period.
Qantas had forecast an underlying pre-tax profit of between $1.35 billion and $1.45 billion in the half year to December as travel demand withstood high ticket prices and broader inflationary pressures.
$Medibank Pvt Ltd (MPL.AU)$: Medibank Private first-half net profit rose 5.9 per cent to $233.3 million and it declared an interim dividend of 6.3¢ a share, fully franked. The Medibank hack cost the business $26.2 million in non-recurring costs and that figure will be up to $45 million for the year.
No further criminal activity has been detected.
The health insurer forecast resident policyholder growth of 0.5 per cent to 0.75 per cent and a modest decline in the industry growth rate in financial year 2023 relative to financial year 2022. Full-year management expenses are also expected to be $560 million.
Commodities
• Iron ore fell after China's Dalian Commodity Exchange imposed trading limits to curb speculation in the market. The exchange announced open positions of companies that are not members of the exchange will be capped on certain contracts at 1,000 lots and on others at 2,000 lots.
The trade cap follows Chinese government complaints about high prices and alleged price manipulation in the market. Benchmark iron ore declined 0.7 per cent to US$130.20 a tonne.
• Oil sank for a sixth night amid concerns central bank rate hikes will drag western economies into recession.
"The oil market still has a recession obsession," Phil Flynn, senior market analyst at The Price Futures Group, said. "Oil prices were under pressure as rate fears are raising larger concerns of oil demand destruction."
Brent crude settled US$2.45 or 2.95 per cent lower at US$80.60 a barrel.
• Gold finished fractionally lower in regular trade before adding to its loss after the Fed minutes as the greenback rallied. Gold for April delivery settled US$1 or less than 0.1 per cent weaker at US$1,841.50 an ounce.
In recent trade, the yellow metal was down US$7.80 or 0.4 per cent at US$1,834.70. The NYSE Arca Gold Bugs Index slid 2.31 per cent.
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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