AU Morning Wrap: Miners, Banks Drag ASX 1.3% Lower; BHP, Woodside Fall

Moomoo News AU wrote a column · Mar 16, 2023 07:38

G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 claws back losses, Credit Suisse chaos rattles global markets
• Miners, banks drag ASX 1.3% lower
• Stocks to watch: Lynas, Pilbara Minerals, Whitehaven Coal
- Moomoo News AU

AU Morning Wrap: Miners, Banks Drag ASX 1.3% Lower; BHP, Woodside Fall

Wall Street Summary

The Dow Jones Industrial Average fell Wednesday as concern over a banking crisis spreading to Europe pressured the broader market.

The 30-stock $Dow Jones Industrial Average (.DJI.US)$ ended 280.83 points, or 0.9%, lower at 31,874.57. The $S&P 500 Index (.SPX.US)$ dropped 0.7% to 3,891.93. The $Nasdaq Composite Index (.IXIC.US)$ eked out a small gain, rising 0.05% to 11,434.05. The major averages ended the day well off their session lows. The Dow at one point was down 725 points, and the S&P 500 briefly gave up all of its 2023 gains.

AU Market Watch

$S&P/ASX 200 (.XJO.AU)$ dropped 1.34 per cent at the open.

Heavy falls in the prices of oil and metals overnight have dragged the materials sector 2.5 lower in early trade.

Lithium and iron ore miner $Pilbara Minerals Ltd (PLS.AU)$ is down 6 per cent, with $Rio Tinto Ltd (RIO.AU)$ tumbling 4.8 per cent and BHP off 4 per cent.

Rare earths giant $Lynas Rare Earths Ltd (LYC.AU)$ has lost another 3.5 per cent to a new 52-week low of $6.35.

The energy sector is also lower after oil prices hit their lowest since December 2021 overnight. $Whitehaven Coal Ltd (WHC.AU)$ is down 4.6 per cent to $6.68, with $Woodside Energy Group Ltd (WDS.AU)$ down 3.3 per cent.

Worries over the health of the global banking sector again appear to have spilled over onto the local sharemarket. $CommBank (CBA.AU)$ is down 1.9 per cent, with $National Australia Bank Ltd (NAB.AU)$ off 2.4 per cent.

Gold miners $Newcrest Mining Ltd (NCM.AU)$ and $Northern Star Resources Ltd (NST.AU)$ are among a handful of large caps to catch a bid higher.

Stocks to Watch

$BHP Group Ltd (BHP.AU)$: BHP Group has announced it will defend a ballooning class action in the UK seeking compensation for the miner's alleged failures in the Samarco dam collapse in Brazil.

BHP said it will defend the UK high court proceedings as it believes they're unnecessary and duplicate matters already covered in Brazil.

$Fonterra Shareholders Fund (FSF.AU)$: Fonterra Shareholders Fund has posted a net profit up 50 per cent to $NZ546 million for the six months to December 31. It will pay an interim dividend of NZ10¢ per share on earnings of NZ33¢ per share.

The collective also lifted its guidance for financial 2023 to between NZ55¢ per share NZ75¢ per share, versus prior guidance between NZ55¢ per share and NZ75¢ share.

$Kelsian Group Ltd (KLS.AU)$: Kelsian Group confirmed that it has agreed to acquire All Aboard America! Holdings for an enterprise value of $US325 million ($487 million).

Shares in Kelsian were halted pending the news.

Kelsian said it will fund the purchase by selling $281 million worth of equity, consisting of a $135 million institutional placement, a $143 million 1 for 8.5 pro rata accelerated non-renounceable entitlement offer and a $3 million vendor conditional share issue.

It also will tap $226 million from its debt facilities, it said.