AU Morning Wrap: ASX Dips 0.1%, Karoon Energy, BOQ Shares Feel the Pinch
G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 rallies on cool producer prices, Nasdaq up 17% year-to-date
• ASX dips 0.1%
• Stocks to watch: Karoon Energy, BOQ, Northern Star
- Moomoo News AU
Wall Street Summary
U.S. stocks and gold prices rose Thursday after data showed U.S. producer prices unexpectedly fell in March, adding to optimism that inflation is easing.
The $S&P 500 Index (.SPX.US)$ gained 54.27 points, or 1.3%, to 4146.22, while the $Dow Jones Industrial Average (.DJI.US)$ rose 383.19 points, or 1.1%, to 34029.69. The tech-heavy $Nasdaq Composite Index (.IXIC.US)$ rose 236.93 points, or 2%, to 12166.27.
Of the 11 sectors in the S&P 500, 10 finished in the green. Only the real-estate sector declined.
AU Market Watch
The $S&P/ASX 200 (.XJO.AU)$ had a cautious start, down 0.1 per cent with gains in tech offsetting losses in energy and property sectors.
Karoon Energy was the biggest laggard, down 6.7 per cent after flagging high costs and lower production at its Bauna site in Brazil.
Bank of Queensland dropped 3.1 per cent after it cut interim dividend and revealing a $200 million impairment of goodwill charges and $60 million in costs related to risk and compliance failures.
$IGO Ltd (IGO.AU)$ rallied 1.3 per cent after receiving the green light from Western Australia's government for a battery facility.
Gold miners jumped as demand for the precious metal rallied to the highest in a year. $Northern Star Resources Ltd (NST.AU)$ lifted 2.7 per cent and $Newcrest Mining Ltd (NCM.AU)$ rose 1.7 per cent.
The major banks were mixed.
Stocks to Watch
$Bank of Queensland Ltd (BOQ.AU)$: Bank of Queensland will write down $200 million of goodwill to comply with regulation and flagged $60 million in additional costs for its risk program.
Meanwhile, the Australian Prudential Regulation Authority has approved the redemption of $200 million in subordinated tier 2 debt issued by Bank of Queensland. Tier 2 debt is a form of capital required by the regulator to protect deposits in case of a crisis. The notes have an early redemption date of May 1.
BoQ's earnings after tax are expected at $256 million, taking net profit after tax to $4 million including $60 million provision for a risk program and $200 million write-down, according to unaudited results. Official earnings will be out on April 20.
$Karoon Energy Ltd (KAR.AU)$: Oil and gas Karoon Energy has extended the suspension of its Bauna site in Brazil until possibly May. The restart of the production will depend on the completion of inspections and final scope of works.
Production for fiscal 2023 is expected to be at the low end of the current guidance range 7.5 – 9.0 million barrels of oil and unit production costs likely to be towards the upper end of the current guidance range of $US13 billion to $US17 billion.
$Nickel Industries Ltd (NIC.AU)$: Battery producer Nickel Industries has raised $US400 million ($590 million) of 2028 unsecured notes in the US 144a market. The offer will pay a coupon of 11.25 per cent and will be listed on the Singapore stock exchange. The issue is rated B1 by Moody’s and B+ by Fitch, below investment grade. Proceeds are to extend the company’s debt maturities.
Nickel Industries has removed all secured debt to simply its capital structure. It is tendering $US225million of 2025 notes and $US325 million of 2024 notes.
$IGO Ltd (IGO.AU)$: Battery minerals producer IGO has received the green light from Western Australia's government for a battery material facility in Kwinana-Rockingham.
IGO and Wyloo Metals are advancing discussions with a global battery chemical manufacturer for partnership in the project. A feasibility study is planned by mid-2024.
$WAM Capital Ltd (WAM.AU)$: WAM Leaders announced an up to $30 million share purchase plan offering an interim franked dividend of 4.5¢, giving a yield of 6.1 per cent annualised. The plan offers existing investors to buy shares at the lower of $1.4749 or 2.5 per cent discount to the five-day VWAP at the issue date.
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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