AU Morning Wrap: ASX Climbs; AGL Soars 14% on Mega Profit Upgrade

Moomoo News AU wrote a column · Jun 16, 2023 08:30

G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 rallies to 14-month high
• ASX rallies at open as AGL shares soar
• Stocks to watch: AGL, Whitehaven
- Moomoo News AU

AU Morning Wrap: ASX Climbs; AGL Soars 14% on Mega Profit Upgrade

Wall Street Summary

U.S. stocks rose Thursday, lifted by gains in everything from shares of manufacturers to oil producers.

Markets have been buoyant in recent weeks, with the three major U.S. stock indexes closing Thursday at their highest levels since 2022. The S&P 500 on Thursday scored its sixth straight session of gains, its longest winning streak since an eight-session run in November 2021, according to Dow Jones Market Data.

The $S&P 500 Index (.SPX.US)$ added 1.2% Thursday. The $Nasdaq Composite Index (.IXIC.US)$ picked up 1.1%, and the $Dow Jones Industrial Average (.DJI.US)$ jumped 1.3%, or 429 points, to 34408, its highest close since December.

AU Market Watch

The Australian sharemarket opened higher, led by a rally in energy companies and surge in AGL Energy shares.

The benchmark $S&P/ASX 200 (.XJO.AU)$ rose 0.4 per cent to 7204.3 by 10:24am, taking its lead from strong gains on Wall Street overnight. Ten out of 11 sectors were higher in the opening minutes of trade.

The energy sector jumped 1.8 per cent after crude oil approached $US71 a barrel on optimism of strengthening demand in China. $Woodside Energy Group Ltd (WDS.AU)$ gained 1.5 per cent, $Santos Ltd (STO.AU)$ rose 1.6 per cent and $Whitehaven Coal Ltd (WHC.AU)$ was 4.8 per cent higher.

$AGL Energy Ltd (AGL.AU)$ was the standout on the local bourse, jumping 14.3 per cent to $11.04. The company has upgraded its guidance for earnings this financial year, with underlying gross earnings now put at between $1.33 billion and $1.375 billion, narrowing the range to the upper end of previous guidance.

It's also given guidance for next year that shows a continuing recovery, boosted by higher wholesale power prices and improved performance at generating plants.

Stocks to Watch

$ANZ Group Holdings Ltd (ANZ.AU)$: ANZ announced it has executed an implementation agreement with the Queensland government as part of the bank's plan to acquire Suncorp Bank. ANZ commits to establishing a major tech hub in Brisbane.

Over a five-year period, ANZ will hire or place 700 staff in the tech hub and work with Queensland universities to drive research and training in technology.

$AGL Energy Ltd (AGL.AU)$: AGL Energy has refined earnings guidance for fiscal 2023 to a range of $1.3 billion to $1.375 billion, from $1.25 billion to $1.375 billion previously. Underlying profit guidance was also revised to between $255 million to $285 million, from a previous forecast of $200 million to $280 million. The changes reflect improving conditions expected in the second half of the year.

For fiscal 2024, AGL projects between $1.875 billion and $2.175 billion in underlying earnings and between $580 million to $780 million in underlying profit after tax. The sharp upgrade is due to higher electricity prices, increased plant production.

Trading Ex-div: $African Energy Resources Ltd (AFR.AU)$

Dividends Paid: $Technology One Ltd (TNE.AU)$

Listing: $NGX Ltd (NGX.AU)$

Source: Dow Jones Newswires, AFR

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more