AU Morning Wrap: ASX Nudges Up, Buoyed by Miners, Energy

Moomoo News AU wrote a column · Jun 20, 2023 08:35

G'day, mooers! Check out the latest news on today's stock market!
• ASX nudges up, buoyed by miners, energy
• Stocks to watch: Woodside, Miners Pilbara, Best & Less
- Moomoo News AU

AU Morning Wrap: ASX Nudges Up, Buoyed by Miners, Energy

RBA Meeting Minutes

RBA meeting minutes at 11.30am AEST; Assistant governor Christopher Kent will participate on a panel at the ISDA/AFMA Derivatives Forum, Sydney at 11.35am AEST; Deputy governor Michele Bullock will speak on Achieving Full Employment at the Ai Group, Newcastle at 1.15pm AEST

AU Market Watch

$S&P/ASX 200 (.XJO.AU)$ gained 0.3 per cent in early trade, buoyed by miners and energy on hopes that China will announce stimulus to support a shaky economic recovery.

People's Bank of China is expected to cut its benchmark loan prime interest rates on Tuesday, following a similar reduction in medium-term policy loans last week.

Woodside Energy rose 0.5 per cent after giving the nod to a massive $US7.2 billion ($10.5b) oil project, off Mexico's north-east coast.

Retailer Best & Less Group was flat even as it slashed profit guidance due to falling sales.

Miners Pilbara Minerals and IGO climbed 1.8 per cent and 0.8 per cent respectively after UBS revised higher its lithium price expectations on both companies. Meanwhile, Lake Resources plunged 14.5 per cent to be the biggest index loser.

The major banks rose, except ANZ which slipped 0.1 per cent.

Iron ore giants BHP and Rio Tinto gained between 0.6 per cent and 0.7 per cent.

Industrials was the only sector in the red.

Stocks to Watch

$Fortescue Ltd (FMG.AU)$: Mining and green energy billionaire Andrew Forrest has revealed plans to transform his recently acquired British Formula 1 car designer WAE into the key hub for Fortescue's worldwide battery and electric vehicle ambitions.

$Pilbara Minerals Ltd (PLS.AU)$, $IGO Ltd (IGO.AU)$: UBS has revised its realised price expectations for lithium miners after the Platts spodumene price ticked up about 13 per cent to $US3500 a tonne at the weekend.

Pilbara Minerals is now forecast to realise $US3360 a tonne on sales of 162kt in the April-June quarter, and cautioned that the average realised price appeared "a little high". UBS said Pilbara's realised price was not that bad, but below consensus.

IGO's spodumene price is expected to fetch $US4340 a tonne, which is 12 per cent above UBS's current $US3,870/t estimate in the September quarter and 38 per cent over UBS's FY24 average of $US3150/t.

$Woodside Energy Group Ltd (WDS.AU)$: Woodside is pressing ahead on a massive new oil project in Mexico that it inherited from BHP in a move that looks set to rekindle critics wanting the oil and gas producer to move faster towards low-carbon energy.

The board of the Perth-headquartered producer has approved development of the $US7.2 billion ($10.5b) Trion project, off Mexico's north-east coast, including $US4.8 billion in capital commitments from Woodside.

$Centuria Capital Group (CNI.AU)$: Centuria Capital Group has acquired the Busselton Boulevard Shopping Centre in Western Australia for $16 million. It will form a single-asset, closed-ended wholesale property fund, called the new Busselton Boulevard Shopping Centre Trust (BBSCT or Trust).

$Best & Less Group holdings Ltd (BST.AU)$: Retailer Best & Less Group has sharply downgraded profit guidance as sales drop.

The company expects net profit of between $3.6 million and $4.2 million in the second half of fiscal 2023, from $10 million to $12 million previously. Total revenue is now forecast to be between $310 million and $315 million.

$Thorn Group Ltd (TGA.AU)$: Thorn Group plans to sell its asset finance portfolio for $15 million to Resimac, subject to shareholder approval.

Trading Ex-div: $Premier Investments Ltd (PMV.AU)$

Dividends Paid: $Amcor PLC (AMC.AU)$

Listing: None

Source: Dow Jones Newswires, AFR

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