AU Morning Wrap: ASX Gains; Bega Warns Milk Prices to Rise Again in FY2024
G'day, mooers! Check out the latest news on today's stock market!
• Wall Street slide
• ASX miners, real estate gains
• Stocks to watch: Bega, Medibank, Collins Foods
- Moomoo News AU
• Wall Street slide
• ASX miners, real estate gains
• Stocks to watch: Bega, Medibank, Collins Foods
- Moomoo News AU
Wall Street Summary
Stock indexes drifted lower as Wall Street's pullback from its big recent rally carried into a second week.
The $S&P 500 Index(.SPX.US$ fell 0.4 per cent. It's still close to its highest level in a year, reached a couple of weeks ago.
Technology stocks were the heaviest weights on the market and pulled indexes lower even though the majority of stocks on Wall Street rose. They dragged the $Nasdaq Composite Index(.IXIC.US$ to a loss of 1.2 per cent. The $Dow Jones Industrial Average(.DJI.US$ was sturdier and slipped less than 0.1 per cent.
AU Market Watch
Shares in KFC merchant Collins Foods climbed 8.8 per cent this morning after the group impressed analysts with its same store sales to start financial 2024. The group also warned on soaring cost inflation, but analysts shrugged off the news and said margins remained steady in Australia.
While Bega Cheese shares gained slightly after it warned farmgate milk prices will rise again in financial 2024, but confirmed EBITDA guidance for financial 2023.
The best performing sector this morning is tech, which is up 2.2 per cent with Westfield operator Scentre soaring 3.3 per cent and Goodman Group also advancing.
The miners and energy businesses are also higher, with tech the worst performing sector after Wall Street lost altitude last night.
Stocks to Watch
$Bega Cheese Ltd(BGA.AU$: Dairy business Bega Cheese has said falling supply of Australian milk means it expects prices to rise again in financial 2024.
As a result Bega, as one of Australia's largest buyers of farmgate milk, expects to impair the value of its bulk dairy business by between $180 million to $280 million.
$Medibank Private Ltd(MPL.AU$: The Australian Prudential Regulation Authority will force Medibank to hold an additional $250 million in capital from July as punishment for the health insurer's catastrophic data breach last year.
The extra capital will remain in place until Medibank can complete a more detailed remediation plan, and APRA said it would also "conduct a targeted technology review" to ensure the company's systems are up to standard.
Medibank has sufficient existing capital to meet this adjustment. After application of this requirement Medibank will remain well capitalised with unallocated capital remaining at 30 June 2022 levels, which was $148 million.
$Collins Foods Ltd(CKF.AU$: Collins Foods Outlook
- Cost pressures to persist during FY24
- Targeting FY24 EBITDA to be ~margin neutral with improvement in FY25.
- Supply chain, energy and menu pricing initiatives to mitigate inflation.
- Digital and delivery channels to drive further growth.
$NIB Holdings Ltd(NHF.AU$: NIB Holdings postponed its annual health insurance premium hike yet again, the insurer said on Tuesday, as claims continued to languish in the aftermath of the COVID-19 pandemic.
$BCI Minerals Ltd(BCI.AU$: Australia-based salt and potash mineral explorer BCI Minerals said on Tuesday it would sell high- purity salt from its Mardie Project in Pilbara coast to Japan's Itochu Corporation.
$Sonic Healthcare Ltd(SHL.AU$: Sonic Healthcare said on Tuesday it would buy SYNLAB Group's Swiss laboratory network for 150 million Swiss francs to expand its presence in the country.
Listing: None
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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