AU Morning Wrap: Miners Drag ASX Lower; Ansell Sinks on Cost Warning

Moomoo News AU wrote a column · Jul 17, 2023 19:26

G'day, mooers! Check out the latest news on today's stock market!
• Wall St higher as earnings season ramps up
• ASX falls 0.1%; BHP, Rio Tinto fall
• Stocks to watch: Ansell, BHP, Block
- Moomoo News AU

AU Morning Wrap: Miners Drag ASX Lower; Ansell Sinks on Cost Warning

Wall Street Summary

U.S. stocks rose Monday, riding momentum from last week's encouraging reports on inflation and bank earnings.

Initially weighed down by data showing the Chinese economy barely grew in the second quarter, U.S. stock indexes gathered strength in early trading and then built on those gains as the day progressed. The $Dow Jones Industrial Average(.DJI.US)$ added 0.2%, or about 76 points. The $S&P 500 Index(.SPX.US)$ rose 0.4%, while the tech-heavy $Nasdaq Composite Index(.IXIC.US)$ advanced 0.9%.

AU Market Watch

The $S&P/ASX 200(.XJO.AU)$ is down 0.1 per cent in early trade as falls among the miners are offset by gains among the banks and tech stocks. $CommBank(CBA.AU)$ shares are up 0.4 per cent, with $National Australia Bank Ltd(NAB.AU)$ adding 0.5 per cent.

In the materials sector $BHP Group Ltd(BHP.AU)$ is down 1.2 per cent, with $Rio Tinto Ltd(RIO.AU)$ off 1.1 per cent.

In the tech sector Afterpay-owner $Block Inc(SQ2.AU)$ is up 3.5 per cent, with $Xero Ltd(XRO.AU)$ adding 0.5 per cent.

Stocks to Watch

$Ansell Ltd(ANN.AU)$: Health and safety protection equipment business Ansell says it expects to earn between $US1.17 and $US1.18 per share in financial 2023, in the middle of its prior guidance range.

It also said rising investment costs meant it expected financial 2024 adjusted earnings per share to be between $US92¢ and $US1.12. Statutory earnings per share, including investment costs, are expected between $US57¢ and $US77¢.

$HUB24 Ltd(HUB.AU)$: Funds platform Hub24 has posted $2.1 billion in net inflows in the June quarter, down 14.7 per cent on the prior corresponding period.

The company blamed rising interest rates and weak economic conditions for the result, with platform businesses slowing as some investors prefer the rising yield on term deposits to other investment options.

As at June 30, total funds under administration (FUA) stood at $80.3 billion, comprising platform FUA of $62.7 billion and portfolio administration services of $17.6 billion, up 11. 1 per cent on the prior corresponding period.

$Plenti Group Ltd(PLT.AU)$: Business lender Plenti says its loan portfolio has grown 32 per cent to $1.9 billion as at June 30.

Total revenue is up 51 per cent in the June quarter to $46 million, although cash net profit is now expected to be around breakeven over the six months to September 30 as interest rate hedging costs increase.

For its financial 2024, Plenti said it still expected to top the $4.5 million cash profit posted in financial 2023.

Trading Ex-div: $Metcash Ltd(MTS.AU)$