AU Morning Wrap: ASX Flat; AMA Group Plunges 45% After $55m Raise

Moomoo News AU wrote a column · Sep 8, 2023 08:40

G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 falls for third straight session
• ASX flat; AMA plunges 44% after $55m raise
• Stocks to watch: AMA Group, Fortescue Metals, Treasury Wine Estate
- Moomoo News AU

AU Morning Wrap: ASX Flat; AMA Group Plunges 45% After $55m Raise

Wall Street Summary

The $S&P 500 Index (.SPX.US)$ declined Thursday for a third consecutive trading day, dragged down by concerns about the path of interest rates and a selloff in Apple shares.

The broad index pulled back 0.3%. The tech-heavy $Nasdaq Composite Index (.IXIC.US)$ fell 0.9%, its fourth straight negative session. The blue-chip $Dow Jones Industrial Average (.DJI.US)$ was the relative outperformer, adding about 58 points, or 0.2%.

AU Market Watch

The sharemarket opened flat after a mixed lead from US markets overnight.

The $S&P/ASX 200 (.XJO.AU)$ opened 3 points higher at 7174.1. The All Ordinaries gained less than 1 point.

Shares in AMA Group tumbled 44 per cent after the listed smash repairer finished up a $55 million raise and was reinstated to trading this morning.

$Fortescue Ltd (FMG.AU)$ fell 1.2 per cent, tracking overnight declines in the iron ore price.

$Treasury Wine Estates Ltd (TWE.AU)$ is 1.5 per cent higher, after Prime Minister Anthony Albanese confirmed he will visit China later this year, the first visit of its kind in seven years.

Telco giant Telstra is up 0.3 per cent after confirming it is in talks to purchase cloud consulting company Versent.

$Magellan Financial Group Ltd (MFG.AU)$ dropped 0.2 per cent. Director Colette Garnsey is set to retire from the embattled fund manager later this year to be replaced by former Macquarie equity markets director Cathy Kovacs.

$Platinum Asset Management Ltd (PTM.AU)$ dropped 0.7 per cent after posting net fund outflows of $912 million in August, the same month it announced the resignation of chief executive Andrew Clifford.

Stocks to Watch

$AMA Group Ltd (AMA.AU)$: AMA Group's shares will once again resume trading after the listed smash repairer finished up a $55 million equity raising.

The raising was first revealed by The Australian Financial Review's Street Talk column last month, and shares were priced at 7.5¢, marking a 37.5 per cent discount to its last traded price of 12¢ on August 30.

The group said the funds will be used to help repay $35 million in existing senior bank debt and provide liquidity and working capital.

$GQG Partners Inc (GQG.AU)$: GQG Partner's funds under management have shrunk back in August.

The asset management firm’s total funds under management dropped to $US107.4 billion ($168.42 billion) at the end of August, from $US108.1 billion a month earlier.

GQG's emerging markets segment recorded the largest drop, falling $700 million to $US28.7 billion.

Net flows for the first 8 months of the year stand at $US7.3 billion.

$Monadelphous Group Ltd (MND.AU)$: Engineering company Monadelphous has secured a new construction contract, valued at $160 million

The contract is for the construction of a chemical plant at Talison Lithium's Greenbushes site in the south-west of Western Australia,

Work is set to commence onsite later this year and is expected to be completed in the first half of 2025.

$Telstra Group Ltd (TLS.AU)$: Telco giant Telstra has confirmed it is in talks to purchase cloud consulting company Versent.

The talks were first revealed by The Australian Financial Review’s Street Talk column on Wednesday.

Investment bank Goldman Sachs has been marketing the Melbourne cloud transformation and consulting group and a deal is expected to be worth about $400 million.

Trading Ex-div: $Nine Entertainment Co. Holdings Ltd (NEC.AU)$

Dividends Paid: $JB Hi Fi Ltd (JBH.AU)$, $Probiotec Ltd (PBP.AU)$, $Baby Bunting Group Ltd (BBN.AU)$

Listing: None

Source: Dow Jones Newswires, AFR

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