AU Morning Wrap: ASX Slips, New Hope Jumps on Profit Bonanza

Moomoo News AU wrote a column · Sep 19, 2023 08:39

G'day, mooers! Check out the latest news on today's stock market!
• US stocks tick up in quiet session ahead of Fed decision
• ASX slips, New Hope and Orica jump
• Stocks to watch: New Hope, Qube, Newcrest
- Moomoo News AU

AU Morning Wrap: ASX Slips, New Hope Jumps on Profit Bonanza

Wall Street Summary

U.S. stocks inched higher Monday, with technology shares stabilizing after slumping at the end of last week.

Overall, it was a subdued trading session in the lead-up to the Federal Reserve's interest-rate decision on Wednesday. The $S&P 500 Index (.SPX.US)$, the $Dow Jones Industrial Average (.DJI.US)$ and the $Nasdaq Composite Index (.IXIC.US)$ all rose less than 0.1%.

AU Market Watch

The $S&P/ASX 200 (.XJO.AU)$ eased 0.3 per cent minutes after opening with investors edgy ahead of the US Federal Reserve's policy meeting expected to reaffirm the "higher-for-longer" message on interest rates.

Most sectors, including the major banks and iron ore giants, were in the red with property leading losses.

Shares in New Hope rallied 0.8 per cent after 2023 profit climbed 11 per cent to $1 billion on strong coal demand.

Explosives giant Orica jumped 1.2 per cent. It has ramped up its targets for direct emissions reduction and has introduced an "ambition" to cut indirect emissions, bucking the broader trend for energy-intensive companies to dial back on near-term climate commitments.

Gold miner takeover target Newcrest advanced 1.2 per cent after Newmont Mining received the nod from Australia's Foreign Investment Review Board (FIRB) to proceed with its planned acquisition. The deal needs more regulatory approvals to go ahead.

Logistics group $Qube Holdings Ltd (QUB.AU)$ Holdings fell 0.7 per cent after reporting the death of an employee following an incident at its forestry harvesting operations in South Australia.

Asset management company Pacific Current Group dropped 1.4 per cent after buying an up to $62 million stake in US-based Avante Capital Partners, a private credit investment outlet.

Stocks to Watch

$Orica Ltd (ORI.AU)$: Explosives giant Orica has ramped up its targets for direct emissions reduction and has introduced an "ambition" to cut indirect emissions, bucking the broader trend for energy-intensive companies to dial back on near-term climate commitments.

The new 2030 target of at least a 45 per cent cut in Scope 1 and 2 emissions from 2019 levels compares with a previous target of 40 per cent.

A nearer-term target has also been introduced, to cut direct emissions by 30 per cent by 2026 from the same baseline year. Actual reductions are forecast to be 19 per cent by the end of 2022-23.

$New Hope Corp Ltd (NHC.AU)$: New Hope reported $1 billion in statutory profit for 2023, up 11 per cent from a year ago, taking final franked dividend to 21¢. It also declared a special dividend of 9¢.

In fiscal 2022, it paid a total dividend of 31¢.

New Hope bought back $192.4 million in shares in fiscal 2023.

Following a review by Australia's Foreign Investment Review Board (FIRB), the Treasurer has cleared the company to proceed with its proposed acquisition of Newcrest Mining.

$Newcrest Mining Ltd (NCM.AU)$: Newmont continues advancing other regulatory approvals, including the Philippines and expects to close the transaction in the fourth quarter of this year.

Newmont and Newcrest also continue engaging with the PNG Government and regulators about other approvals and clearances for the transaction.

$Pact Group Holdings Ltd (PGH.AU)$: Pact Group said the Independent Board Committee (IBC) had appointed Flagstaff Partners as financial advisers and Herbert Smith Freehills as legal advisers about Kin Group's takeover offer at 68¢ a share.

Kroll has been appointed to prepare an independent expert's report to state whether the offer is fair and reasonable.