AU Morning Wrap: ASX Slips, Viva Energy Slumps on Block Trade Speculation

Moomoo News AU wrote a column · Sep 12, 2023 08:35

G'day, mooers! Check out the latest news on today's stock market!
• Tesla surge propels stock markets higher
• ASX slips, Viva Energy slumps
• Stocks to watch: Novonix, Santos, Viva Energy
- Moomoo News AU

AU Morning Wrap: ASX Slips, Viva Energy Slumps on Block Trade Speculation

Wall Street Summary

Shares in Tesla pulled stock markets higher Monday, thanks in large part to hype around a supercomputer dubbed "Dojo."

All three indexes opened in the green and stayed there through the closing bell, clawing back some of last week's losses. The $S&P 500 Index (.SPX.US)$ climbed 0.7%, while the tech-heavy $Nasdaq Composite Index (.IXIC.US)$ rose 1.1%. The $Dow Jones Industrial Average (.DJI.US)$ gained 0.3%, or roughly 87 points.

AU Market Watch

The $S&P/ASX 200 (.XJO.AU)$ nudged 0.2 per cent lower after opening on Tuesday as overnight gains in iron ore prices and tech stocks were offset by a slump in energy.

Fuel retailer and refiner Viva Energy dropped 5.1 per cent after Street Talk reported that Swiss-based Vitol was considering trimming its Viva stake in a $500 million minimum block trade.

Takeover target lithium mining company Liontown Resources declined 0.7 per cent after Gina Rinehart didn't rule out launching a bid to rival Albemarle's $6.6 billion acquisition plan.

Oil and gas company Santos fell 1.2 per cent. It secured $US850 million ($1.3 billion) in a 10-year bond sold to US investors. Woodside declined 1 per ent and Beach Energy lost 1.1 per cent.

Battery materials supplier $Novonix (NVX.AU)$ leapt 14 per cent.

Mining heavyweight $Rio Tinto Ltd (RIO.AU)$ jumped 1.6 per cent, $BHP Group Ltd (BHP.AU)$ rallied 1 per cent and $Fortescue Ltd (FMG.AU)$ climbed 1.4 per cent. The move higher came after Chinese data eased some concerns about the nation's economic outlook.

Gold miners also rose with $St Barbara Ltd (SBM.AU)$ up 2.7 per cent. $Northern Star Resources Ltd (NST.AU)$ added 1.7 per cent.

Stocks to Watch

$Liontown Resources Ltd (LTR.AU)$: Gina Rinehart has not ruled out launching a bid to rival Albemarle's $6.6 billion takeover tilt at Liontown Resources after confirming she now holds a strategic stake in the West Australian lithium prize.

Mrs Rinehart's Hancock Prospecting revealed late on Monday that it has a 7.72 per cent stake in Liontown, and intends to have a say in the future of one of the world's biggest lithium projects.

$Westpac Banking Corp (WBC.AU)$: Westpac Banking Corporation has launched a new five-year benchmark Australian dollar-denominated floating and/or fixed rate note. Initial price guidance is about 97 basis points over swap and three-month BBSW.

There were no details about the amount. A benchmark size is typically at least $750 million.

$Imugene Ltd (IMU.AU)$: Biotech company Imugene was granted a new patent by Japan for its immunotherapeutic PD1-Vaxx used to treat tumours. The drug is currently in clinical development for non-small cell lung cancer.

The patent will expire in March 2038.

$Santos Ltd (STO.AU)$: Oil and gas heavyweight Santos has priced a $US850 million ($1.3 billion) 10-year bond offering in the US 144a private market. The notes, to be issued by Santos Finance, will pay a coupon of 6.875 per cent. Proceeds will be used for general corporate purposes.

$Viva Energy Group Ltd (VEA.AU)$: Commodity trading juggernaut Vitol may be poised to jettison a chunk of its 40.85 per cent stake in ASX-listed fuel retailer and refiner Viva Energy.

Investor sources told Street Talk that Vitol had been entertaining pitches from equity capital markets teams and while a final decision had not been made, was considering trimming its Viva stake via a block trade in the coming days. It owns 633 million shares in Viva, worth about $2 billion.