AU Morning Wrap: ResMed Falls After Downgrade; Orora Plunges 20%

Moomoo News AU joined discussion · Sep 6, 2023 08:41

G'day, mooers! Check out the latest news on today's stock market!
• Investors head into fall with jitters after summer rally
• ASX opens lower; ResMed, Macquarie sink
• Stocks to watch: Orora, Macquarie, ResMed
- Moomoo News AU

AU Morning Wrap: ResMed Falls After Downgrade; Orora Plunges 20%

Wall Street Summary

Major stock indexes on Wall Street closed lower, giving back some of their recent gains as traders returned from a long holiday weekend.

The $S&P/ASX 200 (.XJO.AU)$ fell 0.4 per cent, while the $Nasdaq Composite Index (.IXIC.US)$ slipped 0.1 per cent. Both indexes were coming off their second weekly gain. The $Dow Jones Industrial Average (.DJI.US)$ lost 0.6 per cent.

AU Market Watch

The Australian sharemarket has opened lower, following overnight US markets and ahead of second quarter GDP figures later today.

The $S&P/ASX 200 (.XJO.AU)$ opened 18.5 points, or 0.3 per cent, lower at 7295.8. The All Ordinaries also opened 0.3 per cent lower.

Early in trade, the healthcare sector is the worst performing. Shares in ResMed have opened 2.6 per cent lower after analysts at UBS downgraded the dual-listed healthtech stock due to the rise of competitor treatments from weight loss drugs like Ozempic.

Can and bottle maker $Orora Ltd (ORA.AU)$ plunged 20.5 per cent after hitting the market for the first time this month, following the competition of a $1.35 billion equity raise to fund the buyout of France’s Saverglass.

Shares went into a halt on August 30, ahead of details on the buyout plans.

Macquarie Group dropped 2.1 per cent after flagging investment-related income from its green energy investments was "substantially down" in the most recent quarter.

In a presentation released ahead of the Asia Forum in Hong Kong, the group said its annuity-style businesses' combined net profit in the three months to June 30 was substantially down on the previous year's.

Stocks to Watch

$ResMed Inc (RMD.AU)$: Analysts at UBS have downgraded dual-listed healthtech stock ResMed, due to the rise of competitor treatments from weight loss drugs like Ozempic.

In recent months, the stock has come under increasing pressure from short-sellers, who are banking on Ozempic, the diabetes treatment which has become a popular weight loss drug, reducing demand for sleep apnoea products.

UBS analysts had flagged the rise of weight loss drugs as a potential headwind for the company earlier this year, and have subsequently slashed ResMed's price target by 36 per cent to $US170, dropping the stock to a neutral rating from a buy rating.

$TPG Telecom Ltd (TPG.AU)$: TPG Telecom has extended negotiations over its potential $6.3 billion deal with Vocus Group.

Under the deal, Vocus is proposing to buy some of TPG's fibre assets, including Vision Network.

Earlier this month, TPG Telecom's shares soared to their highest level in a year after the communications business confirmed it was in talks over the deal.

The due diligence period was set to lapse today but has now been extended to October 4.

$Macquarie Group Ltd (MQG.AU)$: Macquarie Group has flagged investment-related income from its green energy investments was "substantially down" in the most recent quarter.

"This was primarily due to lower investment-related income from green energy investments, with asset realisations predominately expected in 2H24," the group said.