AU Morning Wrap: Tyro Sinks 20%; Gas Stocks Lead Losses

Wall Street Summary
US stocks rounded off a losing week with another down-leg as mixed economic data failed to clarify the likely outlook for interest rates. The Fed meets tomorrow for a two-day meeting that is expected to conclude with a 50 basis points rate hike.

Apprehension about tomorrow's consumer inflation data was sharpened by a larger increase in producer prices than economists expected. Wholesale prices ticked up 0.3 per cent last month, versus expectations for a rise of 0.2 per cent. Previous readings for October and September were revised up to 0.3 per cent from initial estimates of 0.2 per cent.

Gas stocks declined following the federal government's intervention in the gas market; Origin Energy dropped 6.6 per cent to $7.28 and AGL Energy fell 6.4 per cent to $7.49.

Tyro Payments plunged 19.8 per cent to $1.19 after rejecting a revised takeover offer from Potentia Capital and announcing that second potential bidder Westpac Banking Corporation walked away. Westpac eased 0.3 per cent to $23.36.

Nitro Software rose 4.2 per cent to $2.22 after unanimously recommending that shareholders back a revised takeover bid from Alludo of $2.15 a share.

AUB Group declined 1.4 per cent to $22.70 as it split its FY23 guidance.

Rio Tinto already owned almost 51 per cent of Toronto Stock Exchange-listed Turquoise Hill and wanted to acquire the remaining 49 per cent.

The transaction was expected to be completed this week.

"We are concerned that this proposed acquisition is likely to substantially lessen competition in the supply of takeaway liquor in the local area," ACCC commissioner Liza Carver said.

St Barbara will also undertake a demerger of assets including Atlantic and Simberi that will be held in a company to be known as Phoenician Metals which will list on the ASX.

The new proposal represents a 7.5 per cent increase on Potentia Capital’s $2 a share bid that was lobbed last week.

AUB said it expected UNPAT in the range of $41.5 million to $44.5 million for the first half of the year, representing 35.5 per cent to 45.3 per cent growth over the prior corresponding period.

Ex-dividend: None

Chinese banks opened more than 3tn yuan (US$431bn) in lines of credit for real estate companies, according to Nikkei Asia.

• Oil closed around breakeven after a choppy session. Prices initially rallied after President Putin said Russia could cut oil production in response to the G-7 price cap.

"The short-term crude demand outlook has deteriorated significantly as no one has a strong handle on how bad a recession will hit the US economy … Energy traders are going to trade very technically here and probably look to defend the $70 level for WTI crude." - Oanda senior market analyst, Ed Moya