AU Morning Wrap: ASX Opens 0.1% Lower, Nanosonics Soars 11% on Guidance Upgrade

Moomoo News AU wrote a column · Jan 18, 2023 17:39

G'day, mooers! Check out the latest news on today's stock market!
• US Stocks sink on poor data, Microsoft to start layoffs
• ASX 200 edged 0.14 per cent, weighed down by losses across the technology sector
• Stocks to watch: Nanosonics, Paladin Energy, Nickel Industries
- Moomoo News AU

AU Morning Wrap: ASX Opens 0.1% Lower, Nanosonics Soars 11% on Guidance Upgrade

Wall Street Summary

The $S&P 500 Index(.SPX.US)$ declined 62 points or 1.56 per cent to a second straight loss. The $Dow Jones Industrial Average(.DJI.US)$ dropped 614 points or 1.81 per cent. The $Nasdaq Composite Index(.IXIC.US)$ fell 138 points or 1.24 per cent to its first loss in eight sessions.

The session started brightly after both retail sales and producer prices fell more than expected last month. Retail sales suffered their biggest decline of the year as they contracted for a second straight month. The 1.1 per cent slide was the largest since December 2021 and worse than forecast. The November sales slowdown was also revised higher.

Optimism about declining inflation was stoked by news producer prices dropped 0.5 per cent last month. The decline brought the annual rate of wholesale inflation down to 6.2 per cent from 7.3 per cent in November.

AU Market Watch

The $S&P/ASX 200(.XJO.AU)$ edged 0.14 per cent, weighed down by losses across the technology sector.

Nanosonics rallied 11.4 per cent to $5.28 after it upgraded its FY23 guidance.

$Paladin Energy Ltd(PDN.AU)$ dropped 5.8 per cent to 73.5¢ and Netwealth fell 7.4 per cent to $12.90 after reporting their quarterly results.

$Nickel Industries Ltd(NIC.AU)$ declined 5.4 per cent to $1.06 after announcing it has completed its institutional placement.

Stocks to Watch

$Michael Hill International Ltd(MHJ.AU)$: Jewellery retailer Michael Hill has reported record sales of $363.3 million for the first half of the 2023 financial year, up 11.7 per cent on the prior corresponding period (pcp).

Digital sales declined by 9 per cent on the pcp, however were still up 30 per cent on the same period in FY21.

$Northern Star Resources Ltd(NST.AU)$: Northern Star Resources has maintained its FY23 guidance after reporting it sold 404,000 ounces of gold at an all-in sustaining cost of $1746 in the December quarter.

$BHP Group Ltd(BHP.AU)$: BHP says its production guidance for the 2023 financial year remains unchanged, with Escondida and BHP Mitsubishi Alliance (BMA) trending to the low end of their respective guidance ranges.

Full year unit cost guidance1 for BHP's Escondida and Western Australia Iron Ore operation remains unchanged.

$Santos Ltd(STO.AU)$: Santos delivered sales revenue of $US1.9 billion in the fourth quarter, bringing 2022 revenue to a record $US7.8 billion, up 65 per cent on the prior year.

The company reported fourth quarter production of 25.6 million barrels of oil equivalent which was slightly lower than the third quarter due to reduced domestic gas volumes in Western Australia following unplanned maintenance at its John Brookes operation.

$Netwealth Group Ltd(NWL.AU)$: Netwealth's funds under management increased 5 per cent in the December quarter to $14.4 billion, with $400 million of net inflows.

Funds under administration (FUA) jumped 7.4 per cent to $62.4 billion, comprising net inflows of $2.1 billion and positive market movement of $2.2 billion.

$Bellevue Gold Ltd(BGL.AU)$: Bellevue Gold's mining proposal and mine closure plan for the Bellevue Gold Project have been approved by the Department of Mines, Industry Regulation and Safety.

$Nanosonics Ltd(NAN.AU)$: Nanosonics expects to report profit before tax of around $11.4 million for the first half of FY23, compared with $3.3 million in the prior corresponding period (pcp).

Total revenue for the half year is projected to be $81.6 million, representing an increase of 35 per cent compared with the pcp.

Gross margin for the half year is expected to be around 79 per cent, compared with 77 per cent in the pcp.

$Imdex Ltd(IMD.AU)$: Drilling services group Imdex has entered into a binding agreement to acquire Devico AS for an implied enterprise value of $324 million.

The transaction was flagged by Street Talk.

Devico is a global mining-tech company headquartered in Trondheim, Norway.

$Nuix Ltd(NXL.AU)$: Nuix expects to report annualised contract value in the range of $168 million to $171 million for the half year ended December 31, an increase of 3.7 per cent to 5.6 per cent on the half year ending June 2022.

Statutory revenue is expected to be between $85 million and $88 million, up from $84 million in the prior corresponding period.

Commodities

• Iron ore prices rebounded despite another warning from China's state planner about excessive speculation. The National Development and Reform Commission said it will increase supervision of spot and futures markets after previously warning against hoarding and price manipulation.

The most-traded May ore on China's Dalian Commodity Exchange climbed 0.9 per cent in daytime trade to at 841.5 yuan (US$124.27) a tonne.

• Oil faded to its first loss in nine sessions in the US. West Texas Intermediate touched its highest since December before settling 70 US cents or 0.96 per cent lower at US$79.48 a barrel.

The international benchmark, Brent crude, settled 94 US cents or 1.1 per cent lower at US$84.98 a barrel.

• Gold finished modestly lower after setting a nine-month high. Gold for February delivery settled US$2.90 or 0.2 per cent weaker at US$1,907 an ounce after trading as high as US$1.929.80. The NYSE Arca Gold Bugs Index eased 0.56 per cent.

Source: Dow Jones Newswires, AFR

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