AU Morning Wrap: ASX Gains as Iron Ore Miners' Rally; Harvey Norman Sinks on Result
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• US markets give back early strength
• ASX 200 rose 0.54%, led by gains in energy and materials stocks.
• Stocks to watch: NextDC, Harvey Norman, De Grey Mining
- Moomoo News AU
• US markets give back early strength
• ASX 200 rose 0.54%, led by gains in energy and materials stocks.
• Stocks to watch: NextDC, Harvey Norman, De Grey Mining
- Moomoo News AU
Wall Street Summary
US stocks clawed back some of last week's heavy losses as a retreat in bond yields encouraged bargain-hunting.
The $S&P 500 Index(.SPX.US$ rallied 12 points or 0.31 per cent. The $Dow Jones Industrial Average(.DJI.US$ gained 72 points or 0.22 per cent. The $Nasdaq Composite Index(.IXIC.US$ advanced 72 points or 0.63 per cent.
"A little bit of a bounce because Friday's reaction was an overreaction," Ken Polcari, managing partner at Kace Capital Advisors, told Reuters.
AU Market Watch
Australian shares gained at the open as Wall Street rebounded from last week's sell-off.
The $S&P/ASX 200(.XJO.AU$ rose 0.54 per cent on Tuesday, led by gains in energy and materials stocks.
On the final day of February reporting season, urniture giant Harvey Norman sunk 9 per cent after saying its profit before tax slipped 11.7 per cent to $430.7 million for the six months to December 31.
$Nextdc Ltd(NXT.AU$, $Adbri Ltd(ABC.AU$ and $Sandfire Resources Ltd(SFR.AU$ also fell following results announcements.
$De Grey Mining Ltd(DEG.AU$ led the gainers, up 4.25 per cent, alongside $Capricorn Metals Ltd(CMM.AU$ and $Nickel Industries Ltd(NIC.AU$. Nickel reported an increase in its operating profit after tax to $US209.4 million.
Among the big miners, $BHP Group Ltd(BHP.AU$ gained 1.6 per cent, $Fortescue Ltd(FMG.AU$ rose 3.4 per cent and $Rio Tinto Ltd(RIO.AU$ added 2.6 per cent.
Stocks to Watch
$Sezzle Inc(SZL.AU$: Buy now, pay later junior Sezzle has trimmed its net loss to $US39.3 million on revenue that climbed 9.4 per cent to $US125.6 million for the year to December 31. It had cash on hand of $US69.5 million as at the period end.
Over 2022 it said bad debts as a percentage of underlying sales fell to a record low of 1.7 per cent thanks to improved underwriting competencies.
Sezzle posted a net loss of $US0.2 million for January on total income up 18.3 per cent year-on-year for the month to $US11.7 million.
The stock has tumbled 73.3 per cent over the past 12 months to last close at 52¢.
$Harvey Norman Holdings Ltd(HVN.AU$: Furniture giant Harvey Norman said its profit before tax slipped 11.7 per cent to $430.7 million for the six months to December 31. It will pay an interim dividend of 13 cents per share on earnings of 29.37 cents per share for the half year.
$Mesoblast Ltd(MSB.AU$: Biotechnology company Mesoblast reported its revenue at $US3.6 million ($AU5.6 million), a 39.2 per cent decline in its half-year results.
It reported a net loss of $US41.4 million, a 14.9 per cent improvement compared to the prior corresponding period.
Losses per share were 3.32¢ in the second quarter of FY23.
$Tyro Payments Ltd(TYR.AU$: Payments company Tyro has reported a statutory profit for the first time since 2015, delivering a 106 per cent increase in its interim profit to $1.1 million.
The company also recorded positive free cash flow of $600 million and a record EBITDA of $19.5 million.
A 37 per cent increase in transaction value to $21.7 billion was driven by a growing merchant base and external factors such as the absence of COVID-19 lockdowns and inflation, particularly in hospitality and retail.
$Nitro Software Ltd(NTO.AU$: Nitro will issue 2023 guidance in late April, if it is still listed on the ASX as the takeover battle between Potentia Capital and Alludo plays out.
Nitro achieved revenue of $US66.8 million ($99.1 million) for 2022, up 31 per cent. Subscription revenues were up 50 per cent and represent 83 per cent of annual business sales revenue. Its statutory loss was $US35.8 million and Nitro did not pay a dividend.
$Pilbara Minerals Ltd(PLS.AU$: UBS's equities desk was off to a busy start on Tuesday morning, trading a 2 per cent stake in Pilbara Minerals worth $250 million.
The deal, at $4.10 a share, was a 2.4 per cent discount to the last close.
Investors were speculating that the seller was Pilbara Minerals major shareholder Contemporary Amperex Technology (Hong Kong) Limited, which owned 6.9 per cent of the company's shares prior to the trade.
Commodities
• Iron ore retreated after Chinese authorities capped steel production at the industrial hub of Tangshan in response to heavy pollution. Steel mills were set to reduce sintering capacity by up to half after the regional government declared a level 2 emergency.
The most-traded May ore contract on the Dalian Commodity Exchange ended daytime trade 2.5 per cent lower at 885.5 yuan (US$127.14) a tonne.
• US gold miners rallied as gold logged its first rise in six sessions. Gold for April delivery settled US$7.80 or 0.4 per cent higher at US$1,824.90 an ounce, rebounding from its weakest close of the year. The NYSE Arca Gold Bugs Index of US miners climbed 0.63 per cent.
• Nine weeks of increases in US crude stockpiles kept oil under pressure. Brent crude settled 71 US cents or 0.9 per cent lower at US$82.45 a barrel. The front-month contract was on track for a monthly loss of 2.4 per cent.
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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