AU Morning Wrap: ASX Falls; MinRes Sinks 8%; Fortescue Leads Miners Lower
G'day, mooers! Check out the latest news on today's stock market!
• Microsoft and Alphabet jump on earnings
• ASX falls 0.4%; Fortescue leads miners lower
• Stocks to watch: Kogan, A2 Milk, Mineral Resources
- Moomoo News AU
• Microsoft and Alphabet jump on earnings
• ASX falls 0.4%; Fortescue leads miners lower
• Stocks to watch: Kogan, A2 Milk, Mineral Resources
- Moomoo News AU
Wall Street Summary
Disappointing earnings from companies including First Republic Bank and United Parcel Service helped interrupt a weekslong stretch of market calm on Tuesday, with stocks falling as investor concerns about the economy ticked upward.
The $S&P 500 Index(.SPX.US$ fell 1.6%, and the $Dow Jones Industrial Average(.DJI.US$ fell around 345 points, or 1%, marking the largest single-day declines for both indexes since March 22. The tech-heavy $Nasdaq Composite Index(.IXIC.US$ dropped 2%, its biggest decline since March 9.
AU Market Watch
The $S&P/ASX 200(.XJO.AU$ opened 0.42 per cent lower on Wednesday, weighed down by losses across the materials sector due to lower iron ore prices.
The major miners extended their declines as iron ore prices slid amid weaker steel prices and rising inventories; $Fortescue Ltd(FMG.AU$ fell 2.7 per cent to $20.20, $BHP Group Ltd(BHP.AU$ declined 2.5 per cent to $43.07 and $Rio Tinto Ltd(RIO.AU$ dropped 1.8 per cent to $111.17.
Mineral Resources dived 7.2 per cent to $74.57 after downgrading its Mt Marion production and costs, lithium chemicals sales at Wodgina and flagging delays to expansion projects.
Local banking stocks edged higher despite a weak session on Wall Street where First Republic Bank plunged to a record low, dragging the KBW Regional Banking Index to its lowest level since November 2020. $ANZ Group Holdings Ltd(ANZ.AU$ added 0.3 per cent to $24.31, $Bendigo and Adelaide Bank Ltd(BEN.AU$ rose 0.3 per cent to $8.75 and $Bank of Queensland Ltd(BOQ.AU$ climbed 0.2 per cent to $6.03.
Kogan jumped 5 per cent to $3.78 after reporting three consecutive months of positive group adjusted EBITDA, and that it intends to undertake a buyback.
A2 Milk fell 5.1 per cent to $5.42 after warning that FY23 revenue growth is expected to be at the low end of its previous expectations
Stocks to Watch
$West African Resources Ltd(WAF.AU$: West African Resources produced 56,307 ounces of gold in the March quarter at an all-in sustaining cost (AISC) of $US1172 an ounce. The company's output was up 13 per cent on the prior quarter, but its AISC was down 10 per cent.
West African Resources reported unhedged gold sales of 48,208 ounces at an average price of $US1878 an ounce.
The company set its 2023 unhedged gold production guidance at a range of 210,000 to 230,000 ounces at an ASIC of below $US1175 an ounce.
$The a2 Milk Co Ltd(A2M.AU$: A2 Milk says it is surprised by the extent of $Synlait Milk Ltd(SM1.AU$'s profit downgrade, and has confirmed there is no material change to its FY23 outlook.
Synlait lowered its FY23 earnings expectations due to reduced demand, and higher financing and supply chain costs. Those factors were expected to hit its net profit by a combined $20 million in FY23.
"In response to Synlait's announcement, which indirectly refers to a2MC, the company is surprised at the extent of the reduction in Synlait's guidance range," a2 Milk said in a statement.
A2 Milk said there was no material change to its FY23 outlook as confirmed at t
$Mineral Resources Ltd(MIN.AU$: Mineral Resources reported iron ore shipments of 4.5 million wet metric tonnes for the third quarter, up 10 per cent on the prior quarter and in line with FY23 guidance. The average realised iron ore prices was $US109 per dry metric tonne (dmt).
A record total of 111,000 dmt of lithium spodumene concentrate was shipped, up 15 per cent on the prior quarter. A total of 7666 tonnes of lithium battery chemicals was converted, stable on the prior quarter, with 5925 tonnes sold.
MinRes said Mt Marion FY23 volumes were expected to be at the lower end of spodumene concentrate guidance of 160-180,000 dmt and lithium battery chemicals sold guidance.
$Viva Energy Group Ltd(VEA.AU$: Viva Energy reported EBITDA of $292.9 million in the first quarter of 2023, a 70 per cent increase on the same time last year.
Sales volumes increased 20.1 per cent, supported by a continued recovery in aviation and generally robust demand in all commercial sectors.
$Stockland Corp Ltd(SGP.AU$: Stockland has maintained its FY23 guidance but warned that current market conditions remain uncertain.
The company reported 98 per cent rent collection across its commercial property portfolio in the third quarter, and said high occupancy levels were maintained.
Leasing spreads accelerated to 20.5 per cent for logistics and 2.9 per cent for town centres for the financial year-to-date.
Stockland said it remained on track to deliver $1.2 billion of logistics developments over FY23 and FY24, with targeted FY23 completions of more than $500 million now 92 per cent pre-leased.
$Kogan.com Ltd(KGN.AU$: Kogan says it intends to undertake an on-market share buyback of up to a maximum of 10 per cent of issued shares, commencing May 12.
The company reported a return to consistent underlying profitability in the March quarter. It achieved three consecutive months of positive group adjusted EBITDA.
Kogan reduced its inventories to $78.3 million as at March 31 this year from $193.9 million as at March 31 last year.
Gross sales declined 28 per cent on the prior year to $188.7 million. Gross margin increased 6.5 percentage points to 31.6 per cent over the quarter.
Trading Ex-div: None
Listing: None
Source: Dow Jones Newswires, AFR
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