AU Morning Wrap: James Hardie Jumps; Consumer Confidence Hits 3-Year Low

Moomoo News AU wrote a column · May 15, 2023 19:23

G'day, mooers! Check out the latest news on today's stock market!
• US stocks close higher with debt-ceiling talks in focus
• James Hardie climbs, shares flat
• Stocks to watch: Elders, James Hardie, Sezzle
- Moomoo News AU

AU Morning Wrap: James Hardie Jumps; Consumer Confidence Hits 3-Year Low

Wall Street Summary

U.S. stocks edged higher Monday as investors monitored debt-ceiling negotiations, coming off two consecutive losing weeks for the S&P 500.

The $S&P 500 Index(.SPX.US)$ added 0.3%. The $Dow Jones Industrial Average(.DJI.US)$ ticked up 0.1%, or nearly 50 points. The tech-heavy $Nasdaq Composite Index(.IXIC.US)$ rose 0.7%.

AU Market Watch

The $S&P/ASX 200(.XJO.AU)$ traded flat in morning trade as gains among the materials sector were offset by falls in real estate, healthcare, and utilities.

The best performer on the benchmark index is building products group James Hardie after it posted a 12 per cent gain in net profit for the financial year to March 31, 2023. Shares added 6.5 per cent in early trade as investors cheered the result.

On the other side of the ledger farming business $Elders Ltd(ELD.AU)$ dropped 3.2 per cent on the back of a big fall yesterday after its full-year profit result missed the market's expectations.

Broker MA Moelis said investors should still buy Elders this morning and updated its target price to $8.39 per share.

AU Consumer Confidence Hits Three-Year Low

Consumer confidence declined by 1.8 percentage points to 75.9 last week – the weakest level since April 2020, according to an ANZ-Roy Morgan survey.

It marked the 11th consecutive week that the gauge was below the 80-level.

Among the mainland states, confidence rose in Victoria and fell in NSW, Queensland, South Australia and Western Australia.

Weekly inflation expectations was unchanged at 5.3 per cent, while its four-week moving average fell 0.1 of a percentage point to 5.2 per cent.

Stocks to Watch

$James Hardie Industries PLC(JHX.AU)$: Building materials business James Hardie has posted a net profit of $US605 million ($903 million) on record sales up 4 per cent to $US3.8 billion for the financial year ending March 31, 2023.

The group has replaced its dividend payouts with a share buyback program per an announcement in last November. It said it bought back 3.8 million shares during the year worth $US708 million.

$Appen Ltd(APX.AU)$: Data entry business Appen plans to raise $60 million from institutional and retail investors.

The retail part of the raising will be via a 1 for 6 pro rata accelerated entitlement offer for $38 million and a placement worth $21 million to professional investors.

$Cettire Ltd(CTT.AU)$: Luxury online fashion retailer Cettire said it lifted sales revenue 122 per cent to $101.5 million for the March quarter. It said average customers at the quarter end were 350,653, versus 246,880 as at the prior corresponding quarter end.

For the four-month period ending April 30 it said adjusted EBITDA

$Pro Medicus Ltd(PME.AU)$: Medical software business Pro Medicus has signed a $20 million seven-year contract with US operator Gundersen Health System. It says the deal is on a transaction-based model and covers seven hospitals and 65 clinics in Wisconsin, Minnesota, and Iowa.

$New Hope Corp Ltd(NHC.AU)$: Coal miner New Hope has flagged a new legal challenge to its New Acland Mine Stage 3 in Queensland. The Oakey Coal Action Alliance and environmental group is seeking undertakings that New Acland Coal be forced to cease operations at the mine pending the outcome of an appeal.

$Sezzle Inc(SZL.AU)$: US buy now, pay later player Sezzle said it reported its third straight quarter of profits with a $US1.7 million net profit for the March quarter.

It said total income (revenue) for the quarter rose 25.5 per cent to $US34.7 million on underlying merchant sales that declined 17.9 per cent to $US369.7 million.

As at the period end the group had cash on hand of $US60.6 million.