AU Morning Wrap: ASX Rises; Australian Vintage Soars 17.5%
G'day, mooers! Check out the latest news on today's stock market!
• Wall Street ends first half of year on a high
• ASX rises; United Malt rallies over 9%
• Stocks to watch: Australian Vintage, United Malt, Ramelius Resources
- Moomoo News AU
• Wall Street ends first half of year on a high
• ASX rises; United Malt rallies over 9%
• Stocks to watch: Australian Vintage, United Malt, Ramelius Resources
- Moomoo News AU
Wall Street Summary
Wall Street blazed to another rally on Friday to close a winning week, month and first half of the year after reports suggested pressure on inflation may be easing.
The $S&P 500 Index(.SPX.US$ climbed 1.2 per cent to reach its highest level since April 2022. The $Dow Jones Industrial Average(.DJI.US$ rose 285 points, or 0.8 per cent, and the $Nasdaq Composite Index(.IXIC.US$ jumped 1.4 per cent.
AU Market Watch
The $S&P/ASX 200(.XJO.AU$ edged up 0.1 per cent, or 10.2 points to 7213.5 at market open, buoyed by optimism about a pending pause at the Reserve Bank and broadening positive sentiment in New York.
The materials sector recorded gains, up 0.6 per cent. Gold miners were among the best performing. $Newcrest Mining Ltd(NCM.AU$ rallied 2.2 per cent, $Northern Star Resources Ltd(NST.AU$ rose 1.9 per cent and $South32 Ltd(S32.AU$ climbed 0.9 per cent.
An exception was Ramelius Resources. The junior gold miner dropped 2.2 per cent after it was reported that the gold miner made an off-market offer to acquire Musgrave Minerals.
Downer EDI shares added 1.1 per cent after it announced that its sealed a $540 million contract to maintain roads for Hamilton City Council in New Zealand.
United Malt surged 9.1 per cent after it reached an agreement with France's Malteries Soufflet, with the latter to buy the company at $5 a share.
Winemaker Australian Vintage soared 17.5 per cent following news that it hired E&P to run a strategic review of its $100 million business as it battles tough times in the wine market.
Stocks to Watch
$United Malt Group Ltd(UMG.AU$: United Malt has announced its reached an agreement with France's Malteries Soufflet, with the latter to buy the company at $5 a share.
It's time for a tipple for the deal makers at E&P.
$Australian Vintage Ltd(AVG.AU$: Street Talk understands ASX-listed Australian Vintage, the company behind the Tempus Two, McGuigan and Nepenthe wine brands, has hired the corporate advisory firm to run a strategic review of its $100 million business as it battles tough times in the wine market.
While it is early days, sources said the review would seek to identify ways the wine group could unlock value for shareholders, including participation in industry consolidation and rationalisation.
$Musgrave Minerals Ltd(MGV.AU$: Musgrave Minerals has announced that gold miner $Ramelius Resources Ltd(RMS.AU$ has made an off-market offer to acquire the company at 34¢ a share.
Musgrave's board has unanimously recommended its shareholders accept the offer from Ramelius.
$Downer EDI Ltd(DOW.AU$: Downer EDI has announced that its sealed a $540 million contract to maintain roads for Hamilton City Council in New Zealand.
The contract is for an initial five-year term with provisions for extensions of three years and two years.
UBS' Top Healthcare Picks
A recent UBS presentation around the ASX healthcare sector. The healthcare sector is traditionally one of the most popular (and crowded) trades when investors are concerned by the onset of a recession. This flight to safety and quality also pushes up forward P/E valuations in a sector that already doesn't come cheap at the best of times.
For most of the names in the space, UBS rates them a BUY. These include:
$CSL Ltd(CSL.AU$: Tailwinds in all its major products and the broker says it has plenty of tolerance for global large cap pharmaceutical names on these sorts of multiples for high earnings growth. Price target of $340/share.
$Telix Pharmaceuticals Ltd(TLX.AU$: If any of its major drugs work, this stock could be in for one almighty ride. Price target of $14/share.
$ResMed Inc(RMD.AU$: The market continues to underestimate the company's competitive advantage. Price target of US$290/share (its US listing's current share price is around US216/share).
Trading Ex-div: None
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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