AU Morning Wrap: ASX Slips; Endeavour, IGO Tumble
G'day, mooers! Check out the latest news on today's stock market!
• US stocks rise for week as inflation fears calm
• ASX slips; IGO shares tumble over 7%
• Stocks to watch: Endeavour, IGO, Whitehaven Coal
- Moomoo News AU
• US stocks rise for week as inflation fears calm
• ASX slips; IGO shares tumble over 7%
• Stocks to watch: Endeavour, IGO, Whitehaven Coal
- Moomoo News AU
Wall Street Summary
The S&P 500 hovered near its highest close since April 2022 on Friday after signs of cooling inflation this week boosted stocks marketwide.
The broad U.S. stock index edged lower for the day after earnings reports from big banks suggested resilience in the economy, but executives cautioned that a recession was still possible.
The $Dow Jones Industrial Average(.DJI.US$ and the tech-heavy $Nasdaq Composite Index(.IXIC.US$ recorded their best weeks since March, rising 2.3% and 3.3%, respectively. The $S&P 500 Index(.SPX.US$ gained 2.4% in a broad-based advance, with all 11 sectors moving higher for the week.
AU Market Watch
The Australian sharemarket slipped 0.1 per cent, or 13.8 points to 7289.3 at market open, after the sharemarket recorded its best week since November, amid hopes the Reserve Bank is nearing the end of its aggressive tightening cycle.
The benchmark $S&P/ASX 200(.XJO.AU$ index was weighed by sharp losses in the consumer staples and real estate sectors.
Consumer staple stocks were down 1 per cent. $Endeavour Group Ltd(EDV.AU$ shares tumbled 9.3 per cent to $4.58, after four days of gains. That's after the Victorian government imposed tougher restrictions on poker machines in the state, including mandatory closing hours and smaller spending limits.
The interest rate sensitive real estate sector recorded losses of 0.9 per cent. $Mirvac Group(MGR.AU$ shares lost 2.3 per cent, $Dexus(DXS.AU$ dropped 1.1 per cent, $Stockland Corp Ltd(SGP.AU$ shed 1 per cent.
$IGO Ltd(IGO.AU$ shares tumbled over 7 per cent at the opening bell. The nickel miner flagged a non cash and pre-tax impairment of $880 million to $980 million for assets the company acquired from Western Areas in June last year.
$Whitehaven Coal Ltd(WHC.AU$ shares rallied 2.9 per cent after it reported that June-quarter production increased 19 per cent to 5.1 metric tonnes when compared to the previous March quarter.
Stocks to Watch
$Whitehaven Coal Ltd(WHC.AU$: Whitehaven Coal says its June-quarter production increased 19 per cent to 5.1 metric tonnes when compared to the previous March quarter.
The miner says it achieved an average coal price of $264 a tonne for the quarter and $445 a tonne for financial 2023.
It expects to report a FY23 production cost of $103 a tonne, blaming weather disruptions and operations constraints at its Maules Creek project for the higher costs.
$Technology One Ltd(TNE.AU$: TechnologyOne has announced that chief financial officer Paul Jobbins is stepping down from his position.
Cale Bennett has been appointed as his replacement and is expected to start on August 1. Bennett was most recently the CFO for Corporate Travel Management.
$IGO Ltd(IGO.AU$: IGO flagged a non cash and pre-tax impairment of $880 million to $980 million for assets the company acquired from Western Areas in June last year.
The miner says the impairment came from the reassessment of the accounting value at its Cosmos and Forrestania projects to "reflect higher capital and operating costs, challenges to the mine production schedule and delays in development at Cosmos".
It has withdrawn the October 31, 2022, guidance for its Cosmos project.
$Vulcan Steel Ltd(VSL.AU$: Vulcan Steel has downgraded its earnings expectations for financial year 2023, according to the steel distributor's latest trading update.
The company's revised forecast earnings before interest, taxes, depreciation and amortisation (including integration costs) is $NZ205 million ($190.8 million) to $NZ209 million, down from its previous guidance of $NZ215 million to $NZ230 million.
Net profit is projected at $NZ86 million to $NZ89 million, lower than its previous guidance of $NZ95 million to $NZ109 million.
$Neuren Pharmaceuticals Ltd(NEU.AU$: Broker Wilsons has raised its price target on biotech darling Neuren to $22.32.
Neuren has developed a treatment for neurological disorder Rett syndrome in children, which received US regulatory approval in March last year.
Listing: None
Source: Dow Jones Newswires, AFR
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