AU Morning Wrap: ASX Falls, Weighed by Gold Miners

Moomoo News AU wrote a column · Jul 27, 2023 19:30

G'day, mooers! Check out the latest news on today's stock market!
• Dow's winning streak comes to an end
• ASX falls, weighed by gold miners
• Stocks to watch: Capricorn Metals, Silver Lake Resources, Estia Health
- Moomoo News AU

AU Morning Wrap: ASX Falls, Weighed by Gold Miners

Wall Street Summary

The $Dow Jones Industrial Average(.DJI.US)$ fell Thursday, ending a streak of 13 consecutive winning sessions.

The Dow's run of gains was the longest since 1987 and the second-longest on record. The blue-chip index fell 237 points on Thursday, or 0.7%. The $S&P 500 Index(.SPX.US)$ fell 0.6%, while the tech-heavy $Nasdaq Composite Index(.IXIC.US)$ dropped 0.5%. Stocks were in the green for much of the session, losing steam in the afternoon.

AU Market Watch

The $S&P/ASX 200(.XJO.AU)$ tumbled 0.7 per cent to 7404.9 in the opening minutes of trade on Friday, weighed by mining and real estate stocks.

$Capricorn Metals Ltd(CMM.AU)$ sank 10.8 per cent to $4.30 following its quarterly report.

The stronger US dollar weighed on gold miners; $Silver Lake Resources Ltd(SLR.AU)$ declined 6.1 per cent to $1.08 and $Gold Road Resources Ltd(GOR.AU)$ fell 5.9 per cent to $1.52.

Pointsbet firmed 0.9 per cent to $1.67 after flagging it expects EBITDA to be at, or close to, breakeven from April 2024.

Estia Health fell 1.1 per cent to $2.73 on news that it is continuing to engage in "constructive discussions" with Bain Capital to progress a potential transaction.

Stocks to Watch

$Pointsbet Holdings Ltd(PBH.AU)$: Pointsbet has flagged that it expects a significant cost reduction in its technology segment expenses, corporate segment expenses and capitalised technology staff costs in FY24 as a result of the sale of its US business.

The company also expects EBITDA to be at or close to breakeven from April 2024.

$Estia Health Ltd(EHE.AU)$: Estia Health said it was continuing to engage in "constructive discussions" with Bain Capital to progress a potential transaction.

Estia announced in June that it received a non-binding and conditional bid from Bain of $3.20 a share in cash.

$Champion Iron Ltd(CIA.AU)$: Champion Iron reported record quarterly production of 3.4 million wet metric tonnes of iron ore concentrate for the three months ended June 30, an increase of 49 per cent and 10 per cent compared to the same period last year and the previous quarter, respectively.

The company delivered quarterly iron ore concentrate sales of 2.6 million dry metric tonnes for the three-month period, up 27 per cent from the same period in 2022, but down 17 per cent from the previous quarter due to the impact of forest fires north of Sept-Îles, Québec.

Champion reported revenue of $297.2 million for the three-month period, net cash flow from operating activities of $49.3 million and EBITDA of $65.8 million.

$Liontown Resources Ltd(LTR.AU)$: Liontown Resources says its Kathleen Valley lithium project remains on target for first production mid-2024.

The company reported a "significant increase" in mining and construction activity during the June quarter, with the first mill feed and direct shipping ore produced and stockpiled, and a step change in progress made on both process plant and power station infrastructure build.

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