AU Morning Wrap: ASX Slips as Real Estate Falls

Moomoo News AU wrote a column · Mar 25 18:45

G'day, mooers! Check out the latest news on today's stock market!
• Dow, S&P 500 end lower
• ASX slips as real estate falls
• Stocks to watch: Premier Investments, Seven Group, De Grey Mining

AU Morning Wrap: ASX Slips as Real Estate Falls

Wall Street Summary

At the beginning of the last week of March, stocks were taking a break, but the first quarter results were still expected to be strong.

On Monday, the major U.S. stock indexes closed lower, with the $Nasdaq Composite Index(.IXIC.US)$ falling back from its record-high level to start the shortened holiday week. The $Dow Jones Industrial Average(.DJI.US)$ declined by 162.26 points, or 0.4%, and closed at 39,313.64. The $S&P 500 Index(.SPX.US)$ dropped by 15.99 points, or 0.3%, and ended at 5,218.19. The Nasdaq Composite Index also finished lower by 44.35 points, or 0.3%, at 16,384.47.

AU Market Watch

At the beginning of trading, Australian stocks have decreased, following the slight decline in Wall Street overnight.

On the ASX, 9 out of 11 sectors are currently experiencing losses, with real estate stocks leading the way, falling 1% after a 2% increase on Monday.

Citigroup's Chris Montagu has suggested that the current $S&P/ASX 200(.XJO.AU)$ positioning "could lead to near-term profit-taking, especially given the market's leverage to China through resources" in his recent equity markets positioning note. He said, "There has been no letup in bullish momentum for the S&P/ASX 200. Positioning is one-sided and levels are currently the most extended seen in the past three years".

Stocks to Watch

$Seven Group Holdings Ltd(SVW.AU)$, owned by Kerry Stokes, has responded to the recent independent review that advised Boral shareholders to decline its takeover bid that was proposed earlier this year.

Solomon Lew, the Chairman of $Premier Investments Ltd(PMV.AU)$, has announced that the process of spinning off the company's key brands has already begun. The demerger of the children's stationery brand Smiggle is set to take place by the end of January 2025, while a possible demerger of PJ brand Peter Alexander is being explored.

$NexGen Energy Ltd(NXG.AU)$'s Director Ivan Mullany has been tasked with leading a committee to help bring $De Grey Mining Ltd(DEG.AU)$'s WA Hemi gold project to production.