AU Morning Wrap: TPG Tumbles Over 7%; Alumina Jumps on Takeover Bid

Moomoo News AU wrote a column · Feb 25 17:58

G'day, mooers! Check out the latest news on today's stock market!
• Nvidia's earnings report gives 2024 market rally fresh legs
• ASX rises
• Stocks to watch: Suncorp, Endeavour Group, Kogan

AU Morning Wrap: TPG Tumbles Over 7%; Alumina Jumps on Takeover Bid

Wall Street Summary

All three major U.S. equity indexes added at least 1.3 per cent for the week, marking six weekly gains in the eight weeks of 2024 so far. The S&P 500 and Dow Jones Industrial Average closed at new records on Thursday, then did it again Friday. The Dow on Thursday rose above 39000 for the first time.

AU Market Watch

Australian shares opened higher on Monday, tracking the optimism that sent Wall Street to a record on Friday, capitalising on the historic rally of Nvidia.

The benchmark $S&P/ASX 200(.XJO.AU)$ rose 0.3 per cent or 20.8 points to 7664.4 at the start of trade, buoyed by financials and consumer discretionary stocks.

Stocks to Watch

$Suncorp Group Ltd(SUN.AU)$: Suncorp rose 1.3 per cent after the financials company revealed it reaped an extra 16 per cent in insurance premiums, amid surges in price rises across industry.

$TPG Telecom Ltd(TPG.AU)$: TPG Telecom's shares tumbled 8 per cent after its annual net profit shrunk to $49 million from $513 million a year earlier as the company's expenses rose, driven by higher telecommunications tower leasing costs and increased interest rates on debt.

$Endeavour Group Ltd(EDV.AU)$: Endeavour Group dropped 3 per cent after its net profit fell 3.6 per cent to $351 million, dented by higher financing costs. This was in line with company expectations and not as bad as feared by analysts who tipped a 5.3 per cent fall.

$Kogan.com Ltd(KGN.AU)$: Online retailer Kogan rallied 7 per cent and has reinstated its dividend after returning to profitability in the December half, although revenue slipped by 9.9 per cent as shoppers backed off because of cost-of-living pressures.

$Aussie Broadband Ltd(ABB.AU)$: Aussie Broadband edged lower 0.4 per cent after it scooped up a near 20 per cent stake in rival internet broadband provider Superloop and made a $466 million indicative takeover bid for the smaller company to create "a scale player" with more than one million broadband subscribers.

$Lynas Rare Earths Ltd(LYC.AU)$: Lynas Rare Earths' rose 2.2 per cent even as its net profit collapsed to $39.5 million in the six months to December 31, down 74 per cent compared to $150.1 million a year earlier. Revenue over the first half of the financial year slid to $234.8 million, a 37 per cent drop from $370 million.

$Alumina Ltd(AWC.AU)$: Alumina shares surged over 6 per cent after it received a non-binding, indicative and conditional proposal from Alcoa to acquire the company via a scheme of arrangement. Consideration for the offer is 0.02854 shares of Alcoa stock for each Alumina share.

$Adairs Ltd(ADH.AU)$: Bedding and furniture group Adairs rallied 7.2 per cent after its first half earnings before interest, tax and amortisation at $59.6 million beat analyst expectations.