Tech lags on growth fears, energy rally continues: ASX falls 0.5% at noon

Market Reports

by Melissa Darmawan

The Australian sharemarket has retreated this morning after three weeks of gains ahead of the Reserve Bank of Australia policy meeting tomorrow. Energy is the clear winner while consumer staples, and healthcare are edging higher. Information technology and materials weighed on the local market with the choppy S&P 500 and Nasdaq futures far from providing investors with any optimism.

At noon, the S&P/ASX 200 is 0.5 per cent or 33 points lower at 7,206. The SPI futures are pointing to a fall of 33 points.

The weak lead from Wall St was influenced by data regarding the US labour market, as the jobs report validated the way for the Federal Reserve to continue with their aggressive tightening policy to combat multi-year high inflation. Good news was bad news as investors continue to search for the bottom of the market.

Several supportive factors have helped energy stocks lift by 1.5 per cent. Investors learned that Saudi Arabia raised oil prices more than expected in Asia, just as coronavirus restrictions eased, helping boost demand. Woodside Energy (ASX:WDS) and Beach Energy (ASX:BPT) are both up 2 per cent each.

Wheat futures in Chicago plunged to their biggest weekly loss in two months last week on improved prospects for Ukraine grain shipments and US crop weather. With food prices as a big input to inflation, the fall suggests that the food supply is improving. Graincorp (ASX:GNC) is trading up 2.8 per cent to $9.92, pushing the consumer staples sector higher.

The best performing stock is Tabcorp (ASX:TAH), trading 4 per cent higher to 97 cents after the wagering firm announced the conditional settlement of litigation with Racing Queensland at an approximate cost of $150 million.

Meanwhile, the worst performing stock in the ASX 200 is Magellan Financial Group (ASX:MFG), trading 12.7 per cent lower at $13.03 after announcing that its funds under management fell by $3.6 billion last month.

Investors also disliked the weekly update from Tyro Payments (ASX:TYR), sending the share price lower by 5.4 per cent to 96 cents, making it the session’s second worst performer and making information tech the worst performing sector.

Fortescue Metals Group (ASX:FMG), down 1.2 per cent at $21.20, Macquarie Group (ASX:MQG) by 1.5 per cent at $181.26, and Northern Star (ASX:NST), trading 2.2 per cent lower at $8.60 have each led their respective sector lower.

Company news

Kingston Resources (ASX:KSN) has taken a step towards bringing the Misima Gold Project into production with the completion of a positive definitive feasibility study. The study confirms the potential for a large-scale, long-life, low-cost operation delivering gold production of 2.4 million ounces over 20 years at forecast life-of-mine all-in sustaining costs of $1,217 per ounce. Shares are trading 7.4 per cent higher at 14 cents.

Radiopharm Theranostics (ASX:RAD) has announced the appointment of Dr Leila Alland to its board as a non-executive director. Shares are trading flat at 18 cents.

Biotech company Immutep (ASX:IMM) has reported a positive response rate in its phase 2 clinical trial with first line non-small cell lung cancer patients. Shares are trading 3.5 per cent lower at 42 cents.

Liontown Resources (ASX:LTR) has executed an offtake agreement with electric vehicle manufacturer Tesla for the supply of spodumene concentrate at the Kathleen Valley lithium project. Shares are trading 2.8 per cent lower at $1.24.

Catapult Group International (ASX:CAT) has expanded its video analysis suite into NBA basketball with the launch of GameTracker, a new data visualisation tool that connect every performance dataset to multi-angle video for a deeper level of analysis during every moment across a single game, series of games, or entire basketball season. Shares are trading 6.3 per cent lower at 75 cents.

Mighty Kingdom (ASX:MKL) has signed a co-development partnership with Lion Studios by Applovin. The contract value is in the low seven figure range for the development of a game over a year. Shares are trading flat at $0.058.

Alloggio (ASX:ALO) has upgraded its financial year 2022 guidance in both revenue and EBITDA, reflecting strong demand for travel since restrictions were lifted. Shares are trading 22.5 per cent higher to 15 cents.

The ACCC has delayed its decision on the proposed acquisition of Link Administration (ASX:LNK) by Dye & Durham Corporation. Shares are trading 1.4 per cent lower at $4.28.

Battery Minerals (ASX:BAT) has received firm commitments for $2 million in a share placement, to fund its exploration programmes in Victoria and Kimberley, WA. Shares are trading 37.5 per cent lower at $0.0050.

Rex (ASX:REX) has been made aware of correspondence circulated by the Australian Federation of Air Pilots to its members, which Rex considers to be “malicious, misleading and deceptive.” Shares are trading 0.4 per cent lower at $1.14.

Calidus Resources’ (ASX:CAI) 50 per cent owned Pirra Lithium has expanded the mapped lithium pegmatites at Spear Hill in WA. Shares are trading 1.2 per cent lower at 82 cents.

Cooper Energy (ASX:COE) has revised its FY22 guidance to the upper half of the previous guidance range because of continued improvement in average processing rates at the Orbost Gas processing plant, and a substantial increase in gas prices in Sydney and Victoria. Shares are trading 6.3 per cent higher to 28.7 cents.

Growthpoint Properties (ASX:GOZ) has confirmed it is in discussions with Fortius Funds Management regarding a potential transaction, but says at this stage there is no certainty one will happen. Shares are trading 0.8 per cent lower to $3.86.

Audinate (ASX:AD8) said the trading conditions it experienced in March and April continued through to last month, and the company expected revenue for financial year 2022 to exceed $US30 million. Shares are trading 0.3 per cent lower to $6.98.

Commodities and the dollar

Gold is trading at US$1,853.57 an ounce.
Iron ore last traded at US$143.65 a ton.
Iron ore futures are pointing to a rise of 1.52 per cent.
One Australian dollar is buying 71.92 US cents.

Source: Bloomberg 

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