Energy leads while tech weighs, Tabcorp jumps, Magellan tumbles: ASX closes 0.5% lower

Market Reports

by Lauren Evans

The Aussie sharemarket remained in the red for the afternoon session following a weak lead from Wall Street. The Reserve Bank of Australia is set to meet tomorrow, which means investors could see another interest rate hike.

At the closing bell, the S&P/ASX 200 was 0.5 per cent or 33 points lower at 7,206.

On the local front, technology was the worst sector, down 1.6 per cent, followed by industrials and communication services. Energy was the best sector by far, up 2.1 per cent, while utilities and health care also pushed higher.

Tabcorp (ASX:TAH) was the top performer in the ASX 200, up 5.3 per cent to 99 cents after the wagering firm announced the conditional settlement of litigation with Racing Queensland at an approximate cost of $150 million. This was followed by Clinuvel Pharmaceuticals (ASX:CUV), up 4.5 per cent to $15.94, and GrainCorp (ASX:GNC), up 4.5 per cent to $10.08.

Magellan Financial (ASX:MFG) was the worst performer in the ASX 200, down nearly 14 per cent to $12.85 after announcing that its funds under management fell by $3.6 billion last month. This was followed by Tyro Payments (ASX:TYR), down nearly 8 per cent to 94 cents, and PointsBet (ASX:PBH), down 4.6 per cent to $2.60.

Energy stocks gained thanks to an increase in oil prices. Woodside Energy (ASX:WDS) rose 3.2 per cent to $32.82, Beach Energy (ASX:BPT) lifted 1.7 per cent to $1.85 and Santos (ASX:STO) added 1.6 per cent to $8.53.

BHP (ASX:BHP) led the heavyweight miners lower, down 1.1 per cent to $46.25, while Fortescue Metals (ASX:FMG) dipped 0.6 per cent to $21.34.

Champion Iron (ASX:CIA) fell 2.6 per cent to $7.64 and Incitec Pivot (ASX:IPL) dropped 2.7 per cent to $3.59. Both companies were trading ex-dividend today.

Gold stocks, Northern Star (ASX:NST) and Evolution Mining (ASX:EVN) both fell over 2 per cent. Major banks were also lower, led by ANZ (ASX:ANZ) down 0.9 per cent to $24.80.

Company news

Biotech company Immutep (ASX:IMM) reported a positive response rate in its phase 2 clinical trial with first line non-small cell lung cancer patients. Shares closed 4.2 per cent lower at 41 cents.

Liontown Resources (ASX:LTR) executed an offtake agreement with electric vehicle manufacturer Tesla for the supply of spodumene concentrate at the Kathleen Valley lithium project. Shares closed 3 per cent lower at $1.23.

Catapult Group International (ASX:CAT) expanded its video analysis suite into NBA basketball with the launch of GameTracker. Shares closed 9.4 per cent lower at 72 cents.

Mighty Kingdom (ASX:MKL) signed a co-development partnership with Lion Studios by Applovin, a mobile games studio and publisher based in California. Shares closed 3.5 per cent higher at $0.060.

Alloggio (ASX:ALO) upgraded its FY22 guidance in both revenue and EBITDA, reflecting strong demand for travel after restrictions were lifted. Shares closed 25 per cent higher at 15 cents.

The ACCC delayed its decision on the proposed acquisition of Link Administration (ASX:LNK) by Dye & Durham Corporation. Shares closed 1.2 per cent lower at $4.29.

Calidus Resources’ (ASX:CAI) 50 per cent owned Pirra Lithium expanded the mapped lithium pegmatites to 4.3 kilometres at Spear Hill in WA. Shares closed flat at 82 cents.

Cooper Energy (ASX:COE) revised its FY22 guidance to the upper half of the previous guidance range because of continued improvement at the Orbost Gas processing plant, and a substantial increase in gas prices in Sydney and Victoria. Shares closed 5.6 per cent higher at 28 cents.

IOUpay’s (ASX:IOU) subsidiary IOUpay Asia partnered with Pine Labs to enable mutual merchant clients to offer the company’s myIOU BNPL services to customers. Shares closed 3.3 per cent lower at $0.058.  

Futures

The Dow Jones futures are pointing to a rise of 132 points.
The S&P 500 futures are pointing to a rise of 21 points.
The Nasdaq futures are pointing to a rise of 81 points.
The SPI futures are pointing to a fall of 35 points when the market next opens.

Asian markets

Japan's Nikkei has gained 0.6 per cent.
Hong Kong's Hang Seng has gained 1.5 per cent.
China's Shanghai Composite has gained 1.1 per cent.

Commodities and the dollar

Gold is trading at US$1855.30 an ounce.
Iron ore futures are pointing to a rise of 2 per cent.
Light crude is trading $0.70 higher at US$119.57 a barrel.
One Australian dollar is buying 71.98 US cents.

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