Energy, miners & tech fall, major banks rebound: ASX down 0.7% at noon

Market Reports

by Lauren Evans

The Aussie sharemarket is off to another weak start following a red finish on Wall Street. Australian shares are on track for their largest weekly decline this year as markets digest the fallout from the Reserve Bank’s interest rate hike. Energy has fallen 2.7 per cent, followed by materials and technology stocks, while financials are the top performer, up 0.7 per cent thanks to a rebound in major banks.

At noon, the S&P/ASX 200 is 0.7 per cent or 48.50 points lower at 6971.20.

The SPI futures are pointing to a fall of 53 points.

The best performer in the ASX 200 is ANZ Banking (ASX:ANZ), up 2.2 per cent to $23.86, followed by Healius (ASX:HLS), up 1.6 per cent to $3.83 and Xero (ASX:XRO), up 1.5 per cent to $80.89.

Following ANZ’s lead, the major banks have rebounded from Thursday’s lows. NAB (ASX:NAB) has risen 1.4 per cent to $28.63, Westpac (ASX:WBC) is up 1.1 per cent to $21.41 and Commonwealth (ASX:CBA) is trading 0.9 per cent higher to $95.80.

The worst performer in the ASX 200 is Lynas Rare Earths (ASX:LYC), down 7.9 per cent lower at $8.38, followed by Homeco (ASX:HMC), down 7.3 per cent to $4.59 and Block (ASX:SQ2), down 6.9 per cent to $108.31 following a fall on the Nasdaq.

Energy stocks have retreated after being the only winner on the ASX yesterday. Woodside Energy (ASX:WDS) has fallen 3.1 per cent to $34.29, Santos (ASX:STO) is down 2.4 per cent to $8.45 and Beach Energy (ASX:BPT) is trading 1.9 per cent lower at $1.85.

Iron ore miners are suffering after a fall in commodity prices overnight, and the news that China will lock down for Covid-19 testing on Saturday. Fortescue Metals (ASX:FMG) has dropped 3.7 per cent to $20.77, Rio Tinto (ASX:RIO) is down 2.9 per cent to $114.06 and BHP (ASX:BHP) is trading 1.7 per cent lower at $45.46.

Gold stocks are also weighing. Evolution Mining (ASX:EVN) is down 2.9 per cent to $3.48, Northern Star (ASX:NST) is down 2.6 per cent to $8.26 and Newcrest Mining (ASX:NCM) is down 1.3 per cent to $23.46.

Company news

Atlas Arteria (ASX:ALX) has rejected a request from IFM Global Infrastructure Fund (IFM) to access non-public and confidential information about the company and its assets for the purpose of developing a formal takeover proposal. Shares are trading flat at $8.15.

Bubs Australia (ASX:BUB) has advised that its entire shipment of infant formula to the US will be purchased by two US infant formula retailers, The Kroger Co and Albertsons. Shares are trading 2.5 per cent higher at 61 cents.

Telix Pharmaceuticals (ASX:TLX) and RefleXion Medical have signed a co-development agreement to expand the use of Telix’s prostate cancer treatment (Illuccix®). Shares are trading 0.4 per cent lower at $4.04.

Terracom (ASX:TER) shareholders are set to expect its first dividend for this financial year after the company informed investors of a repayment of a US$167 million Euroclear Bond. Shares are trading 1.9 per cent higher at 80 cents.

Medallion Metals (ASX:MM8) have been placed in trading halt pending an announcement in relation to a mineral resource update for the company’s Ravensthorpe gold project. Shares last traded at 29 cents yesterday.

Air New Zealand (ASX:AIA) has narrowed its loss for the 2022 financial year after seeing improved passenger volumes on short haul and international flights, following the opening of the NZ border. Shares are trading 0.1 per cent lower at $6.95.

AGL Energy (ASX:AGL) has completed a technical assessment of the work needed to return Loy Yang A Unit 2 to service, and expects the outage to extend until the second half of September. Shares are trading 0.6 per cent lower at $8.71.

Chorus (ASX:CNU) has lowered its FY22 capital expenditure guidance to reflect the ongoing constraints Covid has had on fibre installations and other network investment activity. Shares are trading 0.3 per cent lower at $6.45.

Tower (ASX:TWR) is set to sell its Papua New Guinea subsidiary to Alpha Insurance for $7.9 million. Shares are trading 2.5 per cent higher at 62 cents.

Appliance maker Breville Group (ASX:BRG) has reconfirmed that it expects full year 2022 EBIT to be in line with previous guidance and market consensus of about $156 million. Shares are trading 1 per cent higher at $18.20.

Commodities and the dollar

Gold is trading at US$1846.66 an ounce.
Iron ore is 2.1 per cent lower at US$143.85 a ton.
Iron ore futures are pointing to a fall of 1.3 per cent.
One Australian dollar is buying 71.02 US cents.
 

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.