PointsBet jumps nearly 19%, energy & miners tumble: ASX closes 0.6% lower

Market Reports

by Lauren Evans

The Australian sharemarket remained in negative territory throughout the afternoon session as the resources sector continued to weigh.

At the closing bell, the S&P/ASX 200 was 0.6 per cent or 41 points lower at 6,433.

Energy was the worst sector, down 5.2 per cent, followed by materials, down 4.6 per cent. Real estate was the winning sector, up 3.6 per cent, followed by consumer discretionary, up 2.8 per cent.

The best performer in the ASX 200 was PointsBet (ASX:PBH), up 18.6 per cent to $2.55 after securing a $94.16 million investment from SIG Sports Investment. This was followed by Pinnacle Investment Management (ASX:PNI), up 8.4 per cent to $7.40 and Imugene (ASX:IMU), up 10.7 per cent to 16 cents.

The worst performer in the ASX 200 was Lake Resources (ASX:LKE), down 13.7 per cent to $1.35. This was followed by Paladin Energy (ASX:PDN), down 12.3 per cent to 57 cents and New Hope Corporation (ASX:NHC), down 12 per cent to $3.23.

Across the resources space, energy players like Woodside Energy (ASX:WDS) dropped 5.2 per cent to $30.25 and Santos (ASX:STO) fell 5.9 per cent to $7.33.

Iron ore miners were under pressure, with iron ore futures pointing to a 10 per cent fall. Fortescue Metals (ASX:FMG) tumbled 8.4 per cent to $17.03, BHP (ASX:BHP) dropped 5.3 per cent to $40.27 and Rio Tinto (ASX:RIO) fell 5.1 per cent to $101.55.

Gold stocks also tumbled, led by Evolution Mining (ASX:EVN), down 6.2 per cent to $3.46. Northern Star (ASX:NST) fell 6 per cent to $8.08 and Newcrest Mining (ASX:NCM) closed 4.6 per cent lower at $23.65.

Major banks gained, except Westpac (ASX:WBC), which finished flat at $19.19. ANZ (ASX:ANZ) rose 1.1 per cent to $21.39, NAB (ASX:NAB) lifted 0.5 per cent to $26.06 and Commonwealth (ASX:CBA) closed 0.3 per cent higher at $87.55.

Company news

Vicinity Centres (ASX:VCX) upgraded its FY22 guidance and announced a $245 million uplift in its preliminary valuations for the six months to June 30. Shares closed 6.6 per cent higher at $1.86.

Austal (ASX:ASB) was awarded two contracts worth over $300 million combined, which the company says helps diversify its long-term revenue base. Shares closed 1.1 per cent lower at $1.84.

Centuria Capital (ASX:CNI) subsidiary Primewest divested five neighbourhood shopping centres on behalf of two unlisted wholesale funds, to Shopping Centres Australasia Property Group for $180 million. Shares closed 2.7 per cent higher at $1.94.

Cooper Energy (ASX:COE) is set to acquire APA’s Orbost Gas Processing Plant, and will fund the acquisition via a $244 million equity raise and $400 million debt facility. Shares were in a trading halt.

Arizona Lithium (ASX:AZL) signed a 5-year lease with extension options for a lithium research centre in Tempe, Arizona. Shares closed 6 per cent lower at $0.094.

Hawsons Iron (ASX:HIO) signed a two-year option agreement to purchase three contiguous parcels of land suitable for its iron project. Shares closed 6.8 per cent lower at 41 cents.

Credit Clear (ASX:CCR) reported a record $3.03 million in revenue during May, and an operational profit of $23,000 thanks to growth in new and existing clients. Shares closed 11.4 per cent higher at 39 cents.

Infomedia (ASX:IFM) received a further non-binding proposal from Solera to acquire the company for $1.70 per share. Shares closed 7.5 per cent higher at $1.60.

X2M Connect (ASX:X2M) continued to build its Asia footprint after winning new contracts in China and South Korea valued at around $2 million. Shares closed 5.6 per cent higher at $0.095.

Retail Food Group (ASX:RFG) continued to observe gradual improvement during the second half of FY22 as covid restrictions ease. Shares closed 7.1 per cent higher at $0.045. 

Futures

The Dow Jones futures are pointing to a rise of 61 points.
The S&P 500 futures are pointing to a rise of 14 points.
The Nasdaq futures are pointing to a rise of 72 points.
The SPI futures are pointing to a fall of 30 points when the market next opens.

Asian markets

Japan's Nikkei has lost 0.9 per cent.
Hong Kong's Hang Seng has gained 0.1 per cent.
China's Shanghai Composite has gained 0.1 per cent.

Commodities and the dollar

Gold is trading at US$1844.17 an ounce.
Iron ore is 5.7 per cent lower at US$122.15 a ton.
Iron ore futures are pointing to a fall of 10.0 per cent.
Light crude is trading $0.68 higher at US$108.67 a barrel.
One Australian dollar is buying 69.69 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.