The winning streak is over: ASX down 0.5% at close

Market Reports

by Peter Milios

Utilities finished the day 13.15 per cent higher, on the back of the news that Brookfield and MidOcean made a surprise $18.4 billion bid for Origin Energy (ASX:ORG) at $9 per share. Brookfield is offering $9 per share for Origin, while the bid partner MidOcean Energy will take over the LNG business. Origin Energy closed 34.77 per cent higher at $2.02. 

In other news, Perpetual has received a higher bid from BPEA Private Equity Fund VIII and Regal Partners. They have lifted their offer by 10 per cent to $33 a share. However, Perpetual has rejected the proposal on the belief that the offer, “continues to materially undervalue the company.”

At the closing bell, the S&P/ASX 200 was 0.50 per cent or 35.30 points lower at 6964.00.


The Dow Jones futures are pointing to a rise of 54 points.
The S&P 500 futures are pointing to a rise of 8.50 points.
The Nasdaq futures are pointing to a rise of 45.75 points.
The SPI futures are pointing to a fall of 40 points when the market next opens.

Best and worst performers

The best-performing sector was Utilities, up 13.15 per cent. The worst-performing sector was Energy, down 2.07 per cent.

The best-performing stock in the S&P/ASX 200 was Origin Energy (ASX:ORG), closing 34.77 per cent higher at $7.83. It was followed by shares in Perpetual (ASX:PPT) and News Corporation (ASX:NWS).

The worst-performing stock in the S&P/ASX 200 was Pendal Group (ASX:PDL), closing 10.93 per cent lower at $3.91. It was followed by shares in Xero (ASX:XRO) and Block (ASX:SQ2).

Asian news

Asian equities are mostly weaker today.

There are broad-based losses on the major indexes, with the Hang Seng leading China markets lower. 

Overall, so far, Japan's Nikkei has lost 0.97 per cent, Hong Kong's Hang Seng has lost 1.90 per cent and China's Shanghai Composite has lost 0.49 per cent.

Company news

Invictus Energy (ASX:IVZ) provided an update on the Mukuyu-1 well that is currently being drilled in its 80 per cent owned SG 4571 licence in Zimbabwe’s Cabora Bassa Basin. The update shows elevated mud gas readings, fluorescence in the cuttings, elevated LWD resistivity and increasing background gas with depth. Commenting on the news, Managing Director Scott Macmillan, stated: “Early indications in our Upper Angwa primary target are highly encouraging and have proven a conventional working hydrocarbon system in the Cabora Bassa Basin, which is an exciting development validating our subsurface model.” Shares closed 161.9 per cent higher at $0.275.

OD6 Metals (ASX:OD6) announced their initial assay results from the recently completed drilling campaign at its Splinter Rock Project northeast of Esperance in Western Australia. Splinter Rock contains widespread, thick clay hosted rare earth element (REE) mineralisation. Some highlights included, outstanding assay results returned from initial 65 holes of the completed 179-hole program and high-grade clay-hosted rare earths confirmed, with large thicknesses over extensive areas. In response, Brett Hazelden, Managing Director, commented: “The extent and consistency of these shallow, high-grade clays have resulted in four significant prospects being identified that are between four and seven kilometres in width which are open in length, on our 2,579km2 Splinter Rock project.” Shares closed 78.72 per cent higher at $0.42.

Predictive Discovery (ASX:PDI) provided an update on assay results from 51 holes for 10,122m of infill and grade control drilling at the Bankan Gold Project. The New diamond drill results produced significant wide and/or high-grade intercepts within NE Bankan’s US$1,800/oz optimised resource pit shell. Commenting on the results, Managing Director Andrew Pardey, said: “These results are from within the optimised resource pit shell and are aimed at providing further certainty of the tonnes and grade ahead of ultimately building and mining the NE Bankan deposit.” Shares closed flat at $0.18.

Tamboran Resources (ASX:TBN) have today provided an operational update on the Amungee 2H (A2H) development well. Tamboran will drill the vertical and build section to a depth of approximately 2,450-metres, prior to drilling the 1,000-metre horizontal section within the primary target of the Mid-Velkerri “B” Shale. Managing Director and CEO, Joel Riddle, said: “The drilling of the well and the fracture stimulation design will incorporate significant learnings from the recently drilled Maverick 1V well in Tamboran’s operated EP 136 permit, where the vertical section was drilled in 18.3 days, a record for a well in the Beetaloo with a true vertical depth of more than 2,500 metres.” Shares closed 10.26 per cent higher at $0.215.

Warrego Energy Limited (ASX:WGO) announced it has received a non-binding and indicative proposal from Strike Energy Limited under which Strike would acquire all of the shares in Warrego that it does not already own via a scheme of arrangement. Under the Proposal, Warrego shareholders would receive: 0.775 new Strike shares for each Warrego share held, and if Warrego's Spanish assets are sold, and such sale completes, within 12 months of implementation of the scheme. Under this Proposal, Warrego shareholders would own approximately 30.5% of the combined group. Warrego would have the right to appoint one Board member to the Board of the combined group. Shares close 2.94 er cent higher at $0.175

Commodities and the dollar

Gold is trading at US$1711.69 an ounce.
Iron ore is 0.6 per cent higher at US$89.55 a tonne.
Iron ore futures are pointing to a fall of 0.9 per cent.
Light crude is trading $0.06 lower at US$85.77 a barrel.
One Australian dollar is buying 64.22 US cents.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?