ASX closes 0.39% higher due to gains in REITs and gold

Market Reports

by Peter Milios

Shares rebounded on Tuesday due to gains in real estate and gold, while the Australian dollar reached a four-month high amid expectations of prolonged high borrowing costs compared to other developed nations. Despite a surprise 0.2 percent decline in October retail sales, the Reserve Bank aims to cool consumer demand to combat inflation, with a 68 percent chance of a rate increase by June, while the cash rate is expected to remain at 4.35 percent on December 5.

At the closing bell, the S&P/ASX 200 was 0.39 per cent higher at 7,015.20.

Futures

The Dow Jones futures are pointing to a rise of 8 points.

The S&P 500 futures are pointing to a fall of 0.25 points.

The Nasdaq futures are pointing to a fall of 12.5 points.

The SPI futures are up 26 points.

Best and worst performers

The best-performing sector was REITs, up 1.4 per cent. The worst-performing sector was Energy, down 1.01 per cent.

The best-performing large cap was Mercury NZ (ASX:MCY), closing 4.52 per cent higher at $5.78. It was followed by shares in Northern Star Resources (ASX:NST) and Meridian Energy (ASX:MEZ).

The worst-performing large cap was CAR Group (ASX:CAR), closing 1.66 per cent lower at $27.21. It was followed by shares in Woodside Energy Group (ASX:WDS) and Incitec Pivot (ASX:IPL).

Asian markets

Japan's Nikkei has lost 0.15 per cent.

Hong Kong's Hang Seng has lost 0.88 per cent.

China's Shanghai Composite has lost 0.07 per cent.

Company news

Namoi Cotton (ASX:NAM) has received a non-binding, indicative and conditional offer (NBIO) from Louis Dreyfus Company Asia to acquire the remaining 83% of issued shares in Namoi that it does not currently own, by way of a scheme of arrangement, for a total cash consideration of $0.51 per share. The NBIO permits Namoi to pay a dividend of $0.01 per share to Namoi shareholders, which is not conditional on the Scheme proceeding and which would reduce the cash consideration to $0.50 per share. Shares closed 33.8 per cent higher at 47.5 cents.

Imugene Limited (ASX:IMU), a clinical stage immuno-oncology company, announced its Metastatic Advanced Solid Tumours (MAST) clinical program evaluating the safety and efficacy of novel cancer-killing, VAXINIA, has been granted Fast Track designation from the FDA. In response, Imugene CEO and MD Ms Leslie Chong said, “The Fast Track process of drug development is designed to facilitate the development, and the review of drugs to treat serious conditions and fill an unmet medical need, with Fast Track status often leading to earlier drug approval and access by patients.” Shares closed 9.89 per cent higher at 10 cents.

Beston Global Food (ASX:BFC) has provided a further update on its operations following its AGM. The Company successfully expanded its Lactoferrin capacity, divested non-core assets, and faces short-term challenges in the Australian Dairy Sector. Shares closed 16.67 per cent higher at 0.7 cents.

Commodities and the dollar

Gold is trading at US$2,015.90 an ounce.

Iron ore is 1.6 per cent lower at US$133.45 a tonne.

Iron ore futures are pointing to a 1.9 per cent fall.

Light crude is trading $0.04 higher at US$74.90 a barrel.

One Australian dollar is buying 66.22 US cents.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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