ASX closes higher as unemployment rises
Altium to be acquired by Japanese firm
Japan’s economy slips to third place behind Germany
The ASX 200 climbed by around +0.7%, tracking Wall Street’s moves overnight.
Stocks rose after Australia’s unemployment rose to 4.1% in January from 3.9% in December. The figure was higher than the 4% expected by the market, and was a two-year high.
“The swift weakening in labour market conditions raises some doubts as to whether we will see an orderly easing in conditions in 2024,” Oxford Economics Australia head, Sean Langcake, told news.com.au.
The Aussie dollar and bond yields both fell after the ABS release.
On the ASX, Energy and Miners lagged, while Tech and Real Estate led.
Biggest mover today was Tech company Altium, which announced that it will be acquired by a Japanese firm – see more below.
Across the region, bad news in Japan as it loses its spot as the world’s third largest economy to Germany.
Japan’s economy slipped into recession after GDP contracted by 0.4% in the final three months of last year. However, its Nikkei stock market index is at a 34-year high.
Looking ahead to tonight, the weekly new unemployment claims data are anticipated in the US.
BIG CAP WINNERS
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Code Name Price % Change Volume Market Cap ALU Altium Limited 65.89 28.53 2,497,764 $6,762,569,716 GMG Goodman Group 28.43 6.88 5,290,633 $50,518,243,089 BFL Bsp Financial Group 6.98 6.40 2,611 $3,064,963,062 TPW Temple & Webster Ltd 12.03 6.18 710,668 $1,393,020,124 DOW Downer EDI Limited 5.07 5.85 3,187,388 $3,216,837,922 XRO Xero Ltd 118.09 5.83 445,968 $16,924,802,195 360 Life360 Inc. 7.80 5.69 478,224 $1,508,970,076 GQG GQG Partners 2.14 5.42 1,206,396 $5,995,360,292 CHC Charter Hall Group 12.31 4.55 740,322 $5,567,177,032 WTC Wisetech Global Ltd 78.37 4.51 348,942 $25,003,567,296 WES Wesfarmers Limited 61.54 4.41 2,047,556 $66,848,408,647 SVW Seven Group Holdings 40.62 4.39 1,292,096 $14,147,115,190 PNI Pinnacle Investment 11.19 4.38 355,111 $2,176,922,674 SQ2 Block 104.84 4.31 92,326 $3,565,582,802 AMP AMP Limited 1.12 4.21 30,677,965 $2,932,956,567 BRG Breville Group Ltd 25.93 4.05 228,543 $3,574,159,672 DHG Domain Holdings Aus 3.52 3.99 1,014,642 $2,135,001,177 LNW Light & Wonder Inc. 135.14 3.95 53,511 $2,020,012,410 MFG Magellan Fin Grp Ltd 9.28 3.92 2,278,341 $1,616,638,094 NXT Nextdc Limited 14.65 3.61 1,022,397 $7,277,968,264 JBH JB Hi-Fi Limited 64.02 3.60 722,668 $6,755,746,686 ORI Orica Limited 16.82 3.57 785,672 $7,417,615,696
Altium (ASX:ALU) soared by almost 30% today after announcing that it will be acquired by Japanese company, Renesas Electronics Corporation, for a cash price of $68.50 per share. Altium is a global leader in electronics design systems, while Renesas is the leading global provider of microcontrollers.
Goodman Group (ASX:GMG) delivered operating profit for H1 of $1.127 billion, up 29% on pcp. The Group recorded a statutory loss of $220.1 million. Operating earnings per security (OEPS) was 59.2 cents, and GMG expects to achieve full year OEPS growth of 11% compared, to the previous guidance of 9%.
Wesfarmers (ASX:WES)’s revenue for H1 was $22.673bn, up 0.5% on pcp. NPAT was $1.425bn, up 3% on pcp. In its guidance, Wesfarmers says the performance of the Group’s businesses remains subject to international commodity prices, foreign exchange rates, competitive factors and seasonal outcomes.
Origin Energy (ASX:ORG) announced a half-year statutory profit of $995 million, an increase from $399 million in the pcp. Origin saw improved earnings across all business segments. Underlying EBITDA was $1.995 billion. The Board determined a fully franked interim dividend of 27.5 cents per share. In terms of outlook guidance, Origin said its Energy Markets EBITDA is expected to be $1,600 – $1,800 million for the full year FY24.
Treasury Wine Estates (ASX:TWE)’s H1 performance is in line with expectations. NPAT was down 5.9% to $182.3m, and EPS wasdown 7.5% to 24.6cps. For its outlook guidance, TWE expects a stronger H2, and expects to deliver mid-high single digit organic EBITS growth in FY24.
BIG CAP LOSERS
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Code Name Price % Change Volume Market Cap DTL Data#3 Limited 8.42 -13.91 2,967,166 $1,513,005,746 PME Pro Medicus Limited 94.41 -12.66 520,694 $11,290,571,107 IEL Idp Education Ltd 20.17 -7.98 3,059,147 $6,101,129,745 MGH Maas Group Holdings 3.85 -7.67 1,399,908 $1,367,444,335 WHC Whitehaven Coal 7.03 -6.46 17,296,569 $6,282,871,888 FBU Fletcher Building 3.19 -5.62 3,284,427 $2,646,687,354 EVT EVT Limited 11.29 -5.13 250,577 $1,931,076,748 S32 South32 Limited 2.94 -4.55 31,943,401 $13,950,116,389 AX1 Accent Group Ltd 2.27 -4.03 2,052,815 $1,328,805,543 OCL Objective Corp 10.93 -3.95 25,151 $1,083,510,466 BGL Bellevue Gold Ltd 1.34 -3.78 2,857,303 $1,636,505,173 ERA Energy Resources 0.06 -3.33 168,607 $1,328,897,951 TLX Telix Pharmaceutical 11.07 -3.02 782,165 $3,696,637,724 TLS Telstra Group 3.89 -2.63 37,344,970 $46,102,165,138 ZIM Zimplats Holding Ltd 20.60 -2.60 8,999 $2,276,536,276 NHC New Hope Corporation 5.00 -2.53 3,578,389 $4,336,570,930 DDR Dicker Data Limited 11.23 -2.52 95,393 $2,076,934,833 SMR Stanmore Resources 3.52 -2.49 1,063,713 $3,254,023,799 YAL Yancoal Aust Ltd 5.50 -2.48 1,862,189 $7,447,278,425 MEZ Meridian Energy 5.24 -2.42 25,739 $6,798,820,436 STX Strike Energy Ltd 0.31 -2.34 23,987,566 $915,912,275
Data#3 (ASX:DTL) fell despite reporting strong H1 results which include NPAT rising by 25.5% on pcp to $21.4 million. The company however said it is unable to provide specific FY24 guidance at this stage.
BHP Group (ASX:BHP) announced two items which will be recognised as exceptional items in its half year results. The items relate to an impairment of the carrying value of the Nickel West operations and West Musgrave project, and an increase to the provision for the Samarco dam failure. BHP will recognise a non-cash impairment charge of approximately US$2.5 billion (post tax) against the carrying value of Western Australia Nickel. BHP will also recognise an income statement charge of US$3.2 billion (post tax) in relation to the Samarco dam failure.
Whitehaven Coal (ASX:WHC)
Whitehaven reported a half year underlying NPAT of $372.3 million and underlying EBITDA of $622.8 million. A fully franked interim dividend of 7.0 cents per share will be paid on 8 March.
Telstra Group (ASX:TLS) reported total income of $11.7 billion for the half, up +1.2% on pcp. NPAT was $1.0 billion, up +11.5% on pcp. In the second half, Telstra said it will continue to invest in the capabilities and infrastructure needed to deliver sustainable growth now and beyond T25.
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