Our local market yesterday closed 0.2% lower. The tech sector declined the most among the 11 sectors, while utilities also weighed down on the market. On the other end, energy and healthcare stocks advanced. And it was one of the busiest days of earnings results so far, with a long list of companies reporting.
On the ASX200, we saw intellectual property group IPH (ASX:IPH) shares soar 16%, following news that the company has agreed to acquire Smart & Biggar, which is a leading Canadian intellectual property firm. Blackmores (ASX:BKL) shares fell 10% and it was the worst performing stock yesterday. While Blackmores reported a rise in profit and revenue, it also warned about rising costs and supply chain issues.
The most traded stocks by Bell Direct clients were CSL Limited (ASX:CSL), Lake Resources (ASX:LKE), ResMed (ASX:RMD) and BHP Group (ASX:BHP).
US equities gained overnight, with all three major benchmarks closing slightly higher. The Dow was up 0.6%, while the S&P500 and the Nasdaq both gained 0.2%. And European stocks also closed higher after a choppy session, amid continuing market caution over the inflationary outlook. The STOXX 600 was up 0.3% by the close.
What to watch today:
- The Australian market is set open slightly higher, with the SPI futures suggesting a 0.3% rise at the open this morning.
- In commodities, the price of oil is on the rise, now moving further away from the 6-month lows reached earlier in the week, as falling US crude inventories more than offset the concerns around a global economic slowdown. Gold prices have steadied, however have fallen for three straight sessions, with the latest US Fed policy meeting minutes being released, which emphasised the need to keep up rising rates. And iron ore is trading lower with an extended downturn in demand for industrial inputs in China.
- Some companies set to publish results today include AGL Energy (ASX:AGL), Cochlear (ASX:COH), Cleanaway Waste Management (ASX:CWY), Healius (ASX:HLS), Inghams (ASX:ING) and Newcrest Mining (ASX:NCM).
- Bell Potter maintain a Speculative Buy rating on Telix Pharmaceuticals (ASX:TLX) after the company reported its results. Bell Potter have lowered their valuation from $9 to $8.65, and at its current share price of $6.63 this implies 30.5% share price growth in a year.
- Trading Central have a identified a bearish signal in Adairs (ASX:ADH) indicating that the stock price may fall from the close of $2.55 to the range of $1.65 to $1.85 over 40 days according to standard principles of technical analysis.