ASX gains on Nvidia-fulled rally. Picture Getty
ASX Large Caps: AI craze sweeps ASX; Block Inc, Aussie Broadband up 17pc, Newmont dips 7pc
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- ASX gains on Nvidia-fuelled rally
- AI adjacent stocks, such as data centre companies, also surge
- Afterpay parent Block Inc surges 17pc, Newmont crashes 7pc
The ASX 200 gained around 0.4% as the AI craze swept through global stock markets. For the week, the index was down slightly by around -0.2%.
Overnight, Nvidia jumped +15% after the chips maker continued its amazing run, reporting impressive revenues totalling US$22.103 billion for the quarter, smashing analysts’ expectations of US$20bn.
“The big question for investors is, can this continue? Put simply, yes. Nvidia continues to deliver in every way, and its results show there is still plenty of growth ahead,” said Josh Gilbert, a market analyst at eToro.
On the ASX today, Tech was the main beneficiary of the Nvidia rally, with the sector up by +1.5%. Stocks such as data centre operator NextDC (ASX:NXT) were/was up 2%.
Across the region, Asian stocks also rose on the back of the bullish mood spurred on by Nvidia.
Meanwhile, fund manager Fidelity has sold the vast majority of its US Treasuries, and will instead invest more in stocks that will do well in a strong economy.
“We don’t expect sort of a recession anymore,” Fidelity’s portfolio manager, George Efstathopoulos, told Bloomberg.
“The probability of no landing is still small, but it’s been increasing. If that increases much more, potentially we will not be talking about Fed cuts anymore in 2024.”
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| ABB | Aussie Broadband | 4.46 | 16.75 | 7,216,578 | $1,064,450,342 |
| SQ2 | Block | 117.76 | 16.32 | 483,340 | $3,591,124,734 |
| JIN | Jumbo Interactive | 17.47 | 8.92 | 569,148 | $1,009,696,426 |
| BGA | Bega Cheese Ltd | 4.29 | 6.86 | 1,480,386 | $1,221,116,278 |
| TAH | TABCORP | 0.69 | 6.15 | 7,376,831 | $1,483,567,143 |
| PXA | Pexagroup | 12.18 | 5.91 | 355,679 | $2,040,082,359 |
| PWH | Pwr Holdings Limited | 12.90 | 5.91 | 286,666 | $1,223,896,716 |
| LOV | Lovisa Holdings Ltd | 28.78 | 5.42 | 378,465 | $2,994,609,045 |
| NIC | Nickel Industries | 0.73 | 5.07 | 5,101,995 | $2,957,208,817 |
| DHG | Domain Holdings Aus | 3.31 | 4.75 | 486,694 | $1,996,036,603 |
| EVT | EVT Limited | 11.43 | 4.38 | 116,850 | $1,776,915,159 |
| NEC | Nine Entertainment | 1.75 | 4.17 | 4,616,530 | $2,725,304,486 |
| PME | Pro Medicus Limited | 98.39 | 4.08 | 269,184 | $9,872,982,894 |
| DTL | Data#3 Limited | 7.95 | 3.92 | 609,218 | $1,183,486,090 |
| BSL | BlueScope Steel Ltd | 23.52 | 3.45 | 1,502,296 | $10,135,417,218 |
| CTD | Corp Travel Limited | 16.42 | 3.34 | 1,395,722 | $2,325,116,104 |
| RED | Red 5 Limited | 0.31 | 3.33 | 6,164,613 | $1,039,140,165 |
Afterpay parent, Block Inc (ASX:SQ2), surged by 17% after reporting December quarter sales of $US5.77 billion, beating market expectations. However, Block reported a net operating loss for the quarter of $US131 million, higher than the $US10 million loss in the previous quarter. The company said it will merge Afterpay into its Cash App in the US.
Aussie Broadband (ASX:ABB) jumped 20% after reporting that its H1 revenue grew by 17.7% on pcp to $445.9 million. EBITDA before non-recurring items grew by 12.7% to $46.3 million. Total broadband connections grew by 20.6% in the half vs pcp to 765,800.
Gold Road Resources (ASX:GOR) reported record revenue from gold sales for the full year of FY23, totalling $472.1 million vs $382.9 million a year earlier. GOR also delivered record EBITDA for the 12-month period totalling $250.1 million, up from $180.8 million a year earlier.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| LIC | Lifestyle Communit. | 15.16 | -11.60 | 1,859,723 | $1,792,924,742 |
| NEM | Newmont Corporation | 46.92 | -7.55 | 1,265,573 | $8,635,433,088 |
| ERA | Energy Resources | 0.05 | -7.41 | 648,223 | $1,196,008,156 |
| AX1 | Accent Group Ltd | 2.06 | -6.59 | 3,783,517 | $1,238,717,031 |
| IPH | IPH Limited | 6.58 | -5.05 | 2,651,662 | $1,705,964,316 |
| ILU | Iluka Resources | 7.21 | -4.82 | 2,275,061 | $3,225,064,526 |
| ZIM | Zimplats Holding Ltd | 19.31 | -4.45 | 34,849 | $2,175,356,886 |
| RRL | Regis Resources | 1.82 | -4.22 | 2,374,861 | $1,431,367,041 |
| TLX | Telix Pharmaceutical | 10.52 | -4.10 | 1,951,122 | $3,554,085,524 |
| PDN | Paladin Energy Ltd | 1.12 | -3.65 | 13,417,125 | $3,477,111,637 |
| LTR | Liontown Resources | 1.08 | -3.59 | 9,144,562 | $2,701,922,103 |
| SFR | Sandfire Resources | 7.36 | -3.41 | 1,302,347 | $3,482,282,118 |
Newmont Corporation (ASX:NEM) fell despite reporting higher gold mineral reserves of 135.9 million attributable ounces in 2023, compared to its 96.1 million ounces in the pcp. The company also announced that it plans to sell six non-core assets in Canada and Australia, including its 70% stake in the Havieron joint venture with Greatland Gold (LON: GGP) in Western Australia.
Telix Pharma (ASX:TLX) says total group revenue for the full year of FY23 was $502.5m, an increase of 214% from the pcp. The company also reported its inaugural full year profit of $5.2m after tax, which was a substantial improvement on the net loss after tax of $104.1m in 2022.
Brambles (ASX:BXB) has increased its first-half profit and generated strong cash flow, which supports its upgrade of FY24 guidance. Sales revenue increased 10% on pcp, while underlying profit increased 19% on pcp. Brambles now expects sales revenue growth of between 6-8% (unchanged from previous guidance), and underlying profit growth of between 13-15% (previously 9-12%).
Monash IVF’s (ASX:MVF) H1 revenue increased by 21.7% vs pcp to $125.7m. Underlying NPAT increased by 18.7% to $15.0m. MVF declared a fully franked interim dividend of 2.5 cents per share.
Lifestyle Communities (ASX:LIC) dropped after announcing the completion of its $275 million cap raise.
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