- Shares slumped close to a two-week low, down by 0.4% today
- Blackmores received a takeover offer from Japan’s giant, Kirin
- Export prices rose higher than expected, while import prices were lower than expected
The ASX 200 was down 0.4% on Thursday and nearing its lowest close in two weeks.
All 11 ASX sectors were in the red, with Discretionary and Real Estate sectors leading the selloff.
Vitamins company Blackmores (ASX:BKL) stood above the rest, up 22% after Japanese giant Kirin lobbed a $95 bid for Blackmores stocks, implying a 23x multiple of last 12 months EBITDA.
While the bid still requires approval from regulators and shareholders, Blackmores’ largest shareholder, Marcus Blackmore, has already backed the takeover, as did the company’s board.
Elsewhere, Rob Arnott, founder of Research Affiliate, told the AFR Alpha Live Summit event today that value stocks could outperform growth stocks over the next decade.
“If inflation over a decade is 4 per cent or higher, value tends to beat growth by 6 to 10 per cent per annum for 10 years. We think this is going to be that kind of decade,” Arnold said.
Meanwhile, data from the ABS revealed that Aussie export prices beat expectations (up 1.6% QoQ vs 2.6% forecast), driven by a bounce in ores and metal scrap prices. Import prices meanwhile have come in lower than expected due mainly to falling oil prices.
Bitcoin is the ‘cleanest asset to own’
After a two-day decline of 6%, oil prices have steadied in Asian hours today, with the WTI crude price trading at US$74.43 a barrel.
Crude prices have seen all of the gains from the OPEC+ surprise production cut erased — as a macro backdrop including banking jitters, disappointment with China’s reopening, and fears of overtightening by the Fed continues to murk the water.
Bitcoin has surged past US$29k again, trading now at US$29,205.
Trovio chief investment officer, Vimal Gor, told the AFR Alpha Summit event that BTC is one of the cleanest assets to own in the current economic environment and growing digitisation of the world.
“Everyone likes gold. Well, if you like gold, you must love Bitcoin because Bitcoin is digital gold, plus it’s disinflationary over the long term,” he said.
Looking ahead to tonight’s Wall Street session, we expect to see the release of these reports: US GDP growth rate QoQ, US initial jobless claims, and US real consumer spending.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| BKL | Blackmores Limited | 93.77 | 22.11 | 554,308 | $1,493,614,262 |
| MCY | Mercury NZ Limited | 5.87 | 4.82 | 2,225 | $7,766,040,128 |
| AKE | Allkem Limited | 11.85 | 4.59 | 3,026,235 | $7,224,666,114 |
| KLS | Kelsian Group Ltd | 6.005 | 3.53 | 427,275 | $1,557,857,287 |
| RRL | Regis Resources | 2.195 | 2.57 | 1,959,100 | $1,615,755,480 |
| NAN | Nanosonics Limited | 5.64 | 2.36 | 884,854 | $1,665,729,764 |
| IFT | Infratil Limited | 8.72 | 2.35 | 21,860 | $6,168,340,119 |
| PNV | Polynovo Limited | 1.675 | 2.13 | 677,543 | $1,131,981,712 |
| WHC | Whitehaven Coal | 7.3 | 2.10 | 2,728,785 | $6,358,152,951 |
| IMD | Imdex Limited | 2.2 | 1.85 | 1,137,105 | $1,091,782,025 |
| IRE | IRESS Limited | 10.19 | 1.80 | 367,758 | $1,869,762,635 |
| CMM | Capricorn Metals | 4.59 | 1.77 | 601,822 | $1,694,669,369 |
Regis Resources (ASX:RRL) rose 3% after reporting gold sales of 105.2koz totalling $261m at an average realised price of $2,477/oz (incl. hedge impact) for the quarter. Operating cash generated for the quarter was $99m.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| SYR | Syrah Resources | 1.30 | -8.30 | 8,950,697 | $951,522,269 |
| ABC | Adbri Limited | 1.53 | -6.42 | 3,291,774 | $1,067,046,052 |
| CXO | Core Lithium | 0.95 | -5.03 | 11,830,482 | $1,849,224,210 |
| CEN | Contact Energy Ltd | 7.09 | -4.19 | 368 | $1,865,000,799 |
| UMG | United Malt Group | 4.47 | -3.98 | 3,146,186 | $1,391,182,978 |
| SYA | Sayona Mining Ltd | 0.19 | -3.75 | 15,068,558 | $1,793,753,185 |
| IFL | Insignia Financial | 2.91 | -3.64 | 1,511,979 | $2,001,046,691 |
| APM | APM Human Services | 1.84 | -2.78 | 535,634 | $1,733,473,878 |
| ZIM | Zimplats Holding Ltd | 25.24 | -2.66 | 5,875 | $2,791,044,239 |
| BOQ | Bank of Queensland. | 5.79 | -2.53 | 5,971,550 | $3,875,760,959 |
| ORA | Orora Limited | 3.41 | -2.44 | 1,321,968 | $2,950,277,747 |
| ANN | Ansell Limited | 26.78 | -2.41 | 297,982 | $3,489,493,158 |
| LYC | Lynas Rare Earths | 6.50 | -2.40 | 3,805,018 | $6,219,211,077 |
| BSL | BlueScope Steel Ltd | 19.42 | -2.39 | 1,520,296 | $9,166,820,736 |
| IVC | InvoCare Limited | 10.90 | -2.33 | 304,828 | $1,607,717,780 |
| SDF | Steadfast Group Ltd | 5.91 | -2.15 | 2,437,435 | $6,272,913,846 |
| ALQ | ALS Ltd | 13.13 | -2.13 | 576,365 | $6,492,688,642 |
Syrah Resources (ASX:SYR) fell 8.5% after reporting flattish QoQ natural graphite sales, as well as some disappointing performance from its Balama operation. Syrah also announced a $150 million capital raising through the issue of convertible notes to AustralianSuper.
Adbri (ASX:ABC) tumbled 6% after the estimated cost of its Kwinana upgrade project more than doubled from higher construction costs, as well as labour and supply chain shortages.
United Malt (ASX:UMG) retreated 4% after downgrading earnings guidance due to lower sales volumes. The brewer also announced a delay in the start of its Inverness facility.