• The ASX dropped 0.5% on Thursday
  • Origin Energy gets takeover offer, shares up 35%
  • Key US inflation report scheduled tonight


Aussie shares fell 0.50% on Thursday as hopes of a quick Chinese recovery turn sour.

Overnight, Wall St fell around 2% across the board as concerns rise that China is losing the battle with COVID.

China’s vital manufacturing hub of Guangzhou is currently on lockdown as authorities rush to stamp out a widening Covid outbreak in the city of 19 million people. The city has become the latest epicentre of China’s Covid outbreak, logging more than 1,000 new cases for five straight days.

Stock markets across Asia fell on Thursday, with the HangSeng down 2% and Nikkei by 1%.

Investors are also nervously awaiting tonight’s crucial inflation report in the US.

Economists are expecting US CPI to moderate slightly in October, after an 8.2% headline in September.

Robert Tipp, Chief Investment Strategist at PGIM Fixed Income, believes that inflation will improve and the global rate hiking cycle will end by early 2023.

“Continuing high inflation readings and strong job growth are likely to keep central banks aggressively raising rates and fueling hard landing fears,” Tipp said.

“Further ahead, however, the inflation picture may be set to improve as both real estate and energy prices may have passed their peak levels, and supply demand frictions are showing signs of abating.”

Meanwhile, the crypto market is in a state of panic after Binance ditched its plans to rescue FTX overnight.

BTC is currently trading at US$16,350, while ETH is at US$1,169. Both are down by 10% in the last 24 hours.

On the ASX, Energy stocks paced the losers on Thursday while the Utilities sector gained 13% after heavyweight Origin Energy (ASX:ORG) said it received a takeover offer from Brookfield and EIG’s at $9 per share.

The deal would see Brookfield run the energy business, with EIG’s MidOcean Energy to take on its LNG business.

The power provider’s shareholders are currently gawking at the 54.9% offer, which values its shares are $18.4 billion buckaroos. ORG shares were up 35%.

Looking ahead to tonight’s Wall St session, the US October CPI report is due out, along with US Wholesale Inventories data.



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Code Name Price % Change Volume Market Cap
ORG Origin Energy 7.875 36% 42,942,221 $10,009,163,969
PPT Perpetual Limited 32.52 12% 956,261 $1,667,093,589
SFR Sandfire Resources 4.19 5% 5,540,436 $1,640,726,432
CPU Computershare Ltd 27.17 5% 1,941,090 $15,696,962,736
EVN Evolution Mining Ltd 2.435 4% 18,898,136 $4,312,048,217
CEN Contact Energy Ltd 6.8 2% 5,065 $1,662,132,615
WOW Woolworths Group Ltd 33.795 2% 1,689,309 $40,387,004,030
NXT Nextdc Limited 8.81 2% 994,442 $3,961,341,921
A2M The A2 Milk Company 5.825 2% 2,634,925 $4,249,604,471
DEG De Grey Mining 1.24 2% 4,989,066 $1,879,771,016
RMD ResMed Inc. 33.09 1% 683,907 $13,440,173,346
LIC Lifestyle Communit. 17.73 1% 217,052 $1,827,448,890
COH Cochlear Limited 202.485 1% 59,566 $13,131,943,278
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Perpetual (ASX:PPT) surged 11% after receiving a better offer from its takeover suitors PEA Private Equity Fund VIII and Regal Partners.

Under the revised offer, the consortium is now offering $33 cash per share, a 10% increase from the first offer.

Computershare (ASX:CPU) rose 5% after upgrading its earnings per share growth guidance for 2023 to 90%.

CPU also upgraded its margin income forecast to US$800 million, which is US$280 million above its August forecast.



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Code Name Price % Change Volume Market Cap
PDL Pendal Group Ltd 3.87 -12% 8,327,222 $1,682,026,261
XRO Xero Ltd 65.43 -10% 1,573,158 $10,903,953,565
SMR Stanmore Resources 2.635 -8% 2,206,446 $2,568,937,839
SQ2 Block 90.14 -6% 128,677 $3,495,956,289
DTL Data#3 Limited 6.41 -6% 441,711 $1,051,274,451
PDN Paladin Energy Ltd 0.8025 -4% 12,086,827 $2,502,671,497
PXA Pexagroup 14.085 -4% 80,509 $2,613,782,115
SGM Sims Limited 11.605 -4% 591,417 $2,342,828,496
NHC New Hope Corporation 5.345 -4% 8,848,045 $4,893,519,033
IMU Imugene Limited 0.1825 -4% 12,482,025 $1,204,047,981
VUL Vulcan Energy 7.55 -4% 183,500 $1,126,615,466
SYR Syrah Resources 2.565 -4% 2,224,066 $1,790,423,796
MFG Magellan Fin Grp Ltd 9.06 -4% 1,463,689 $1,719,844,960
BRN Brainchip Ltd 0.5925 -4% 5,776,302 $1,062,020,219
PLS Pilbara Min Ltd 5.3 -4% 13,742,215 $16,470,471,034
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Xero (ASX:XRO) fell 9% after the company missed its EBITDA forecasts.

Xero reported a 30% increase in net revenue to NZ$658.5 million, beating analysts’ expectations, but its bottom line EBITDA of NZ$108.6 million missed expectations of around NZ$143 million.

Pendal Group (ASX:PDL) plunged 11% on Thursday.

Pendal has agreed to be acquired by Perpetual, and says that it intends to proceed with the transaction despite requests from Perpetual for a delay (pending Perpetual’s own takeover offer).