Closing Bell: Windy day for stocks as ANZ, Tabcorp get stung by regulators

ASX ended 10-day winning streak
ANZ, Tabcorp dropped after facing regulators
Despite a crude price rebound, energy stocks fell

The ASX 200 ended its 10-day winning streak, dipping by 0.04% after a weak session on Wall Street overnight. For the week, though, the index was up 0.5%.

Investors had their hands full today, combing through a pile of ASX earnings reports.

See highlights below.

One of the more interesting announcements today, however, came from ANZ Bank (ASX:ANZ), as its share price dropped by more than 2% following a regulatory action by APRA, the Australian Prudential Regulation Authority.

APRA has mandated that ANZ increase its operational risk capital by $250 million, which the bank says will cost it 6 basis points (0.06%) to its common equity tier 1 (CET) capital requirements.

APRA’s decision was in response to ongoing concerns about the bank’s operational risk management, with little improvement seen despite a $500 million operational risk capital overlay imposed in 2019.

Australia’s largest gambling company, Tabcorp (ASX:TAH) also had some troubling regulatory news.

Tabcorp’s shares dropped 2.5% after it was slapped with $4.6 million fine for repeatedly breaching Victoria’s gambling code.

The Victorian Gambling and Casino Control Commission (VGCCC) found that Tabcorp failed to train staff properly and continued sending marketing materials to a customer who had opted out.

The VGCCC singled out an account manager who offered a promotion to a customer flagged as a problem gambler, describing the case as the most “egregious” in a series of violations.

Meanwhile, Telco was the best-performing sector today, while Utilities and Energy lagged.

Energy was dragged down by coal and oil stocks, despite a rebound in crude prices overnight.

Gold stocks were also sold down after bullion prices came down below the psychological US$2,500 an ounce level.

All eyes now turn to Jerome Powell’s speech at the Jackson Hole symposium in Wyoming later tonight (US time), which will be scrutinised for insights into the central bank’s stance on rate cuts.

Today’s earnings season highlights

Lotto operator Jumbo Interactive (ASX:JIN) sank 10% despite record full-year results.

Total transaction value surged by 23.7% to $1.054 billion, which is a record, while revenue increased by 34.2% to $159.3 million. Underlying EBITDA rose 30% to $76.6 million, and underlying NPATA grew by 31.5% to $46.4 million.

Despite these strong results, Jumbo’s stock price reaction could be attributed to investor concerns about future growth amid a recent increase in the service fee paid to The Lottery Corporation and higher operating costs.

Poultry group Inghams Group (ASX:ING) also took a dive, down 18% after it announced that it expects underlying EBITDA for FY25 to remain flat, with a forecast range of $236 million to $250 million.

This is despite NPAT for FY24 rising to $101.5 million, an increase of 68%. Revenue also grew by 7.2%, reaching $3.26 billion. The company declared a final dividend of 8 cents per share, fully franked, down from 10 cents the previous year.

Telix Pharmaceuticals’ (ASX:TLX) shares posted a 6% gain after reporting impressive interim results, with NPAT of $29.65 million compared to a net loss of $14.32 million last year.

Revenue increased by 65% to $363.96 million, largely driven by sales of Illuccix, its cancer imaging product, in the US.

Telix has reaffirmed its full-year 2024 revenue guidance, which is projected to be between US$490 million and US$510 million.

Shoes retailer Accent Group (ASX:AX1) was also down 12% after reporting a 32.9% decline in full year NPAT, down to $59.53 million, despite a 2.4% increase in revenue to $1.45 billion.

Final dividend for the year has been set at 4.5 cents per share, fully franked, down from 5.5 cents last year.

What else happened today?

One of the regional highlights today came from Japan, where the yen strengthened after Bank of Japan Governor Kazuo Ueda indicated that the central bank plans to continue raising interest rates.

The yen appreciated by almost 1% against the US dollar.

Ueda’s remarks ended speculation that the BOJ could retreat from its planned hikes, which had previously led to a significant global equity selloff.

This news helped Asian stock markets recover from earlier losses as traders await Fed Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium later on Friday (US time)

In China, efforts to boost the housing market are underway, with plans to purchase unsold homes and convert them into affordable housing.

This news also helped to prop up Asian stocks today.

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

Swipe or scroll to reveal full table. Click headings to sort:

Code	Name	Price	% Change	Volume	Market Cap
BXN	Bioxyne Ltd	0.012	71%	23,895,149	$14,326,518
WEC	White Energy Company	0.048	60%	84,433	$5,969,528
EDE	Eden Inv Ltd	0.002	50%	636,192	$4,108,209
SI6	SI6 Metals Limited	0.002	50%	623,424	$2,368,859
ILT	Iltani Resources Lim	0.235	38%	852,587	$5,781,786
GMN	Gold Mountain Ltd	0.004	33%	1,103,126	$11,722,420
MTL	Mantle Minerals Ltd	0.002	33%	100,000	$9,296,169
HCT	Holista CollTech Ltd	0.022	29%	658,921	$4,739,601
88E	88 Energy Ltd	0.003	25%	2,241,970	$57,867,624
BNL	Blue Star Helium Ltd	0.005	25%	3,714,104	$7,779,541
MEG	Megado Minerals Ltd	0.010	25%	22,925	$2,035,644
RIL	Redivium Limited	0.005	25%	50,000	$10,923,419
RNE	Renu Energy Ltd	0.003	25%	2,285,273	$1,452,268
SHO	Sportshero Ltd	0.005	25%	602,419	$2,471,331
EXR	Elixir Energy Ltd	0.180	24%	19,823,492	$173,489,436
ECG	Ecargo Hldg	0.006	20%	16,699	$3,076,250
GTI	Gratifii	0.006	20%	300,000	$8,780,238
NOX	Noxopharm Limited	0.115	20%	512,127	$28,054,843
HMG	Hamelingoldlimited	0.125	19%	30,000	$16,537,500
LRV	Larvottoresources	0.375	19%	7,184,342	$97,005,655
Z2U	Zoom2Utechnologies	0.082	19%	8,002	$13,371,229
LTP	Ltr Pharma Limited	1.835	18%	2,639,921	$131,423,028
PCK	Painchek Ltd	0.039	18%	2,658,318	$53,982,363
BSX	Blackstone Ltd	0.035	17%	312,881	$15,790,884
VR1	Vection Technologies	0.014	17%	546,730	$13,519,068

Bioxyne (ASX:BXN) was still riding high from its recent announcement. On Tuesday, the company said it has achieved an Australian first with the successful manufacturing and delivery of the country’s first pharmaceutical cannabis pastilles (gummies) under its Goods Manufacturing Practice certification.

Elixir Energy (ASX:EXR) announced that the Daydream-2 well in Queensland’s Taroom Trough has successfully flowed gas from the deepest coal seams yet recorded in Australia. This marks the first gas flow from these deep coals in the region and achieves a key goal for the project. The gas flow occurred naturally through a full well-bore of water, and Elixir will now work with independent certifiers to begin converting prospective resources into contingent resources. The next phase involves removing plugs from the well’s six stimulated zones and conducting a comprehensive flow test.

Buxton Resources (ASX:BUX) provided an update on its Graphite Bull and Narryer Projects. Core drilling at Graphite Bull has been completed, totalling 1,221.5 metres across two holes. Reverse Circulation (RC) drilling is ongoing. All holes intersected graphite, with one notable intersection of 68 metres at over 10% visually estimated Total Graphitic Carbon (TGC). Product qualification with BTR in China has begun, and RC drilling will soon start at the Narryer Project. Recent drilling aims to support a significant Mineral Resource Estimate by Q4 2024.

ASX SMALL CAP LAGGARDS

Today’s worst performing small cap stocks:

Swipe or scroll to reveal full table. Click headings to sort

Code	Name	Price	% Change	Volume	Market Cap
VPR	Volt Group	0.001	-50%	1,200,494	$21,432,416
PNX	PNX Metals Limited	0.003	-33%	5,547,523	$26,865,966
ECT	Env Clean Tech Ltd.	0.002	-33%	27,791	$9,515,431
NTM	Nt Minerals Limited	0.004	-33%	2,032,232	$6,104,417
CUL	Cullen Resources	0.006	-31%	4,949,335	$4,561,386
PNT	Panthermetalsltd	0.022	-29%	234,206	$2,702,151
ICU	Investor Centre Ltd	0.003	-25%	103,117	$1,218,045
MEL	Metgasco Ltd	0.003	-25%	100,250	$5,790,347
MRQ	Mrg Metals Limited	0.003	-25%	7,045,343	$10,846,075
TAS	Tasman Resources Ltd	0.003	-25%	123,755	$3,220,998
CLU	Cluey Ltd	0.030	-25%	1,341,225	$14,112,950
ING	Inghams Group	3.090	-20%	17,154,354	$1,438,400,056
MKLDA	Mighty Kingdom Ltd	0.048	-20%	727,368	$12,863,772
ICG	Inca Minerals Ltd	0.004	-20%	2,460,137	$4,052,682
ID8	Identitii Limited	0.008	-20%	1,796,614	$6,014,325
MVL	Marvel Gold Limited	0.008	-20%	201,127	$8,637,907
RDS	Redstone Resources	0.004	-20%	99,000	$4,626,892
VML	Vital Metals Limited	0.002	-20%	120,000	$14,737,667
HMY	Harmoney Corp Ltd	0.410	-18%	99,159	$50,982,074
MCM	Mc Mining Ltd	0.037	-18%	989,122	$18,630,601
JIN	Jumbo Interactive	13.160	-18%	1,192,468	$1,006,863,597
ASE	Astute Metals NL	0.030	-17%	775,000	$15,265,085
IVX	Invion Ltd	0.003	-17%	197,779	$19,913,597

PNX Metals (ASX: PNX) is set to be acquired by Patronus Resources (ASX:PTN) through a scheme of arrangement. Shareholders will vote on this proposal at a meeting scheduled on August 27.

Inca Minerals (ASX:ICG) has identified new targets across its projects after reviewing geophysical data from the past three years. A review of historical drill results from the MaCauley Creek Project has identified a promising central area, with strong silicification and copper occurrences. Recent fieldwork has assessed access for potential drilling.

Playside Studios (ASX:PLY) reported record revenue of $64.6 million for the year, up 68%, with increases in original IP and work-for-hire revenues. The company achieved an EBITDA of $17.5 million and a net profit of $11.3 million. During the year, Playside secured a Game of Thrones license with Warner Bros., a publishing deal for the shooter MOUSE, and launched Dumb Ways to Survive on Netflix Games. The twin-stick shooter Kill Knight is set for an October release, and its Meta Horizon Worlds contract is extended through December 2025. Playside will provide its FY25 guidance in October.

Bowen Coking Coal (ASX: BCB) has announced the resignation of Mr David Conry AM as a non-executive director. Conry, who joined the board in June 2023, has been instrumental in supporting the company’s transformation plan. Conry stated that his resignation was due to his need to focus on other significant business commitments and new ventures.

IN CASE YOU MISSED IT

American West Metals’ (ASX:AW1) deep diamond drilling has confirmed the large lateral extent of the Storm copper system with the red metal now intersected in all holes drilled to date over a 10km2 area.

Pan Asia Metals (ASX:PAM) expects to start an inverse polarisation survey to map and detect Manto-style copper mineralisation within its Rosario project in Chile on or about September 23, 2024.

The company has engaged Quantec Geoscience to carry out the survey of 19 IP lines totalling ~27km to assist with drill targeting, delineation and structural control identification.

“We are excited to be conducting the first ever geophysical survey at Rosario and look forward to seeing what’s below, given the high grade rock chip and channel samples and Rosario’s proximity to the famous El Salvador mine 10km to the south, which has been in operation since 1959,” managing director Paul Lock said.

“The IP program will be closely followed by an inaugural drill program.”

TRADING HALTS

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At Stockhead, we tell it like it is. While Bioxyne, American West Metals and Pan Asia Metals are Stockhead advertisers, they did not sponsor this article.