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19th Jul 06:39 PM AEST
Vulcan Energy (ASX:VUL) strikes a deal with LG Energy Solution
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Lithium producer Vulcan Energy Resources Limited (ASX:VUL) shared on Monday that it has signed a lithium hydroxide offtake term sheet agreement with LG Energy Solution (LGES).
As per the Company statement, LGES is the largest producer of lithium-ion batteries for electric vehicles in the world and supplies its products to top global OEMs.
Key highlights:
- The Agreement is for an initial five-year term which can be extended by a further five years.
- In the first year of the supply term, LGES will be buying 5,000 metric tonnes of battery grade lithium hydroxide. This will take up the production to 10,000 metric tonnes per year in the upcoming years of the supply term.
- Pricing will be based on market prices for lithium hydroxide.
It should be underlined that Vulcan is trying to become the world’s first lithium producer with zero greenhouse gas emanations.
The shares of the stock VUL closed 2.787% lower at AU$9.070 per share today.
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19th Jul 05:43 PM AEST
Pacific Smiles (ASX:PSQ) extends losses, brokerage sees demand pushed to FY22
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Shares of dental centres operator Pacific Smiles Group Ltd (ASX:PSQ) fall for a fourth session, down as much as 2.8% at AU$2.460.
The Company on Friday forecast FY underlying EBITDA at the lower end of its forecast range, pressuring its shares.
The results were affected by COVID-19 restrictions in Melbourne and New South Wales.
Morgan Stanley noted that the Company did not provide revenue or store rollout update after previously targeting 15 new centres in FY21.
MS said curbs on movement of people and dentists deferring non-essential treatment could see demand being pushed into FY22.
The Company reported FY results on 1 August 2021.
PSQ has marked its biggest intraday percentage loss since 9 July 2021.
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19th Jul 05:20 PM AEST
Ioneer (ASX:INR) grabs water pollution control permit for Rhyolite Ridge
Ioneer Limited (ASX:INR), an evolving lithium-boron provider, today approved the issuance of a Water Pollution Control Permit for its Rhyolite Ridge Lithium-Boron Project situated in Nevada.
The review and the issue of the Water Pollution Control Permit included a comprehensive analysis of the Project by the State of Nevada Division of Environmental Protection, including an evaluation of the influence to cover and subsurface water during and after shutting of the operation.
As per the release, the Class II Air Quality Permit was approved and announced last month.
The Project will consist of a process plant, quarry, burdened storage facility, and a spent ore storing capacity and will manufacture lithium carbonate and boric acid end products on site.
As per the announcement, the total surface footprint of the project is 3.8 square kilometres.
The release also said that ioneer has already acquired all the water it needs for the process through contracts with regional farmers.
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19th Jul 04:55 PM AEST
ASX ends 0.9% lower; material, energy stocks drag
Australian?shares?closed sharply lower on Monday as lingering concerns about surge in COVID-19 cases and fear over rising inflation dented demand for riskier assets. The equity market witnessed surge in selling after fresh data showed that the country struggled to curb the highly contagious Delta variant of the coronavirus.
The?S&P/ASX200?ended 62.10 points or 0.85% lower at 7,286, led by losses in blue-chip bank and mining stocks. Earlier today, the benchmark index opened lower and fell as much as 1.3% to 7,249, its lowest since July 9.
The market breadth, indicating the overall strength of the market, was weak with seven of the 11 sectoral indices ending in red. The material sector was the worst performer with 2.35% loss. Among others, energy and telecom indices also witnessed surge in selling, falling over 1% loss.
Meanwhile, the health care sector was the best performer with a 1.92% gain. Among others, consumer staples and tech ended with marginal gains.
The concerns about the COVID-19 situation in the country injected negativity in the market. In the last 24 hours, NSW reported 98 new locally acquired cases and five deaths from the COVID-19 Delta outbreak, while Victoria's recorded 13 new COVID-19 cases.??
Among the individual stocks, Australia's biggest listed mining royalty firm Deterra Royalties Limited (ASX:DRR) was the top percentage gainer on the ASX pack, rising nearly 4%. Meanwhile, gold miner Chalice Mining Ltd (ASX:CHN) was the top loser, falling 9.4%.
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19th Jul 03:54 PM AEST
Australia's mining sector slips as virus worries hammer commodity prices
Shares of Aussie miners AXMM fell as much as 2.8%, their biggest intraday percentage gain since 19 May 2021, weighed down by the spread of the Delta coronavirus variant in the country.
Mining stocks are down on profit booking after gaining 4.7% in the last week.
Iron ore prices are down 1.8% by end of the morning trade, further hurting local miners.
Sector heavyweights BHP Group Limited (ASX:BHP), Rio Tinto (ASX:RIO) and Fortescue Metals Group Limited (ASX:FMG) down between 3.4% and 2.2%.
Gold miner Evolution Mining Limited (ASX:EVN) is the biggest loser on the sub-index, slumping nearly 9.5% with brokerages cutting PTs as the Company missed its FY21 production guidance.
AXMM losses are in line with the benchmark index AXJO, which is also down as much as 1.4%.
The stock had risen 16.2% this year, as of the last close, compared to a 11.6% increase in the S&P/ASX 200 index.
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19th Jul 03:53 PM AEST
Recce Pharma (ASX:RCE) jumps after positive drug update
Shares of Recce Pharmaceuticals Ltd (ASX:RCE) rose as much as 8.2% to AU$0.99, on track for their best day since 27 May 2021.
The Company said its RECCE 327 antibiotic shows reduction, within 24 hours, in the count of two bacterial strains that cause "flesh-eating" disease.
RCE stock is among top percentage gainers on the ASX All-Ordinaries index AORD.
Over 600,000 shares have been traded, nearly 3 times the 30-day trading average.
The stock has seen its busiest trading day in nearly three weeks and was trading 6.043% higher at AU$0.965 per share at 3:46 PM AEST.
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19th Jul 03:37 PM AEST
Australia's Valmec (ASX:VMX) hits over 10-yr high on $38.49 million buyout offer
Shares of Valmec Limited (ASX:VMX) rose as much as 28.1% to AU$0.410, hitting highest since 17 February 2011.
The energy and infrastructure services firm has received a AU$0.413 per share conditional cash takeover offer from global multi-services provider, Altrad Australia Pty Ltd worth AU$52 million.
The offer is at a 29.1% premium to Valmec's last closing price of AU$0.32 per share on 16 July 2021.
The Company stated both parties have entered into a Scheme Implementation Deed, under which Altrad intends to acquire Valmec by way of a Scheme of Arrangement.
Valmec's board recommends shareholders accept the offer.
The stock has posted its biggest intraday gain since 12 May 2020.
The stock is up 38.2% YTD as of the last close and was 25% higher at AU$0.400 per share at 3:20 PM AEST.
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19th Jul 01:30 PM AEST
Empired (ASX:EPD) hits record high on Capgemini's $172.5 million bid
IT services provider Empired Ltd (ASX:EPD) surged 60.4% to a record A$1.315 after Capgemini agreed to buy the software Company.
Capgemini's local unit will pay up to AU$233 million at AU$1.35 a share.
As per the Company, the deal is unanimously backed by the board; CEO Russell Baskerville, who owns 5.8% of EPD, will vote in its favour.
The shares have logged their sharpest rise ever.
Capgemini stated the deal will strengthen its regional capabilities in cloud and data.
At 1:21 PM AEST, the stock was trading 59.146% higher at AU$1.305 per share.
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19th Jul 01:21 PM AEST
humm group (ASX:HUM) rises as Q4 net profit more than doubles
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Buy-now-pay-later firm humm Group Limited (ASX:HUM) gained as much as 7.653% to touch AU$1.055 per share on Monday.
HUM posted Q421 unaudited cash net profit after tax of about AU$68.4 million, up 121.1% y/y.
The transaction volume AU$774.9 million, up 57.3%. Total customers 2.7 million, as of 30 June, up 19.7%.
The Company has appointed Adrian Fisk as CFO in place of Jason Murray.
The stock has posted its biggest intraday percentage gain since 4 June 2021.
HUM had fallen 12.9% this year, as of the last close.
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19th Jul 01:13 PM AEST
Stockland (ASX:SGP) acquires a land lease community operator
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Stockland (ASX:SGP), the diversified property business, reported signing a binding agreements to acquire Halcyon Group's land lease communities business. The agreement is for AU$620 million, plus transaction costs, subject to certain adjustments.
The agreement includes the acquisition of 3,800 sites across 13 land lease communities. It will add over 2,500 new customers to SGP's portfolio and strengthen SGP's existing land lease capabilities.
Land lease communities provide attractive returns. The demand is driven by Australia's aging and near retirement population. Via the transaction, SGP is seeking synergies to leverage business growth. It seeks to become a leading operator in this space.
The transaction is accretive to FFO (funds from operations) per share. Also, SGP will fund 100% of the acquisition from existing liquidity. Payment will be in two tranches – the first paid upon completion of the transaction in mid-August 2021, and the balance deferred until July 2022.
A further update is expected with SGP FY21 results on 20 August 2021.
SGP shares traded 0.912% down at AU$4.350 at 1:07 PM AEST.
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19th Jul 12:34 PM AEST
ASX plunges 1.3% on COVID-19 woes; Altium falls 11%
Australian?shares?continued to trade lower by the afternoon, led by losses in bank, miner and retail stocks. The equity markets witnessed broad-based sell-off amid weak global?cues?and alarming COVID-19 surge in the country.?The announcement of extension of lockdown in Victoria beyond Tuesday night and?rise in daily?case tally?left investors jittery.??
The?S&P/ASX200?was trading lower by 81.60 points or 1.1% at 7,266 by the lunch. Early today, the index opened lower, tracking weak cues from Wall Street, and declined as much as 1.3% to hit a low of 7,249, its lowest since July 9.
On?the sectoral front, ten of the eleven sectors were bleeding in red, led by material and energy stocks. Materials was the worst performer with over 2% loss, followed by energy which dropped 1.7%. Telecom, financial, industrial and materials were trading lower over 1% each.
Bucking the trend, health care stocks was only gainer, rising 1.25%.
Concerns about the COVID-19 situation in the country continued to weigh on the market. In the last 24 hours, NSW reported 98 new locally acquired cases, while Victoria's recorded 13 new COVID cases.??
Among the individual stocks, software firm Altium was top loser on ASX pack, falling nearly 11% amid report that American software company Autodesk Autodesk has withdrawn its AU$38.50 per share takeover offer.
Some of the other top losers were Chalice Mining Ltd (ASX:CHN), Evolution Mining Limited (ASX:EVN), PointsBet Holdings Limited (ASX:PBH), OZ Minerals Limited (ASX:OZL).
On the flip side, health care firm Polynovo Limited (ASX:PNV) was top gainer on ASX, rising over 4%. Some of the other notable gainers were Deterra Royalties Limited (ASX:DRR), Domino’s Pizza Enterprises Limited (ASX:DMP), Fisher and Paykel Healthcare Corporation Ltd (ASX:FPH) and ResMed Inc (ASX:RMD).
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19th Jul 12:32 PM AEST
IntelliHR (ASX:IHR) reports record-breaking Q4FY21, shares surge more than 6%
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intelliHR Limited (ASX:IHR), the HR software provider, reported continued global growth acceleration. It reported a record Q4, exceeding AU$1 million in the new contracting business for the first time. It is a 236% increase y-o-y. New contracts include AU$736,469 of new annual recurring revenue and AU$271,380 in professional services. Q4 Invoice generation also set a record at AU$1.246 million; a 165% increase y-o-y.
FY21 has thus become the most successful year in IHR’s history. The contracted subscription revenue has grown by AU$1.92 million, a 178% gain Y-o-y. The FY21 growth is backed by strong and reliable leads and sales. In Q4, IHR added a record number of 41 customers.
IHR has also increased investment in building global sales and support capabilities in NZ, UK, Canada, and the US. In return has obtained global contracts contributing 56% of ARR added during FY21. In addition, it has helped accelerate growth for FY22 and beyond. IHR is presently working to progress emerging Reseller technology partnerships, upscaling sales channel offerings.
IHR shares traded 6.818% higher at AU$0.235 at 11:50 AM AEST.
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19th Jul 12:32 PM AEST
Altium (ASX:ALU) sinks nearly 14% after report Autodesk walks away from takeover bid
Altium Limited (ASX:ALU) plunged 13.9% to AU$31.47 on a report that Autodesk Inc has walked away from its takeover bid.
Trading was paused less than 20 minutes after the market opened pending an announcement.
The software firm had rejected a AU$5.05 billion bid from its U.S. peer, but left its door open to a higher offer.
The Australian reported that Autodesk had come back with a higher offer, said to be AU$1 or AU$2 a share more, but Altium had rejected that as well, citing sources.
Altium is likely to trade close to early AU$30s without M&A support, stated RBC Capital Markets.
The Company still has some work to do to rebuild market confidence in the growth outlook following 7 downgrades in ~18 months, added RBC.
Meanwhile, the stock ALU traded 10.452% lower at AU$32.730 per share at 11.40 AM AEST.
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19th Jul 11:45 AM AEST
Iron ore prices inch higher on supply disruptions from Australia and Brazil
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Iron ore prices with 63.5% Fe content for delivery into Tianjin are expected to hit US$225.0 per tonne soon.
- The prices hit US$220.0 per tonne in the July start and currently hovering near US$222.5 per tonne after reaching a record high level of US$232.0 per tonne on 12 May 2021.
- The stockpiles of imported iron ore at the ports of China declined for four consecutive weeks to 123.95Mt as of 25 June 2021, the lowest in past eight months.
- Adding to that, the Brazilian miner Vale SA recently announced that it has temporarily stopped production from its Timbopeba mine and Algerian mine after getting warnings related to tailing dam risks.
- Creating a supply crunch, Australian iron ore shipments for June month have also been disappointing that further pushed iron ore prices higher.
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19th Jul 11:23 AM AEST
Telstra (ASX:TLS) clarifies on media speculation on Digicel Pacific
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Telstra Corporation Limited (ASX:TLS), the telecommunications provider, responded to media speculation regarding Digicel Pacific.
The Age/Sydney Morning Herald (17 July 2021) had published a story on a potential acquisition of telecommunications company Digicel Pacific in the South Pacific region by TLS in partnership with the Australian Government.
Digicel Pacific is a leading provider of communications services and enjoys a strong market position in the South Pacific and extensive network coverage.
TLS clarified that the discussions are incomplete, and there is no certainty that a transaction will proceed.
The Australian Government initially approached TLS to provide technical advice about Digicel Pacific, a commercially attractive asset. In addition, the Government offered TLS financial and strategic risk management support for this transaction. The Government also offered a significant funding and support package.
TLS said that it would keep the market updated on this matter.
TLS shares traded on ASX at AU$3.720 per share, down 1.327% at 11:00 AM AEST.
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19th Jul 11:21 AM AEST
Crude oil dips as OPEC+ agrees to increase oil supply from August
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Crude oil prices inched lower on Monday as OPEC+ agrees to increase the oil supply from coming August after the UAE and Saudi Arabia reached a compromise.
- September delivery crude oil futures traded 0.68% down at US$72.64 per barrel, whereas September delivery WTI crude oil futures traded 1.37% down at US$70.58 per barrel as of 19 July 2021 at 10:33 AM AEST.
- OPEC and its allies agreed to increase the supply on Sunday to cool the oil prices that reached 2.5-year highs as the global economy recovers from the pandemic.
- The group will increase supply by 2 million bpd or 0.4 million bpd per month from August to December 2021. The cartel aims to fully phase out production cuts by September 2022.
- With the revival of the 2015 US-Iran deal, Iran is also estimated to add 1.5 million bpd to the global supply.
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19th Jul 11:12 AM AEST
Wisr (ASX:WZR) delivers 20th consecutive quarter of growth, shares up
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Wisr Limited (ASX:WZR), the marketplace lending platform owner, reported its continued uninterrupted growth, originating AU$123 million of new loans in Q4FY21. This is WZR’s 20th consecutive quarter showing growth.
The new loan volume represents a 193% increase compared to Q4FY20 (pcp) and a 27% increase from Q3FY21. WZR warehouse loan book balance has grown 342% pcp to AU$379 million. WZR is now scaling towards its medium-term target of a wholly-owned AU$1 billion loan book.
As per the company, its purpose-led model is attracting Australia’s most creditworthy customers. Since the launch of its secured vehicle product, it has continued to deliver ahead of expectations. WZR said that it still has a massive runway of growth ahead in that category.
WZR said that it also has a clear competitive advantage from its differentiated business model, consumer financial well-being proposition, technology platform, and funding capability. All of it is enabling WZR’s vision to build an industry-changing consumer finance company.
Meanwhile, WZR shares traded 1.886% higher at AU$0.270 at 10:50 AM AEST.
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19th Jul 11:10 AM AEST
AnteoTech (ASX:ADO) signs key South-East Asian distribution agreement for EuGeni
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Surface chemistry firm AnteoTech Ltd (ASX: ADO) announced on 19 July 2021 that it has signed a Distribution Agreement with Biomed Global Sdn. Bhd (Biomed) and its subsidiaries for the distribution of the EuGeni Reader platform and SARS-CoV-2 Antigen Rapid Diagnostic Test (RDT).
Founded over 20 years ago, Biomed provides innovative technologies in the clinical diagnostics and life science research sector.
Biomed as the authorised representative, distributor and importer for the territories in which they have been appointed, will be responsible for executing the necessary registration to the local medical device authorities to enable sales of the EuGeni reader and tests. AnteoTech will support Biomed with the relevant documentation and data required.
Key terms of the Agreement:
- The Agreement is for exclusive sales into Malaysia, Singapore, Indonesia, Vietnam, Thailand, Myanmar.
- It is for initial one year, extendable by an additional two years on mutual agreement.
- AnteoTech and Biomed will work together to assess each tender opportunity on a case-by-case basis.
The stock ADO traded last at AU$0.240 per share.
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19th Jul 11:10 AM AEST
Douugh (ASX:DOU) launches native Android app to US consumers
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The fin-tech firm operating in the US, Douugh Limited (ASX:DOU), has announced on Monday the launch of its native Android app in the Google Play store, expanding its distribution.
The statement from the financial wellness banking app read that as per the recent share report from Statista, Android now accounts for 45.99% of the mobile OS market in the US and iOS accounting for 53.66%.
Meanwhile, the stock DOU was spotted trading 5.263% up at AU$0.100 per share at 1:40 PM AEST.
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19th Jul 11:05 AM AEST
Perenti (ASX:PRN) awarded new $280m contract at Iduapriem
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Perenti Global Limited (ASX:PRN), the global mining group, announced that its joint venture, AMAX has been awarded a new AU$470 million (100% share), five-year contract at AngloGold Ashanti’s Iduapriem gold mine, located in western part of Ghana.
AMAX is a joint venture between PRN’s surface mining business in Africa, African Mining Services (AMS), and a leading Ghanaian mining services company. The contract will work as a 60:40 joint venture agreement. The contract will start with immediate effect.
The winning of quality projects with robust financial and commercial disciplines is a key strategic initiative in PRN’s 2025 Group Strategy.
PRN has provided surface mining services at the Iduapriem gold mine since 2012, establishing a successful partnership with AngloGold Ashanti. It is now seeking to continue to strengthen its partnership and work with its newest joint venture partner.
Under this contract, PRN expects to continue to support local businesses that are important suppliers to PRN operations. The joint venture also expects to employ more locals from surrounding regions and Ghana.
PRN shares traded last at AU$0.865 per share on the ASX.
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19th Jul 10:58 AM AEST
ASX 200: What to expect from market after weak Wall Street closing?
The ASX 200 is expected to open lower on Monday after US stocks fell in the previous session as inflation fears raised concerns despite robust retail data and better-than-expected earnings report.
The Australian benchmark index may open the day 37 points or 0.5% lower. On Friday, the ASX 200 the week on a strong note, up 0.2% to 7, 348.1 points.
The three major stock market indices ended the week lower to each snap three-week winning streak. The decline was mainly led by energy stocks as crude oil prices fell from the record highs on Friday.
Technology stocks also fell on Friday, while defensive utilities, consumer staples and real estate gained. Real estate also hit a record.
The Dow Jones lost 299.17 points, or 0.86%, to close at 34,687.85. The S&P 500 dipped 0.75% to 4,327.16 and the NASDAQ Composite shed 0.8% to 14,427.24.
Meanwhile, retail sales rose by 0.6% in June, the Commerce Department said on Friday. Core retail sales increased by 1.1% in June. It also revised the May sales figures, which further fell from 1.3% to 1.7%.
Investors are expected to closely track this week's second-quarter earnings reports of technology companies after several major US banks announced their results this week.