The Aussie market edged higher on light volume ahead of a key update on inflation tomorrow, with the ASX 200 finishing 17.4pts or 0.26 per cent higher to 6807.3. Six sectors and 109 stocks rose. Resources did much of the heavy lifting after mining and energy stocks rose 2.8 per cent and 1.6 per cent, respectively. However this was somewhat offset by a 1.7 per cent decline in the Consumer Discretionary sector (worst in ~2 weeks), which followed US retailer Walmart issuing its second profit warning in 10 weeks.
In company news, Perseus Mining (PRU) fell 5.3 per cent after releasing a quarterly update this morning. PRU said that despite its gold production (annual) being within the “upper half of [its] market guidance range”, it fell over the quarter by 6.3 per cent to 122.3koz. It also posted a 10.6 per cent quarterly increase in its all-in site costs (AISC) to US$1,004 per ounce. The gold miner also informed investors that it expects its AISC to increase by around 5 per cent over the next half-year.
Shares of lithium miner Paladin Energy (PDN) climbed 8.1 per cent after it announced its fourth-quarter update. The miner has increased its capital expenditure expectations by 35.6 per cent to restart production at its Heinrich Mine in Namibia. It revised its guidance after considering recent impacts of “inflationary pressures”, “power & water infrastructure works”, and elevated “team costs”. PDN says that its cash balance is now US$177.1 million, and experienced an operating cash outflow of $1.2 million in the fourth quarter.
Regis Resources (RRL) shares fell 1.6 per cent after it posted a 20 per cent quarterly increase in its gold production to 124koz. RRL says that it’s targeting annual gold production of 500koz by FY25, and expects to produce 450-500koz of gold in FY23 (~+8.7 per cent YoY). Its all-sustaining costs (AISC) climbed 1.1 per cent to $1,591 per ounce. RRL expects its AISC to be between $1,525-$1,625 over FY23.
Myer (MYR) released a trading update this morning, informing investors that it expects FY22 sales of between $2,985-$2,995 million (~+12.5 per cent YoY), and its profits to be between $55- $60 million (~+94.5 per cent YoY). Myer shares climbed 21.3 per cent and are on track to snap three straight months of losses.
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Tomorrow, a key update on inflation will be released in Australia. Bloomberg estimates show that annual inflation is expected to be 6.3 per cent (quarterly: 1.9 per cent) – the highest annual inflation rate since December 1990.
2.9bn shares were traded, worth $5.8bn. 675 stocks rose, 668 fell & 384 finished unchanged.
In the US, weekly chain store sales data is issued with new home sales figures, the Conference Board consumer confidence index and house prices from both S&P/Case Shiller and the Federal Housing Finance Agency. There are also two regional surveys from the Richmond and Dallas Federal Reserve banks
Originally published by Divik Nigam – (Author), CommSec
