ASX ends flat as rally fades; Austal surges on Hanwha interest
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The news: The Australian sharemarket pared early gains to end 0.08% higher.
Utilities was the best performing sector, adding 1.71%, as the country's largest power suppliers rallied.
Elsewhere, Macquarie upgraded supermarket giant Woolworths, and Goldman Sachs downgraded drinks retailer Endeavour Group, while shipbuilder Austal was buoyed after South Korea's Hanwha Group landed a 9.9% stake in the company.
The ASX 200 closed at 7860.4, with eight out of 11 sectors finishing in green.
Biggest ASX 200 movers:
- New Hope Corporation (8.92%) — Notched a 35% rise in first-half net profit and hiked its interim dividend. It also unveiled a $100 million buyback.
- Gold Road Resources (-4.92%) — Warned of lower production from its Gruyere mine during the March quarter.
Other news:
- Austal (7.57%) — South Korean conglomerate Hanwha Group bought a 9.9% holding in the ship builder for around $183 million. Hanwha has also sought regulatory approval to increase its interest in the company to 19.9%.
- Telix Pharmaceuticals (-0.77%) — Announced that its prostate cancer diagnostic agent Illuccix has been approved in Brazil.
Analyst rating changes:
- Woolworths (1.41%) — Upgraded by Macquarie to 'outperform'. Analysts said the release of the ACCC's final report on Coles (-0.27%) and Woolworths, following an inquiry into grocery prices, may present a buying opportunity for the two supermarket giants.
- Endeavour Group (-1.94%) — Goldman Sachs downgraded its rating on the Dan Murphy's and BWS owner, citing a longer-than-expected recovery in its retail market share.
The Australian dollar is buying 63.71 US cents.
