ASX higher after US election; Sigma Healthcare rockets
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The news: The Australian sharemarket ended higher in a late rally as the market digested Donald Trump's win in the US election.
While gold miners tumbled on a stronger dollar, energy stocks rose as traders weighed the possibility of Trump squeezing oil supplies from Iran and Venezuela.
The benchmark ASX 200 gained 0.33% to end at 8,226.3, as six out of 11 sectors finished in red.
Biggest news:
- Sigma Healthcare (24.94%) — Shares rocketed after the competition regulator cleared the way for it to merge with Chemist Warehouse.
- Nine Entertainment (0.91%) — Flagged a 10% decline in Q2 due to poor TV revenue. At its annual general meeting, it also noted it could cut another $50 million in costs in FY25 and its board received a first strike on its remuneration report. Similarly, Seven West Media (-3.03%) said it expected revenue for the first half of Fy25 to be down 6.5%.
- NAB (0.2%) — Reported an 8.1% slump in full-year cash profit, with its margins hurt by intense competition in the home loan market and higher costs.
Other news:
- Neuren Pharmaceuticals (8.52%) — Reported that net sales of its Rett syndrome treatment already exceeded the full-year net sales threshold of USD250 million ($380.6 million).
- Energy sector (2.29%) — Oil prices edged higher, boosted by risks to oil supply from a Donald Trump presidency and a hurricane emerging in the Gulf Coast. The sector was the best performing across the ASX with Karoon Energy (4.38%), Woodside Energy (3.24%), Beach Energy (3.21%), Santos (2.41%), and Ampol (1.47%) all notching gains.
- GQG (4.23%) — Total funds under management fell in October to $3.35 billion. However, listed equity fund managers on the ASX were enjoying gains as US equity markets jumped following the US election results.
- Steadfast (1.46%) — Has acquired London-based insurance broker HW Wood and HWI France for $46.1 million.
- Harvey Norman (-2.38%) — Goldman Sachs downgraded its rating on the white goods retailer to 'sell' as it warned of heightened competition in Australia and New Zealand.
- Domain (-3.48%) — Bell Potter downgraded its rating on the company to ‘hold’ from ‘buy’ following its September quarter earnings.
- Regis Resources (-4.98%) — Has commenced legal proceedings after an environmental protection declaration by Environment Minister Tanya Plibersek blocked development at the McPhillamys gold project in New South Wales.
- Gold stocks — Gold prices slid to a three-week low, as the US election result saw investors buy into the US dollar. Westgold (-8.39%), Bellevue Gold (-7.67%) and Perseus Mining (-6.93%) took the biggest hits.
Quarterly earnings:
- NIB (1.86%) — Flagged a strong start to FY25 as its Australian Residents Health Insurance business recorded a net growth of 52.9%.
- Breville (-0.48%) — Warned about the impact of incoming US President Donald Trump’s likely tariffs on China and announced it would boost inventory levels in the US.
- Scentre (-1.16%) — Reported higher rent collections and traffic at its Westfield shopping centres for the first nine months of 2024 and reaffirmed its full-year guidance.
The Australian dollar is buying 66.19 US cents.
What’s ahead:
Overnight will see the release of the latest US employment claims data. The next US Federal Reserve monetary policy decision is due Friday morning, and is widely expected to be a 25 basis point cut.
Earnings on Thursday will include ANZ and Square.
