ASX rallies; Neuren Pharmaceuticals, Sigma Healthcare extend gains
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The news: The ASX rallied, with today’s top winners closely mirroring Thursday’s, as Neuren Pharmaceuticals and Sigma Healthcare continued to extend their gains.
The benchmark ASX 200 gained 0.84% to end at 8,295.1, with 10 out of 11 sectors finishing in green.
Biggest movers:
- Neuren Pharmaceuticals (15.07%) — Wilsons analysts increased their target price by 5% following Thursday’s news that its Rett syndrome treatment had strong sales during Q3.
- Sigma Healthcare (4.53%) — Analysts hiked their valuations on the company, following the competition regulator's decision to clear its merger with Chemist Warehouse on Thursday.
- Block (-6.06%) — Reported weaker-than-expected increase in third quarter revenue.
Quarterly earnings:
- News Corp (2.14%) — Reported a 3% rise in Q1 revenue and UBS analysts said the company had stronger than expected costs control.
- ANZ (1.33%) — Earnings came in below expectations but CEO Shayne Elliott and CFO Farhan Faruqui were able to quell analyst fears as they talked through the opportunities emerging in coming years.
- REA Group (0.28%) — Posted a Q1 earnings and revenue on the back of price increases and listings growth.
- Arcadium Lithium (-2.07%) — Posted a sharp fall in earnings and revenue due to lower average realised prices in lithium and lower volumes, in addition to higher costs.
Other news:
- Tech sector (1.76%) — IT was the best performing sector tracking strong gains by Wall Street tech companies overnight, buoyed by the US election outcome. WiseTech (1.78%), Xero (1.17%), NextDC (2.2%), Technology One (1.44%) and Life360 (4.43%) all rose.
- Materials sector (0.69%) — Miners lifted as traders expect further stimulus measures by Chinese authorities. Iron ore heavyweights Champion Iron (2.12%), Rio Tinto (1.36%), Fortescue (0.26%) and BHP (0.95%) all gained.
- Perpetual (0.24%) — Unveiled a number of executive leadership changes, as it prepares to become a standalone asset management business.
- Mineral Resources (0.03%) — Super fund HESTA has put the miner on notice for its governance failures as it has placed the company on its watchlist where it could consider divesting from the miner.
- Kelsian Group (-2.3%) — CEO and managing director Clint Feuerherdt will step down in April 2025, with the US business head Graeme Legh promoted to the role.
The Australian dollar is buying 66.53 US cents.
What’s Ahead: Next week's events include:
- AGMs: Coles, Endeavour Group, Johns Lyng, Cettire Goodman Group, GYG, Lendlease all holding respective meetings next week.
- Economic events: Wage price index and the unemployment rate.
- Offshore: Spotify earnings, US CPI, US producer price index, and US unemployment claims data.
