The domestic market is slowly chipping away at recent losses, with the S&P/ASX 200 (ASX: XJO) gaining another 0.3% on Tuesday behind a rally in the energy and utilities sectors.
The energy sector was buoyed another 2% by a rally in the oil price amid signs Chinese demand may recover, with both Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO) adding 2% each.
Six sectors were lower, most of which fell by more than 1%, with industrials, healthcare and property the hardest hit.
Bramble’s bid halted
Monday’s biggest winner Brambles Ltd (ASX: BXB) quickly became Tuesday’s biggest loser, with the Brambles share price falling 7.6% after management confirmed that private equity group CVC would not be proceeding with a bid for the company.
Lithium and rare earth miners were a highlight after the Federal Government splashed another $20 million on Pilbara Minerals Limited (ASX: PLS) and Calix Ltd (ASX: CXL) as they commit to supporting Australia’s growth in modern manufacturing and on-shore metal processing.
Shares in foreign currency transfer group OFX Group Ltd (ASX: OFX) surprised, gaining more than 8% after management reported income growth exceeding 25%, which will contribute to a 50% jump in earnings.
James Hardie upgrades, passes on costs
Shares in building products supplier James Hardie Industries (ASX: JHX) reversed recent gains, falling 3.6%, despite management reporting a 20% jump in sales in the fourth quarter to USD$968 million.
Earnings also increased by more than 30% as management passed on input cost increases twice during the year in an effort to maintain its strong profit margins. The full year profit was an incredible 75% higher than 2021.
United Malt downgrades
United Malt Group Ltd (ASX: UMG), which was spun out of GrainCorp Ltd (ASX: GNC), reported half-year results, revealing a 5% fall in earnings despite an 11% increase in revenue to $652 million.
Net profit was just $10 million with management blaming the surging costs of inputs including barley along with supply chain issues.
Nickel deal to proceed
IGO Ltd (ASX: IGO) appears to be nearing acceptance of its increased bid for Western Areas Ltd (ASX: WSA), something that was disrupted by the events in Ukraine, despite complaints that it was a ‘not fair but reasonable’ price for the business.
Meanwhile, in a sign of the challenges that lay ahead, Australian consumer confidence fell to the lowest point since 2020’s lockdowns, falling 1.3%, following the increase in interest rates and growing headlines about inflation.
ASX 200 today
Looking ahead, the ASX 200 is expected to open higher this morning, following a positive lead from US stock markets overnight. To find out more, check out my US stock market report.
