by Peter Milios
Stocks are fairly flat following overnight’s performance. Eight out of eleven sectors are in the green so far, as the S&P/ASX 200 is 0.02 per cent higher at 7,367 at noon.
Santos (ASX:STO) is facing challenges with its $5.8 billion Barossa gas project in the Timor Sea, after an unexpected court ruling overturned its environmental approval last year. The company aims to restart drilling by the end of the year after reworking consultations with indigenous communities and investigating potentially significant cultural sites along the pipeline route. Analysts predict a potential delay in start-up of up to 18 months. Despite this, Santos expects to commence production in the first half of 2025 within current cost guidance. The company’s quarterly report showed a 13 per cent decrease in production and sales in the March quarter.
Futures
The SPI futures are pointing to a rise of 2 points.
Best and worst performers
The best-performing sector is A-REIT, up 1.51 per cent. The worst-performing sector is Materials, down 1.64 per cent.
The best-performing large cap is Incitec Pivot (ASX:IPL), trading 1.88 per cent higher at $3.26. It is followed by shares in Aristocrat Leisure (ASX:ALL) and Aurizon Holdings (ASX:AZJ).
The worst-performing large cap is Mineral Resources (ASX:MIN), trading 4.23 per cent lower at $80.74. It is followed by shares in Pilbara Minerals (ASX:PLS) and Allkem (ASX:AKE).
Asian markets
Asia-Pacific markets were largely lower on Thursday as investors on Wall Street digest more earnings reports from names like Netflix, IBM and Morgan Stanley.
While many of the companies reporting topped analysts’ low-bar estimates, a lack of forecasts from the major companies also left investors on edge.
Japan’s Nikkei 225 gained 0.1 per cent, but the Topix shed 0.22 per cent as Japan’s trade deficit hit a record high of 21.7 trillion yen ($161.14 billion) for its full fiscal year ending March.
South Korea’s Kospi slid 0.38 per cent and the Kosdaq dipped 1.48 per cent.
Mainland Chinese markets were also all down, with the Shanghai Composite down 0.14 per cent and the Shenzhen Component 0.26 per cent lower.
Hong Kong’s Hang Seng Index gained 0.42 per cent in early trade, with the Hang Seng Tech index advancing 0.25 per cent
Company news
BluGlass Limited (ASX:BLG) announced their March quarter activities report, in which the company launched their first suite of (GaN) lasers, received multiple initial customer orders and secured $10.7 million to speed and scale product delivery. CEO Jim Haden commented, “Our first customers are established industry players, reflecting the growing need for alternative GaN laser suppliers, the quality of our first products, and BluGlass’ reputation.” Shares are trading 1.79 per cent lower at 5.5 cents.
Aurelia Metals (ASX:AMI) have also released their quarterly activities report, in which their gold, zinc and lead metal production increased by more than 20 per cent above the December quarter, benefiting from higher grades in the ore feed. Cash flow from operations and cash balance increased by $11 million and $15.6 million, respectively. Shares are trading 12.5 per cent higher at 15.8 cents.
Moho Resources (ASX:MOH) announced that significant clay-hosted rare earths intersected at their Peak Charles project in WA. In response, Ralph Winter, Managing Director commented, “Moho believes the identified target zone of 15 x 12km thus far, with further room for growth across the tenement package, puts the company in a positive position in the REE market in Australia.” Shares are trading 83.3 per cent higher at 3.3 cents.
Commodities and the dollar
Iron ore futures are pointing to a 1.9 per cent fall.
Gold is trading at US$2,007.40 an ounce.
Light crude is trading $0.39 lower at US$80.47 a barrel.
One Australian dollar is buying 67.03 US cents.
