Roy Keenan from Yarra Capital Management shares insights with James Dunn from The Inside Network on the role of active management. The Inside Adviser
After the Hayne Royal Commission many advisers decided to steer away from large dealer groups in favour of becoming self-licensed. In the last six months, however, that trend has taken an abrupt turn.
Hammered Origin leads market lower
The S&P/ASX 200 fell 0.5 per cent, or 32.4 points, to 7180.8 on Monday, dragged lower by losses across the utilities sector, which contains Origin Energy – and the big electricity and gas supplier were hammered 61 cents, or 7.8 per cent, lower to $7.19, amid fears that the federal government’s intervention into the gas market could see Brookfield and EIG Group walk away from their $18.4 billion takeover bid for the company. In the same sector, AGL Energy dropped 21 cents, or 2.6 per cent, to $7.79.
But in the energy space, Woodside Energy rose 92 cents, or 2.7 per cent, to $35.10, and Santos gained 5 cents, or 0.7 per cent, to $7.11; however, Beach Energy, where the market is still worried about what the collapse of contractor Clough means for the company’s Waitsia gas project, lost 4 cents, or 2.4 per cent, to $1.62.
Takeover action was also roiling the fintech sector, where Tyro Payments plunged 29 cents, or 19.5 per cent to $1.20 after it rejected a revised takeover offer from buyout firm Potentia Capital, and a second potential bidder in Westpac Banking Corporation walked away.
Potential seen for Potentia
Potentia had been bidding for E-document platform Nitro Software, but looks to be out of that game after Nitro’s board unanimously recommended that shareholders back a revised takeover bid from KKR-owned digital productivity firm Alludo, of $2.15 a share, above Potentia’s $2.00 offer. Nitro pushed past that price, rising 10 cents, or 4.7 per cent, to $2.23, showing that some investors believe there is room for Potentia to come back with a higher bid.
Despite a slightly stronger iron ore price, Fortescue Metals Group lost 27 cents, or 1.3 per cent, to $21.12, while BHP was down 69 cents, or 1.4 per cent, to $46.79, and Rio Tinto shed 81 cents, or 0.7 per cent, to $116.35.
In the coal space, Whitehaven Coal lost 19 cents, or 2 per cent, to $9.50; New Hope Corporation retreated 8 cents, or 1.4 per cent, to $5.71; Coronado Global Resources dropped 11 cents, or 5.4 per cent, to $1.92; but Yancoal Australia managed to add 2 cents, to $5.77.
In the lithium arena, producer Pilbara Minerals added 6 cents, or 1.3 per cent, to $4.53, but fellow producer Allkem eased 6 cents, or 0.5 per cent, to $13.04. Project developer Liontown Resources retreated 4 cents, or 2.2 per cent, to $1.74, and Piedmont Lithium lost 2.5 cents, or 2.9 per cent, to 83 cents. Mineral Resources, which produces iron ore and lithium, gave up $2.20, or 2.4 per cent, to $88.30, while IGO, which mines nickel and lithium, fell 39 cents, or 2.6 per cent, to $14.65.
In gold, Silver Lake Resources fell 10 cents, or 7.5 per cent, to $1.23; Ramelius Resources was down 4.5 cents, or 4.6 per cent; Regis Resources lost 8.5 cents, or 4.1 per cent, to $1.98; Evolution Mining was down 11 cents, or 3.7 per cent, to $2.86; and Gold Road Resources dipped 6.5 cents, or 3.7 per cent, to $1.70.
Among the big banks, Westpac lost 8 cents, or 0.3 per cent, to $23.36; ANZ was down 10 cents, or 0.4 per cent, at $23.54; and National Australia Bank was flat at $30.19; but Commonwealth Bank gained 41 cents, or 0.4 per cent, to $105.39. Investment bank Macquarie Group advanced $3.46, or 2.1 per cent, to $171.50.
Infection prevention company Nanosonics closed down 48 cents, or 9.9 per cent, to $4.36, despite there being no announcement or news — but the stock is one of the most heavily shorted on the exchange.
Final hour revs up Wall Street
In the US overnight, a late surge saw the blue-chip Dow Jones Industrial Average gain 528.6 points, or 1.6 per cent, to 34,005, clawing back some of the steep losses from the previous week, as traders looked ahead to a highly anticipated Federal Reserve meeting and new inflation data.
The broader S&P 500 index gained 56.2 points, or 1.4 per cent, to 3,990.6 and the tech-heavy Nasdaq Composite index advanced 139.1 points, or 1.3 per cent, to 11,143.7.
The 10-year Treasury yield rose slightly to 3.617 per cent, while the inverted 2-year yield – which is considered more sensitive to Fed policy – lifted six basis points to 4.39 per cent.
Gold is down US$14.16, or 0.8 per cent, to US$1,780.85 an ounce, while the global benchmark Brent crude oil rallied US$2.13, or 2.8 per cent, to US$78.23 a barrel, and US West Texas Intermediate crude jumped US$2.43, or 3.4 per cent, to US$73.43 a barrel. The Australian dollar is buying 67.5 US cents.
