Hello everyone! Good morning. This is Rachael live from Kalkine Studio in Sydney. And you’re
watching the Early Trades. Let’s, get started with our market open report.
The Australian sharemarket was trading lower at the open, weighed by losses from Magellan and ANZ.
The S&P/ASX 200 Index was down 0.7 per cent. Magellan Financial Group was down 7.1 per cent
after chairman Hamish Douglass announced he was taking a medical leave of absence.
ANZ was trading 4 per cent lower, after unveiling weaker margins in its quarterly update.
Unibail-Rodamco-Westfield was down 4.8 per cent. GrainCorp was trading 12.6 per cent
higher after providing strong earnings guidance. James Hardie Industries was up
6.4 per cent after it upgraded its guidance and reported a strong third-quarter result.
Let us look at the crucial announcements from ASX listed companies in detail.
CIMIC Group’s UGL has been named as the Principal Contractor by Snowy Hydro
for the construction of a 660 megawatts power generation plant at the Hunter Power Project
in Kurri Kurri, New South Wales. The contract will generate revenue to UGL of $185 million
over two years. The power generation plant will consist of two heavy-duty
F-class gas turbine generators and the related auxiliaries which operate
using dual fuel sources, including provision to operate on a hydrogen fuel mix.
The Star Entertainment will release its first half of financial year 2022 results
on 17 February 2022. As previously disclosed,
1H FY2022 earnings have been materially impacted by COVID-19 related property shutdowns,
operating restrictions and border closures. The Star Sydney, which was closed from the start of
the period to 11 October 2021, recorded strong revenue growth upon re-opening, with revenue up
29 percent on pcp from 11 October to 31 December 2021. The Queensland casinos’ total revenue was
stable on pcp when open, despite border closures and COVID-19 related operating restrictions.
ANZ Banking Group suffered group net interest margin deterioration of 8 basis points over
the first quarter, or 5 basis points on an underlying basis. The bank attributed the
decline to "a lower exit rate at the full year" and "a continuation of the structural headwinds
impacting the sector". Over the second quarter, ANZ expects these headwinds to moderate,
specifically the result of rising interest rates in New Zealand and changes in deposit pricing.
GrainCorp expects to report FY22 underlying EBITDA1 in the range of $480 – 540 million
and FY22 underlying NPAT2 of $235 – 280 million.
GrainCorp’s earnings guidance is subject to several market variables, as outlined
at the conclusion of this statement. Managing Director and CEO Robert Spurway said the strong
outlook reflects the Company’s outstanding supply chain execution, continued delivery
of operating initiatives, and high global demand for Australian grain and oilseeds.
Silver Lake Resources has announced the Board has approved an on-market share buyback for up to
10 percent of Silver Lake’s ordinary shares over the next 12 months. Silver Lake’s strong,
organically generated balance sheet and forecast free cashflow generation provides
it with the flexibility to consider value accretive capital management initiatives.
Under Silver Lake’s capital allocation framework, the company considers capital management
and uses for excess capital after allocating and reserving funds to: sustain operations
through the gold price cycle; and internally fund investment in projects and exploration
to maximise the value of its existing operations, projects and tenement holdings.
Well, that’s all for now on the early trades! Stay tuned to Kalkine TV, as we
have many more shows lined up for you for sharing live updates across the economy,
markets, and sectors. This is Rachael signing off!