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FIVE at FIVE AU: ASX buoyant this afternoon as markets weigh tech news and cooler inflation

Published 02/02/2024, 02:52 pm
Updated 02/02/2024, 03:30 pm
© Reuters.  FIVE at FIVE AU: ASX buoyant this afternoon as markets weigh tech news and cooler inflation
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The S&P/ASX200 was riding higher today, adding 98.90 points or 1.30% to 7,687.10 at 2.30pm AEDT.

The top performing stocks were Pinnacle Investment Management Group Ltd and Boss Energy Ltd (ASX:BOE, OTCQX:BQSSF), up 10.32% and 7.07% respectively.

Over the last five days, the index has gained 1.74% and is currently 0.21% off of its 52-week high.

Inflation news helps Real Estate sector

Looking at the sectors, Real Estate enjoyed a notable bounce today (3.39% at time of writing) following the weaker inflation data this week, which will breathe life into property markets, particularly if the RBA takes the foot off the rate accelerator as a result of the figures.

Information Technology was also riding high (2.30%) on the back of a strong showing for the US megacaps overnight, with the exception of Apple (NASDAQ:AAPL) – about which more below.

All other sectors were registering positive moves with the exception of Utilities, which was down nearly half a per cent in the early afternoon.

eToro market analyst Josh Gilbert had this to say about Apple’s fortunes:

" Apple returned to revenue growth after four quarters of declines, and iPhone sales were also stronger than expected, coming in just shy of USD$70 billion.

“That good news, though, was overshadowed by a slump in sales from China and some weakness across its services segment.

“The worry is that competition is only heating up in China, one of Apple’s most important regions in the world, and therefore, this slump in sales may not be a one-time thing. On top of that, services, which is one of Apple’s brightest areas, missing expectations will be a cause for concern for investors.

“The bottom line is that this was an ‘okay’ report; it certainly wasn’t ‘magnificent’. These results won’t be lighting up Wall Street, but there are some positives investors can take away.

“Clearly, there is work for Tim Cook and his team to do in 2024, with what seems to be one of the most challenging periods for Apple in the last decade. Its Vision Pro launch may be a tailwind for renewed optimism from investors, but it won’t be an overnight success, and it will take time to meaningfully impact revenue."

Meanwhile, Josh’s colleague eToro market analyst Farhan Badami assessed Meta’s fortunes this way:

" As Meta CEO Mark Zuckerberg faced intense questioning from lawmakers in a Senate Judiciary Committee hearing, his company celebrated a remarkable year. Meta's fourth quarter revenue reached USD$40.1 billion, surpassing the expected USD$39.2 billion. “Additionally, their earnings per share exceeded projections, standing at $5.33 compared to the anticipated $4.97.

“Facebook (NASDAQ:META)'s daily active users reached 2.11 billion, surpassing the anticipated 2.07 billion, surprising many who expected a decline in the popularity of their flagship app. Ad revenue also exceeded expectations, driven by Chinese retailers who increased spending to reach users globally.

“It wasn't too long ago when Meta experienced a decline in revenue for three consecutive quarters in 2022. Now, it's safe to say that the tech powerhouse has undergone a remarkable turnaround, making strides in AI and enhancing its advertising business.

“Meta's recent financial achievements highlight resilience and a robust market position. This success has enabled the company to declare its inaugural quarterly dividend of USD$0.50 per share, along with approving an additional USD$50 billion in share buybacks.

“Following these earnings, Meta's stock surged by 13% after hours, translating to a staggering USD$130 billion increase. Consequently, it has secured its position as the seventh-largest company globally by market capitalisation.

“Experiencing an almost 400% surge since its 2022 low, the stock's extraordinary performance undeniably qualifies it as magnificent."

The five at five

Alligator Energy resource extension and exploration drilling underway at Samphire Uranium Project

Alligator Energy Ltd (ASX:AGE, OTC:ALGEF) has recommenced resource extension and broader exploration drilling at the Samphire Uranium Project south of Whyalla, South Australia.

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Yandal Resources raises $A2.5 million via well supported placement to accelerate exploration

Yandal Resources Ltd (ASX:YRL) has received firm commitments to raise $A2.5 million through a well-supported placement of 31.2 million fully paid ordinary shares at A$0.08 per share.

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Triangle Energy offered highly prospective UK gas exploration permits

Triangle Energy (Global) Ltd reports its 50/50 joint venture with Orcadian Energy PLC, the operator, has been offered a licence covering nine blocks in the UK Central North Sea as part of the second tranche of the 33rd oil and gas licensing round.

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Olympio Metals offloads non-core Halls Creek Project tenements for $220,000 cash payment

Olympio Metals Ltd (ASX:OLY, OTC:COPGF) has entered into a sale agreement to sell three of its six Halls Creek Project tenements, an area the company has been exploring for gold.

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Flynn Gold raises $1.1 million in capital raise to advance gold, lithium and critical mineral projects

Flynn Gold Ltd (ASX:FG1) has added $1.1 million to the war chest following a successful share purchase plan (SPP) and the second tranche of a share placement coming to a close.

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On your six

Citi reiterates US$150 per tonne forecast for iron ore as China pledges more support for its economy

Citi has reaffirmed its optimistic outlook for iron ore prices, projecting a rise to US$150 per tonne over the next three months, as China's central bank unveiled plans to reduce bank reserve requirements next month.

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The one to watch

Auric Mining excited by interim grade control drilling results from Munda

Auric Mining Ltd (ASX:AWJ) managing director Mark English speaks with Proactive after completing a grade control drilling program at the Munda Gold Project in Western Australia.

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