FIVE at FIVE AU: ASX pares back early gains to finish up by 0.33% as mining giants falter

Published 22/01/2025, 04:05 pm
© Reuters.  FIVE at FIVE AU: ASX pares back early gains to finish up by 0.33% as mining giants falter

The ASX looked poised for a solid day of green trading until midday, when the bourse began to fall back from the 8,450-point level as the Materials sector and mining giants weighed on the market’s performance.

Indications from US President Trump that he would impose tariffs on China beginning from the first of February have unsettled mining stocks, with iron ore particularly impacted.

BHP (ASX:BHP) Group fell by 1.99% today followed by Fortescue (ASX:FMG) Ltd (-1.76%) and James Hardie Industries (-0.66%). Rio Tinto (ASX:RIO) also dipped 0.83% and Pilbara Minerals Ltd (ASX:PLS) 1.23%.

Despite the damage to the share price, analysts are still bullish on BHP, with Morningstar analyst Jon Mills maintaining a $40 fair value estimate, Macquarie analysts retaining their ‘outperform’ rating and a $42 price target and Goldman Sachs (NYSE:GS) also reaffirming a ‘buy’ rating.

Info Tech (+2.35%) was the standout sector today, lifting the market against the weakness in Materials (-0.94%), Energy (-0.14%) and Comm Services (-0.30%).

The big tech stocks ripped higher today, making strong gains as the new Trump presidency buoys the Nasdaq and boosts the already bullish tech market.

WiseTech Global gained 2.93%, Xero 2.44% and NextDC 2.16%.

The top-performing stocks on the ASX200 today were Boss Energy Ltd, up 12.59%, and Paladin Energy (ASX:PDN) Ltd, up 9.58%.

Overall, the ASX200 has gained 2.64% over the last five days and sits 0.99% off its 52-week high.

Netflix (NASDAQ:NFLX) Q4 earnings a “homerun”

Breaking down Netflix’s fourth quarter earnings report, eToro market analyst Josh Gilbert explains why the media streaming company is hitting it out of the park this quarter.

"Netflix’s Q4 earnings were an absolute home run,” Gilbert writes, “The company added a massive 18.9 million new subscribers in the quarter, its largest quarterly gain in history, taking total global subscribers to over 300 million.

“At the same time, the streaming giant delivered a beat on earnings and revenue for investors.

"That record quarter capped off a record year for Netflix, which added 41 million subscribers in 2024.

“Their content slate throughout the year has driven new users to the platform, from local-language productions like Squid Game to Live Sports, such as Mike Tyson vs Jake Paul, making them the undisputed streaming leader.

“Hit shows like Squid Game often cost less than large-scale Hollywood productions yet deliver outsized subscriber growth.

“Revenue rose to US$10.25 billion in the quarter, up 16% year-on-year, and the company raised its full-year revenue guidance for 2025.

“Ultimately, Netflix is delivering value to investors. It is making itself into a one-stop shop for entertainment, which is enticing new users to the platform. Its advertising tier serves a new range of users while attracting top-tier advertisers to the platform.

“Investors' focus now shifts from subscriber numbers to financial metrics. This will be the last time Netflix reports quarterly subscriber numbers.

“We look to double-digit revenue growth, widening margins, and expanding free cash flow as the focus for investors. Ongoing Live Sports will keep driving users and its advertising segment in 2025.

“If its content lineup keeps delivering, that justifies price increases, meaning that Netflix’s growth won’t be slowing down anytime soon."

Orthocell up 16.93%

Orthocell gained 16.93% to $1.52 on the back of strong sales growth which will see it accelerate global expansion plans, Lightning Minerals Ltd increased by 11.63% to $0.096 and Provaris Energy Ltd reached $0.021, a rise of 10.53% on the previous close.

Other small cap increases were registered by Peninsula Energy Ltd, up 10.49% to $1.58, Arovella Therapeutics Ltd lifted 8.11% to $0.20, Sprintex Ltd hit $0.065, an increase of 6.56%, Cobalt Blue Holdings Ltd was up 6.25% to a daily high of $0.068, Firebird Metals Ltd rose 6.07% to $0.105, D3 Energy Ltd moved 5.75% higher to $0.092, American Rare Earths Ltd increased 5.36% to $0.295 and Ora Banda Mining Ltd reached $0.74, a rise of 2.78%.

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