FIVE at FIVE AU: ASX steady amid Middle East uncertainty

Published 03/10/2024, 04:03 pm
Updated 03/10/2024, 04:30 pm
© Reuters FIVE at FIVE AU: ASX steady amid Middle East uncertainty
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The ASX traded sideways today to close slightly higher as investors remain wary around the situation in the Middle East and US markets inched higher overnight.

The property sector led the gains today, up 1.4%, as Mirvac Group and Dexus rose by over 2.3%, and Goodman Group (ASX:GMG), Scentre, Stockland and GPT GROUP (ASX:GPT) each added more than 1%. Support came from a ratings update from Barrenjoey analysts who have an upbeat outlook on the financing environment on the sector.

“The financing environment has improved for commercial property in Australia given materially lower swap rates, tighter margins on offer for new debt and increased willingness of banks to lend” Barrenjoey stated.

Utilities were the worst of the lot today, down 0.41%, led by falls in Origin Energy and APA Group (ASX:APA).

Origin announced it has abandoned plans for a hydrogen hub in the Hunter Valley in NSW and will cease work on all hydrogen development opportunities.

The company’s decision to exit the proposed Hunter Valley Hydrogen Hub project was to do with the risks associated with developing capital-intensive projects of that nature, and the pace and timing of development of the hydrogen market.

Origin CEO Frank Calabria said,“it has become clear that the hydrogen market is developing more slowly than anticipated and there remain risks, and both input cost and technology advancements to overcome.

“The combination of these factors mean we are unable to see a current pathway to take a final investment decision on the project.”

Minister for Climate Change and Energy Chris Bowen said the decision was disappointing for the workers and businesses developing the hydrogen hub.

However, Calabria did say the company had worked hard to evaluate the investment case for hydrogen and still believes hydrogen could play a role in the future energy mix.

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