The ASX did what was predicted in the morning and is trading higher.
The S&P/ASX200 has so far gained 22.80 points or 0.31% to 7,387.60. Over the last five days, the index has gained 1.26% and is currently 3.21% off its 52-week high.
Top-performing stocks on the ASX 200 at time of writing are Regis Resources Ltd (ASX:RRL) up 3.38% and Deterra Royalties Ltd up 3.34%.
Magellan Financial Group Ltd (ASX:MFG) made a comeback, rising 5%.
Evolution Energy Minerals Ltd (ASX:EV1) gained almost 5% after withdrawing from the Murchison Project.
Banks have fluctuated up with Commonwealth Bank of Australia (ASX:CBA) up 0.6% and Macquarie Group Ltd up 1%.
On the downside, iron ore miners mostly fell with BHP Group Ltd down 0.4% and Fortescue Metals Group (ASX:FMG) Limited down 0.7%.
Bega Cheese Ltd lost 8.5% on a profit warning but pared back to 6.5%.
Better buy Bega?
Bega says it been hit by short-term effects of the pandemic as well as a highly competitive milk procurement environment.
Bega told investors, "The company has been very focused on managing the cumulative effect of the direct and indirect costs associated with COVID-19; some of the impacts will be offset by improved market returns and the cessation of a number of one-off costs, however, the timing of both price increases and the removal of COVID-19 related costs will affect business performance in FY2022."
FY22 earnings with normalised earnings before interest taxes depreciation and amortisation (EBITDA) are in the range of $195 million to $215 million, compared to normalised EBIDTA of $142 million in the previous financial year.
While seasonal conditions are tracking well, Australia’s dairy industry is flat.
"The company expects upward pressure on farmgate milk prices to remain for the balance of the year reflecting high global dairy commodity prices, limited supply availability and the resultant competitive circumstances."
The company said its acquisition of Lion dairy and Drink was doing well and the outlook is positive.
“Markets in both Australia and internationally remain strong particularly in dairy ingredients with both short- and medium-term positive demand,” the company said.
“The strength and diversity of the Bega Cheese business has positioned the company well to deal with the many changes and challenges associated with the impact of COVID-19.
“These impacts have been extensive and significant ranging from market disruption in Australian food service channels as a result of lockdowns, structural change in the Chinese infant and toddler dairy nutritional market, significant operational disruption including factory shutdowns, major changes to operations and logistics scheduling, increased safety and testing regimes, major cost increases and shortages across the entire supply chain.”
Charter Hall shares rebound
Charter Hall plunged 7% yesterday, but is up slightly today, recovering from the initial shock that it was moving further into listed equities.
Macquarie said the acquisition of Paradice Investment Management shocked investors, but increases Charter Hall’s funds under management by about $18 billion to $80 billion.
While Charter Hall’s strategy was unclear to investors, it seems to have shaken off the doubt.
“Funds under management was always seen as a risk; the unexpected nature of acquiring a listed equity platform brings into focus the strategic direction of Charter Hall and if other acquisitions are likely, that further diversify the exposure,” Macquarie analysts said in a research note.
“This creates uncertainties and we expect it to be a key discussion point at the first half-year result.”
It is believed the stock will fully recover once the synergies are made apparent.
On the small cap front
Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) is 11.76% higher. NVA has bulked up its total gold resource estimate by 54.9% to 9.6 million ounces for its flagship Estelle Project in Alaska’s prolific Tintina Gold Province.
Blue Star Helium Ltd (ASX:BNL, OTC:BSNLF) is 8% higher. BNL has been given the first approved drilling application of any type for a helium well in Colorado, USA.
Antipa Minerals Ltd (ASX:AZY) is up 6.52%. AZY’s prospective farm-in partner IGO Newsearch Pty Ltd as decided to proceed with the next stage of a farm-in agreement, where it will manage AZY's Paterson Project in the Paterson Province of Western Australia.
Bellevue Gold Ltd (ASX:BGL) is up 4.32%. BGL has initiated an executive search for a new chief financial officer (CFO) after Michael Naylor, also an executive director for BGL, opted to transition into a non-executive role.
SenSen Networks Ltd (ASX:SNS, OTCQB:SNNSF) is 3.85% higher. SNS continues its strong run of recent government contracts, securing the latest with Transport for New South Wales (TfNSW) to deploy its sensor AI-powered curbside management solutions.
Blackstone Minerals Ltd (ASX:BSX, OTCQX:BLSTF) is 0.90% higher. BSX has delivered an impressive 73% increase in the mineral resource for its Ta Khoa Nickel Project.