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ASX 200 set to rise – NXL, CTD & BHP shares in focus

The S&P/ASX 200 (ASX: XJO) pared losses during the session, falling 0.3% on Wednesday despite dropping as much as 1.5% during the session.

The selling pressure was driven primarily by the energy and property sectors as concerns about spiking global COVID-19 cases impacted confidence.

On the positive side, retail sales for March stunned on the upside, jumping 1.4% in a preliminary recording, with Victoria and WA, up 4% and 5.5% respectively, key drivers following short lockdowns earlier this year.

Nuix downgrades again

The recently listed Nuix Ltd (ASX: NXL), a big data and analytics business to corporates and governments, has now fallen 65% since its IPO.

Nuix share price chart

Source: Rask Media NXL share price chart since listing

The company cut its revenue forecast by 7% to $180 million, sending shares 15.4% lower for the day. Despite the fall, the company expects higher earnings as travel and staff costs have been reduced by the pandemic.

Corporate Travel breaks even

Corporate Travel Management Ltd (ASX: CTD) released positive news, reporting that domestic demand in Australia is back to 85% of pre-COVID levels, ensuring the company broke even in March.

NZ remains the standout, with volumes at 160% of FY19 levels and the company remains well-positioned to capitalise through further acquisitions. Corporate Travel shares jumped 3.5% for the day.

Latrobe Financial mulling IPO

The successful IPO of personal lender Latitude Financial (ASX: LFS) this week reportedly has the $12 billion residential lender Latrobe Financial considering an IPO or trade sale. This comes as private equity owner Blackstone seeks to capitalise on the incredible rebound in Australian property.

Northern Star struggles

ASX gold miner Northern Star Resources Ltd (ASX: NST) fell 3.7% despite reporting the delivery of over 368,000 ounces of gold sold during the quarter.

The acquisition of Saracen appears to be taking some time to digest, with the company’s all-in cost sitting around $1,598 per ounce compared to an average selling price of $2,222.

BHP exports ramping up

BHP Group Ltd (ASX: BHP) delivered its own quarterly activities report, falling 0.5% despite positive news on export levels.

The group delivered 60 million tonnes of iron ore but kept previous guidance for the financial year at the same level.

BHP did however upgrade guidance on copper production as it seeks to capitalise on the booming price as battery demand continues unabated.

Investors are well-positioned to benefit from a stream of strong dividends, with the iron ore price hitting a decade high overnight.

ASX 200 today

The ASX 200 is set to push higher when the market opens on Thursday, following a positive lead from US markets overnight. Redbubble Ltd (ASX: RBL) shares will be on watch after releasing its third-quarter trading update.

The Golden Rules of Investing

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You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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