The S&P/ASX 200 (ASX: XJO) looked to be succumbing to overseas weakness on Monday, falling as far as 0.7% before rebounding in the afternoon, to gain 0.2% for the session.
On what was a massive day for ASX reporting season, all eyes were on Russia, with the US and Russia agreeing to talks in part due to the work of the French; markets rallied in response.
Cannon-Brookes in AGL bid
The ASX utilities sector was the highlight, gaining 3.8% after it was announced that Brookfield and billionaire green investor Mike Cannon-Brookes were looking to buy AGL Energy Limited (ASX: AGL) for $7.50 per share and then shut down the coal-fired generators faster than expected. AGL shares rallied more than 10% on the hope of a higher offer.
Telstra and TPG team up
Telstra Corporation Ltd (ASX: TLS) was also in the headlines, gaining 1.5% after announcing a partnership with TPG Telecom Ltd (ASX: TPG) that provides both groups with reciprocal access to each other’s networks. It brings TPG into a clear second place and reduces capital investment pressure on Telstra.
Tyro share price tanks
Shares in Tyro Payments Ltd (ASX: XJO) tanked by more than 25% after management confirmed that Omicron had significantly impacted transaction growth and operating expenses blew out. The company reported an increase in transactions of just 9.7% and a doubling of its loss to $11.2 million.
Ampol petrol sales hit record
Ampol Ltd (ASX: ALD) is benefitting from a bumper year of petrol sales, selling 22 billion litres, a new record in 2021.
The result was a profit of $560 million and a significant jump in the dividend to 41 cents per share.
The company is clearly seeing a tailwind of demand as public transport remains empty but only time will tell if this recent run can continue.
Lendlease struggles continue
Lendlease Group (ASX: LLC) shares were broadly flat after the company again cut its dividend after revenue fell by more than 12% to $4.6 billion.
The result was a $264 million loss, a $400 million turnaround from the previous year as profits become more difficult to extract in a supply constrained and highly competitive construction sector.
Sonic up on COVID tests
Sonic Healthcare Limited (ASX: SHL) will return $500 million via an on-market share buyback after reporting a 7% increase in revenue to $4.8 billion, behind continued strength in COVID-19 testing in Australia. Profit jumped 22.1% to $835 million.
OZ Minerals shares
OZ Minerals Limited (ASX: OZL) remains on track for its net-zero plan after the company reported a 50% increase in revenue to $2.1 billion on the back of a surging copper price.
Production volumes, combined with solid cost control, were the key drivers of the result in an environment where staffing is becoming increasingly difficult.
Presidents Day, US futures weaker, gold rally continues
US stock markets were closed overnight for Presidents Day, which couldn’t come at a more opportune time given the impending meeting between Vladimir Putin and Joe Biden as the US seeks to resolve concerns around an invasion of Ukraine.
Futures markets are pointing towards a weaker day for global markets, with all three benchmarks down more than 1% on concerns of what any threat of war would do to Russian oil supply.
Gold remains among the biggest beneficiaries of higher inflation and geopolitical risk, surging past USD$1,900 and nearing AUD$2,700 this week.
Alibaba (NYSE: BABA) fell again in Asian trading after the regulator flagged concerns about illegal and unscrupulous investments occurring in the metaverse in China.
ASX 200 today
Looking ahead, the ASX 200 is set to open lower this morning according to the latest ASX futures.