The S&P/ASX200 (INDEXASX: XJO) delivered a strong gain to open the week, ending 0.8 per cent higher given a strong day for the energy and banking sectors.
The ASX energy sector finished 2.5 per cent higher rafter the Federal Government offered further insight into the impending changes to the Petroleum Rent Resources Tax, with Woodside Group (ASX: WDS) gaining 2.9 per cent on the news.
Analysts expect the hit to earnings on the back of a special tax on profit will be limited to just 5 per cent. Westpac Banking Corp (ASX: WBC) was the other standout, gaining 1.8 per cent, after the company reported a strong finish to the first half. Management delivered a profit of $4 billion, 22 per cent higher than the prior year, led by a further 6 basis point increase in the net interest margin, outperforming National Australia Bank (ASX: NAB). The dividend was increased by another 15 per cent to 70 cents per share and once again nears the pre-COVID levels; the sector finished 0.8 per cent higher.
Lithium has bottomed?
Lynas Corporation (ASX: LYC) topped the market, gaining more than 12 per cent, after the company confirmed the Malaysian government would allow an extension to the operation of their processing plant until 1 January 2024. Combined with the hope that the lithium price may have bottomed, the materials sector managed a 1.6 per cent gain on the day.
Analysts at Morgan Stanley are suggesting the price of lithium may have bottomed after falling as much as 70 per cent in China. The price is now trading well off its lows with the news boosting Pilbara Minerals (ASX: PLS) which gained 4.6 per cent. Shares in fund manager GQG Partners (ASX: GQG) fell 0.4 per cent despite the company remaining one of the fastest growing in the world, adding a further US$5.4 billion in further inflows in the first four months of the year, taking total assets to US98.6 billion.
Treasury Wines (ASX:TWE) starts the clean-up
Shares in Treasury Wine Estates (ASX: TWE) fell by another 1.8 per cent as the winemaker announced its intention to restructure its low-cost wine business and seek greater profitability.
The Dow Jones couldn’t manage to eke out a gain on Monday, falling 0.2 per cent following a solid result from Berkshire Hathaway (NYSE:BRK.A) over the weekend. Strong performances by tech firms Palantir (NYSE: PLTR) and Zscaler (NYSE: ZS) were the highlights pushing the Nasdaq and S&P500 up 0.2 and 0.1 per cent respectively.
The results came as the Federal Reserve’s survey of major banks pointing to a slowing in demand for credit following the continuing banking crisis. Shares in Berkshire finished modestly higher after the company reported a 12.6 per cent increase in profit and ballooning cash balance, but failed to lob a full takeover bid for Occidental (NYSE: OXY) Petroleum as many expected.
Artificial intelligence business Palantir gained more than 4 per cent and supported the likes of Palo Alto Networks (NYSE: PAN) after reporting stronger than expected revenue as corporate demand focuses on areas of efficiency. It was a similar story for Zscaler, which outperformed macro expectations to send shares 20 per cent higher.