Evening Wrap: ASX 200 tanks, Origin Energy slides on gas cap, US futures slip

The local sharemarket slumped in-line with the weakness across US markets, AGL and Origin Energy shares slump on coal and gas price caps, miners pull back after a strong rally and Tyro rejects a $875 million takeover from Potentia Capital.

Let's dive in.

Markets

The ASX 200 sold off after Wall Street handballed us a weak session after US producer prices came in hotter-than-expected for November.

• Energy led to the upside as oil prices try to stabilise around the US$70 a barrel level after an almost -11% slide last week

• Utilities tumbled after the Australian Government agreed to cap coal and gas prices as part of a $1.5bn intervention to ease volatile energy prices. AGL and Origin Energy weighed on the sector, down -2.4% and -7.9% respectively

• Materials fell amid a pullback for iron ore and copper prices. The Materials sector is up almost 20% since November

• 130 of the top 200 declined (65%)

Economy

No major economic updates.

Commodities 

“Optimism over China’s reopening supported sentiment across commodity markets. However, concerns of the broader macro backdrop crimped the gains. Limited liquidity also resulted in sharp moves in both directions,” said ANZ senior commodity analyst, Daniel Hynes. 

• Iron ore futures fell -2.2% to US$109

• Copper -1.5% to US$3.82

Latest news

Post market brief

Nothing too exciting on Monday. The Australian Government basically nationalised the gas sector, sending Origin Energy and AGL shares lower.

That aside, the Materials sector pulled in after a strong rally, gold names sold off after the hotter-than-expected producer price data last Friday and oil names bounced from no man's land.

S&P/ASX 200 Materials (Source: TradingView)

Newcrest Mining (Source: TradingView)

S&P/ASX 200 Energy (Source: TradingView)

The ASX 200 closed a little off session lows of -0.79% but remains in this awkward in-the-midst-of-a-pullback state.

XJO chart (Source: TradingView)

The S&P 500 is a more interesting chart after failing to break above the longstanding trendline. It's pulling back into the 50-day and this key 3,900 level.

S&P 500 chart (Source: TradingView)

All-in-all, it's a bit of a snooze fest until Wednesday, where we get some high stakes US inflation data.

Major announcements

Large caps (>$1bn)

• Sayona Mining (SYA) +2.3%: Received its final permit to restart its North American Lithium operation in Quebec

• Rio Tinto (RIO) -0.7%: Received support from Turquoise Hill Resources shareholders for its proposed acquisition of the remaining 49% shares of Turquoise Hill that it does not currently own 

• AUB Group (AUB) -2.2%: Updated its FY23 net profit split, guiding to $41.5-44.5m in the first-half and $66-70.5m in the second-half 

• Grange Resources (GRR) -7.4%: Entered into a binding agreement with its JV partner ,SRT Australia to acquire a 30% interest in SRT’s Southdown Magnetite Project 

Mid-to-small caps

• Nitro Software (NTO) +4.7%: Bidders Cascade have agreed to amend the takeover price by 15 cents to $2.15 per Nitro share

• Tietto Minerals (TIE) +3.3%: Confirmed potential to develop a second gold mine at its Abujar Gold Project in Cote d’Ivoire

• Cooper Energy (COE) -7.7%: The proposed gas price cap by the Australian Government is not expected to apply to Copper Energy’s 2023 sales 

• Tyro Payments (TYR) -19.5%: Will ceases all current discussions in relation to a possible takeover 

Trading halts

• Genesis Minerals (GMD): Has agreed to merge with St Barbara. Genesis shareholders will receive 2.0338 new shares in St Barbara for each share they own

Broker updates 

Scans