Midday Market Movers

Stocks making the biggest moves at noon: Zip, Gold Miners, Real Estate stocks and more

Thu 16 Jan 25, 12:12pm (AEDT)
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These are the ASX companies and sectors making headlines in afternoon trade.

Neuren Pharmaceuticals (ASX: NEU) – Shares rallied 7.9% after the company reiterated its 2024 income guidance of $216-218 million at a JPMorgan Healthcare Conference. Today's strength may also reflect an oversold bounce after the stock's 8.2% decline on Wednesday.

Genesis Minerals (ASX: GMD) – Shares in the gold miner rallied 5.3% after its December quarter report highlighted strong free cashflow on record production. The company produced 57,055 ounces for the quarter, up 58% compared to the previous quarter and generated $200.9 million in revenue. Genesis reaffirmed its FY25 guidance of 190,000–210,000 ounces at an all-in sustaining cost of A$2,200–2,400 per ounce.

Gold miners posted broad-based gains after bullion prices ticked 0.70% higher overnight to US$2,695 an ounce. The rally was largely backed by the cooler-than-expected US CPI report and falling bond yields. Top mid-to-large cap gainers include Alkane Resources (+7.6%), Ramelius Resources (+3.8%), Emerald Resources (+3.0%), Newmont (+3.0%) and Catalyst Metals (+3.0%).

Real estate stocks rallied after the US CPI report sent bond yields sharply lower overnight, with US and Australian 10-year bond yields down 14 bps and 12 bps, respectively. Names like Goodman Group (+3.3%), Stockland (+3.1%), GPT Group (+2.0%), Mirvac Group (+2.7%) and Charter Hall (+2.5%) are leading the charge on Thursday.

Banks are bouncing strongly amid broader market strength and solid earnings from US peers. This upturn comes after the S&P/ASX 200 Financials Index experienced a five-day skid, down 3.59%. Overnight, several heavyweight names like JPMorgan, Citi, Wells Fargo and Goldman Sachs reported December quarter earnings. While US and Australian banks operate fundamentally different business models, several aspects of these earnings reports provided encouraging signals for the broader banking industry, including:

  • All the banks beat key metrics including net interest income, net interest margins and net profit expectations

  • JPMorgan and Wells Fargo guided to better-than-expected net interest margins

  • Citi guided to slightly higher than expected revenue and authorised a US$20 billion buyback

  • Credit remained benign with provisions coming in lighter than expected across the board

  • Expense guidance was largely in-line with analyst expectations

Fintech stocks rallied after Sezzle (formerly ASX-listed and now on the Nasdaq) provided an upbeat FY24 guidance. The news bolstered several names like Zip (+7.7%), Tyro Payments (+3.6%) and Block (+3.2%). The key guidance takeaways include:

  • Total revenue to exceed prior guidance of 55% growth

  • Net income to exceed prior $71.5 million guidance

  • Adjusted net income per share to exceed prior guidance of $9.80 and $9.73 consensus

  • Exceptional holiday demand and the effective execution of our strategic initiatives fueled our Q4 outperformance, and gives us confidence that we will exceed our prior 2024 guidance

 

 

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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