Market Update: ASX accelerates ahead of future forecasts

ASX News Market Summary
16 May 2024 13:19 (AEST)

The ASX200 delivered a sweet surprise this morning, surging 1.7 per cent to deliver growth far in excess of future’s predictions.

Every sector – aside from energy – is in the green mid-session. IT and real estate are the top gainers – both are up more than 3%.

The Australian unemployment rate increased to 4.1% in April, according to the latest data from the ABS.

Oxford Economics noted that while unemployment has increased, the economy is still creating new jobs.

The data had minimal effect on the trajectory of the ASX200, suggesting US inflation is being more closely watched.

In company news

Graincorp (ASX:GNC) is up nearly 6% despite posting weaker half-year results.

The company’s underlying EBITDA is down to $164 million from $383 million the previous year. Its NPAT is also down to $50 million from $200 million.

A drop in overall production across Eastern Australia and lower supply chain and crush margins compared to last year are being fingered.

GNG has been trading at $8.52.

Cromwell Property Group (CMW) is up more than 6% on the back of news it’s selling its Polish retail fund for $465 million.

Star Capital Finance (SCF) – a Czech entity – has bought 6 retail centres off Cromwell as the company seeks to “simplify” its operational structure.

The transaction has been settled, and Cromwell will use the proceeds to pay off its debt.

CMW has been trading at 41 cents.

And Mantle Minerals (ASX:MTL)has kicked off drilling at its Mt. Berghaus tenements in Western Australia. A total of 122 drillholes are planned.

The company is searching for gold in relative proximity to De Grey’s (ASX:DEG) Hemi deposit, covering around 140sq.km.

MTL has been treading at 0.3 cents.


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