ASX Dusts off Rate Rise to Climb Higher

What made the news today?

• Fortescue Metals moves into Gabon

• Boral the big winner of the day

• Suncorp continues banking dominance.

• Elder's cops speeding ticket.

• Kava to go global.

Bank and Mining companies led the way today as the the market regained some of yesterdays losses following the RBA announcement that it would raise the cash rate by 25bps. The ASX200 finished the day 26.00 pts or +0.35% higher close Wednesday at 7,530.10. Macquarie (+2.7%) and Suncorp (+3.6%) were a couple of the winners today from the finance sector whilst Newcrest (+2.3%) and Pilbara Minerals (+3.3%) continue to climb.

There were 6 of the 11 sectors that finished the day higher today with the aforementioned Financial (+0.90%) and Materials (+0.70%) sectors climbing the highest. Whilst the Consumer Staples (-0.61%) and Healthcare sector fell the most for the day of the other five sectors (-0.61%).  

Other stocks that performed well today were Boral and Imugene, who were the best performing stocks on the ASX200, rising by 12.78% and 7.69% respectively.

Quick Singles

• Flight Centre Travel Group Ltd (ASX: FLT) shares rose 2.8% to $18.61 after confirming the acquisition of Scott Dunn, a luxury leisure travel company based in the United Kingdom.

• Dicker Data Ltd (ASX: DDR) shares fell 10.7% to $9.31 after the company's unaudited full-year results were released today. Dicker Data reported a full-year final dividend of 41.5c per share, a 1.2% decrease from last year on the back of a 0.3% YoY decrease in NPAT to $73.4m.

• Strike Energy (ASX:STX) has accepted Hancock's 36c per share buyout offer for its West Erregulla gas field partner. This is a considerably enhanced price compared to the initial 20c per share offer. Stike shares rose by 1.4% to $0.36

• Elders (ASX:ELD) shares fell by 5.9% to $8.83 on the back of no news but did catch the attention of the ASX with a please explain notice.

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Top Story

Fortescue Metals Group Boosts Stock Price with Belinga Iron Ore Project Signing in Gabon

Fortescue Metals Group Ltd (ASX: FMG) saw its stock price rise nearly 2% to $22.48 after the company signed the Mining Convention for its Belinga Iron Ore Project in Gabon. The project, which is 4,500-square-kilometers in size, is operated by Ivindo Iron SA, a joint venture between Fortescue (72%) and the Gabonese government (10%) and the Africa Transformation and Industrialization Fund (18%).

The Mining Convention addresses all regulatory criteria for the Belinga project, which includes the initial development of up to two million tonnes of iron ore per year. First mining is slated to begin in the latter half of 2023, providing growth opportunities for both Fortescue Metals and Fortescue Future Industries throughout Africa.

According to Fortescue founder Andrew Forrest, the signing of the convention is a significant step towards expanding the company's footprint in Africa and marks the start of a new era for the mining industry in the region.

The $200 million investment in the Belinga project is expected to open doors for Fortescue and provide a new source of iron ore for the company. This move is in line with Fortescue's ongoing efforts to grow its operations and provide its shareholders with strong returns.

The signing of the Mining Convention for the Belinga Iron Ore Project in Gabon is a positive development for Fortescue Metals Group and its shareholders, providing growth opportunities and a new source of iron ore for the company. With first mining planned for later this year, investors are closely watching for further developments from the Gabonese project.

Movers and Shakers

✅Biggest Winners 

Boral Limited (ASX: BLD) increased its share price by 12.8% to $3.97. This comes after the release of the company's half-year results. Boral increased revenue by 12% to $1,681.1 million and increased net profit after tax by 53% to $56.8 million. In the second half, management expects earnings before interest and tax (EBIT) to be roughly in line with the first half.

Suncorp Group Ltd (ASX: SUN) increased its share price by 4.6% to $13.04. Following the release of its half-year results, investors have been buying this banking and insurance conglomerate's stock. Although the company's headline result fell short of expectations, its underlying performance exceeded expectations.

❌ Biggest Losers 

Healius Ltd (ASX: HLS) shares fell 5.4% to $2.82 after reporting unaudited first half results that missed market expectations. The company saw a drop in half-year earnings due to a decline in mass COVID-19 testing. Healius reported a 64% decrease in earnings before interest, tax, depreciation, and amortisation, totaling $182 million. 

Amcor (ASX: AMC) share price was down 3.3% to $16.73 following the release of the packaging giant's first-half results. Amcor reported net sales of $7.35 billion, a 6% increase from the previous comparable period. The share price fell despite management's reaffirmation of its full-year forecast.

Small-Cap of the Day

Fiji Kava and CJ Patel Join Forces to Take Taki Mai Global: $11 Million Deal in the Works

Fiji Kava, the leading producer of kava products, has selected CJ Patel as the exclusive distributor of its Taki Mai product line across 17 countries. The distribution agreement is set with a minimum sales goal of $11 million over its initial three-year term.

CJ Patel, the largest distribution company in the South Pacific, represents some of the world's best-known FMCG (fast-moving consumer goods) brands. The 17 countries covered under the agreement, including Australia, New Zealand, Samoa, Tonga, Papua New Guinea, and East Timor, represent a significant portion of Fiji Kava's target market.

Fiji Kava CEO, Anthony Noble, stated that Taki Mai has strong and growing brand recognition both in Fiji and with Pacific Island communities globally. He added, “CJ Patel is the ideal distribution partner for Taki Mai. Having now modernized and cyclone-proofed our supply chain in Fiji, we are confident that our Fijian operations will be able to support the big growth projected by the CJ Patel team for Taki Mai, which equates to more than $11 million in the first three years."

CJ Patel COO, Vishwa Sharma, expressed his excitement about the partnership and the company's commitment to driving the distribution of the Taki Mai brand. "Our philosophy has always been to build on brands to make them number one," said Sharma. "With Fiji Kava and the Taki Mai brand, we are fully and wholly committed to driving distribution within our customer base across all our territories."

If CJ Patel meets its sales target within the three-year timeframe, the two companies may extend today's deal by a further three years. On the other hand, if the target is not met, Fiji Kava has the right to terminate the agreement.

In conclusion, the partnership between Fiji Kava and CJ Patel is poised to take the Taki Mai brand to new heights and expand its reach to a global audience. The $11 million deal sets the stage for a successful and mutually beneficial collaboration, with the potential for further growth and expansion in the future.

Outlook

10th February 

• US Initial Job Claims (est. 194k)

That's it from the team at ASX-News today. We hope you enjoyed our EOD wrap-up. Good night and happy investing!