Super Retail Super Result

The ASX started week three of the new year on the right foot, gaining 60.1 pts, or 0.82%, to close the day at 7,388.20 to reach a nine-month high. It has been a strong start to the year for the ASX, up by almost 5% so far in 2023. The US market will be closed overnight for Martin Luther King day so there will be no lead for the ASX to follow tomorrow.

Iron Ore stocks were one sector to feel some pain today with mining giants Fortescue Metals (-2.1%), and Rio Tinto (-0.1%) falling, whilst BHP was still able to eke out a positive gain (+0.1%).

Every sector finished the day in the green, with the Tech sector leading the way, climbing by 1.81% followed by Energy which rose by 1.47%. Energy stocks can do no wrong, with the sector now up by 33.3% in the last 12 months.

Both Super Retail Group and Megaport saw their stock prices increase by 7.68% and 7.46% respectively, making them the best performers in this index.

Quick Singles

• Cryptocurrency made a comeback over the weekend after seemingly being forgotten about for months. Bitcoin is up over 20% in the last week to US$20,764 and Ethereum has risen by over 17% to US$1,539.

• Polynovo (ASX:PNV) shares traded strongly early before ending the day up 1.9% to $2.59 after providing unaudited earnings to the market, reporting record sales in H1FY23 of A$27.3m thanks to strong growth in the United States.

• Buru Energy (ASX:BRU) announced today that it has been successful in its application with partner Energy Resources for an additional two highly prospective petroleum exploration areas. Shares rose by 11% to $0.11 on the back of the news.

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Top Story

Virgin Back on the Market?

Three years after it was delisted from the stock exchange after Bain Capital acquired it for $3.5 billion, there have been reports today that Bain Capital is considering an initial public offering (IPO) to re-list Virgin Australia.

Bain said, "In the coming months, we will evaluate how best to position Virgin Australia for sustainable development and long-term prosperity." Before covid, Virgin Australia had a distinguished history as a publicly traded firm.

The company went on further to say, "Bain Capital has made a long-term commitment to support the growth and sustainability of Virgin Australia. Bain Capital intends to keep a major stake in Virgin Australia's upcoming initial public offering."

Movers and Shakers

✅Biggest Winners

Super Retail Group (ASX:SUL) share price increased 9.5% to $12.55 today after the company issued unaudited preliminary first-half results, a precursor to its official earnings which will be released next month. Super Retail revealed record first-half sales and nearly $2 billion in unaudited revenue in the update. Supercheap Auto's sales increased 15% year on year in the six months ending 31 December, while Rebel's increased by 11%. Meanwhile, BCF's sales fell 2%, while Macpac's increased 54%.

Tyro Payments (ASX: TYR) share price was up 6.9% to $1.47 today after releasing their first-half FY23 financial results. Some of the key metrics that would have pleased investors today included, an EBITDA increase of 601% to $19.5 million and a Gross profit rising by 45% from the prior comparable period (PCP) to $102.8 million. Tyro reported a revenue increase of 45% to $216.6 million. Growth in the company's banking business, cost reduction initiatives, and merchant base were additional positives.

❌ Biggest Losers 

Baby Bunting (ASX:BBN) share price was down 11.6% to $2.68 due to a lacklustre half-year report. According to the announcement, the company's gross profit margin decreased by 2.1% to 37.2% in the six months ending December 26, 2022. However, the biggest drop was the company's 59% decline in after-tax group net profits (NPAT). The decrease in NPAT was attributed to a decline in margin and 'softer than anticipated' December sales.

Fortescue Metals (ASX:FMG) share price fell 2.1% to $22.33. Its decline follows reports that China will crack down on bogus information that might boost the iron ore price. In addition, shareholders of Fortescue are allegedly concerned about the company's governance following the departure of its most recent executive. Such actions include "fabricating and spreading information on price rises, hoarding, and price gouging," according to a published by the country's National Development and Reform Commission.

Small-Cap of the Day

Splitit strikes deal with Chinese giant AliPay

The Splitit Payments (ASX:SPT) share price rose by 22.22% today to close at $0.22 on the back of the news that the company has formed a partnership with Alipay to enable the 'Pay After Delivery' option for shoppers on AliExpress, a worldwide eCommerce marketplace controlled by Alibaba Group.

The platform will allow shoppers to pay after delivery with their existing card once the goods are delivered. The service will initially launch in Germany, Span and France, with plans to expand into other international markets.

Econcomic Calender

Outlook

A busy week both here in Australia and in the US with unemployment data dropping in the back end of the week the biggest news.

19th January

• US Producer Prices YoY - est. 5.6%

• US Retail Sales MoM - est. -0.8%

• AU Employment Rate - est. 22.5k

• AU Unemployment - est. 3.4%

20th January

• US Initial Jobless Claim - est. 212k

• US Building Permits - est. 1.37M

• US Housing Starts Number - est. 1.36M

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