What's Affecting Markets Today
Praemium’s inflows double, shares soar
Praemium shares rose 11.8% on Thursday after reporting a significant boost in net inflows for its SMA and Powerwrap products. Total inflows doubled to $371 million, with funds under management increasing by 29% to $62.1 million. Despite the growth, all products experienced notable outflows, with gross outflows expected to persist at $150-$200 million per quarter due to adviser exits. The company remains optimistic, citing strong long-term business growth for its clients, which it expects to mitigate the effects of adviser transitions.
Fortescue posts bumper output
Fortescue achieved record iron ore shipments of 97.1 million tonnes for the first half of FY25, including 49.4 million tonnes in the December quarter, despite wet conditions in Pilbara. Hematite C1 costs decreased by 10% to $US18.24 per wet metric tonne, with an average revenue of $US87 per dry metric tonne. Quarterly capital expenditure reached $US1 billion, aligning with the company’s FY25 target of $US3.2–$US3.8 billion. Shipment and cost guidance for FY25 remain unchanged.
ASX Stocks
ASX 200 - 8,370.40 (-0.7%)
Key Highlights:
The S&P/ASX 200 Index fell 0.6% on Thursday, losing 49.8 points to close at 8380, with nine of the 11 sectors in decline. Weaker commodity prices, partly due to tariff threats from former President Donald Trump targeting China and the EU, pressured the mining sector. Iron ore miners saw notable declines: BHP (-1.7%), Rio Tinto (-1.4%), Fortescue (-2.2%), and Mineral Resources (-3.2%). Rare earth miner Iluka Resources led losses on the ASX 200, falling 5.7%, followed by Liontown Resources (-5.4%). Industrial companies also struggled, with Goodman Group, Wesfarmers, and Aristocrat Leisure dropping 1.7%, 1.1%, and 1.8%, respectively.
Meanwhile, Myer shares surged 5% following shareholder approval of its merger with Premier Investments’ clothing brands, while Premier fell 1.6%. Praemium gained 11.5% due to strong net inflows in its SMA and Powerwrap products. Peregrine Gold rose 3.5% on news of selling its West Australian project to Capricorn Metals. However, Evolution Mining dropped 3.4% after Citi downgraded its rating to “neutral” following an 83% 12-month gain. Bitcoin declined 2.9% to $US102,786, amid mixed cryptocurrency trading results.
Leaders
ERA – Energy Resources of Australia Ltd (+25.00%)
PPS – Praemium Ltd (+12.17%)
SKO – Serko Ltd (+10.37%)
TTT – Titomic Ltd (+8.33%)
OCC – Orthocell Ltd (+6.65%)
Laggards
NR – Ioneer Ltd (-9.52%)
LTR – Liontown Resources Ltd (-7.09%)
DVP – Develop Global Ltd (-6.78%)
BRE – Brazilian Rare EARTHS Ltd (-6.67%)
ILU – Iluka Resources Ltd (-6.16%)
