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The ASX200 was firmly in the red today, down .8%.
Industrials was the only sector making gains – adding nearly ¾ of a per cent, helped by $6 billion market cap, Cleanaway Waste Management’s (ASX:CWY) news that it’s acquiring Melbourne waste and recycling business Citywide Service Solutions in a $110 million deal. The stock gained 2.2% on market to close at $2.75.
In the Green
Fashion took the spotlight today. Firstly, Myer Holdings (ASX:MYR) gained 20% after approaching Premier Investments (ASX:PMV) regarding a potential merger of the two companies’ clothing lines.
Premier’s Apparel Brands business includes the labels Just Jeans, Jay Jays, Portmans,
Jacqui E, and Dotti.
Myer closed at 77.5 cents, while Premier Investments gained nearly 7% on news that its Board warrants the proposed scrip deal as worthy of consideration. Its shares ended the session at $32.
To an explorer now, Encounter Resources (ASX:ENR) gained nearly 80% today after reporting niobium grades from its Aileron project in the West Arunta region of WA.
The assay results from three drill holes suggest high grade niobium from relatively shallow depths.
Today’s on-market success is no doubt helped by that of its neighbour WA1 Resources (ASX:WA1), which has grown from a $9 million company in 2022 to above $1 billion in recent days based on its Luni discovery.
Encounter is expecting more assay results next month.
Encounter closed at 62 cents.
In the Red
The big iron ore players started the week in the red, Fortescue (ASX:FMG) shed 2 per cent to $21.26, while Rio Tinto (ASX:RIO) was down one per cent to close just below $119 ($118.99).
Back to fashion: Cettire (ASX:CTT) wasn’t on trend today, taking a 50 per cent dive despite launching its platform in China at the weekend.
It also revealed its full year earnings were set to be 20 per cent down on expectations, citing more difficult conditions since mid-April amongst a mass of competitor clearance sales. Cettire reported its own marketing costs had been higher as a result and its margins squeezed.
Cettire closed at $1.13.
And The Star Entertainment Group (ASX:SGR) dropped more than 4% after downgrading its earnings guidance. It’s now forecasting EBITDA between $160 and $180m, significantly below FY23.
The company blames operating expenses due to resourcing risk and control functions, remediation and transformation activities, amid tighter trading conditions due to cost of living pressures.
Interim CEO David Foster resigned on Friday. Group CFO Nealle O’Connell will be acting CEO as the company begins its recruitment process.
The Star closed at 47 cents
