ASX Market Close: It’s all burritos… | June 20, 2024

The ASX200 closed flat this afternoon with an even balance of red and green across the sectors. Real estate was the strongest performing – adding half a per cent – while health care dropped a full per cent.

In the Green

Guzman y Gomez (ASX:GYG) shot out of the blocks today to spike above $30 a share and to become one of the largest floats on the ASX in recent history.

It came after a $22 IPO, with the the company’s lofty $2.2 billion valuation and $10 million FY25 profit goal depending on Guman being able to expand to 1000 stores in Australia.

Only McDonald’s has that many stores in Australia, and McDonald’s is a global giant that makes far more than $10M a year.

Will GYG hold its 36 per cent gains? Time will tell.

The stock closed at $30.

Droneshield (ASX:DRO) has continued its climb to add another 9 per cent after being awarded another contract, this time from a Swiss non-government customer for vehicle based counterdrone systems. The stock closed at  $1.70.

And energy stocks edged back into the green today after a week in the red helped by an brent crude oil price getting back up to US$85 a barrel.

Santos (ASX:STO) gained .4 of a per cent to close near $7.50 ($7.46) and Perth Basin gas play Strike Energy (ASX:STX) was up 7.5 per cent to 21.5 cents.

In the Red

WA1 Resources (ASX:WA1) came back towards earth after gaining more than $5 this week after posting niobium assay results from it’s Luni project 700km north west of Alice Springs.

Today it traded at close to $21.50, before deflating nearly 6.5% to close at $19.35.

Prospech (ASX: PRS) is down more than 14%, after announcing a rare earths drill target in Finland, and, three days after news of a million dollar capital raising at 3.3 cents a share.

Today Prospech closed at 3 cents.

And Burgundy Diamond Mines (ASX:BDM) was one of the big losers today, down 8.3 per cent, despite no announcement to the market.

Burgundy closed at 16.5 cents.

International update

US markets will resume trading again tonight Australian time after the Juneteenth (or Freedom day) holiday closed Wall Street. S&P 500 and NASDAQ futures were both in the green at 4pm AEST. 

United States preliminary building permits data for May will also come from the US at 10.30pm AEST, though, this series generally proves a weak catalyst for ASX traders. 

Elsewhere, the Bank of England will deliver its interest rate decision tonight at 9pm eastern states time, with analysts largely tipping a pause from the UK’s central bank.