Source : Perth Now news
Australia’s tech sector has bounced despite the collapse of the Firmus float and losses on Wall Street.
The ASX200 rose 0.6 per cent on Friday, closing at 8716.6 points.
Tech and the consumer discretionary sectors led the gains, with 9 of eleven sectors in the green, and the All Tech Index up 2 per cent.
This is despite neocloud firm Firmus’ IPO collapsing, and the Nasdaq coming down 1.2 per cent overnight.
Friday’s trade capped a week of 0.4 per cent gains on the local bourse.
While some analysts say the Firmus float will still get up at a lower price, Maas Group posted another 6.6 per cent slide to be down 33 per cent this week. The construction services company has booked $1.1bn of work for Firmus, been paid $373m so far, and holds a 3.2 per cent equity stake.
A statement to the bourse says Maas expects to finish all of that work by the end of 2027. As the Firmus IPO looked shakier and shakier, Maas shares tanked 30 per cent on Thursday, and trading was halted Friday morning until the works order statement was posted.
The IPO flop is being blamed on Firmus’ valuation, encircled by the current high interest rates.
A research note from asset manager Schroders says the market has fully priced this tightening cycle and rates have peaked.
“Our cash rate model peaked at 4.75 per cent and is already turning lower as housing, jobs, and sentiment weaken,” Schroders head of fixed income Kellie Wood said.
“August CPI backs this up, with headline inflation driven by fuel and electricity while underlying inflation has stalled at 3.6 per cent.”
On the ASX200, Generation Development was the big mover, up 7.3 per cent out of a two-year low. Gold miner West African Resources followed, up 5.4 per cent, on a 1 per cent lift in gold prices and a quarterly production update.
Telstra followed Wall Street telcos into the red, bludgeoned by SpaceX buying a US network to compete with the carriers. Telstra shares fell 1.8 per cent. Other large communications stocks rose, including REA Group, Seek, and cinema, hotel and restaurant operator EVT; all up more than 2 per cent.
Melbourne-based Telix Pharmaceuticals got a “buy” recommendation from UBS, and a valuation of $26 per share. Shares last traded at $15.85.
Uranium producer Boss Energy fell 10 per cent on downgrade to “sell” from Goldman Sachs. Deep Yellow also fell 7 per cent.
Guzman y Gomez beat sales growth forecasts and shares jumped early, but closed down 2.2 per cent.
Canberra-based Electro Optic Systems (EOS) announced a $700m contract to build a nationwide counter-drone defence system for “the government of a Middle Eastern Gulf state”.
Details revealed EOS still needed to secure export licences and bank guarantees, and the Gulf government can walk away or complete the job at EOS’s expense. Shares fell 4.2 per cent.
