• ASX starts strong, but levels off at lunch time
• Domain soars as CoStar makes a bid
• Earnings season continues, with GYG down 7pc

The ASX opened higher on Friday morning, but by lunchtime the benchmark ASX200 had pretty much levelled out, down by 0.2%.

This came after Wall Street’s overnight dip, with major indices there losing around half a percent, mainly driven by a disappointing forecast from Walmart which sent ripples through the market.

Investors were also a bit rattled by a decline in US bank stocks, including JPMorgan and Goldman Sachs, which saw losses of around 4%.

Back on the ASX, earnings season is back in full swing this morning, with heaps of Aussie companies dropping their updates.

But first up, there was a big announcement coming out of Domain Holdings Australia (ASX:DHG), which jumped by 40%.

The online real estate platform revealed that US real estate giant CoStar has lobbed a bid to buy the platform for $4.20 a share. This offer also sent Domain’s owner, Nine Entertainment Company (ASX:NEC), soaring by 23%.

CoStar has bought a 17% stake in Domain and valued the company at $2.6 billion.

Meanwhile, here’s a quick peek at trading updates from some of the large cap names this morning.

First, the winners:

Telix Pharmaceuticals (ASX:TLX) shares jumped 13% after posting a record performance for FY24. Revenue shot up 56% to $783.2 million, mainly from sales of Illuccix, and it hit a second straight year of profitable growth. Strong R&D and acquisitions, plus a solid pipeline for new treatments, gave investors confidence.

Yancoal Australia’s (ASX:YAL) shares surged 7% after announcing its coal resources and reserves for 2024. While the total coal resources fell by 9.4% compared to last year, the company’s reserves still hold strong with plenty of fully permitted mining leases.

Newmont Corporation (ASX:NEM) shares rose 2% after it announced a jump in adjusted EBITDA to $8.7 billion for the FY24 full year, thanks to higher gold prices and sales. However, Newmont forecast a drop in FY25 gold production.

Both Ramelius Resources (ASX:RMS) and Gold Road Resources (ASX:GOR) posted strong earnings thanks to strong gold sales and prices. Ramelius declared a maiden 3c interim dividend, while Gold Road declared a 1.5c final dividend.

Meanwhile, shoe retailer Accent Group’s (ASX:AX1) shares jumped 2% after an 11.7% rise in net profit to $47.2 million for the half. Despite cutting the dividend to 5.5 cents, investors liked the 42 new stores the company opened, and its distribution rights deals with Dickies and Lacoste.

And finally, QBE Insurance (ASX:QBE) reported strong half-year results, boosted by fewer natural disaster claims. Shares were up 7%.

Now the losers:

Guzman y Gomez (ASX:GYG) shares dropped 7% despite a solid performance in 1H25, where global sales jumped 23% and earnings grew 28%. The company posted strong growth in Australia, with sales hitting $573 million after a 9.4% bump. However, it seems investors were spooked by some of the challenges in the market. GYG also said it was pushing forward with over 100 new restaurants in the pipeline.

Jumbo Interactive (ASX:JIN) shares dropped 10% and weighed on the Discretionary sector after it reported a weak half-year result, mainly due to a slower jackpot environment compared to last year’s record-breaking $200 million Powerball. Despite a bit of an improvement in the first few weeks of H2, the overall demand for big jackpots was down.

Spark New Zealand (ASX:SPK), which does mobile and broadband, plunged 17% after it downgraded its profit outlook for FY25.

Here’s where things stood at about lunch time, AEDT:

Meanwhile, RBA boss Michele Bullock dropped some pretty interesting thoughts today while speaking at the House of Representatives Economics Committee.

“Arguably, we were late raising interest rates on the way up,” Bullock said.

“We didn’t respond as quickly as we should have to rising inflation. And I think the board has been quite cognisant of the fact.”

However, she admitted that if the bank had eased too quickly, inflation might not come down as hoped.

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for February 21st [intraday]:

Mayne Pharma (ASX:MYX) shares jumped after it announced a deal with Cosette Pharmaceuticals to be acquired for $7.40 a share, a 37% premium to the pre-announcement price. The Mayne Pharma board is backing the scheme, subject to shareholder and court approvals. Cosette, a US pharma company, is fully funding the acquisition.

Alcidion (ASX:ALC) shares got a boost after securing a 10-year, £19 million contract with North Cumbria Integrated Care NHS Trust for its Miya Precision EPR (Electronic Patient Record) platform. The contract’s total value is $37.5 million, with $8-$9 million expected to be recognised in FY25.

Desoto Resources (ASX:DES) rose on the back of its announcement yesterday. The company has just bagged a sweet deal, picking up over 1,200km² of prime gold exploration land in Guinea’s Siguiri Basin. This includes 14 gold projects, with some solid high-grade drill results already on the table, like up to 78.84 g/t gold. Two projects, Timbakouna and Kantoumanina, are already showing promise, with drilling set to kick off soon. Its bosses were previously involved in Predictive Discovery (ASX:PDI), which has become one of the ASX’s hottest explorers off the back of its 5.4Moz Bankan discovery in Guinea.

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for February 21st [intraday]:

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.