Market Update: ASX dips with only materials afloat

ASX News Market Summary
17 May 2024 13:56 (AEST)

The ASX is down nearly half a per cent – on par with future’s predictions.

Every sector – aside from materials – is in the red.

Healthcare and Real Estate are a drag mid-session – both sectors are down more than 1.2%.

In company news

Contact Energy (ASX:CEN) is down more than 2% on news it’s now reconsidering its original plans for its new geothermal plant in New Zealand, which was set to come online in the 2027 financial year.

After assessment, the total cost for the project has come in higher than previously expected. The board has approved an additional $30 million of development costs, taking the total to $144 million.

Management says a range of alternatives will be revisited, and an update will be given at its FY24 results.

CEN has been trading at $8.30.

Encounter Resources (ASX:ENR) is down more than 2% despite hitting copper from the first hole drilled at its Sandover project north of Alice Springs, with an intersection of 0.3 metres at 2.1% copper from a depth of 634.3 metres.

More geophysics work – including a magnetic survey – will now be rolled out, before another program of drilling in the second half of 2024.

ENR has been trading at 38.5 cents.

Nasal spray provider Firebrick Pharma (ASX:FRE) has completed an $800,000 placement, priced at 5 cents a share.

Funds raised will be used to support ongoing launch costs for its latest product Nasodine in the US and other potential international launches over the coming year.

FRE has been trading at 6.5 cents.

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