ASX 200 down 0.2%: Origin sinks on earnings downgrade, gold miners charge higher

Newcrest Mining Ltd (ASX:NCM) and Origin Energy Ltd (ASX:ORG) shares are among the movers and shakers on the ASX 200 on Friday…

James Mickleboro

Author Bio James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas. Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends. His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed. Areas of Expertise ASX shares Growth and dividend investing Broker research Interpreting company announcements Market news Portfolio strategy Long-term wealth creation Education Bachelor of Politics, Philosophy and Economics. CFA Institute Social Media LinkedIn Favorite Investment Quote "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett

Published April 16, 2021 12:02 pm AEST

At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a subdued note. The benchmark index is down 0.2% to 7,043.3 points.

Here's what has been happening on the market today:

Worried young male investor watches financial charts on computer screen — Image source: Getty Images

Origin guidance downgrade

The Origin Energy Ltd (ASX: ORG) share price is sinking today after downgrading its earnings guidance for FY 2021. The energy company made the move due to an adverse and unexpected outcome on a domestic gas contract price review and continued headwinds in energy markets' operating conditions. Origin now expects its energy markets division to post a 30% to 35% decline in operating earnings in FY 2021.

Gold miners upgraded

Gold miners Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) are charging higher today. This has been driven by a rise in the gold price and a positive broker note out of Goldman Sachs. In respect to the latter, this morning the broker upgraded Newcrest and Northern Star's shares to buy ratings from neutral. It notes that their shares are trading at a deep discount to their net asset value in comparison to peers. The S&P/ASX All Ordinaries Gold index is up 3% at lunch.

Mineral Resources update disappoints

The Mineral Resources Limited (ASX: MIN) share price is under pressure today following the release of a disappointing quarterly update. During the March quarter the company only managed to ship 4.1 million wet metric tonnes of iron ore. This was due to a shortage of truck drivers caused by coronavirus-related border closures. This compares to the average of approximately 4.8 million to 5.1 million wet metric tonnes per quarter required to achieve its guidance.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Beach Energy Ltd (ASX: BPT) share price with a 4.5% gain. This follows a rise in oil prices and a favourable decision relating to the Origin domestic gas contract price review. Conversely, the Origin share price is the worst performer today with a 6% decline following its guidance downgrade.

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