by Paul Sanger
At noon, the S&P/ASX 200 is 0.37 per cent or 25.80 points lower at 6972.50.
The SPI futures are pointing to a fall of 26 points.
Best and worst performers
The best-performing sector is Communication Services, up 0.63 per cent. The worst-performing sector is Energy, down 3.02 per cent.
The best-performing stock in the S&P/ASX 200 is Clinuvel Pharmaceuticals (ASX:CUV), trading 16.59 per cent higher at $20.24. It is followed by shares in Webjet (ASX:WEB) and Corporate Travel Management (ASX:CTD).
The worst-performing stock in the S&P/ASX 200 is PointsBet Holdings (ASX:PBH), trading 10.94 per cent lower at $2.93. It is followed by shares in Tabcorp Holdings (ASX:TAH) and Healius (ASX:HLS).
Asian markets
Shares in the Asia-Pacific have fallen in Wednesday trade following a negative lead from Wall Street, and as investors look ahead to the release of China’s factory activity data.
The Nikkei 225 in Japan has shed 0.8 per cent, and the Topix index has slipped 0.6 per cent. In South Korea, the Kospi is 0.81 per cent lower and the Kosdaq has fallen 0.79 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan has lost 0.27 per cent.
Analysts in a Reuters poll expect China’s official manufacturing Purchasing Managers’ Index for August will come in at 49.2. The PMI in July was 49.
PMI readings are sequential and represent month-on-month expansion or contraction. The 50-point mark separates growth from contraction.
Japan industrial production unexpectedly increases, retail sales also beat
Industrial production rose 1.0 per cent m/m in July, countering expectations of a 0.5 per cent decline, and follows a sharp 9.2 per cent increase in the previous month. Main drivers were autos and industrial machinery. Marginally outweighed decliners led by tech devices. Shipments grew at a relatively faster pace, leaving inventories flat. Core capital goods shipments rose sharply for the second straight month. METI survey projections point to gains of 5.5 per cent in August and 0.8 per cent in September, which points to a major rebound in Q3. However, adjusted August guidance of a 0.6 per cent decline implies a more moderate trajectory, though still well in positive territory. Retail sales grew 0.8 per cent m/m versus consensus 0.3 per cent and prior 1.3 per cent decrease. Autos remained a notable bright spot, followed by food and beverages. Apparel and appliances were weaker.
China’s major cities ramp up Covid curbs
Reuters reported several of China’s biggest cities imposed tougher COVID-19 curbs on Tuesday. Metropolises from the southern tech hub of Shenzhen to southwestern Chengdu and the northeastern port of Dalian ordered measures such as lockdowns in big districts and business closures aimed at stamping out fresh outbreaks. Shenzhen district of Longhua closed entertainment venues and wholesale markets, and suspended large events. Dalian lockdown begun on Tuesday is set to run until Sunday. Chengdu, with a population of 21 million, ordered a blanket closure of public entertainment and cultural venues. While many of the measures are initially planned to run just a few days, any major escalation or extension in some of China’s biggest cities risks further hurting already tepid growth. While the two most populous cities of Beijingand Shanghai have faced only sporadic cases recently, COVID worries still weighed on Chinese stocks.
Company news
Stealth Global Holdings (ASX:SGI) has released financial year results. The company announced a 46 per cent increase in revenue to $102m from both organic growth and contribution from acquisitions. In addition, a record gross profit of $30.7m was announced with a margin of 30 per cent. The company completed three strategic acquisitions over the financial year, being Skipper Transport Parts, United Tools Limited, and the United Tools Albany branch, which significantly extended and diversified Stealth’s products, customers and network. Shares are trading 3.7 per cent lower at 13 cents.
Silex Systems (ASX:SLX) has reached a key milestone in the SILEX uranium laser enrichment project, which is being conducted in collaboration with US-based Global Laser Enrichment, the exclusive licensee. The company has successfully completed a rigorous eight-month test program of the first module of the full-scale laser technology required for GLE’s commercial pilot demonstration project. Michael Goldsworthy, Silex’s CEO and Managing Director, said: “This is a pivotal milestone for the SILEX uranium enrichment technology which demonstrates the ability of our laser systems to operate reliably at commercial-scale for extended periods.” Shares are trading 10.31 per cent higher at $3.96.
Respiratory imaging technology company 4DMedical (ASX:4DX) has announced a major success in the “burn pit” clinical trial being conducted by Vanderbilt University Medical Center in the United States. Preliminary analysis shows that 4DMedical’s technology can detect constrictive bronchiolitis in veterans where lung function tests and CT scans failed to do so. Commenting on the clinical trial results, Dr Bradley Richmond said: “We see many Iraq and Afghanistan Veterans who have lung biopsies showing significant damage, but traditional non-invasive testing appears normal. We are hopeful that our technology can help us diagnose lung disease in these Veterans without the need for a surgical lung biopsy. If our efforts are successful, we expect this technology can also be used to detect other lung diseases earlier than traditional testing, so patients get started on treatment sooner.” Shares are trading 18 per cent higher at 59 cents.
RareX (ASX:REE) has identified significant extensions to the high-grade zone of primary phosphate mineralisation immediately north of the Rare Dyke rare earths zone at the company’s flagship Cummins Range Rare Earths Project in the Kimberley region of Western Australia. Shares are trading 3.3 per cent higher at 6 cents.
Battery and advanced materials company Talga Group (TLG:ASX) has extended its memorandum of understanding with Mitsui & Co Europe, one of the largest global trading and investment companies based in Japan. The MoU, now extended until 31 March 2023, builds on discussions under an agreement first signed by the parties in 2020. The extended MoU between Talga and Mitsui continues the intent to advance potential codevelopment of Talga’s Vittangi Anode Project in Sweden through a joint venture. Shares are trading 6.56 per cent higher at 6.5c.
Commodities and the dollar
Gold is trading at US$1721.38 an ounce.
Iron ore is 4.1 per cent lower at US$97.60 a tonne.
Iron ore futures are pointing to a fall of 1.4 per cent.
One Australian dollar is buying 68.62 US cents.
