by Peter Milios
The ASX kept sliding from lunch time, falling by a total of 0.34 per cent or 22.80 points, to close the day at 6645.00.
Banks continued to give their valuations on the companies.
Surprisingly, Citi group suggested a sell recommendation on Whitehaven Coal (ASX:WHC) despite the epic bull run in the price of coal. “We see a risk that coal prices stay higher for longer, but at current share price levels the risk/reward equation is skewed against investors in our view. Our target price moves to A$8.30 (from A$7.40),” the broker wrote.
Macquarie expects Block (ASX:SQ2) to perform in line with the expected returns of the market, whilst Zip (ASX:ZIP) is rated to underperform with a 60¢ share price target.
This echoes JP Morgan’s CEO Jamie Dimon comments released this morning by Bloomberg, believing that stocks could easily fall another 20 per cent.
Futures
The Dow Jones futures are pointing to a fall of 169 points.
The S&P 500 futures are pointing to a fall of 20.50 points.
The Nasdaq futures are pointing to a fall of 60.25 points.
The SPI futures are pointing to a fall of 28 points when the market next opens.
Best and worst performers
The best-performing sector was Industrials, up 0.40 per cent. The worst-performing sector was Energy, down 1.59 per cent.
The best-performing stock in the S&P/ASX 200 was Johns Lyng Group (ASX:JLG), closing 5.86 per cent higher at $5.96. It was followed by shares in Allkem (ASX:AKE) and Orica (ASX:ORI).
The worst-performing stock in the S&P/ASX 200 was Sayona Mining (ASX:SYA), closing 6.52 per cent lower at $0.21. It was followed by shares in Imugene (ASX:IMU) and Megaport (ASX:MP1).
Asian markets
Asia equities trading mostly lower Tuesday. Mainland China fluctuated, whilst Taiwan, South Korea and Japan declined sharply.
Japan’s Nikkei has lost 2.61 per cent.
Hong Kong’s Hang Seng has lost 1.61 per cent.
China’s Shanghai Composite has gained 0.41 per cent.
Company news
New World Resources (ASX:NWC) today announced their most successful drill results from their 100 per cent owned Antler Copper Deposit in Arizona, USA. These results increase the South Shoot to more than 900m, with the mineralisation remaining completely open at depth. In response, CEO and Managing Director Mike Haynes stated: “Over the past two years we have drilled some cracking holes at Antler. On a grade thickness basis, this is the best yet!” Shares closed 12.9 per cent higher at 3.5 cents.
Drill core assay results at Kuniko (ASX:KNI) reinforce the opportunity and provide growing confidence for a large-scale Cobalt and Copper deposit at Skuterud. The results confirm significant cobalt mineralisation along with presence of copper. CEO Antony Beckmand commented: “Our exploration work at Skuterud continues to consistently deliver great results”. Shares closed 11.4 per cent higher at 78 cents.
Kore Potash (ASX:KP2) has provided a construction contract and financing update for their Kola Potash project. The company stated that the Summit Consortium remains committed to the financing of Kola, and are currently awaiting Kore and SEPCO to finalise the EPC contract terms prior to presenting its financing proposal for the full construction cost of Kola. Shares closed 12.5 per cent higher at 1.8 cents.
Dundas Minerals (ASX:DUN) has announced the successful intercept of extensive zones of massive, semimassive, highly disseminated and disseminated sulphides in the first drill hole at its Central exploration target. Commenting on the results, Dundas Minerals Managing Director Shane Volk said: “We now very much look forward to receiving the assay results from Hole 1 and to the drilling of our second hole at Central, given the results from Hole 1, we’d expect to intercept sulphides again in Hole 2”. Shares closed 22.9 per cent higher at 86 cents.
Commodities and the dollar
Gold is trading at US$1664.51 an ounce.
Iron ore is 3.1 per cent higher at US$98.75 a tonne.
Iron ore futures are pointing to a fall of 2.0 per cent.
Light crude is trading $0.40 lower at US$89.44 a barrel.
One Australian dollar is buying 62.55 US cents.
