by Peter Milios
In a relatively quiet session, Utilities have led the day, following big results from Mercury NZ (ASX:MCY), which closed 4.31 per cent higher, and AGL Energy (ASX:AGL), which finished 4.23 per cent higher.
Amidst the news that Sam Bankman-Fried’s company FTX owes A$4.56b to 50 creditors, a number of cryptocurrencies, including Bitcoin and Ethereum, have continued to fall.
Australian lithium developer Lake Resources (ASX:LKE) has today announced that it has repaired the relationship with Lilac Solutions. The resolution allows the teams to reset the relationship and jointly focus on delivery of the world-class Kachi Project, which will lead the industry in terms of high-quality lithium produced with a minimal environmental footprint. Although shares were trading initially higher, they closed 0.95 per cent lower at $1.04.
Overall, at the closing bell, the S&P/ASX 200 was 0.17 per cent or 12.50 points lower at 7139.30.
Futures
The Dow Jones futures are pointing to a fall of 82 points.
The S&P 500 futures are pointing to a fall of 12 points.
The Nasdaq futures are pointing to a fall of 31.25 points.
The SPI futures are pointing to a fall of 11 points when the market next opens.
Best and worst performers
The best-performing sector was Utilities, up 1.82 per cent. The worst-performing sector was Materials, down 1.54 per cent.
The best-performing stock in the S&P/ASX 200 was AGL Energy (ASX:AGL), closing 4.23 per cent higher at $7.88. It was followed by shares in Atlas Arteria (ASX:ALX) and Whitehaven Coal (ASX:WHC).
The worst-performing stock in the S&P/ASX 200 was Nanosonics (ASX:NAN), closing 12.23 per cent lower at $4.02. It was followed by shares in Sayona Mining (ASX:SYA) and Novonix (ASX:NVX).
Asian news
Asian equities are looking to finish mostly weaker today. Hang Seng is underperforming with tech stocks under renewed pressure. Mainland China is seeing milder declines, whilst Korean stocks are lagging following latest export data. Japanese markets are relatively flat.
So far, Japan’s Nikkei has gained 0.01 per cent, Hong Kong’s Hang Seng has lost 2.09 per cent and China’s Shanghai Composite has lost 0.81 per cent.
Atlanta Fed’s Bostic believes a further 75-100 bp of rate hikes is warranted
Atlanta Fed President Bostic is the latest Fed official to advocate the downshifting pace of rate hikes at December’s FOMC meeting. Bostic said that if the economy proceeds as he expects, a further 75-100 bp of rate hikes will be warranted to rein in inflation. That implies a peak funds rate of 4.75 to 5 per cent, below the ~5 to 5.25 per cent peak targeted by some strategists and colleagues like St Louis Fed’s Bullard. Bostic added that the Fed doesn’t need to keep tightening until inflation has fallen to 2 per cent target, but he foresees a prolonged pause once rates reach a sufficiently restrictive level. While Fed officials have continued to push the “higher for longer” narrative following softer-than-expected October inflation prints, there has been growing traction behind the “peak Fed” narrative as policymakers cite the need to evaluate lagged policy impacts.
Company news
Strike Energy (ASX:STX) has today provided an update on what Strike believes to be the high impact and low risk upside resource potential in the West Erregulla permit EP469. Following the drilling success across the Greater Erregulla region, several structures observed on seismic are interpreted to be connected to adjoining structures containing existing independently certified Erregulla Reserves and Resources. In response, Managing Director and Chief Executive Officer Stuart Nicholls stated: “Strike considers there is potential to add further gas resources in EP469, which warrants further investigation.” Shares have closed 1.96 per cent lower at $0.25
Lake Resources (ASX:LKE) advised that a contract amendment has been signed to resolve the dispute between Lilac Solutions and Lake Resources. This amendment allows the teams to reset the relationship and jointly focus on delivery of the world class Kachi Project which will lead the industry in terms of high-quality Lithium produced with a minimal environmental footprint. In resolving the dispute, Lake and Lilac have agreed to an amended timeline which both are confident can be achieved; as before, Lake will have certain buy back rights if Lilac does not meet agreed testing criteria in a timely manner. Lake CEO and MD David Dickson said the progress and test work being achieved was promising: “We are fortunate to be working with Lilac as our partner, who is equally interested in doing things differently so we can efficiently deliver the large volumes of high-quality lithium chemicals needed by battery makers. Importantly, this lithium can be produced cleanly and in a way that respects and involves local communities and protects the environment.” Shares have closed 0.95 per cent lower at $1.04.
Chimeric Therapeutics (ASX:CHM) announced that it has entered into an exclusive licence agreement with Case Western Reserve University for the CORE-NK platform, invented by Dr David Wald. Under the agreement, Chimeric gains exclusive global rights to the CORE-NK platform for oncology, where Chimeric and CWRU are currently advancing multiple product candidates in Dr Wald’s laboratory under the recently announced Sponsored Research Agreement. Chimeric also receives exclusive global rights to the CORE-NK platform for immune disorders and viral infectious diseases. Jennifer Chow, CEO and Managing Director commented: “We are excited to continue building on our collaboration with CWRU with the definitive licence agreement for the CORE-NK platform. This transaction builds significant value for Chimeric, first by bringing a highly promising and clinically de-risked asset with CHM 0201 fully into our portfolio, and second by establishing the foundation for a suite of next-generation genetically modified NK cell products.” Shares have closed 4.6 per cent higher at $0.091.
Global semiconductor developer BluGlass (ASX:BLG) has announced that their laser diodes have achieved feasible reliability, showing more than 500 hours of continuous operation with stable optical power and voltage in reliability testing. The reliable feasibility is a critical prerequisite milestone for production and commercial product launches. In response, BluGlass President Jim Haden stated, “Reliability testing is ongoing and with our recent achievements and progress, we are moving toward a fixed beta design. This reliability milestone also enables us to increase our engagement with customers who are eagerly awaiting products to meet unmet market needs.” Shares have closed flat at $0.03.
Iceni Gold (ASX:ICL) has announced a significant gold discovery at their Guyer Air Core program. The discovery program has been completed, identifying a nugget trend over several kilometres, confirming the prospectivity of both Guyer and Everleigh target areas. In response, Technical Director David Nixon commented “The shape and composition of the nuggets suggest primary sources are nearby.” Shares have closed 134.38 per cent higher at $0.15.
Andromeda Metals (ASX:ADN) has announced that they have signed a Binding Offtake Agreement for Great White Concrete Additives. The Agreement with IMCD is for the exclusive sale of the Great White HRM and Great White SRM additives in Australia and New Zealand. Great White HRM has the potential to enable the decarbonisation of the concrete industry and additionally reduce costs for customers. In response, Andromeda’s Managing Director, James Marsh said: “Great White HRM is an exciting new product entering the market at the right time to help construction companies meet their carbon reduction targets and save money.” Shares have closed 7.69 per cent higher at $0.056.
Commodities and the dollar
Gold is trading at US$1746.57 an ounce.
Iron ore is 0.8 per cent higher at US$99.10 a tonne.
Iron ore futures are pointing to a fall of 1.4 per cent.
Light crude is trading $0.77 lower at US$79.34 a barrel.
One Australian dollar is buying 66.42 US cents.
