by Lauren Hayes
The Australian market is having a lacklustre start to the trading week after US equity markets posted gains on Friday on news of strong earnings reports, but ended lower for the week. Materials and energy are both underperforming amidst oil prices falling over 10 per cent last week. At noon, the S&P/ASX 200 is 0.04 per cent or 2.7 points lower at 7,149.1.
The SPI futures are pointing to a fall of 2 points.
Best and worst performers
The best-performing sector is Utilities, up 1.28 per cent. The worst-performing sector is Materials, down 1.38 per cent.
The best-performing stock in the S&P/ASX 200 is Liontown Resources (ASX:LTR), trading 4.06 per cent higher at $2.05. It is followed by shares in Core Lithium (ASX:CXO) and Allkem (ASX:AKE).
The worst-performing stock in the S&P/ASX 200 is Nanosonics (ASX:NAN), trading 12.23 per cent lower at $4.02. It is followed by shares in Healius (ASX:HLS)and Fortescue Metals Group (ASX:FMG).
Asian news
Shares in the Asia-Pacific have risen in early trade as analysts expect China’s central bank to keep its benchmark lending rates, or loan prime rates, on hold, according to a Reuters poll.
The Nikkei 225 in Japan has added 0.32 per cent and the Topix rose 0.36 per cent. South Korea’s Kospi is fractionally higher, and the Kosdaq is 0.18 per cent higher. The MSCI’s broadest index of Asia-Pacific shares is trading flat.
Over the weekend, Malaysia’s election produced a hung parliament, and parties are trying to win support from other blocs to form the government. Later this week, Baidu will report earnings and Singapore will release inflation data.
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 are trading up 2 per cent to 26 cents.
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 are trading 1.6 per cent higher at $1.07.
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 are trading 3.5 per cent higher at 9 cents.
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 are trading 3.3 per cent higher at 3 cents.
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 are trading 111 per cent higher at 14 cents.
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 are trading 3.9 per cent higher at 5 cents.
Commodities and the dollar
Gold is trading at US$1750.56 an ounce.
Iron ore is 0.8 per cent higher at US$99.10 a tonne.
Iron ore futures are pointing to a rise of 0.53 per cent.
One Australian dollar is buying 66.68 US cents.
