by Peter Milios
China has reported its first COVID death in six months, sparking up the likelihood of harsher lockdowns. Interestingly, the ASX has disregarded this information, closing 0.59 per cent or 42 points higher at 7181.30.
Iron Ore futures have slid further amidst these COVID concerns in China however.
The stars of the day were coal stocks, with Whitehaven Coal (ASX:WHC), Yancoal (ASX:YAL) and TerraCom (ASX:TER) all making substantial gains.
Futures
The Dow Jones futures are pointing to a rise of 22 points.
The S&P 500 futures are pointing to a rise of 3 points.
The Nasdaq futures are pointing to a rise of 11 points.
The SPI futures are pointing to a rise of 44 points when the market next opens.
Best and worst performers
The best-performing sector was Energy, up 2.64 per cent. The worst-performing sector was Industrials, down 0.31 per cent.
The best-performing stock in the S&P/ASX 200 was Virgin Money UK (ASX:VUK), closing 10.63 per cent higher at $2.81. It was followed by shares in Whitehaven Coal (ASX:WHC) and New Hope Corporation (ASX:NHC).
The worst-performing stock in the S&P/ASX 200 was Block (ASX:SQ2), closing 3.22 per cent lower at $94.61. It was followed by shares in De Grey Mining (ASX:DEG) and Inghams Group (ASX:ING).
Asian News
Asian equities are looking to finish mixed today.
Greater China markets are off to poor levels with Hang Seng recouping losses. Mixed elsewhere with Japan, and Taiwan equities advancing.
Overall, Japan’s Nikkei has gained 0.68 per cent, Hong Kong’s Hang Seng has lost 0.61 per cent and China’s Shanghai Composite has gained 0.74 per cent.
Quiet Monday
Quiet Monday session to kick off a holiday shortened week. China Covid trends a key area of concern. Follows recent excitement about some relaxation of control and prevention measures. Stronger dollar is also a headwind on risk sentiment. Energy selloff an overhang though crude only slightly lower after falling 5%+ on the OPEC+ supply increase headlines, which the Saudis later refuted. Big tech weakness is another area of scrutiny with recent focus on economic normalisation and macro headwinds. Fedspeak seems a bit more dovish with both Bostic and Daly talking about a ~5% terminal rate. Nothing incremental when it comes to the other higher-profile themes. Bulls focused on peak inflation momentum, expected slowdown in pace of Fed tightening, consumer resilience, seasonality and inflows/renewed FOMO talk. Bears focused on Fed wariness about loosening financial conditions, upside risk to terminal rate, higher-for-longer rate messaging, negative earnings revisions trends, recession signalling from curve inversion and no longer depressed positioning.
Galan Lithium Limited (ASX:GLN) provided an update on the various evaluation workstreams in progress on its 100%-owned Hombre Muerto West Project (HMW Project) in Catamarca Province, Argentina. The highlights include outstanding results from the second long-term pump test at HMW (PBRS-01-21) and a steady flow delivery of 25 L/s at average 967 mg/L Li grade for 30+ days. Galan’s Managing Director, JP Vargas de la Vega, commented, “The Galan team continues to drive the HMW Project forward at pace. The HMW Project has the highest grade and lowest impurity lithium brine in Argentina.” Shares have closed 6.23 per cent higher at $1.535.
Kingston Resources Limited (ASX:KSN) (Kingston or the Company) is pleased to report that it has been successful with its application for Stream 1 of the Critical Minerals and High-Tech Metals Activation Fund – Project Activation Studies. The $130 million fund is designed to accelerate investment and deliver on the NSW Government’s vision to position the state as a major global supplier and processor of critical minerals and high-tech metals. Commenting on the co-funding, Kingston Resources Managing Director Andrew Corbett said: “We are delighted to have been successful in receiving funding from Stream 1 of the NSW Government’s Critical Minerals and High-Tech Metals Activation Fund for our final stage of SOZ development studies at Mineral Hill. Shares have closed 3.16 per cent lower at $0.092.
Chrysos Corporation Ltd (ASX:C79) has announced Chrysos Managing Director and CEO Dirk Treasure, Chrysos Chief Technology Officer Dr James Tickner, and Dr Nick Cutmore, former Research Director / Program Manager at Australia’s national science agency, CSIRO, have received the Prize for Innovation in the 2022 Prime Minister’s Prizes for Science. All three recipients are recognised for the successful development and commercialisation of PhotonAssayTM technology which delivers faster, safer, more accurate and environmentally-friendly analysis of gold, silver, copper and other elements. Shares have closed 1.3 per cent higher at $3.12.
Radiopharm Theranostics (ASX:RAD), a developer of a world-class platform of radiopharmaceutical products for both diagnostic and therapeutic uses, announced an agreement with Australia’s Nuclear Science and Technology Organisation (ANSTO) to supply the Company with isotope non-carrier-added lutetium-177 (Lu-177) for its trials in Australia. “ANSTO is committed to work that improves human health and saves lives through technologies for diagnostic, therapeutic and innovative treatments for current and emerging diseases,” said Shaun Jenkinson, CEO of ANSTO. Shares have closed flat at $0.115.
Novatti Group Limited (ASX:NOV) (Novatti or Company), a leading fintech that enables businesses to pay and be paid, is pleased to announce that it has now received a $12.8m special dividend from its 19.9% strategic stake in Reckon Limited (ASX: RKN). The special dividend of $0.57 per share, 60% franked, was announced by Reckon Limited on 27 October 2022 and has been distributed from the $100m sale of its Accountants Practice Management Group (APMG). Novatti’s Managing Director, Peter Cook, said: “This partnership continues to be supported by clear synergies between our respective accounting and payments solutions. Importantly, our joint marketing efforts for this partnership are gaining traction, bringing through new prospects and customers.” Shares have closed 1.85 per cent lower at $0.265.
ImpediMed Limited (ASX:IPD), today announced a reorganisation to better align management and the organisational structure within the commercial goals of the Company. The functional reorganisation results in very clear accountability and strategic alignment to drive key initiatives such as reimbursement and revenue enhancement. As a part of the reorganisation, a number of people have left the organisation, but employees in key focus areas were largely unaffected. Shares have closed 1.06 per cent higher at $0.095.
Besra Gold (ASX:BEZ) has today announced exceptional high and bonanza grade gold intercepts at their Bekajang project in Malaysia. A second round of drilling will commence shortly to follow up on the potential implications of the exceptional grades intercepted. In response, CEO, Dr. Ray Shaw commented, “the potential implications of the exceptional grades intercepted during our recent drilling, demand priority follow-up, and may lead to a fundamental revision and upgrade of Bekajang’s potential.” Shares have closed 47.5 per cent higher at $0.059.
Audeara Limited (ASX:AUA) announced that it has received a binding commitment for an A$2.8m placement with a strategic investor, Mr. David Lin the CEO of Clinico Inc. The Company has agreed to issue 28,000,000 shares at a price of $0.10 per share which is subject to shareholder approval. In response, Audeara’s Managing Director Dr. James Fielding, commented, “ Audeara has previously announced a working relationship with Clinico in Taiwan and looks forward to the strengthening of this relationship to expand business opportunities in Asia.” Shares have closed 7.41 per cent higher at $0.087.
PlaySide Studios Limited (ASX:PLY) announced the signing of a game development agreement with Meta Platforms Technologies. Meta engaged PlaySide to design and develop a mixed reality interactive software product for its Quest suite of virtual reality devices. In response, Playside’s CEO, Gerry Sakkas, stated, “Meta is bringing virtual reality and mixed reality into the mainstream with its Quest suite of products, and we are excited about the opportunity to demonstrate our domain expertise with this game. Shares have closed 15.97 per cent higher at $0.69.
Commodities and the dollar
Gold is trading at US$1744.80 an ounce.
Iron ore is 2.9 per cent lower at US$96.25 a tonne.
Iron ore futures are pointing to a fall of 0.1 per cent.
Light crude is trading $0.27 higher at US$80.31 a barrel.
One Australian dollar is buying 66.19 US cents.
