by Peter Milios
Amidst the ongoing tensions arising from the continuation of China’s lockdowns from their recent COVID surge, oil has fallen to its lowest point since December 2021, as China’s Zero-COVID policy wreaks havoc on demand outlook.
Woodside Energy (ASX:WDS) finished 2.66 per cent lower, whilst Santos (ASX:STO) closed 2.68 per cent lower.
The strict lockdowns have also led to a decline in price of lithium stocks, as adjusted demand projections are now lowered.
Lake Resources (ASX:LKE) is down 5.08 per cent, Liontown Resources (ASX:LTR) is down 7.5 per cent and Core Lithium is down 3.37 per cent.
Overall, at the closing bell, the S&P/ASX 200 was 0.42 per cent or 30.40 points lower at 7229.10.
Futures
The Dow Jones futures are pointing to a fall of 157 points.
The S&P 500 futures are pointing to a fall of 26 points.
The Nasdaq futures are pointing to a fall of 92.25 points.
The SPI futures are pointing to a fall of 24 points when the market next opens.
Best and worst performers
The best-performing sector was Communication Services, up 0.62 per cent. The worst-performing sector was Energy, down 1.68 per cent.
The best-performing stock in the S&P/ASX 200 was New Hope Corporation (ASX:NHC), closing 5.38 per cent higher at $5.68. It was followed by shares in Whitehaven Coal (ASX:WHC) and Brickworks (ASX:BKW).
The worst-performing stock in the S&P/ASX 200 was Healius (ASX:HLS), closing 10.09 per cent lower at $3.03. It was followed by shares in Liontown Resources (ASX:LTR) and Ramelius Resources (ASX:RMS).
Asian news
Asian equities are trading weaker on Monday. Greater China markets are under pressure off Hang Seng off lows after trading down more than 4 per cent earlier. Volatility is dragging down other Asian markets with Japan, Korea and Taiwan lagging. US futures accumulating losses. Haven flows underpinning dollar and yen, while offshore yuan and China FX proxies seeing biggest declines.
Overall, so far, Japan’s Nikkei has lost 0.51 per cent, Hong Kong’s Hang Seng has lost 2.12 per cent and China’s Shanghai Composite has lost 1.10 per cent.
Company news
Odyssey Gold (ASX:ODY) has today announced high grade gold results intersected at the company’s Tuckanarra Project. The results confirm wide intervals of gold mineralisation above the high-grade shoot, providing a major boost to the project’s open pit mining potential. Commenting on the Highway Zone, Managing Director, Matt Briggs said: “The first phase of the planned program has been drilled, with 21 holes now completed. Results are now highly anticipated for the remaining 15 holes, which includes four drill holes in the high-grade part of the shoot.” Shares closed 25.64 per cent higher at $0.049.
DXN (ASX:DXN) has today announced that it has entered into an Exclusive Global Distribution Licence Agreement with Flow2Edge for the marketing and export of DXN’s modular data centre products globally. The agreement will help the firm push their edge data centre operations across Asia Pacific. In response, DXN’s Chief Executive Officer, Shalini Lagrutta said “The DXN team are immensely proud to partner with FLOW, a high growth and innovative digital infrastructure platform, to assist in its ambitions to grow its presence in the Edge data centre market.” Shares closed 50 per cent higher at $0.006.
Metal Bank (ASX:MBKDA) has today announced that their exploration drilling has striked gold at their Stanley Prospect. The new drilling results show a coherent zone of gold mineralisation over 150m in strike exists and remains open to the east and west. Commenting on the Stanley results, Metal Bank’s Chair, Inés Scotland said, “Concurrently, we are working to increase the confidence and upgrade reported gold resources from Inferred into Indicated in some of the deposits.” Shares closed 15.63 per cent higher at $0.037.
Warrego Energy (ASX:WGO) refers to its announcement dated 14 November 2022 advising that it had entered into a Scheme Implementation Deed (SID) with Beach Energy (ASX:BPT) under which Beach has agreed to acquire all the issued shares in Warrego by way of scheme of arrangement. Under the scheme, Warrego shareholders would receive: a cash consideration of $0.20 per share (the Base Scheme Consideration); and if Warrego’s Spanish assets are sold, and such sale completes, within 12 months of implementation of the Scheme, their pro-rata share of the proceeds of such sale net of costs and taxes. Shares closed 6.67 per cent lower at $0.210.
INOVIQ (ASX:IIQ) advises that a settlement has been reached between INOVIQ and the Plaintiffs (together Tony Walker and former Executive Director and Chief Scientific Officer Dr Irmgard Irminger-Finger) related to its claim against INOVIQ announced to ASX on 24 February 2021. The Statement of Claim alleged, among other things, that the company was subject to obligations to do all things as were reasonably necessary to seek to have the test satisfy the milestones by the expiry date and not to deprive the plaintiffs of the opportunity to have each of their performance shares convert into one ordinary share in the company. Some details include: INOVIQ will pay the plaintiffs a lump-sum payment of A$1 million (inclusive of GST) and the plaintiffs have an obligation to commit $300,000 to the development of the LCT over the next 2 years; and the proceeding will be dismissed and no order as to costs will be made. Shares closed 0.87 per cent lower at $0.57.
Australian medical technology company LBT Innovations (ASX:LBT), a leader in medical technology automation using artificial intelligence, advises that the Company’s NonRenounceable Pro-Rata Entitlement Offer has closed for eligible shareholder participation, raising $502,202. Key points include: LBT shareholder participation in the entitlement offer has closed, raising $502,202 and a 30 September 2022 cash balance of $2.8 million plus $1.9 million in near term receivables. Shares closed 8.33 per cent lower at $0.055.
Commodities and the dollar
Gold is trading at US$1752.13 an ounce.
Light crude is trading $2.27 lower at US$74.01 a barrel.
One Australian dollar is buying 66.86 US cents.
