by Peter Milios
All sectors besides Materials, which closed 0.22 per cent higher, have finished in the red, amidst the release of the news that GDP estimates fell short of expectations.
The estimates fell short of a 0.7 per cent increase, improving by 0.6 per cent on-quarter, and 5.9 per cent year-on-year against the 6.3 per cent expected. Treasurer Jim Chalmers has stated that the latest GDP figures fail to capture “global uncertainty”, warning Australians that “significant challenges” are still to come.
In other news, the Federal government wants NSW and Queensland to cap domestic coal prices to $125 per tonne, and is expected to announce a cap on the price of gas at $13 per gigajoule.
This comes as part of the efforts to lower energy prices, and will be further discussed at Friday’s national cabinet meeting.
Overall, at the closing bell, the S&P/ASX 200 was 0.51 per cent or 37.50 points lower at 7,253.80.
Futures
The Dow Jones futures are pointing to a rise of 55 points.
The S&P 500 futures are pointing to a rise of 7 points.
The Nasdaq futures are pointing to a rise of 24 points.
The SPI futures are pointing to a fall of 39 points when the market next opens.
Best and worst performers
The best-performing sector, and the only sector in the black, was S&P/ASX 200 Materials, up 0.62 per cent. The worst-performing sector was S&P/ASX 200 Information Technology, down 3.06 per cent.
The best-performing large cap was Yancoal Australia (ASX:YAL), closing 4.08 per cent higher at $5.87. It was followed by shares in Mercury NZ (ASX:MCY) and Meridian Energy (ASX:MEZ).
The worst-performing large cap was Domino’s Pizza Enterprises (ASX:DMP), closing 4.75 per cent lower at $64.62. It was followed by shares in Altium (ASX:ALU) and WiseTech Global (ASX:WTC).
Asian news
Asian equities are mostly mixed on Wednesday. Greater China markets are fluctuating in a muted response to the Politburo statement.
Markets are weaker elsewhere Japan, Korea, Taiwan and Australian equities lagging.
So far, Japan’s Nikkei has lost 0.57 per cent, Hong Kong’s Hang Seng has gained 0.15 per cent and China’s Shanghai Composite has lost 2 per cent.
Company news
Strike Energy (ASX:STX) provided an update on its continuing and increased ownership of Warrego Energy (ASX:WGO) and the West Erregulla gas field. Strike has entered into Share Purchase Agreements with various Warrego shareholders to increase its shareholding in Warrego to ~19.9 per cent via the swap of Strike ordinary shares for Warrego ordinary shares at a 1:1 share exchange ratio. Strike will have the voting rights to ~19.9 per cent of Warrego. Post settlement of the share swaps, Strike will become Warrego’s largest shareholder and will increase Strike’s direct and indirect ownership of EP469, which contains the West Erregulla gas field and near field low risk upside, to approximately 60 per cent. For the avoidance of doubt, Strike’s Board has not formed any intention with regards to any future transaction that may involve Warrego, and Strike is currently considering all available strategic options. Statement from the Managing Director & Chief Executive Officer of Strike, Stuart Nicholls: “Strike has a strong track record of identifying and securing valuable and strategic energy assets at various stages of maturity. The expansion of our ownership of Warrego shares and the resulting look through to an increased economic interest in the West Erregulla gas field is a further demonstration of this.” Shares have closed 7.35 per cent higher at $$0.365
Red Mountain Mining (ASX:RMX) has entered into an agreement with Lithic Lithium to purchase two lithium projects in Nevada, USA. Red Mountain Chairman Troy Flannery commented: “RMX view this very significant transaction as an excellent opportunity for the Company, as it increases our lithium exposure in Nevada, USA.” Shares have closed 20 per cent higher at $0.006.
4DS Memory (ASX:4DS) has announced that they have extended their collaboration agreement with imec, of the planned manufacturing of the Fourth Platform Lot wafers, to run till mid-2023. In response, 4DS’ Executive Chairman, Drs. Wilbert van den Hoek commented, “we will continue to undertake internal activities, the results of which will be inputs to the collaboration during 2023.” Shares have closed 14 per cent lower at $0.025.
Golden Deeps (ASX:GED) announced an exceptionally thick intersection of copper-silver mineralisation in the first deeper diamond drillhole at their deposit in Namibia. In response, The CEO of Golden Deeps, Jon Dugdale, said: “This 90m intersection of copper-silver mineralisation below the Khusib Springs mine demonstrates potential for major extensions to the deposit.” Shares have closed flat at $0.01.
Commodities and the dollar
Gold is trading at US$1,783.70 an ounce.
Iron ore is 2.1 per cent higher at US$109.60 a tonne.
Iron ore futures are pointing to a 0.1 per cent fall.
Light crude is trading $0.05 higher at US$74.30 a barrel.
One Australian dollar is buying 67 US cents.
