by Peter Milios
Global financial services provider UBS, has upgraded its ASX outlook due to a change in events in the global sector.
“China has reopened sooner than expected, the European economy is starting to look less bad, while the domestic consumer keeps spending,” equity strategist at UBS, Richard Schellbach, stated.
He has upgraded his year-end target of the ASX200 from 7250 to 7500.
In international news, the Bank of Japan has stuck to ultra-low interest rates, including its 0.5 per cent cap for the 10-year bond yield, defying market expectations it would phase out its massive stimulus program in the wake of rising inflationary pressure.
At the closing bell, the S&P/ASX 200 was 0.02 per cent or 1.50 points higher at 7,387.80.
Futures
The Dow Jones futures are pointing to a rise of 8 points.
The S&P 500 futures are pointing to a rise of 4.75 points.
The Nasdaq futures are pointing to a rise of 17.5 points.
The SPI futures are pointing to a rise of 14 points when the market next opens.\
Best and worst performers
The best-performing sector was Information Technology, up 1.74 per cent. The worst-performing sector was REITs, down 0.94 per cent.
The best-performing large cap was JB Hi-Fi (ASX:JBH), closing 3.16 per cent higher at $47.98. It was followed by shares in New Hope Corporation (ASX:NHC) and Whitehaven Coal (ASX:WHC).
The worst-performing large cap was IGO (ASX:IGO), closing 2.8 per cent lower at $14.21. It was followed by shares in Atlas Arteria (ASX:ALX) and Newcrest Mining (ASX:NCM).
Asian news
So far, just before close, Japan’s Nikkei has gained 2.49 per cent, Hong Kong’s Hang Seng has lost 0.10 per cent and China’s Shanghai Composite has gained 0.14 per cent.
Company news
Godolphin Resources (ASX:GRL) announced that drilling has confirmed rare earth and rare metal potential. In response, Managing Director Ms Jeneta Owens said: “Of the final 22 drill hole results, 19 intercepted mineralisation. This is extremely encouraging given eight of these were drilled outside of the bounds of known REE mineralisation, highlighting the potential for a considerably larger REE system.” Shares are currently trading 11.11 per cent higher at $0.1.
Volpara Health (ASX:VHT) announced a quarterly cash flow report for the quarter ending 31 December 2022. This was the company’s first positive net cash flow quarter on record and The Net operating and investing cash inflow in Q3 FY23 improved by 134 per cent. In response, Volpara Group CEO Teri Thomas said: “As planned, our top line continues to increase while our cost base has declined. We continue to emphasise sales and positive engagements with our customers alongside settling into our streamlined operations.” Shares close 12.06 per cent higher at $0.79.
Riedel Resources (ASX:RIE) has announced that their diamond drilling has confirmed high grade gold at their project in Arizona. In response, Riedel Chairman Michael Bohm stated: “These first assay results from recent diamond drilling again demonstrate that the mineralisation at Tintic commences at very shallow depths, is flat lying, and appears to be of exceptional grade.” Shares close 37.5 per cent higher at $0.011.
Commodities and the dollar
Gold is trading at US$1,900.30 an ounce.
Iron ore is 0.6 per cent higher at US$121.50 a tonne.
Iron ore futures are pointing to a 0.59 per cent rise.
Light crude is trading $0.71 higher at US$80.89 a barrel.
One Australian dollar is buying 69.90 US cents.
