by Peter Milios
At the closing bell, the S&P/ASX 200 was 0.49 per cent lower at 7,199.20.
The ASX experienced a second consecutive day of decline, with major banks and mining companies leading the falls across most sectors. This decline is often observed in one of the historically weaker months of the year.
The index ended the day down 0.5 per cent at 7199.2 points, reaching a two-week low of 7159.8 points after initially falling as much as 1.1 per cent. The decline was influenced by the 0.6 per cent drop in the S&P 500 overnight.
Among the eleven sectors, seven recorded decreases, with materials experiencing a 1 per cent decline, and financials and real estate both falling by 0.6 per cent. On the other hand, the tech, communications, utilities, and energy sectors saw some gains.
Fertiliser manufacturer Incitec (ASX:IPL) faced a significant plunge of 7.8 per cent following disappointing results and guidance.
The WPI (Wage Price Index) data was mostly in line with expectations, providing no clear indication of a potential interest rate hike by the Reserve Bank of Australia in June. However, the ASX rebounded partially before the release of the data.
Futures
The Dow Jones futures are pointing to a rise of 10 points.
The S&P 500 futures are pointing to a rise of 3.5 points.
The Nasdaq futures are pointing to a rise of 16 points.
The SPI futures are pointing to a fall of 34 points when the market next opens.
Best and worst performers
The best-performing sector was Information Technology, up 0.93 per cent. The worst-performing sector was Materials, down 0.98 per cent.
The best-performing large cap was Infratil (ASX:IFT), closing 3.72 per cent higher at $9.20. It was followed by shares in AGL Energy (ASX:AGL) and Xero (ASX:XRO).
The worst-performing large cap was Incitec Pivot (ASX:IPL), closing 7.84 per cent lower at $2.94. It was followed by shares in Mercury NZ (ASX:MCY) and Evolution Mining (ASX:EVN).
Asian markets
Japan’s Nikkei has gained 0.84 per cent.
Hong Kong’s Hang Seng has lost 1.02 per cent.
China’s Shanghai Composite has lost 0.18 per cent.
Company news
Magnis Energy Technologies (ASX:MNS; OTCQX: MNSEF; FSE:U1P) has announced that their lithium ion cell manufacturer iM3NY has entered into a JV Agreement with OSM. iM3NY CEO commented: “This partnership is strategically important for the electrification of the automotive industry in India and the Middle East.” Shares closed 9.5 per cent lower at 19 cents.
QX Resources (ASX:QXR) has entered a non-binding letter of intent for the right to acquire a controlling interest in a Liberty Lithium brine project — in California, USA. MD Stephen Promnitz commented, “Projects like this could be amenable for direct lithium extraction or evaporation for pre-concentration.” You can watch an FNN interview on the announcement here. Shares closed 14.7 per cent higher at 3.9 cents.
Rhythm Biosciences (ASX:RHY) announced that its product, called ColoSTAT, has been granted UKCA Mark. Chief Commercial Officer, Elena Deak, commented “Over time we expect the market size to continue expanding, as various bodies encourage earlier age screening.” Shares closed 95.7 per cent higher at 68.5 cents.
Wildcat Resources (ASX:WC8) is set to acquire a rich mineralised LCT pegmatite field in the world class Pilbara lithium province in WA. Executive Director Matthew Banks commented “On deal completion we will welcome a range of major shareholders to the Company and look forward to following through with discovery-focussed drill programs earmarked for 2023.” Shares closed 22.5 per cent higher at 4.9 cents.
Commodities and the dollar
Gold is trading at US$1,992.00 an ounce.
Light crude is trading $0.61 lower at US$70.25 a barrel.
One Australian dollar is buying 66.38 US cents.
