by Lauren Hayes
US markets turned negative overnight following job openings in September, which showed a resilient labour market and made investors brace for another likely 75 basis point rate hike by the Federal Reserve, expected tomorrow.
Local markets have been trading marginally higher, with the interest-rate sensitive Real Estate sector weighing down the benchmark, off the back of the RBA’s rate hike of 25 basis points yesterday. Information Technology is also underperforming with negative sentiment for US tech stocks following through to the local sector.
Energy is outperforming after oil prices rose overnight on optimism that China, the world’s second-largest oil consumer, could reopen from strict COVID curbs. Woodside Energy Group (ASX:WDS) is up 2.3 per cent. Also boosting sentiment for the sector was the release of record profits for two of the world’s largest oil producers.
At noon, the S&P/ASX 200 is 0.32 per cent higher at 6999.10.
The SPI futures are pointing to a rise of 26 points or 0.37 per cent.
Best and worst performers
The best-performing sector is Energy, up 1.53 per cent. The worst-performing sector is Real Estate Investment Trusts, down 1.52 per cent.
The best-performing stock in the S&P/ASX 200 is Coronado Global Res (ASX:CRN), trading 8.29 per cent higher at $2.09. It is followed by shares in Lake Resources (ASX:LKE) and Karoon Energy (ASX:KAR).
The worst-performing stock in the S&P/ASX 200 is Amcor (ASX:AMC), trading 4.07 per cent lower at $17.42. It is followed by shares in Nanosonics (ASX:NAN) and Xero (ASX:XRO).
Asian news
Shares in the Asia-Pacific are so far mixed in early trade. In Japan, the Nikkei 225 has fallen 0.06 per cent and the Topix is 0.11 per cent higher. Fast Retailing is set to report sales for Uniqlo in Japan.
The Kospi in South Korea has lost 0.19 per cent and the Kosdaq is 0.58 per cent lower. South Korea’s inflation inched higher to 5.7 per cent in October, higher than 5.6 per cent forecasted by analysts in a Reuters poll.
The MSCI’s broadest index of Asia-Pacific shares outside Japan is about flat.
Company news
Lake Resources (ASX: LKE) provided an update on their progress at the Kachi project lithium processing demonstration plant. The company has confirmed completion of construction of the demonstration plant on site and the wet and dry commissioning process that took place during September and October. The demonstration plant is now processing Kachi brines with final optimisation of the process now nearing completion. Lilac CEO David Snydacker said these excellent early results validate Lilac’s ability to quickly scale up lithium production at the Kachi site. “Just one month after the start of wet commissioning, we are already achieving 80 percent lithium recoveries even as we complete the commissioning process and increase recoveries. Lake CEO David Dickson said Lake was delighted to see initial test results achieving anticipated specifications. “This validates the many years of test work that took place in Lilac’s Oakland facility during Covid whilst access to site was impossible. We look forward to seeing the test work move into a steady state and then for the process to be validated by Hatch so that work on the DFS can be completed.” Shares are trading 8 per cent higher at $1.15.
Galan Lithium (ASX:GLN) announced the submission of an application to significantly increase the scope of the piloting stage for its 100 per cent owned Hombre Muerto West Project in Catamarca Province, Argentina. Galan’s Managing Director, JP Vargas de la Vega, said: “The key drivers of this expanded pilot permit application fit our steady and staged approach, but also the team’s progressive thinking around alternatives to fast-track lithium production from the HMW Project. The scaling to semi-commercial pilot plant testing delivers significant ancillary and de-risking benefits, including the construction of larger ponds which are similar to those planned to be utilised during HMW’s full-scale production stage.” Shares are trading up 1.9 per cent at $1.58.
Cosmos Exploration (ASX:C1X) today announced that extensive rare earth element trends have been found in their Byro East project in Western Australia, highlighting the potential for significant rare earth findings. The breakthrough has added a significant new dimension to upcoming exploration activity at Byro East, highlighting the opportunity to discover significant clay-hosted REE mineralisation in a district which is emerging as an exploration hot-spot for critical minerals following recent discoveries in the region. In response, Cosmos Exploration Executive Director, Jeremy Robinson, said: “Our initial interpretation of the Byro East anomalies suggests that these anomalies potentially represent Ionic-adsorption Rare Earth Element clay-type deposits that form from the in-situ weathering of granites enriched in REE’s.” Shares are trading 14.3 per cent higher at 16 cents.
Chimeric Therapeutics (ASX:CHM) announced this morning that it has entered into a sponsored research agreement with Case Western Reserve University to further advance Chimeric’s NK cell therapy portfolio. The research program at CWRU will be led by Dr David Wald, inventor of the CORE NK technology. Through this research collaboration, Dr Wald and his laboratory will work closely with Chimeric to advance multiple next-generation NK cell products through preclinical development, including CHM 0301 (Next-Generation CORE-NK Platform), CHM 1301 (Chlorotoxin CAR NK), CHM 2301 (CDH17 CAR NK), and CHM 3301 (undisclosed CAR NK). “With the encouraging clinical data seen with CHM 0201 (CORE NK cell platform) we are very excited to be enhancing our collaboration with Dr Wald and his team at Case Western. By building upon Dr Wald’s NK cell scientific experience and expertise we believe we will be able to advance NK cell therapies to benefit patients in multiple disease areas in the future” said Jennifer Chow, CEO and Managing Director of Chimeric Therapeutics. Shares are trading unchanged at 8 cents.
Atlantic Lithium (ASX:A11) today announced assay results from the resource and exploration drilling program at the Ewoyaa Lithium Project in Ghana, West Africa. The results from the program have returned multiple high-grade pegmatite intervals of over 1.5 per cent lithium oxide, spanning at an interval length of up to 95 metres, with the hole ending in mineralisation, which provides further confidence in future Resource to Reserve conversion. Commenting on the company’s latest progress, Lennard Kolff, Interim Chief Executive Officer of Atlantic Lithium, said: “With the Pre-Feasibility Study now delivered, the Mining Licence application submitted, ongoing positive drilling results and with the support of our funding agreement with Piedmont Lithium, we feel the Company is ideally positioned to benefit from the unprecedented levels of lithium demand that are expected over the coming years.” Shares are trading 15.6 per cent higher at 82 cents.
Stellar Resources (ASX:SRZ) announced that its wholly owned subsidiary, Tarcoola Iron Pty Ltd, has recently been granted an Exploration Licence over a combined area of 97 km2 in the Mt Paris and Scamander North areas of Northeast Tasmania, which are prospective for lithium and tin. The grant of the exploration licence adds to Stellar’s tenement holding in Northeast Tasmania and hosts potential for lithium, tin and base metal mineralisation. In response, Executive Director Gary Fietz commented: “This enhances Stellar’s commodity mix in Tasmania on top of its flagship Heemskirk Tin Project, and Victorian style gold exploration targets in Northeast Tasmania.” Shares are trading 9.1 per cent higher at 1 cent.
Commodities and the dollar
Gold is trading at US$1649.12 an ounce.
Iron ore is 0.8 per cent higher at US$80.15 a tonne.
Iron ore futures are pointing to a rise of 1.70 per cent.
One Australian dollar is buying 63.96 US cents.
