ASX closes almost 1.4pc higher
Broad-based gains
Top small cap performers led by Vonex
The local benchmark index has lifted on Tuesday, with broad-based gains driving all 11 sectors into the green.
The S&P/ASX200 closed 105.10 points higher on Tuesday gaining 1.36% to 7,838.80.
Via ASX
Locally the banks rallied with aplomb, delivering yet another new record for the BHP-hunting Commonwealth Bank (ASX:CBA).
The benchmark easily recouped Monday’s blood loss led out the gate in the opening bell via surging energy stocks which jumped on the rising price overnight of Brent and Crude oil prices.
Origin, Woodside Santos, and South32 all made handsome gains.
Making light work of Guzman y Gomez (ASX:GYG) and its much hyped IPO, Collins Foods (ASX:CKF) closed the session almost 8% higher after delivering solid FY24 results.
CKF vs GYG
Via Google
According to Anthony Golowenko, Portfolio Manager at MLC Asset Management, Collins continued to execute their long-term profitable growth strategy.
Set against a backdrop of still elevated commodity prices, and ongoing pressure from labour and energy costs, SSS and margin growth across key regions stood out for MLC.
“While perhaps lacking the outright sizzle of GYG, we saw Collins delivering the trifecta across the core KFC Australia, growth region KFC Europe and emerging / refining Taco Bell Australia businesses,” said Golowenko, adding:
“Continuing this theme, strong cash flow generation enabled the trifecta of business re-investment, debt reduction, and increased dividends – all attributes we see demonstrating Collins’ quality and resilience.”
Golowenko noted the CKF outlook was “understandably more subdued”.
“Consumer cost-of-living pressures, and ongoing labour and energy pressures highlighting the distinction between business resilience versus outright immunity.”
Also up and about on Tuesday was James Hardie (ASX:JHX), with the building materials supplier adding 5%.
In the States overnight, Technology stocks on the S&P500 lost more than 2%, while the Energy sector jumped over 2.7%.
Also overnight, some good words for commodities – the Bank of America (B0A) upgraded its outlook for gold saying it sees a possible rally over the next 12-18 months, pushing the pretty metal towards US$3,000.
The bank cited a potential pick up in non-commercial demand and fed rate cuts as key triggers.
BHP Meanwhile, has led gains among the mining majors even as iron ore futures hit their lowest price in almost three months.
After leading losses on the ASX on Monday, brokers at the investment bank UBS have Upgraded the sector to an Overweight Rating based on its June quarter survey from May and early June.
UBS says enthusiasm for the sector was “clearly positive”.
Over the past five days, the ASX200 has gained 0.78% and is currently 0.91% off of its 52-week high.
ASX Sectors on Tuesday
Via MarketIndex
The UNASX
On Wall Street, the Dow Jones outperformed the two other major indices as investors appeared to rotate out of tech and into financials and utilities, whilst the sell off in Nvidia gathered pace.
The Dow ended 0.67% higher, even as the S&P500 lost 0.3%.
The Nasdaq slumped 1.1% for its worst day since April.
The Dow found support in major banks, with Goldman Sachs and car maker Chevron each adding more than 2%.
In US corporate action, Alnylam Pharmaceuticals was the best stock overnight, rising by more than a full third (35%) after its leading flagship drug treating severe / fatal heart disease had a win in testing. I believe any heart disease is considered severe.
In the headlines, the sell-off in semiconducting hero Nvidia continued into a third day over night and actually gathered up a head of steam.
NVDA stock ended 6.7% lower making it 13% on the trot.
In money words that’s about US$645 billion.
But in happier news, Trump Media & Technology surged by more than +20% following news it’d be receiving over US$69.4 million from the cash exercise of warrants last week. Just super news.
Taking off? No. But Airbus did rise modestly despite warning of lower earnings and aircraft delivery targets for the year due to ongoing supply-chain problems.
Don’t fret. They’re still up nearly 140% for the year.
On the macro front investor attention will now shift to key inflation data due out later this week.
The personal consumption expenditure (PCE) data for May is due on Friday (Sat morning in Sydenham) – that’s the Fed’s preferred inflation measure. So. Significant.
US Futures on Tuesday arvo in Sydney
Via Fox
ASX SMALL CAP LEADERS
Today’s best performing small cap stocks:
Swipe or scroll to reveal full table. Click headings to sort:
Code Name Price % Change Volume Market Cap OAR OAR Resources Ltd 0.002 100% 1,250,000 $3,222,100 VN8 Vonex Limited. 0.036 97% 18,808,238 $6,512,915 1MC Morella Corporation 0.003 50% 5,785,842 $12,357,599 BGE Bridgesaaslimited 0.016 33% 84,184 $1,432,765 ODE Odessa Minerals Ltd 0.004 33% 154,084 $3,129,848 SGC Sacgasco Ltd 0.004 33% 3,455,359 $2,339,061 EPM Eclipse Metals 0.009 29% 2,736,764 $15,755,989 OLY Olympio Metals Ltd 0.028 27% 224,109 $1,880,482 FCT Firstwave Cloud Tech 0.010 25% 4,625,419 $13,680,155 HLX Helix Resources 0.003 25% 2,235,166 $6,528,387 LPD Lepidico Ltd 0.003 25% 4,643,935 $17,178,239 MOH Moho Resources 0.005 25% 280,000 $2,156,713 ASQ Australian Silica 0.036 24% 113,397 $8,173,951 M4M Macro Metals Limited 0.037 23% 12,112,170 $107,954,458 ERW Errawarra Resources 0.080 23% 736,409 $6,234,843 ICR Intelicare Holdings 0.017 21% 1,827,682 $3,287,543 BPM BPM Minerals 0.064 21% 179,255 $3,557,477 RAD Radiopharm 0.041 21% 6,302,849 $15,652,480 IMI Infinitymining 0.018 20% 159,495 $1,781,301 1TT Thrive Tribe Tech 0.003 20% 2,217,094 $1,176,554 FAU First Au Ltd 0.003 20% 494,128 $4,154,983 VAR Variscan Mines Ltd 0.006 20% 818,044 $1,895,002 WBE Whitebark Energy 0.012 20% 252,387 $1,920,003 RDN Raiden Resources Ltd 0.031 19% 18,274,664 $70,550,024
Local Teleco Vonex (ASX:VN8) has surged on Tuesday arvo – after entering a Scheme Implementation Deed with Maxo Telecommunications Pty Ltd for 100% of Vonex’s issued capital via a scheme of arrangement for a cash price of 3.75 cents per Vonex share.
The offer price of 3.75 cents implies an enterprise value of $34.4m and represents a premium of 108% to the closing price of Vonex shares on 24 June 2024 of 1.80 cents, being the last closing price.
Implementation is conditional on:
• The approval of Vonex shareholders in accordance with the Corporations Act
• No material adverse effect or prescribed events in relation to Vonex, and no breach of representations and warranties in relation to either Vonex or MaxoTel
• Other customary conditions to a scheme of arrangement such as Australian court approval and an Independent Expert concluding (and continuing to conclude) that the Scheme is in the best interests of Vonex shareholders.
TMK Energy (ASX:TMK) says the Ministry of Environment and Tourism of Mongolia has endorsed the Gurvantes XXXV Project through approval of its Detailed Environmental Impact Assessment (DEIA) submission. The approval grants TMK permission to conduct significant drilling and appraisal activities into 2029.
Developer of radiopharmaceutical products for both diagnostic and therapeutic uses Radiopharm Theranostics (ASX:RAD) has received firm commitments to raise ~$70 million through a placement to international and Aussie institutional and industry investors, including Lantheus Holdings and specialist US healthcare investors.
Helix Resources (ASX:HLX) has announced further positive results in its search for new copper-gold deposits from the auger geochemical sampling program in the Eastern Group tenements, ~40km southeast of Nyngan, home of the Big Bogan, in central NSW.
Blackstone Minerals (ASX:BSX) has received $1m as an advance from an R&D lending fund backed by Asymmetric Innovation Finance and Fiftyone Capital on its future 2024 refundable tax offset for R&D expenditure. BSX says the advance reflects its ongoing investment to develop the Ta Khoa Refinery process and “unique strategy to convert nickel concentrate blends into battery products in the form of precursor cathode active material”.
Augustus Minerals (ASX:AUG) has contracted UTS Geophysics to conduct a VTEM Max survey on several copper-PGE-nickel-zinc-lead-silver and uranium targets within the 3,600km2 Ti Tree project. The survey, scheduled to start in August, will help to unearth the untapped potential of the Ti Tree project to host economic mineralisation.
QX Resources (ASX:QXR) says it will undertake a new program of trenching to extend known high grade gold mineralisation at its Big Red Project in Queensland where prior trenching returned results including mineralised widths of 9m @ 5.9g/t Au.
MTM Critical Metals (ASX:MTM) announced “significant progress and promising developments” in the application and commercialisation of FJH technology.
FJH stands for Flash Joule Heating (FJH) technology.
MTM has been doing is prototype testing critical metal recovery from coal fly ash (CFA). And it’s reportedly seen “highly encouraging results” now this stage is completed.
Testing is now underway on e-waste and bauxite residue (red mud) from feedstock supplied in US.
ASX SMALL CAP LAGGARDS
Today’s best performing small cap stocks:
Swipe or scroll to reveal full table. Click headings to sort
Code Name Price % Change Volume Market Cap CLZ Classic Min Ltd 0.001 -50% 354,097 $1,102,057 TD1 Tali Digital Limited 0.001 -50% 75,658 $6,590,311 ABE Ausbondexchange 0.013 -35% 163,724 $2,253,362 88E 88 Energy Ltd 0.002 -33% 12,837,466 $86,678,016 BFC Beston Global Ltd 0.002 -33% 348,739 $5,991,141 PRX Prodigy Gold NL 0.002 -33% 30,722 $6,353,323 ESK Etherstack PLC 0.175 -29% 197,755 $32,265,002 CZN Corazon Ltd 0.005 -29% 6,234,861 $4,309,185 AD1 AD1 Holdings Limited 0.006 -25% 250,000 $7,189,187 IEC Intra Energy Corp 0.002 -25% 10,050,000 $3,381,563 MHC Manhattan Corp Ltd 0.002 -25% 8,101,000 $5,873,960 MOM Moab Minerals Ltd 0.003 -25% 776,230 $2,847,852 RBR RBR Group Ltd 0.002 -25% 40,000 $3,268,809 TMX Terrain Minerals 0.003 -25% 122,356 $5,726,683 YAR Yari Minerals Ltd 0.003 -25% 645,579 $1,929,431 ZAG Zuleika Gold Ltd 0.016 -24% 383,282 $15,457,796 AM7 Arcadia Minerals 0.040 -23% 721,397 $6,086,605 KOR Korab Resources 0.007 -22% 350,504 $3,303,450 KP2 Kore Potash PLC 0.025 -22% 1,782,017 $20,865,465 PHO Phosco Ltd 0.027 -21% 522,000 $9,511,438 BCT Bluechiip Limited 0.004 -20% 1,624,657 $5,910,198 EEL Enrg Elements Ltd 0.002 -20% 27,941,909 $2,524,913 IVX Invion Ltd 0.004 -20% 1,212,209 $32,122,661 SI6 SI6 Metals Limited 0.002 -20% 8,765,140 $5,922,149
TRADING HALTS
Orion Minerals (ASX:ORN) – pending a material announcement in relation to a proposed capital raising.
Balkan Mining and Minerals (ASX:BMM) – pending an announcement regarding a capital raising.
West Cobar Metals (ASX:WC1) – pending an announcement regarding
a capital raising.
IN CASE YOU MISSED IT
Corazon Mining (ASX:CZN) has received firm commitments from sophisticated, institutional and professional investors for a $340,000 share placement priced at 0.65c per share.
It has now offered eligible shareholders the opportunity to subscribe for up to $30,000 worth of shares priced at 0.65c each under a share purchase plan to raise up to $1m.
Proceeds from the placement and SPP will be used to accelerate the company’s exploration of the Mt Gilmore project in New South Wales and exploration at the Lynn Lake project in Canada.
Equinox Resources’ (ASX:EQN) Mata da Corda project in Brazil could host a world-class ionic adsorption clay-hosted rare earths deposit after surface sampling returned >2000ppm TREO assays over a 30km2 area.
Everest Metals (ASX:EMC) is looking to divest the newly acquired Mukinbudin project in WA’s Wheatbelt region into a new uranium IPO – Cobold Metals.
EZZ Life Science (ASX:EZZ) has achieved a key milestone with the US Food and Drug Administration approving nine of its products in the food category.
Meteoric Resources (ASX:MEI) has signed a memorandum of understanding with SENAI Regional Department of Minas Gerais in Brazil – the first permanent magnet maker in Latin America – to explore the production of rare earth magnets.
Pursuit Minerals’ (ASX:PUR) maiden drill program at its Rio Grande Sur lithium brine project could add to the size and grade of the current resource after the first hole returned deeper assays of up to 629mg/L.
QX Resources (ASX:QXR) is set to begin a trenching program at Big Red as it reassesses closed open pit gold mines at the Queensland site. Previous trenching had returned high grade gold results including 9m at 5.9g/t gold.
Sun Silver (ASX:SS1) is looking to tap into the US preference for domestic supply chains by applying for a US$60m ($90.4m) government credit to establish a silver paste production facility near its Maverick Springs silver project in Nevada.
Terra Metals (ASX:TM1) has successfully secured commitments from institutional and sophisticated investors for a $6 million placement at $0.06 per share to accelerate exploration and development at the Dante project in WA.
At Stockhead, we tell it like it is. While Corazon Mining, Equinox Minerals, Everest Metals, EZZ Life Science, Meteoric Resources, Pursuit Minerals, QX Resources, Sun Silver and Terra Metals are Stockhead advertisers, they did not sponsor this article.
The post Closing Bell: ASX adds 1.4pc as KFC owner kills it on post-taco Tuesday appeared first on Stockhead.
