Local markets are already jacked up in record-high, untrodden territory on Monday morning in Bridge Street, Sydney.
The S&P/ASX200 is up today, gaining 68.90 points or 0.87% to 8,028.20 and setting a new, new 100-day high with most sectors getting in on the action.
Via ASX
The top-performing stocks in the benchmark 200 ahead of lunch were both IT names – Nanosonics (ASX:NAN) and Block Inc (ASX:SQ2) , up 10.5% and 3.55% respectively.
By sectors, Consumer Discretionary, Information Technology and the Telcos are out in front, but the field is packed with winners.
IT stocks are up +2.6% since the rotation began out of mega tech in the US.
It is just a terribly good-looking Monday morning at the ASX graphics department, no matter how you cut it:
Via MarketIndex
All 11 sectors are higher at lunch along with the benchmark, the All Ords and the array of indices across the ASX. Even the miners – who no one loves any more – are making good. (That lack of love could change if China does this week as the Third Plenum unfolds.)
It’s been a difficult 2024 for the materials sector, as recounted to me over the w’end by my Cornish collaborator and eToro’s man of markets Joshua Gilbert.
“It’s the worst-performing sector on the local market this year by far. Lithium miners have led the losses, but heavyweights Rio Tinto and BHP have dragged the sector lower with losses of 11% and 13%, respectively.”
This all comes from the weaker iron ore price, which has tumbled following continued weakness out of Chinese – and, specifically – the slump in the property market.
Josh says the latest data showed that deflation is still a problem, and more support is needed from Beijing.
However, that weakness this year has sparked interest from contrarian investors…
“BHP (ASX:BHP) shares saw a 24% increase in holders in Q2, the third largest increase of any stock on the eToro platform in Australia. Both these mining heavyweights will hand down production updates this week, and increased production across all segments of the business will be what investors want to see to offset lower iron ore prices. But, a focus will be on copper, with prices rising by more than 15% this year, and both looking to increase production over the years ahead, with BHP’s recent bid for Anglo-American a clear testament to that.”
Elsewhere, Aussie Broadband (ASX:ABB) stock is one of the few taking some stick after announcing there’ll likely be some $10mn more spent on its new digital ‘challenger brand’ Buddy. That’s overshadowed an update to forward guidance – with EDITDA likely to drop at the top end of its previous guidance of $116m to $121m, including four months of contribution from its lauded acquisition Symbio, which may have disappointed.
The stock was down over 18% ahead of the break.
Here’s the heatmap of ASX sectors at lunch.
Via ASX
Look how all the heat has been sucked out of the heat map on Monday. It is an eerie joyful green which fills me with unbidden terror. The top of my right ear is itching.
These new records are “the undiscovered country from whose bourse no traveller returns”, as per Hamlet, who was clever and poetic but also wrong about a lot of stuff.
For instance, there’s the Aussie dollar – surging near eight month highs at US67.67c – and, this week, there’s only really Thursday’s jobless data drop from The Bureau (ABS) at home, or OFC, the Mega political, social and / or economic upheavals in Beijing or Washington to arrest more of The Best.
ASX 200 at 8,250 points – all over by Christmas
That’s what David Bassanese, Betashares chief economist declared this morning.
“Being relatively cheap and unloved, the Australian market could become part of the ‘great rotation’ if global investors start to seek opportunities outside of US large cap technology stocks such as Nvidia,” Bassanese mused.
Last week, small caps began to enjoy the benefits of that rotation. Materials and resources did not.
The ASX Small Ordinaries (XSO) index ended last week ahead by 2.8%, while the ASX Emerging Companies (XEC) index soared by 2.7%.
The S&P/ASX200 ended the previous session with a near 0.9% gain t close at 7,959.30, a new 100-day high after trimming intra-day gains which pushed through best evers.
Persistent domestic inflation will ensure the local punters continue to keep an eye on any monetary policy prognosticating from the Reserve Bank of Australia (RBA) as expectations Martin Pl. will come on behind its global peers most of whom look set to begin their rate-cutting cycles sooner rather than later.
That’s been good for the Aussie dollar.
Importantly, Eddy Sunarto is back from the Japanese leg of his whirlwind North Asia tour and was on hand to witness the cracking new record highs that hit markets in Tokyo, to go with the fresh records here, in the States and even in Toronto.
The data highlight at home is jobless numbers on Thursday.
Elsewhere there’ll be inflation reads in Toronto (yes, Toronto), the UK, New Zealand, and Japan, while trade data drops for India, the EU, Italy, Japan, and Switzerland.
As of lunchtime on Monday, the benchmark index has gained 2.6% and is currently 0.11% off of its 52-week high.on broad-based gains.
The ASX Small Ordinaries (XSO) index ended last week ahead by 2.8%, while the ASX Emerging Companies (XEC) index soared by 2.7%.
Not the ASX
Yes Toronto.
That’s where the S&P/TSX Composite Index rose 0.7% to close at a record high of 22,674 on Friday, marking its 3rd straight session of gains, amid broad-based increases led by Canada’s mining and materials sector.
In the states, Wall Street ended close to record levels on Friday, as earning season kicked off with the major banks in focus.
We saw a fascinating and probably healthy rotation away from Megatech to the unloved and long underperforming small caps and value shares – again – a result of further buy-in confidence that the US Fed will begin to trim interest rates.
Wee caps outperformed in the US, as well, with the Russell 2000 surging 3.6% in the states, as your mega-tech names like Nvidia and Tesla faltered.
The S&P 500 gained 0.5%, after touching all-time high of the 5,655 level during the Friday session. The Nasdaq 100 also rose by 0.5%, rebounding from its worst day since April.
The Dow Jones jumped 247 point, ending beyond the 40,000 mark for only a second instance.
It last did that in May.
Now it has a US Q2 earnings season ahead of it with many of the majors likely to provide a timely insight into the state of the US economy at this thrilling juncture.
The big US banks started reporting on Friday.
JPMorgan dropped 1.2% even though it dumped higher-than-expected revenue driven by increased the return of investment banking business.
Citigroup stock dropped even further – almost down 2% – after it, too, cracked beyond revenue and profit forecasts.
Wells Fargo is a bit of an outlier, its stock crashed 6% after missing forecast net interest income (NIMs).
Oil, metal and iron ore prices fell but the Aussie dollar hit fresh six month highs as the greenback fell.
Japan isn’t going to work today.
But China’s week will be monstrous. There’s June industrial production, retail sales, unemployment rate, and fixed asset investments all drop on Monday, alongside the China’s Communist Party’s Third Plenum. Yikes.
June GDP has come in lower at the time of writing.
Finally, The former US president was shot in the ear at a few hours ago, but in New York investor attention is already recovering from the 7 or so stages of Grief to to Monday’s second-quarter earnings reports – the trigger, ahem, the catalyst for any extension of these terrifying market’ highs.
Via Fox.
ASX SMALL CAP WINNERS
Here are the best performing ASX small cap stocks for 15 July [intraday]:
Swipe or scroll to reveal full table. Click headings to sort:
Code Name Price % Change Volume Market Cap ARN Aldoro Resources 0.11 55% 2103330 9558285.75 APC Aust Potash Ltd 0.0015 50% 1014500 4020189.49 MCT Metalicity Limited 0.003 50% 14745631 8971705.37 DOU Douugh Limited 0.004 33% 59518 3246206.76 RFT Rectifier Technolog 0.008 33% 1873555 8291903.68 SFG Seafarms Group Ltd 0.004 33% 1280347 14509797.5 TIG Tigers Realm Coal 0.004 33% 1708240 39200107.1 I88 Infini Resources Ltd 0.95 28% 2155897 28107660.5 DYM Dynamicmetalslimited 0.17 26% 217555 4860000 AI1 Adisyn Ltd 0.035 25% 3393746 5183696.06 PBL Parabellumresources 0.05 25% 4250 2492000.04 SNS Sensen Networks Ltd 0.025 25% 24250 15558174.8 AVE Avecho Biotech Ltd 0.0025 25% 1469938 6338594.03 HLX Helix Resources 0.0025 25% 933333 6528387.37 VRC Volt Resources Ltd 0.005 25% 2011374 16634712.5 MDI Middle Island Res 0.021 24% 4995544 3703518.34 AS1 Asara Resources Ltd 0.011 22% 875118 7939578.15 SKS SKS Tech Group Ltd 1.64 21% 550822 150929129 GRV Greenvale Energy Ltd 0.037 19% 15261025 14220595.5 CY5 Cygnus Metals Ltd 0.051 19% 1663284 12614443 HHR Hartshead Resources 0.007 17% 1945213 16852092.8 RGL Riversgold 0.007 17% 29532011 7257460.92 TMK TMK Energy Limited 0.0035 17% 137500 20764835.9 VML Vital Metals Limited 0.0035 17% 1705622 17685200.9 3DP Pointerra Limited 0.073 16% 5269395 50719838.2
Aldoro Resources (ASX:ARN) reports fresh metallurgical test work has returned open cycle niobium recovery level of 62.4% “on a selected Kameelburg sample”.
Those are numbers in line with recovery levels by developing mining explorers and producers in the global niobium space. Good news.
ARN says the processes resulted in an upgrade of the head feed of 0.74% Nb2O5 to 5.5% Nb2O5, “a multiple of 10.6 times with a 62.4% recovery rate of Nb2O5.” The digger says recovery rate and upgrade values are considered encouraging in the initial test phase.
“The latest niobium recovery result provides ample confidence leading towards maiden drilling targeting rich niobium dykes at the Kameelburg Niobium-REE Project.
“The forward process will focus on a finer grind and micro floatation to increase the grade and recovery further.
Also making a mess of Monday is the goldie and other digger Metalicity (ASX:MCT).
MCT is out at the Yundamindra Gold Project, located 65 kms south east of Leonora and 65 kms east of Kookynie where assays from the recent RC drilling programme have been returned with multiple impressive gold intersections and high grades.
Significant intercepts include: [email protected]/tAu from 28m, and [email protected]/t Au.
Importantly, MCT says mineralised intercepts correlate with historical drill intercepts, providing validation and encouragement for further drilling and potential resource estimation.
Adisyn (ASX:AI1) says it’s gone in for a binding collaboration agreement with 2D Generaton Ltd – is a global semiconductor IP business incorporated in Israel with close ties to – among others – NVIDIA.
Just say the name and the investors pile in.
Be that as it may, AI1 reports the the partnership aims to “generate transformational opportunities in the AI space”.
“Leveraging Adisyn’s expertise in data centre management, managed IT services, and cybersecurity, alongside 2D Generation’s industry-leading
capabilities in developing next-generation AI semiconductor solutions.
The Lithium hunter Dynamic Metals (ASX:DYM) farm-out JV of Widgiemooltha with Mineral Resources (ASX:MIN) has started to bear fruit after pre-conditions were satisfied and the latter coughed up a $4m payment.
The deal, etched in March, gives MIN a 40% share in the lithium rights of the project (after a further $1m payment next year), which will bump up to 65% as long as it spends $15m on exploration within the next four years.
While DYM has been searching the tenements for nickel prospectivity of late, MinRes is expected to start hitting the ground shortly to further prove up identified lithium targets.
Attura (ASX:ATA)
IT firms Atturra is rising as well after agreement to acquire Exent Holdings for $6mn in upfront consideration with earn-out/post-completion consideration of up to $2mn cash. ATA says it’s a strategically aligned acquisition which helps to extend ATA’s advisory and consulting network.
ATA also says FY24 revenue is expected to exceed $240 million, a 35% increase from the previous year. The company anticipates an underlying EBITDA of $25-$26 million, up 19% on pcp.
There’s been some 40 new federal government contracts, including ones with the Departments of Defence, Home Affairs, and Treasury, which boosted performance.
And on Friday, the market closed before punters could get enough of SKS Technologies (ASX:SKS) which surged on news it’d won a terrific $90+ million data centre project with Built, for an “international hyperscale data centre.”
Although it’s in Melbourne, people still thought it cool. The job should be completed by August 2025. Following the win, SKS also upwardly revised its revenue guidance for FY25 to ‘more than $200 million’.
SKS was still rising Monday morning.
Finally, a long way to go from where it’s been, but Core Lithium (ASX:CXO) has jumped almost 10% after last week’s positive exploration update and the news it’s exceeded FY 2024 production guidance with production of 95,020 dry metric tonnes (dmt) of spodumene concentrate.
CXO says that has delivered a cash balance of $87.6mn as of June end.
ASX SMALL CAP LAGGARDS
Here are the best performing ASX small cap stocks for 15 July [intraday]:
Swipe or scroll to reveal full table. Click headings to sort:
Code Company Price % Volume Market Cap 88E 88 Energy Ltd 0.002 -33% 6,138,627 $86,678,016 PRX Prodigy Gold NL 0.002 -33% 75,000 $6,353,323 TD1 Tali Digital Limited 0.001 -33% 13,767 $4,942,733 WML Woomera Mining Ltd 0.002 -33% 37,650 $3,654,417 CT1 Constellation Tech 0.0015 -25% 216,877 $2,949,467 CTN Catalina Resources 0.003 -25% 329,291 $4,953,948 JAV Javelin Minerals Ltd 0.0015 -25% 5,102,281 $6,250,885 ALM Alma Metals Ltd 0.007 -22% 668,331 $12,985,910 HT8 Harris Technology Gl 0.011 -21% 221,771 $4,187,897 XPN Xpon Technologies 0.012 -20% 315,000 $5,436,622 AHN Athena Resources 0.002 -20% 259,000 $2,676,169 ME1 Melodiol Glb Health 0.002 -20% 762,771 $765,659 NES Nelson Resources. 0.002 -20% 332 $1,533,986 POS Poseidon Nick Ltd 0.004 -20% 1,122,858 $18,567,674 ABB Aussie Broadband 2.945 -18% 5,701,300 $1,054,999,478 KZR Kalamazoo Resources 0.062 -17% 515,415 $13,490,012 AXE Archer Materials 0.3 -17% 1,626,966 $91,744,925 CCZ Castillo Copper Ltd 0.005 -17% 148,565 $7,797,032 RML Resolution Minerals 0.0025 -17% 445,178 $4,830,065 GTG Genetic Technologies 0.053 -16% 724,810 $8,329,686 LIC Lifestyle Communit. 10.64 -15% 1,098,030 $1,530,272,479 GLN Galan Lithium Ltd 0.165 -15% 4,500,269 $92,419,079 PR2 Piche Resources 0.17 -15% 541,988 $16,058,108 BNL Blue Star Helium Ltd 0.006 -14% 1,685,113 $13,614,197 MOM Moab Minerals Ltd 0.006 -14% 203,333 $5,556,700
IN CASE YOU MISSED IT – AM EDITION
Galan Lithium (ASX:GLN) has raised $1.1m through the use of its At- the-Market Subscription Agreement with Acuity Capital.
This will involve the issue of 7.05 million GLN shares priced at 15.6c each – a 8.8% discount to the 15-day volume weighted average price – under
the company’s LR7.1A capacity. Proceeds from the raising will be used to further develop its Hombre
Muerto West lithium brine project in Argentina.
At Stockhead, we tell it like it is. While Galan Lithium is a Stockhead advertiser, it did not sponsor this article.
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