Local markets opened lower this morning, following a really mixed effort on Wall Street overnight that saw the Dow hit another (yaaaaawwwwn) all time high, while the Nasdaq looked for all the world like someone had taken a hammer to both of its knees, by losing 2.77%.
That tipped the scales heavily in favour of a slide for the ASX this morning, and for about 10 minutes the benchmark trickled lower – but for the most part, it’s spent the day relatively flat, coming in around 0.15% down at lunchtime.
The InfoTech sector… well… probs best I tell you about that in a few minutes. It’s not going to make for pleasant reading.
I’ll get into the details of that shortly, but first we’re off to Italy, where an enterprising group of would-be criminals has been busted in an alleged “fake olive oil” scam that has large sectors of the community positively outraged.
According to the Carabinieri – that’s Italian for “cops” – seven people stand accused of a string of heinous culinary crimes, including criminal conspiracy, adulteration of food substances intended for marketing, fraud in public military supplies and adulteration of food for export.
That’s because they’ve been sprung during raids on several properties in the Puglia region, where officials found 72 tonnes of an “oily substance” – which sounds horrifying, considering they’re not prepared to tell us what it is – along with 623 litres of chlorophyll.
For those of you who don’t remember Year 9 biology, chlorophyll is the stuff that makes plants look green, and which helps them turn ordinary, everyday sunlight into the energy they need to grow.
Chlorophyll is also a key component of extra virgin olive oil, which gives it that wonderful fresh, grassy flavour – and, apparently, can be used to turn “72 tonnes of an oily substance” into a passable knock off of good olive oil, if added in sufficient quantities.
Authorities say the raids took place following the seizure of 260,000 litres of olive oil that had been interfered with in Spain, which – of course – meant it was very much the non-virgin variety.
But as irate as the Europeans are about their oil scam, they should spare a thought for their Chinese friends, who are facing an even worse situation according to officials there.
According to the food safety office of China’s administrative State Council, a major state-owned transport company has been delivering cooking oil around the country in tankers that had recently been used to haul fuel oils, without being cleaned in between jobs.
TO MARKETS
For the most part today, the ASX is running pretty flat – with the notable exception of our InfoTech stocks, which have been hoisted upon pikes and left to bleed in the sun, as a grim warning to all others who dare approach the city gates.
By lunchtime, you could throw a hanky over 10 of the 11 sectors, with the best of them Utilities on +0.45%, and the worst of the 10 being the Telcos on -0.64%.
And then there’s InfoTech, languishing in a distant last place and down 2.84% – mostly because the US tech sector had the stuffing knocked out of it on Wall Street while you were asleep last night.
Don’t believe me? Well… take a look for yourself:
Chart via Marketindex.com.au
See? Flat as a tack, except for the horrible mess from the techies.
A more granular look, via some more sharply organised ASX indices, reveals that today’s real winners are… the banks and the goldies.
Chart via Marketindex.com.au
Actually, wait – in the time it took me to write that sentence, make a cup of tea, deal with a highly irritated delivery guy who thought “nah mate – that’s next door” was an invitation for a kerb-side bust-up and the making of a fresh cup of tea to replace the one that had already gone cold… the banks fell below zero for the day.
And the goldies slid to just under 0.1%, as well – the market’s momentum is taking a lunchtime dive, by the looks of things. And that makes me a bit glum.
There was news from the Australian Bureau of Random Numbers earlier today, which told us that Australia’s unemployment rate has edged up slightly, to 4.1% in June despite the creation of 50,000 new full time gigs.
On a scale of Not Great to Excellent, it’s thoroughly mediocre news. While a bump in unemployment is one of the factors the RBA is looking for to start talking seriously about rate cuts, it’s not enough to trigger that yet.
The RBA was looking for a number closer to 4.3% – and 4.1% obviously isn’t going to cut it, and isn’t enough to ward off concerns about wage-driven inflationary pressure on the economy.
Annnnd up the big end of town, there’s some sad news for Domino’s Pizza Enterprises (ASX:DMP), as the company’s Great French and Japanese Experiment appears to have come to an inglorious end.
The pizza chain has announced that it will be closing 30 unprofitable stores in France, and a further 80 stores in Japan, which the company hopes to offset by opening 20 new stores that it hopes will be moneymakers.
That’s not the kind of news investors like to read – the pizza giant is down more than 9% (roughly one slice from a family-size Hawaiian) so far today.
NOT THE ASX
As previously alluded to, Wall Street went a little haywire last night, turning in a highly mixed bag of results for the session.
The S&P 500 tumbled by 1.39%, the blue chips Dow Jones index rose a further 0.59% to yet another new high, and the tech-heavy Nasdaq crashed by 2.77%.
US Tech stocks took a hit following news of potential new export regulations for semiconductor chips in the US and the prospect of further strain in US-China economic relations.
The Biden administration had informed allies that it was contemplating stringent restrictions if companies such as Tokyo Electron and ASML continue to provide China with access to advanced semiconductor technology (see more below).
The Philadelphia Semiconductor Sector Index fell by almost 7%, with Nvidia being the biggest loser on the Nasdaq, down 6.62%.
Other chipmakers followed suit. Dutch chipmaker ASML was down by 12.74%, Arm Holdings by 9.55%, Qualcomm by 8.61%, and Broadcom by 7.91%. Yesterday, Tokyo Electron sank by 7.46% in Tokyo.
And that, dear reader, is why our local tech stocks are a raging dumpster fire this morning.
In other US stock news, Tesla dropped 3% despite Cathie Wood from Ark Investment stating that the company’s creation of a self-driving taxi service will lead to a 10x increase in its share price. This prediction continues her long-standing optimism about a business Tesla has yet to establish.
Amazon slipped by 2.64% after its marketing portal for merchants went down, disrupting one of the online retailer’s major sales events of the year, Prime Day. Impeccable timing, guys. Well played.
In Asian markets this morning, it’s not a pretty sight. The Hang Seng is down 0.44%, Shanghai markets are down 0.69% and Japan is obviously reeling from the news that Domino’s is closing 80 stores there, leaving the Nikkei down 1.99%.
ASX SMALL CAP WINNERS
Here are the best performing ASX small cap stocks for 18 July [intraday]:
Swipe or scroll to reveal full table. Click headings to sort:
Code Name Price % Change Volume Market Cap M2R Miramar 0.015 87.5 73,701,021 $1,579,118 LNR Lanthanein Resources 0.0045 50.0 8,433,396 $7,330,908 ME1 Melodiol Glb Health 0.003 50.0 3,849,502 $612,527 ENL Enlitic Inc. 0.175 34.6 12,654 $10,232,902 TMK TMK Energy Limited 0.004 33.3 5,210,012 $20,764,836 DSK Dusk Group 0.78 32.2 966,445 $36,738,040 DUN Dundasminerals 0.029 31.8 706,305 $1,861,817 MRQ Mrg Metals Limited 0.005 25.0 1,000,000 $10,846,075 PSL Paterson Resources 0.022 22.2 1,100,243 $8,208,682 HTA Hutchison 0.034 21.4 2,066 $380,030,240 AME Alto Metals Limited 0.04 21.2 487,496 $23,810,265 NRX Noronex Limited 0.015 20.0 25,719,985 $6,108,639 HLX Helix Resources 0.003 20.0 8,532,712 $8,160,484 MCL Mighty Craft Ltd 0.006 20.0 177,264 $1,844,546 FGL Frugl Group Limited 0.049 16.7 53,931 $4,406,162 PUR Pursuit Minerals 0.0035 16.7 2,218,954 $10,906,200 SRN Surefire Rescs NL 0.007 16.7 1,319,123 $11,917,847 CTQ Careteq Limited 0.015 15.4 53,333 $3,082,543 ASE Astute Metals NL 0.038 15.2 188,374 $13,992,994 LCY Legacy Iron Ore 0.016 14.3 1,605,745 $107,989,676 RKT Rocketdna Ltd. 0.008 14.3 238,125 $4,592,804 MXO Motio Ltd 0.017 13.3 3,193,690 $4,022,975 GBZ GBM Rsources Ltd 0.009 12.5 732,907 $9,253,511 OSL Oncosil Medical 0.009 12.5 9,030,180 $27,186,477 RNE Renu Energy Ltd 0.0045 12.5 7,417 $2,904,536
Leading the way at lunchtime on Thursday was Miramar Resources (ASX:M2R), after the company reported it has found up to 5.48% copper, 54.5% lead and 73.48g/t silver from the initial sampling program at its new Chain Pool project in the Gascoyne of WA.
M2R executive chairman Allan Kelly said the company’s Gascoyne region projects had potential for various commodities and deposit types but have been under-explored previously.
“For example, there has not been any modern and/or systematic exploration or drilling at the Joy Helen Prospect despite the presence of high-grade base metal mineralisation,” he said.
Meanwhile, Noronex (ASX:NRX) was climbing on news that it has entered into an Earn-in Agreement and Strategic Alliance with a wholly-owned subsidiary of South32 Ltd (South32) to accelerate copper exploration in Namibia.
The agreement means South32 has committed to fund A$15 million of exploration expenditure over five years at Noronex’s Humpback-Damara Project in Namibia, giving South32 the right to subscribe for a 60% interest in Noronex’s wholly owned subsidiary Noronex Exploration and Mining Company.
Dusk Group (ASX:DSK) was running hot this morning after releasing guidance and a trading update in relation to its expected FY24 results, which tbe company says – based on unaudited figures – should land at approximately $126.3 million (8.2% below FY23), with underlying EBIT1 expected to finalise in the range of $6.2-$6.4 million (FY23: $16.5 million). However, the company says that it’s had a strong start to FY25, with total sales from the first two weeks up 28% on pcp.
One Click Group (ASX:1CG) was up Thursday morning on news that the company has reached major milestone, and now boasts 150,000 users, with that figure representing a significant 57% on the same time last year. Notably, the company says it has seen a major uptick in users through the start of this years tax season, with around 1,000 users per day signing up for its One Click Life fintech platform.
Arizona Lithium (ASX:AZL) has announced that it has been conditionally approved for an investment incentive of up to $21.6m under the Saskatchewan government’s Oil & Gas Processing Investment Incentive Program. The funds are provided as transferable royalty credits, and can be claimed at a rate of 20% in the first calendar year of operations, 30% in the second calendar year, and 50% in the third calendar year against government royalties.
ASX SMALL CAP LOSERS
Here are the most-worst performing ASX small cap stocks for 08 July [intraday]:
Swipe or scroll to reveal full table. Click headings to sort:
Code Company Price % Volume Market Cap ATH Alterity Therap Ltd 0.0045 -35.7 79,679,446 $36,715,807 APC Aust Potash Ltd 0.001 -33.3 42,037 $6,030,284 DOU Douugh Limited 0.003 -25.0 26,975 $4,328,276 JAV Javelin Minerals Ltd 0.0015 -25.0 50,000 $6,250,885 YAR Yari Minerals Ltd 0.003 -25.0 1,010,757 $1,929,431 PIM Pinnacleminerals 0.05 -24.2 225,258 $3,000,579 LGM Legacy Minerals 0.2475 -21.4 549,420 $33,218,324 BCT Bluechiip Limited 0.004 -20.0 1,214,898 $5,910,198 CTO Citigold Corp Ltd 0.004 -20.0 1 $15,000,000 MEL Metgasco Ltd 0.004 -20.0 15,000 $7,237,934 ROG Red Sky Energy. 0.004 -20.0 1,525,000 $27,111,136 NOV Novatti Group Ltd 0.056 -17.6 663,911 $24,191,030 ZLD Zelira Therapeutics 0.83 -17.0 24,295 $11,347,155 AVE Avecho Biotech Ltd 0.0025 -16.7 110,623 $9,507,891 BPP Babylon Pump & Power 0.005 -16.7 1 $14,997,294 ID8 Identitii Limited 0.01 -16.7 967,981 $7,214,190 PLG Pearlgullironlimited 0.017 -15.0 245,785 $4,090,836 AD1 AD1 Holdings Limited 0.006 -14.3 709,000 $6,290,539 BNL Blue Star Helium Ltd 0.006 -14.3 173,619 $13,614,197 FIN FIN Resources Ltd 0.006 -14.3 1 $4,544,881 OLI Oliver’S Real Food 0.012 -14.3 64,611 $6,170,247 SP8 Streamplay Studio 0.006 -14.3 105,084 $8,054,366 DEL Delorean Corporation 0.037 -14.0 10,592 $9,275,999 WTM Waratah Minerals Ltd 0.265 -13.1 875,638 $54,706,172 MHI Merchant House 0.04 -13.0 233,991 $4,336,259
IN CASE YOU MISSED IT – AM EDITION
Althea Group Holdings (ASX:AGH) has received firm commitments from new and existing institutional and sophisticated investors to subscribe for ~101.3m new fully paid ordinary shares at an issue price of 2 cents/share to raise $2m. Proceeds will be used to accelerate its growth strategy and deliver on recent guidance.
Great Southern Mining (ASX:GSN) has successfully secured almost $1.5m in Federal government Junior Minerals Exploration Incentive (JMEI) scheme credits in relation to its greenfield mineral exploration.
The Australian Taxation Office confirmed that $1,488,500 in JMEI credits have been allocated to the company for potential distribution to eligible shareholders.
The JMEI scheme encourages investment in exploration companies that carry out greenfield mineral exploration in Australia, by allowing these companies to give up a portion of their tax losses for potential distribution to eligible investor.
Greenvale Energy (ASX:GRV) has received a $0.83m R&D tax incentive for the 2023 financial year in relation to eligible activities on its Alpha Torbanite project in Queensland.
This increases the company’s cash position to $3.7m, which will support growth initiatives.
GRV says that the funds received under the R&D tax incentive will be used to progress the development pathway for the Alpha Project, which includes conducting additional test work to upgrade the Alpha shale extract to a premium C170 bitumen product.
Magnetic Resources (ASX:MAU) has acquired a new tenement from Rincon Resources (ASX:RCR) that covers all potential deep extensions of its Lady Julie North 4 deposit for $175,000.
Recent drilling in the northern 400m of the 750m long LJN4 deposit had indicated that this zone is much larger than previously estimated and is bigger than the southern silica pyrite and breccia zone.
This northern zone extends at least 600m down the southeast plunge direction, at least 650m down dip and is up to 200m long.
Terra Metals (ASX:TM1) has estimated an exploration target of 60-110Mt at 0.21-0.31% copper, 0.43-0.65g/t PGE3, 0.5-0.75% V2O5 and 13.9-20.8% TiO2 for just the basal layer at Reef 1 within Dante Reefs. Reverse circulation and diamond rigs have been mobilised for drilling at Reef 1 and Reef 2.
Also benefitting from the Federal government’s largesse is Torque Metals (ASX:TOR), which secured almost $1.5m in JMEI scheme credits.
The Australian Taxation Office confirmed that $1,488,500 in JMEI credits have been allocated to the company for potential distribution to eligible shareholders.
Exploration has started at Uvre’s (ASX:UVA) Frome Downs uranium project following the grant of both Pastoral and Native Title access to conduct a passive seismic survey. It has also started negotiations for a heritage survey agreement.
At Stockhead, we tell it like it is. While Althea Group Holdings, Great Southern Mining, Greenvale Energy, Magnetic Resources, Terra Metals, Torque Metals and Uvre are Stockhead advertisers, they did not sponsor this article.
The post ASX Small Caps Lunch Wrap: Who’s been caught up in some weirdly oily scams this week? appeared first on Stockhead.
