ASX Large Caps: ASX tracks Wall Street lower; Liontown tumbles 8pc on royalty dispute

Shares fell on Thursday, in line with the selloff in New York overnight
ANZ Bank CEO expects economic slowdown next year
Liontown slips after legal dispute relating to Kathleen Valley Project

The ASX fell by -0.5% on Thursday, tracking the selloff on Wall Street overnight where traders took a breather after the record-setting rally over the past few weeks.

The ASX200 benchmark index pulled back from 10-month highs as rates sensitive Tech, Real Estate and Discretionary sectors reversed yesterday’s gains.

Lithium stocks were some of the worst performing stocks, with the likes of Allkem (ASX:AKE) and Pilbara Minerals (ASX:PLS) down by -5% and -2% respectively.

The ANZ Bank (ASX:ANZ) held its AGM today and warned about inflation headwinds and challenging economic outlook ahead.

“Our economists expect slower economic growth in both Australia and New Zealand in 2024, and only modest movements in interest rates and inflation,” said ANZ CEO Shayne Elliott.

Overseas, Toyota stocks tumbled -3.5% in Tokyo after the US offices of its subsidiary, Daihatsu Motors, were raided over a safety scandal following the recall of 1 million cars in the US.

Chinese private tech company Bytedance, the owner of TikTok, reportedly generated sales of more than US$110 billion in 2023, according to people familiar with the matter, potentially overtaking its arch rival Tencent Holdings.

Looking ahead to tonight’s session in the US, the Q3 GDP estimate is anticipated, together with the US weekly jobless claims.

BIG CAP WINNERS

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Code Name Price % Change Volume Market Cap MCY Mercury NZ Limited 6.05 5.77 921 $7,957,819,807 CTT Cettire 2.90 3.94 1,375,882 $1,063,654,634 CMW Cromwell Prop 0.43 3.66 2,844,444 $1,073,735,347 JLG Johns Lyng Group 6.13 3.29 1,070,700 $1,647,791,569 MEZ Meridian Energy 4.98 3.11 45,590 $6,115,140,168 AGL AGL Energy Limited. 9.44 2.50 1,618,311 $6,196,002,016 A2M The A2 Milk Company 4.28 1.90 3,844,857 $3,036,326,194 EVN Evolution Mining Ltd 3.94 1.55 6,202,379 $7,664,965,336 CPU Computershare Ltd 24.36 1.52 1,242,955 $14,424,691,271 RHC Ramsay Health Care 52.14 1.52 389,661 $11,783,765,627 INA Ingenia Group 4.26 1.43 1,558,869 $1,711,849,709 CRN Coronado Global Res 1.71 1.33 1,685,793 $2,833,206,804 IFT Infratil Limited 9.30 1.31 159,003 $7,642,970,853 ELD Elders Limited 7.82 1.30 700,510 $1,207,999,151 RRL Regis Resources 2.18 1.16 3,038,632 $1,623,978,437

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Computershare (ASX:CPU) rose 1% after conducting more on-market buybacks today. In August, CPU announced a $750 million share repurchase program which was to be conducted through to September 3, 2024.

BIG CAP LOSERS

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Code Name Price % Change Volume Market Cap APE Eagers Automotive 13.98 -8.03 623,350 $3,904,886,232 LTR Liontown Resources 1.55 -7.59 18,556,527 $4,068,934,388 HGH Heartland Group 1.36 -6.55 21,305 $1,037,134,642 AKE Allkem Limited 9.80 -5.91 12,292,341 $6,655,334,660 EMR Emerald Res NL 2.93 -5.79 2,241,968 $1,939,482,788 GQG GQG Partners 1.62 -5.28 1,985,970 $5,035,511,969 LIC Lifestyle Communit. 17.65 -5.21 218,383 $1,946,630,339 MP1 Megaport Limited 9.13 -5.09 945,262 $1,530,780,672 MAD Mader Group Limited 6.94 -4.93 114,820 $1,460,000,000 360 Life360 Inc. 7.24 -4.11 407,078 $1,530,784,123 DEG De Grey Mining 1.30 -4.07 4,403,331 $2,499,136,353 MGH Maas Group Holdings 3.84 -3.88 243,902 $1,315,684,054 EVT EVT Limited 12.00 -3.85 170,072 $2,025,196,455 CHC Charter Hall Group 11.91 -3.60 2,074,844 $5,841,515,408

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Liontown Resources (ASX:LTR) slipped -7% after reporting that it was involved in a royalty legal dispute over its Kathleen Valley Lithium Project.

LTR said it has received notice that the private royalty holder, Drem Pty Ltd, has filed legal proceedings seeking declarations regarding the interpretation of the relevant documents and the amount of the royalty payable from the project.

Liontown is party to a royalty deed in relation to an inherited private royalty, which applies to certain tenements now forming part of the Kathleen Valley lithium project.

In short, the dispute between the parties is whether the amount of the royalty is calculated as 2%, or a lesser percentage, of gross sales of production from the relevant tenements.

Liontown said it will respond to the proceedings in due course, but does not believe that Drem’s claim is material to the company, nor does it impact planned first production in mid 2024.

Eagers Automotive (ASX:APE) also fell -7% after saying that it has applied for, and obtained relief from the Australian Securities and Investments Commission (ASIC) regarding requirements for its non-wholly owned subsidiaries to have their individual financial reports audited each year.

The relief applies only to the individual subsidiaries, and does not affect the financial reporting or audit obligations of the parent company, Eagers Automotive Limited.

Emerald Resources (ASX:EMR) fell after releasing a maiden gold resource report at its 100% owned Memot Gold Project in Cambodia

Highlights include: Maiden Open Pit Inferred Resource of 8Mt @ 1.84g/t Au for 470koz.

EMR says the maiden resource has given the company confidence to ramp up drilling activities and invest in Stage 2, with a further 50,000 metre drill programme planned to commence in early 2024.

Boss Energy (ASX:BOE) fell despite securing its first binding sales contract after signing a market-linked deal with a US power utility. The contract for 1Mlbs of U3O8 over seven years gives Boss financial certainty, while enabling it to retain ongoing exposure to increases in the uranium price, the company said.

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