The ASX has closed higher
\nHealthcare leads sector gains
\nSmall caps led by KTA and FG1<\/p>\n
\u00a0<\/p>\n
The Aussie sharemarket has trimmed the fat off this morning\u2019s substantial gains \u2013 at one stage there we were easing past the 7,350 mark and off to the races.<\/p>\n
But the big races have been run this week and some selling this afternoon, as well as some shonky data around Chinese domestic demand, has punched a bit of a hole through those plans.<\/p>\n
Still, like sands through the hourglass, these are the gains of our lives\u2026<\/p>\n
At match out on Thursday November 9, the<\/em> S&P\/ASX 200 (XJO) index was about 20 points, or +0.28 higher at 7,015.<\/em><\/strong><\/p>\n Via Google<\/p>\n \u00a0<\/p>\n It\u2019s been a session dominated by company news.<\/p>\n At the top end of town, some truth-telling form\u00a0National Australia Bank (ASX:NAB)<\/strong><\/a> CEO Ross McEwen has taken the puff out of an otherwise happy FY23 report where NAB hoisted its cash net profit by 8.8% to $7.7 billion \u2013 way out ahead of analyst expectations.<\/p>\n Despite the favourable world of being a Big Bank in Australia, the chief executive thought it a good time to say things might not stay good.<\/p>\n \u201cGrowth is slowing, competitive and inflationary pressures are elevated and asset quality is deteriorating,\u201d McEwan warned shareholders\u2026 who were still doing the math on their final dividend, after it was also hoisted (by +7.7%) to 84 cents a pop.<\/p>\n NAB FY23 short cuts:<\/strong><\/p>\n \u00b7 Net interest income is up 13.3% to $16.8bn, in line with expectations<\/em><\/p>\n \u00b7 Cash earnings up 8.8% to $7.7bn vs $7.3bn expected<\/em><\/p>\n \u00b7 Final dividend up 7.7% to 84 cents per share Full-year dividend up 16% to $1.67 per share vs. $1.68 expected<\/em><\/p>\n \u00b7 Cash payout ratio down 70 bps to 67.7%<\/em><\/p>\n \u00b7 Net interest margin of 1.74%, in line with expectations<\/em><\/p>\n \u00b7 Operating expenses up 7.8% to $9.38 billion<\/em><\/p>\n \u00b7 Credit impairment charges of $802m vs $922 million expected<\/em><\/p>\n \u00a0<\/p>\n At the lower end of town \u2013 in the Aussie automotive aftermarket sector to be exact \u2013 RPM Automotive (ASX:RPM)<\/strong><\/a> dropped a decent trading update, which offers some handy context for the local retail environment heading into Christmas.<\/p>\n The first quarter for RPM has been a winner \u2013 revenues are up 5.5% to circa$25mn and despite challenging trading conditions, has lifted its improved contribution margin to 34.5%.<\/p>\n CEO Clive Finklestein says a focus on \u2018execution to create greater operational efficiency combined with margin growth\u2019 has significantly improved profitability and brought some stability to the business.<\/p>\n \u201cMargin growth was also supported by enhanced operating leverage due to increased scale and cross-sell opportunities, development of the retail and wholesale network, product diversification and warehouse expansion.\u201d<\/p>\n The stock was up about 10% at 3PM in Sydney, after it reaffirmed FY24 guidance \u2013 expecting reported revenue between $130mn to $140mn and EBITDA between $10.5 to $12mn.<\/p>\n RPMs Q1 shortcut:<\/strong><\/p>\n \u00b7 Continued revenue growth with underlying revenue in Q1 FY24 of $24.9m, up 5.5% on prior corresponding period (pcp), despite challenging trading conditions, and reported revenue of $28.4 million, flat on pcp which included discontinued businesses<\/em><\/p>\n \u00b7 Contribution margin improved to 34.1% (Q4 FY23 28.8%) driven by growing scale, a focus on operational optimisation and disciplined cost management<\/em><\/p>\n \u00b7 Wholesale tyre division strengthened with the strategically aligned acquisition of Chapel Corner Tyres<\/em><\/p>\n \u00b7 Cost benefits from restructure now flowing through, with around half of expected $1.5 million in annualised savings now implemented, primarily in the Repairs and Roadside division<\/em><\/p>\n \u00b7 Disposed non-core assets, expected to generate an additional $1.4 million in cash across 2H FY23 and 1H FY24, and $0.5 million annual improvement in EBITDA to $3.0m Q1 FY24 v $2.5m Q1 FY23 (10.6% of revenue vs 9.2% pcp)<\/em><\/p>\n \u00b7 Improved inventory management growing cashflow: Increased inventory turns resulting in growing cash balance of $5.8m at 30 September 2023<\/em><\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n Via MarketIndex<\/p>\n We\u2019re watching gold<\/em><\/strong><\/p>\n At least I am. It\u2019s soothing to watch it swing.<\/p>\n Via TradingEconomics<\/p>\n The gold price is steeling itself without any sense of resolve from my POV for a march on $1,950. That my friends is its lowest levels in three weeks, just as our equity markets hit their three-week apex.<\/p>\n Gold\u2019s being hit by a bit of a risk-on mise en sc\u00e8ne, with newly hawkish Fedspeak out of Minneapolis, where president Neel Kashkari said hold the horses USA, it\u2019s way too soon to George W Bush this war and declare victory over inflation. Meanwhile, it seems the influential Irish central bank\u2019s top paddy Gabriel Makhlouf reckons further tightening of the taps is an option.<\/p>\n But largely gold is weaker because things look stronger. And \u2013 as I recently heard someone, somewhere say \u2013 the \u201cgeopolitical risk premium\u201d\u00a0 vis-a-vis the Israel-Hamas war is lower\u2026 for the moment.<\/p>\n What\u2019s happening in China?<\/strong><\/em><\/p>\n The price of pork has had a little of the collapse about it, declining at a far steeper pace (-30.1% vs -22.0%) than expected last month, a worrying sign that all is not what it should be in Chinese markets.<\/p>\n China is the only country with state-controlled \u201cPork Reserves\u201d, so the price of a pig can say a great deal about domestic demand and official controls.<\/p>\n It\u2019s not the end of the world, but it is another backward step for the Middle Kingdom says eToro market analyst Josh Gilbert after both consumer and producer prices in China both had the look of deflation about them.<\/p>\n In Hong Kong, the Hang Seng has given up more than 80 points \u2013 circa -0.5% \u2013\u00a0 by lunchtime, making it a third straight session of morning retreats.<\/p>\n Official data out of Beijing indicates China might well be dancing with deflation again. Mainland (CPI) consumer prices fell to their lowest levels in 24 months. Meanwhile, the mainland\u2019s producer prices (PPI) shrank for a 13th consecutive read, down in October by 2.6% vs forecasts of a 2.7% drop.<\/p>\n Josh told Stockhead<\/em> Beijing\u2019s latest fiddly attempts at stimulus are one foot forward, but not enough to lift benign domestic demand.<\/p>\n \u201cWe\u2019ve seen the worst\u2026 but China\u2019s recovery will take time. These challenges may be something investors simply have to accept in the months ahead as it won\u2019t be all one way,\u201d Josh says.<\/p>\n \u201cChina has committed to ensuring it doesn\u2019t see a further growth slowdown, so more support from Beijing in the form of additional stimulus measures may be on the cards.\u201d<\/p>\n \u00a0<\/p>\n Here are the best performing ASX small cap stocks:<\/strong><\/p>\n Swipe or scroll to reveal full table. Click headings to sort:<\/em><\/p>\n WordPress Tables Plugin<\/a><\/p>\n The only company holding a kandle to Krakatoa today is Flynn Gold, which was earlier pulled up by the ASX speed cops \u2013 and this is why:<\/p>\n Via FG1<\/em><\/p>\n OFC no one can kompare to Krakatoa Resources (ASX:KTA)<\/strong><\/a> which is up about, oh, a million pc after RC drilling beneath high grade Li20 rock samples is all done<\/a> at King Tamba in WA\u2019s Mid-West, with the program expanded after discovery of up to 39m thick pegmatite under the 4.3% Li20 rock chip at Wilsons prospect.<\/p>\n Thick pegmatites. Juicy.<\/p>\n The drilling program has been heartily expanded, too, following the discovery, with KTA saying 13 of the 16 drill holes intersected pegmatites with consistent intersections of flat-lying pegmatite logged from 70m vertical depth.<\/p>\n More exciting, several samples fluoresced orange-pink under shortwave UV light:<\/strong><\/em><\/p>\n Via Krakatoa<\/em><\/p>\n Up almost +30% at the close, Raiden Resources (ASX:RDN)<\/a>, <\/strong>one of the top ASX stocks of 2023 with +952% YTD gains, has again tapped into some more pegmatite action at its Andover South tenements in the Pilbara.<\/p>\n Assay results have come in from recent rock chip sampling, and \u201ccontinue to indicate high potential for significant and mineralised Lithium-Tantalum-Caesium (LCT) pegmatites\u201d.<\/p>\n In fact, the latest sampling yields the highest grade lithium result (3.80% Li2O) defined to date from Andover South.<\/p>\n And further X-Ray Diffraction (XRD) analysis confirms spodumene as the dominant lithium mineral in the sampling.<\/p>\n Raiden MD Dusko Ljubojevic:<\/p>\n \u201cWhile the high-grade results from Andover South continues to impress us, we are particularly excited by the definition of further mineralised pegmatites on the western periphery of the high-grade trend we have defined to date.<\/p>\n \u201cThe western anomalies are reporting the highest grades defined to date and are characterised by multiple pegmatites.\u201d<\/p>\n Meanwhile,\u00a0Impact Minerals (ASX:IPT)<\/strong><\/a>\u00a0has announced \u201coutstanding economics\u201d from a scoping study showing its Lake Hope project in WA to\u00a0potentially be the lowest-cost producer of high purity alumina (HPA) globally<\/a>.<\/p>\n And clinical stage immuno-oncology small cap\u00a0Imugene (ASX:IMU)<\/strong><\/a>, run by MD Leslie Chong, has been developing a portfolio of innovative new treatments for that spectacular global growth market called cancer.<\/p>\n The stock jumped earlier this week, after IMU dropped a promising clinical trial update of its Phase 1 MAST (Metastatic Advanced Solid Tumours) trial evaluating the safety and efficacy of novel cancer-killing virus CF33-hNIS (VAXINIA).<\/p>\n OD6 Metals (ASX:OD6)<\/strong><\/a>, has given back a little after gaining strongly in the AM, on the back of phase 3 drilling at its Splinter Rock clay hosted REE project in WA have returned grades of up to 6,441ppm TREO with extensive clay thickness up to 77m at high grades and 77% of holes returned grades >1,000ppm TREO.<\/p>\n \u00a0<\/p>\n Here are the least performing ASX small cap stocks:<\/strong><\/p>\n Swipe or scroll to reveal full table. Click headings to sort:<\/em><\/p>\n WordPress Tables Plugin<\/a><\/p>\n \u00a0<\/p>\n <\/span><\/p>\n The post Closing Bell: ASX gains trimmed by deflating Chinese data, however it\u2019s Kristmas at Krakatoa with thick peggies for all<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"ASX Sectors on Thursday<\/h2>\n
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Ripped from the headlines<\/strong><\/h2>\n
TODAY\u2019S ASX SMALL CAP LEADERS<\/h2>\n
TODAY\u2019S ASX SMALL CAP LAGGARDS<\/h2>\n