ASX 200 closed up 5 points to 7457 (0.1%) in thin trade as resources slipped slightly on Lunar New Year with BHP down 1.1% and FMG off 1.0%. Lithium and base metals picked up led by PLS up 6.2% with IGO up 3.1% and LTR bouncing from Friday’s sell-off, up 6.9%. Base metals and other commodity stocks did well, NIC up 3.2% and SYR up 1.3%. Gold miners too in demand, NCM up 0.5%, DEG up 0.3% and SBM doing well up 5.3%. Oil and gas stocks better, KAR up 7.4% on a reserve upgrade, WDS up 1.7% and STO still stuck in a hollow. Banks unchanged as Macquarie downgraded the outlook for the big four, Big Bank Basket $188.93, MQG up 0.7% and QBE doing well up 0.4%. Tech stocks in demand as SQ2 rallied 6.1% dragging ZIP with it by 22.8%, and SZL numbers helping too, rising 38.9%. XRO up 1.4% and CPU rallying 1.2%. The All-Tech Index up 1.3%. Industrials firm but unexciting. Healthcare mixed, REITS better with GMG down 0.8% letting the side down. In corporate news, plenty of quarterlies again, AFI and WLE upped dividends, SMR achieved guidance but still tumbled lower, SZL reported its second month of profitability. On the economic front, UBS said supermarket inflation jumped 9.2% with dairy and meat leading the gains. Asian markets mostly closed for Year of the Rabbit celebrations. Japan no bunny up 1.3%. Dow futures up 20 points and Nasdaq up 14 points.

HEADLINES

• Winners: ZIP, FCL, BOE, KAR, DYL, LTR, ARU, PLS
• Losers: SMR, GRR, PPC, NEU, REG, OBL, TER, SWM
• Positive sectors: Lithium. Gold miners. Tech. Oil and gas.
• Negative sectors: Iron ore. Banks.
• High 7473 Low 7435 Narrow range again.
• Big Bank Basket: Closed steady at $188.93
• All-Tech index: Up 1.3%
• Gold heads lower to $2764
• Bitcoin: Off highs at US$22708
• Aussie Dollar: Better to 69.75c
• 10-Year Yield: Rallies to 3.45%
• Asian markets: Japan up 0.9%. Lunar New Year closes other markets.
• US Futures: Dow down 20 Nasdaq down 14.

MAJOR MOVERS

• ZIP +22.79% SZL numbers bring sizzle.
• SZL +38.89% making good progress.
• BUB +12.70% China reopening?
• KAR +7.41% reserve upgrade.
• BOE +7.89% committed expenditure at Hoenymoon.
• SQ2 +6.07% Chip off the old Block.
• PLS +6.15% broker upgrades.
• ARU +6.60% quarterly report.
• SKO +7.41% trading update.
• DRO +12.31% charged up and flying.
• VML +8.00% stirring.
• WR1 -7.67% lose some- profit taking.
• SMR -6.56% quarterly report.
• TER -3.38% quarterly report.
• Speculative Stock of the Day– Conico (CNJ) +100% Outstanding Cobalt, Nickel and Scandium results. MTRC011DA returns sixth (6th) best cobalt intercept in Australia for 2022.
• Above Average Volume: HT8, CNJ, DEM, BKG

COMPANY NEWS

• Imdex Limited (IMD) announces the completion of the institutional component of its equity raising ~$185m.
• Perpetual Limited (PPT) today announces the completion of its acquisition of Pendal Group.
• Boss Energy LTD (BOE) announced it had reached the halfway mark on all fronts at its Honeymoon uranium project, tracking on time and within budget.
• Genesis Energy (GNE) reported in their FY23 Q2 Performance Report that they utilised favourable market conditions to reduce emissions and portfolio fuel costs. They saw an increase in customer numbers by 2.5% compared to FY22 Q2. Production at Kupe was lower due to a scheduled maintenance outage.
• South32 (S32) reported a 12% increase in copper equivalent production in H1 FY23, with strong growth in other metals. Production guidance was revised lower due to labor and throughput issues.
• Ramelius Resources Limited (RMS) – Provides update for Edna May Stage 3 pre-feasibility study and three-year production outlooked reaffirmed.
• Arafura Rare Earths (ARU) – Quarterly report: Strong cash position of $125.2m after placement and SPP. Funding to be used for long lead time equipment orders. Early earthworks to commence in Q1 2023. NT government Mining Authorisation for Nolan’s Project.
• Wilson Asset Management – WAM Leaders (WLE) has lifted its final dividend by 12.5% to 4.5c. The investment portfolio increased 8.8% compared to the benchmark up 9.8% for the half to end of December.
• Highfield Resources Limited (HFR) released quarterly activities report and reports net cash used in operating activities of $1.4m and notes the successful completion of the initial works around the mine gate at the Muga Potash Mine.
• Stanmore Resources (SMR) – Achieved production guidance,China’s  driven by stronger results from Poitrel and South Walker Creek. Costs per tonne are expected to be within guidance. Capital expenditure for 2022 is expected to be higher though than guidance. Consolidated December quarter Run of Mine (ROM) production of 4.4Mt, saleable production of 3.1Mt and total sales of produced coal of 3.4Mt, supported by record monthly ROM production of 410Kt and 501kt at the Isaac Plains Complex in the months of October and November respectively.

ECONOMIC & OTHER NEWS

• Food prices at the Woolworths and Coles supermarket chains rose an average 9.2% in October-December, up from the 8.2% pace in the previous three months, UBS research shows.

ASIAN MARKETS

Lunar New Year dominates.

• China said its Covid-related death toll topped more than 12,600 in the week before the Lunar New Year holiday. a top health official suggested more than 1.1bn people had been infected since virus controls were abruptly dismantled late last year.
• China’s CDC’s chief epidemiologist, Wu Zunyou, said in a Weibo post at the weekend that 80% of the population have been infected in the current outbreak.

US AND EUROPEAN HEADLINES

• Brazil and Argentina to discuss a common currency.
• There are no speeches from Fed officials on the calendar as the central bank will meet the following week, on Jan. 31 and Feb. 1. On the Black Out period.
• Biden set to appoint Jeff Zients as White House chief of staff.
• Economists now suggesting that the Eurozone will avoid recession this year.

And finally…..

Ladies Bible Study will be held Thursday morning at 10 AM . All ladies are invited to lunch in the Fellowship Hall after the B. S. Is done.
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The pastor would appreciate it if the ladies of the Congregation would lend him their electric girdles for the pancake breakfast next Sunday.
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Low Self Esteem Support Group will meet Thursday at 7 PM . Please use the back door.
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The eighth-graders will be presenting Shakespeare’s Hamlet in the Church basement Friday at 7 PM . The congregation is invited to attend this tragedy.
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Weight Watchers will meet at 7 PM at the First Presbyterian Church. Please use large double door at the side entrance.
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The Associate Minister unveiled the church’s new campaign slogan last Sunday: ‘I Upped My Pledge – Up Yours.

Clarence

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