ASX 200 closed down 26 points to 7253 (-0.4%), letting go of yesterday’s gains, snapping a three-day advance. Financials weighed on the market, with significant losses in the banking sector. NAB -0.8% CBA -0.5%, ANZ -0.8% and WBC -0.7%. Big Bank Basket down to $173.81 (-0.6%). Resources and base metals were mixed, with commodity prices falling as the commodity outlook turned negative, BHP -0.4%, RIO flat, and S32 +1.1%. Energy stocks mixed as oil prices eased, AGL +2.4%, hitting a 52-week high in the morning, while STX finished flat, and WDS fell 0.4%. Lithium mostly down, Canadian lithium darling PMT jumped 15% in early trade after it flagged more high-grade lithium drilling hits before closing up a mere 2.5%. Tech closed in positive territory, All-Tech Index up 0.2%. REITs finished higher as bond yields dipped, GMG up 0.1%. In corporate news, UBS upgraded TLS to buy, up 1.2%. JLG, signed two agreements to acquire Smoke Alarms Australian and Link Fire Holdings. RED -4.9% despite hitting production guidance. BGL rose 4.1% on a signed agreement with GMD to process material from BGL’s mine. In economic news, Ai Group Australian Industry Index fell to -11.9 in June from -10.9 in May. China services PMI fell to 53.9 in June from 57.1 in the previous month. Asian markets are down as weak manufacturing and services data amplified market concerns about a global economic slowdown, Japan flat, HK off 1.4%, and China down 0.6%. 10Y yield down to 4.0%. Dow Jones futures down 49 points, and Nasdaq futures down 29 points.

HIGHLIGHTS

  • Winners: AZS, WBT, FCL, INR, ELD, BGL, SEK
  • Losers: AMP, RED, NWL, RSG, MAD, TLX, LRS.
  • Positive sectors: Old ‘skool’ platforms.
  • Negative sectors: Banks. Lithium. Oil and gas. Fund managers.
  • High 7282 Low 7248. Narrow range. Thin volumes.
  • Big Bank Basket: Lower at $173.81(0.61%)
  • All-Tech index: Up 0.2%
  • Gold Eases to $2879
  • Bitcoin: Eases to US$30,830
  • Aussie Dollar:  Steady at 66.87c
  • 10-Year Yield: Steady at 4%
  • Asian markets: Japan flat HK down 1.4% and China down 0.6%
  • US Futures: Dow down 49 Nasdaq down 29
  • European markets to open lower. Fed minutes in focus.

MAJOR MOVERS

  • AZS +8.1% Andover project update.
  • WBT +7.8% good bounce for no reason.
  • INR +6.4% change of director’s interest.
  • ELD +4.8% broker update.
  • PMT +2.5% processing results.
  • BUB +18.4% short squeeze.Saga continues.
  • DRE +11.54% resource upgrade.
  • LIN +13.33% completion of Phase 2 Drill program
  • AMP -6.1% update on class action.
  • LRS -3.2% profit taking continues.
  • TYR -2.2% profit taking.
  • DRO -9.4% back to earth.
  • PYC -13.8% rooster one day, feather duster today.
  • Speculative Stock of the Day: Krakatoa Resources +78.3% good volume on lithium rock chip samples.

COMPANY NEWS

  • Patriot Battery Metals (PMT) – Heavy liquid separation (HLS) results that revealed lithium spodumene concentrate levels above 6% with overall lithium recoveries over 70%.
  • Johns Lyng Group (JLG) – Set to raise $65m as it enters a trading halt. The pricing looks like 515c on solid demand for two acquistions. $5m SPP to follow.
  • Boss Energy Limited (BOE) – Commenced an infill drilling program targeting the Gould’s Dam and Jason’s satellite deposits at the Honeymoon uranium mine. The program aims to upgrade resources and extend the mine’s life.
  • Red 5 Limited (RED) – Achieved production of 102,572 ounces for the first half of 2023, with a strong performance in the June quarter, meeting the upper end of its guidance range. AISC is expected to be within the projected range.
  • Westgold Resources Limited (WGX) – Achieved the upper end of FY23 production guidance, producing 257,116 ounces of gold. The company expects its full-year All-In-Sustaining Cost (ASIC) cost to be within the mid-range of guidance.
  • Develop Global Ltd (DVP) – Completed a $30m share placement and $10.9m entitlement offer at $3.20 a share.
  • 29Metals Ltd (29M) – Issues balance sheet and Capricorn Copper recovery update. Phase 1 initial restart of operations on track for August 2023.
  • Metals X Ltd (MLX) – Reported drill results from Renison. Surface exploration drilling has intersected significant mineralisation located north and south of known mineralisation at the Renison Mine.
  • Aeris Resources Ltd (AIS) – Updates Jaguar deposit mineral resources estimates to 840kt at 2.28% copper, 4.66% zinc and 61g/t silver, 19kt of copper metal, 39kt of zinc metal and 1.65Moz of silver metal.
  • Alkane Resources Ltd (ALK) – Reported FY23 gold production at 70Koz vs guidance 65-73Koz. FY23 preliminary AISC is expected to be in the mid-range of guidance ($1,550/oz to $1,750/oz).
  • Bellevue Gold Ltd (BGL) – Signed agreement with Genesis Minerals under which Genesis will process material from the Bellevue Gold mine, predominately from the Vanguard open pit.

ECONOMIC & OTHER HEADLINES

Retail Trade – Key statistics – Updated with more detail today.

The May 2023 seasonally adjusted estimate:

  • Rose 0.7% month-on-month.
  • Rose 4.2% compared with May 2022

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  • Ai Group Australian Industry Index fell to -11.9 in June from -10.9 in May, remaining in contractionary conditions for fourteen months.

ASIAN MARKETS

  • China’s Caixin services manufacturing PMI for June fell short of expectations at 53.9 points, dampening hopes for a stronger rebound.The country’s composite PMI also slowed to 52.5, indicating a failure to achieve the anticipated economic boom since emerging from lockdowns in January 2023.

US AND EUROPEAN HEADLINES

  • European stocks were set for a lower open Wednesday as investors assess the latest sign that China’s economic rebound is stuttering.
  • US markets resume. Friday NFP.
  • OPEC meeting kicks off. Ah Vienna. Yellen lands in China tomorrow.
  • The Federal Reserve will release minutes from its latest meeting later Wednesday, providing key clues on the path of rates for markets.
  • Ed Yardeni upgrades his U.S. growth forecasts, says a unique factor will cushion the economy.
  • Russia has lost half its combat capability in Ukraine, says UK armed forces chief.
  • Monday was the hottest day on record. The average worldwide temperature was 17C (63F), just above the previous record of 16.9C reached in August 2016, according to data from the National Centers for Environmental Prediction.

And finally….

Clarence

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