• The S&P ASX 200 was up 1.76% in June, with large caps performing the best and small caps lagging blue chips
  • The S&P/ASX 200 Materials was the best performing sector in June, up 4.8% coming back from April drop
  • An ASX favourite lithium play Solis Minerals rises 693% in June after purchase of Jaguar project in late May

Australian large caps advanced 1.8% in the last trading month of FY23, ending with a gain of 4.5% YTD. Mid caps 50 roughly matched their blue-chip peers in H1 CY23, up 1.07% in June.

However, small caps lagged significantly, with the S&P/ASX Small Ordinaries flat for June and up just 1.3% YTD.

It was better news for S&P ASX Emerging Companies index – a benchmark for Australia’s micro-cap companies – which rose 2.55% in June but still has some catch-up to do halfway through 2023, according to S&P Dow Jones Indices.

Overall for the 12-month period and FY23 the Indexes were all in positive territory, despite continued macroeconomic and geopolitical obstacles playing on global markets.

Source: S&P Dow Jones Indices

 

CPI falls in June but pays to look under microscope

A drop in inflation seemed to boost Aussie investor confidence in June. Australia’s CPI inflation rate has decreased to its lowest level in 13 months.

The Consumer Price Index (CPI) fell to 5.6% over the 12 months to May, which was down from 6.8% in April 2023 and below the market expectation of 6.1%.

Lower fuel prices, along with holiday travel and accommodation costs helped ease inflation. But it wasn’t all good news when putting the latest CPI figures under the microscope.

But ABS head of prices statistics Michelle Marquard warned investors against becoming too excited.

“It can be helpful to exclude items with volatile price changes from the headline CPI indicator to provide a view of underlying inflation,” Marquard said.

“When excluding these volatile items, the decline in inflation is more modest.

“The annual increase for the monthly CPI indicator was 6.4% in May, slightly lower than the rise of 6.5% recorded in April and down from a peak of 7.3% in December 2022.”

All eyes will now be on Reserve Bank of Australia (RBA) Governor Philip Lowe and his board mates on Tuesday to see if they’ll hit the pause button for July rather than raise the official rate again.

The RBA raised rates by 25 basis points in June bringing the official cash rate to 4.10%.

 

Materials and tech sector rally in June

The S&P ASX 200 Materials Index was the best performer in June, up 4.8% after falling  4.43% in April, while technology rose 3.52% and is on top YTD, up an impressive 30.9%.

Eight of the 11 sectors finished in the black in June. Healthcare led the laggards, looking in need of a hospital admission, down nearly 7% for June.

Communication services fell 0.99% for the month while real estate was just in the red, down 0.03%.

Source: S&P Dow Jones Indices

 

Equity factor indices in black but fear creeps up in June

All S&P reported Australian equity factor indices closed in the black for June, with Dividend Opportunities performing best, up 4%. Quality is in the lead year-to-date, up 7.9%.

Bonds sold off in June in both Australia but all S&P reported fixed income indices continue to still hold on to YTD gains.

Australian equity implied volatility slipped in June, with the S&P/ASX 200 VIX Index (known as the fear index) closing June at 10.78, nearly two points below its level at the previous month end.

 

Here are the 50 best performing ASX stocks for June:

Scroll or swipe to reveal table. Click headings to sort.

CODE COMPANY LAST SHARE PRICE MAY RETURN % MARKET CAP
SLM Solis Minerals 1.11 693% $66,322,240
GRE Green Tech Metals 0.555 363% $23,259,821
TNC True North Copper 0.245 362% $63,661,155
LME Limeade Inc. 0.395 243% $102,554,179
AZS Azure Minerals 1.505 220% $587,305,288
AHI Advanced Health 0.21 176% $45,612,833
TNT Tesserent Limited 0.12 155% $162,501,854
G88 Golden Mile Res Ltd 0.053 152% $17,457,644
RDN Raiden Resources Ltd 0.01 150% $20,552,689
AW1 American West Metals 0.16 150% $42,585,859
ALV Alvomin 0.315 125% $20,460,659
GMN Gold Mountain Ltd 0.0075 114% $14,774,495
EMC Everest Metals Corp 0.19 111% $24,592,291
AHN Athena Resources 0.006 100% $6,422,805
CMD Cassius Mining Ltd 0.034 100% $16,888,759
REZ Resourc & En Grp Ltd 0.024 100% $11,995,339
ERD Eroad Limited 1.15 98% $129,856,947
REC Recharge Metals 0.37 90% $39,066,255
ERW Errawarra Resources 0.185 89% $11,193,240
MM1 Midas Minerals 0.33 83% $25,707,294
IIQ Inoviq Ltd 0.85 81% $78,215,897
WCG Webcentral Ltd 0.125 79% $42,786,410
IMB Intelligent Monitor 0.16 78% $30,108,983
HXL Hexima 0.021 75% $3,173,753
MQR Marquee Resource Ltd 0.045 73% $14,881,838
LRS Latin Resources Ltd 0.32 73% $824,878,292
RR1 Reach Resources Ltd 0.011 69% $30,305,557
LVE Love Group Global 0.135 69% $5,472,113
BM8 Battery Age Minerals 0.53 68% $39,335,626
MI6 Minerals260 Limited 0.79 66% $184,860,000
EPX Ept Global Limited 0.033 65% $14,715,152
M3M M3 Mining 0.155 63% $6,355,221
AUE Aurum Resources 0.15 63% $3,750,000
ADD Adavale Resource Ltd 0.026 63% $13,508,118
WYX Western Yilgarn NL 0.13 63% $6,455,476
XAM Xanadu Mines Ltd 0.081 62% $132,663,759
ZLD Zelira Therapeutics 1.51 61% $17,134,204
CTT Cettire 3.11 60% $1,185,650,864
OAU Ora Gold Limited 0.004 60% $15,747,701
SGC Sacgasco Ltd 0.008 60% $4,925,791
HAW Hawthorn Resources 0.145 58% $46,902,186
ENR Encounter Resources 0.455 57% $179,964,230
NWM Norwest Minerals 0.048 55% $13,326,456
VIT Vitura Health Ltd 0.515 54% $286,614,017
RAG Ragnar Metals Ltd 0.026 53% $9,858,807
AVH Avita Medical 5.19 52% $344,582,706
BOT Botanix Pharma Ltd 0.13 51% $170,619,849
1TT Thrive Tribe Tech 0.039 50% $8,968,239
CAZ Cazaly Resources 0.039 50% $14,501,050
CCE Carnegie Cln Energy 0.0015 50% $23,463,861
CCO The Calmer Co Int 0.003 50% $1,334,333
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As mentioned, the ASX materials was the best performing sector in June and there was no shortage of resources stocks topping the winners list for the month.

Described by Stockhead’s Reuben Adams as lithium’s ‘flavour of the month’, Solis Minerals (ASX:SLM) (TSX.V: SLMN) rose a very impressive 693% in June (you read that right) after announcing the purchase of the Jaguar lithium project in Brazil in late May.

Located in Bahia state, SLM said at Jaguar there are rock chips grading up to 4.95% Li2O along a 1km long, 50m wide spodumene-rich pegmatite body.

“The Jaguar pegmatite hosts confirm LCT-bearing pegmatites with some of the coarsest and most abundant spodumene occurrences I have seen,” former Delta Lithium (ASX:DLI) boss and current SLM exec director Matt Boyes said.

READ: ‘Spodumene crystals are massive’: Solis’ Matt Boyes on why Brazil will be the next lithium hotspot

Coming in second was another lithium play, Greentech Metals (ASX:GRE). Last week it announced it had expanded its exploration focus for lithium bearing pegmatites at its Lithium West project in the Pilbara.

GRE has entered into a corporate services agreement with lithium exploration and development specialists Obsidian Metals Group (OMG) which will provide “assistance and guidance from the exploration phase through to development as well as developing and implementing GreenTech’s lithium strategy.”

 

Here are the 50 worst performing ASX stocks for June:

Scroll or swipe to reveal table. Click headings to sort.

CODE COMPANY LAST SHARE PRICE MARCH RETURN % MARKET CAP
PEB Pacific Edge 0.077 -80% $62,398,122
GCR Golden Cross 0.002 -67% $2,194,512
MBX My Foodie Box 0.005 -67% $185,640
NYR Nyrada Inc. 0.028 -67% $4,368,244
WFL Wellfully Limited 0.003 -67% $1,478,832
C7A Clara Resources 0.042 -58% $6,461,065
ELE Elmore Ltd 0.007 -53% $9,795,687
AJY Asaplus Resources 0.01 -50% $1,360,000
DXN DXN Limited 0.001 -50% $3,442,630
ENV Enova Mining Limited 0.005 -50% $1,954,647
IXC Invex Ther 0.2 -50% $15,030,770
MCT Metalicity Limited 0.001 -50% $3,736,086
MTB Mount Burgess Mining 0.0015 -50% $1,324,757
PUA Peak Minerals Ltd 0.002 -50% $2,082,753
SIH Sihayo Gold Limited 0.001 -50% $6,102,128
TSN The Sust Nutri Grp 0.006 -50% $844,577
XTC Xantippe Res Ltd 0.002 -50% $22,960,199
ERG Eneco Refresh Ltd 0.01 -47% $2,723,583
QXR Qx Resources Limited 0.019 -47% $17,040,384
INP Incentiapay Ltd 0.007 -46% $7,590,382
WNR Wingara Ag Ltd 0.025 -44% $4,388,563
H2G Greenhy2 Limited 0.014 -44% $5,862,582
MDI Middle Island Res 0.023 -44% $2,815,619
MKL Mighty Kingdom Ltd 0.017 -43% $5,545,733
WMG Western Mines 0.465 -43% $24,033,678
CDR Codrus Minerals Ltd 0.08 -43% $6,034,400
HAL Halo Technologies 0.1 -43% $12,949,521
IVX Invion Ltd 0.004 -43% $25,686,529
LKE Lake Resources 0.3 -43% $433,845,636
OPN Oppen Negotiation 0.009 -43% $2,182,770
CEL Challenger Gold Ltd 0.1 -41% $119,017,779
XPN Xpon Technologies 0.051 -40% $8,084,904
CPM Cooper Metals 0.16 -40% $6,602,504
XGL Xamble Group Limited 0.035 -39% $9,905,408
AAJ Aruma Resources Ltd 0.043 -39% $8,436,680
IGN Ignite Ltd 0.045 -38% $4,031,198
CHK Cohiba Min Ltd 0.0025 -38% $5,283,110
IEC Intra Energy Corp 0.005 -38% $3,528,908
TAR Taruga Minerals 0.01 -38% $7,060,268
SVY Stavely Minerals Ltd 0.11 -37% $35,890,109
GLL Galilee Energy Ltd 0.095 -37% $32,161,062
CCZ Castillo Copper Ltd 0.007 -36% $9,096,537
RGS Regeneus Ltd 0.007 -36% $2,145,058
SNG Siren Gold 0.07 -36% $9,398,117
BRX Belararox 0.265 -36% $12,855,155
AUA Audeara 0.032 -36% $4,585,600
ECG Ecargo Hldg 0.016 -36% $9,844,000
SHG Singular Health 0.036 -36% $4,825,351
WSR Westar Resources 0.054 -36% $10,009,306
MDX Mindax Limited 0.062 -35% $126,824,644
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Leading the losers table in June was cancer diagnostics company Pacific Edge (ASX:PEB) which dropped 80% for the month after announcing the Medicare coverage of Cxbladder tests in the US market is expected to cease from July 17, 2023.

The decision came as US regulators determined that Cxbladder, and tests provided by other companies, as ‘not considered medically reasonable and necessary’.

This means Cxbladder has failed to satisfy the minimum threshold required for coverage under the US Social Security Act. A number of other companies are also affected by the decision.

PEB’s revenue is expected to reduce substantially from current levels until Cxbladder tests regain coverage.