- ASX slips 1.20%
- Energy leads the bourse, as Brent reaches US$124 a barrel
- US CPI data ahead
The Aussie sharemarket slipped 1.20% today, with the ASX 200 touching an intraday low of 7,024 – the lowest level since May 12th.
It comes as local investors weigh a slew of economic data and comments released over the last few days.
Yesterday, the World Bank predicted the world economy will expand by 2.9% this year, way down from the 4.1% forecast it released in January.
Just a day earlier, the Organisation for Economic Co-operation and Development (OECD) warned that the world was paying a “hefty price” for Russia’s war.
Because of that, the OECD said world growth would now be 3% in 2022 — down from the 4.5% it projected in December.
The market is also grappling with increasing oil prices, just when the northern summer months are about to kick off.
Goldman Sachs has predicted a US$140 oil price between July and September, up from its prior call of $125 and today’s price of US$124 a barrel.
Friday (US time)’s CPI data release in the US adds to another source of concern for the market, with US Treasury Secretary Janet Yellen already telling senators earlier this week that she expected inflation to remain high.
But there was some reprieve today in the form of China’s trade balance data.
According to the the world’s second largest economy, its exports grew at a double-digit pace last month, shattering expectations.
At a net level, China posted a trade surplus of $US78.76 billion last month versus estimates of $US58 billion – an encouraging sign that the country’s supply chain issues might be on the mend.
“However, from my point of view, the trade data is irrelevant to a much more important development that has occurred today,” said Oana senior market analyst, Jeff Halley.
“This morning, Shanghai residents awoke to the news that the Shanghai district of Minhang, home to two million people, has been placed under strict lockdown with mass testing scheduled for Saturday.”
On the ASX, Energy was by the far the best performing sector today on the back of strong oil prices. Financial and Miners retreated, with lithium stocks once again dragging the mining sector down.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| LOV | Lovisa Holdings Ltd | 14.1 | 4% | 125,154 | $1,456,078,203 |
| GQG | GQG Partners | 1.725 | 3% | 1,416,545 | $4,945,949,102 |
| MFG | Magellan Fin Grp Ltd | 12.88 | 3% | 1,579,434 | $2,330,733,503 |
| EBO | Ebos Group Ltd | 36.58 | 2% | 13,989 | $6,772,212,458 |
| CWN | Crown Resorts Ltd | 13.015 | 2% | 1,444,688 | $8,633,767,955 |
| SKC | Skycity Ent Grp Ltd | 2.52 | 2% | 459,212 | $1,877,706,866 |
| WDS | Woodside Energy | 35.39 | 2% | 12,674,306 | $65,962,567,045 |
| ERA | Energy Resources | 0.29 | 2% | 346,947 | $1,052,044,211 |
| TNE | Technology One | 11.03 | 2% | 494,211 | $3,511,752,762 |
| SGM | Sims Limited | 18.53 | 1% | 1,317,667 | $3,559,664,174 |
| ING | Inghams Group | 2.925 | 1% | 1,779,024 | $1,074,154,047 |
| IAG | Insurance Australia | 4.32 | 1% | 3,025,611 | $10,525,977,880 |
| SIQ | Smartgrp Corporation | 7.86 | 1% | 268,094 | $1,039,041,486 |
| BPT | Beach Energy Limited | 1.89 | 1% | 7,225,146 | $4,266,093,937 |
Magellan Financial Group (ASX:MFG) rose 2.5% after announcing that founder Hamish Douglass will be making a comeback to the company as a consultant.
Megellan says that Douglass will provide valuable investment insights, including geopolitical and macroeconomic views.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| SMR | Stanmore Resources | 2.42 | -12% | 4,868,326 | $2,478,799,670 |
| SYR | Syrah Resources | 1.385 | -10% | 9,072,487 | $1,027,594,712 |
| GMA | Genworth Mortgage | 2.67 | -8% | 5,311,319 | $1,135,362,146 |
| SYA | Sayona Mining Ltd | 0.1425 | -8% | 91,492,062 | $1,277,584,424 |
| LIC | Lifestyle Communit. | 12.59 | -7% | 175,262 | $1,419,722,879 |
| CRN | Coronado Global Res | 1.985 | -7% | 7,295,777 | $3,587,610,982 |
| LKE | Lake Resources | 1.3475 | -7% | 12,490,046 | $1,952,374,189 |
| CEN | Contact Energy Ltd | 6.6 | -6% | 16,472 | $1,731,436,868 |
| FLT | Flight Centre Travel | 19.53 | -6% | 1,458,576 | $4,129,622,011 |
| PLS | Pilbara Min Ltd | 2.29 | -5% | 14,835,658 | $7,203,973,089 |
| LYC | Lynas Rare Earths | 9.17 | -5% | 2,361,419 | $8,744,367,958 |
| VSL | Vulcan Steel | 8.12 | -5% | 99,265 | $1,124,857,376 |
| CXL | Calix Limited | 6.73 | -5% | 180,197 | $1,145,020,217 |
Lithium stocks like Pilbara Minerals (ASX:PLS), Liontown Resources (ASX:LTR), and Allkem (ASX:AKE) led the Mining sector lower, after falling between 3-5%.
Mozambique focused graphite miner Syrah Resources (ASX:SYR) says it has received reports of an insurgent attack at a mine project site near Ancuabe, approximately 200km from Balama in Cabo Delgado province, northern Mozambique.
Syrah and its logistics service provider have taken the precautionary measure of suspending all personnel and logistics movements through the route section until further information is available. The company added that Balama mining and processing operations are not currently impacted.