ASX large caps roundup 19 Sep 2022. Picture Getty
ASX Large Caps: Benchmark ASX 200 fall despite lithium stocks rally, Link rejects takeover proposal
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- The ASX 200 closed Monday 0.15% lower
- Lithium stocks rally
- Link Administration rejects new takeover offer
The ASX 200 drifted 0.01% lower on Monday, extending its 2% loss last week and sending the index to a two-month low.
This came despite a broad rally in lithium stocks, which were the toast of the terrace today as West Australian lithium miners led the ASX materials sector to a 0.50% gain.
Lithium stocks caught a bid after the main price reporting agencies recorded lithium carbonate prices smashed the 500,000 Yuan barrier for the first time in China.
That was around US$71,315/t on Friday, according to Asian Metal, although other agencies have reported them higher, as Stockhead’s Josh Chiat reports.
In today’s trading, Pilbara Minerals (ASX:PLS) lifted 4%, MinRes (ASX:MIN) was up 3%, IGO (ASX:IGO) gained 3% and Allkem (ASX:AKE) rose 2%.
The Fed Reserve’s meeting will dominate the conversation this week, as the FOMC convenes for a two-day meeting starting tomorrow (US time). The Bank’s rates decision will be published at 4am on Thursday, AEST.
Expectations are pretty high that the FOMC will fire off a 100bp hike after the CPI report for August came in hotter than anticipated.
Earlier Friday, RAB governor Philip Lowe told a parliamentary committee that domestic rates needed to go higher yet, but not to the point of causing economic damage.
“Central banks are coming to terms with how hard it will be to bring inflation back to target, and they are trying to convey that message to the markets,” said Bank of America’s economist, Ethan Harris.
Real Estate stocks were the best performer today, despite RBA Governor Lowe warning that Aussie property prices could dip by 10% this year. His comments were in tune wth Barrenjoey, which said the Sydney house price bubble could pop by as much as 25%.
Meanwhile according to a Commsec note, the global crude prices have ratcheted lower over the last few months on recession fears, as well as actual signs of a rebalancing of supply and demand.
Oil prices were down 3% last week, taking the Brent crude price to US$91 a barrel.
Lower oil prices may serve to reduce inflation, and in turn, reduce upward pressure on interest rates.
“But less upward pressure on interest rates reduces the appeal of banking and finance sectors,” Commsec said.
“The lower oil price will also reduce interest in the energy sector. Over the past five months, the energy sector has fallen by 11.2 per cent after rising 11 per cent over the previous four months.”
Looking ahead tonight, the US September NAHB housing market index is scheduled for release, while in the UK, the September Rightmove house prices data are due out.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| LKE | Lake Resources | 1.045 | 12% | 48,049,451 | $1,292,675,549 |
| SFR | Sandfire Resources | 4.02 | 4% | 2,931,259 | $1,583,301,007 |
| PLS | Pilbara Min Ltd | 4.78 | 4% | 26,582,236 | $13,699,934,233 |
| OZL | OZ Minerals | 26.235 | 4% | 2,773,314 | $8,452,312,235 |
| NST | Northern Star | 7.63 | 3% | 3,873,233 | $8,621,934,043 |
| ABP | Abacus Property Grp. | 2.72 | 3% | 1,278,818 | $2,359,256,151 |
| MIN | Mineral Resources. | 68.13 | 3% | 860,958 | $12,574,329,801 |
| GPT | GPT Group | 4.13 | 2% | 3,216,821 | $7,738,932,817 |
| SCP | SCA Property Group | 2.535 | 2% | 2,646,622 | $2,808,844,434 |
| SCG | Scentre Grp | 2.8 | 2% | 6,359,712 | $14,221,636,649 |
| IGO | IGO Limited | 14.32 | 2% | 2,791,713 | $10,616,894,738 |
| NCM | Newcrest Mining | 16.98 | 2% | 2,327,208 | $14,852,639,598 |
| SGM | Sims Limited | 14.3 | 2% | 511,901 | $2,717,576,851 |
| LOV | Lovisa Holdings Ltd | 22.94 | 2% | 301,984 | $2,427,295,236 |
Lake Resources (ASX:LKE) was the best performing large cap, up by 12% on the back of lithium sentiment.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| SYA | Sayona Mining Ltd | 0.2675 | -8% | 134,219,615 | $2,408,254,014 |
| CUV | Clinuvel Pharmaceut. | 19.9 | -7% | 175,894 | $1,058,863,543 |
| MGH | Maas Group Holdings | 3.415 | -7% | 1,075,114 | $1,132,614,326 |
| MFG | Magellan Fin Grp Ltd | 11.86 | -5% | 986,108 | $2,307,220,606 |
| PPH | Pushpay Holdings Ltd | 0.975 | -5% | 322,637 | $1,169,399,615 |
| SYR | Syrah Resources | 1.785 | -5% | 922,563 | $1,257,320,081 |
| SMR | Stanmore Resources | 2.2 | -5% | 2,564,768 | $2,082,191,722 |
| PXA | Pexagroup | 13.48 | -5% | 151,843 | $2,509,159,900 |
| OCL | Objective Corp | 14.07 | -5% | 36,286 | $1,401,391,866 |
| BRG | Breville Group Ltd | 19.46 | -5% | 279,540 | $2,911,312,032 |
| QUB | Qube Holdings Ltd | 2.705 | -4% | 3,790,577 | $4,997,107,943 |
| SQ2 | Block | 96.57 | -4% | 221,680 | $3,763,217,378 |
Link Administration (ASX:LNK) climbed 3% earlier but closed 2% lower after it rebuffed a new takeover proposal from Canadian suitor Dye & Durham.
The revised offer came after the UK’s FCA said it would only approve the acquisition if $518 million was set aside to meet potential payouts relating to the role of Link’s UK unit LFS, which oversaw the collapsed funds run by fundie Neil Woordward.
AGL Energy (ASX:AGL) fell 2% after the company announced changes to its board.
Of the many changes, CEO Graeme Hunt will step down and will be replaced down by CFO Damien Nicks as interim CEO. These changes were made after Mike Cannon-Brookes’ Grok fund took a nearly 12% stake in AGL in May, becoming AGL’s biggest shareholder.
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