• Local shares dipped after release of Chinese data
  • China’s inflation rate flatlines, fuelling concerns of a deflation
  • All sectors except for Tech were trading in the red

 

Local shares dropped in the afternoon following the release of economic data in China. At the close of trading, the ASX 200 was down almost half a percent.

According to official data, China’s inflation rate hasn’t moved from a year earlier, fuelling concerns about the lack of domestic demand.

“The worry with inflation figures this low is deflation,” said Josh Gilbert, a market analyst at eToro.

“Consumers and businesses continue to hold back on spending with expectations that prices will fall further, raising concerns of price spirals.”

The Chinese annual producer prices also sank 5.4% in June, a 9th-straight decline and the steepest since December 2015.

“However, this latest data sets the scene for further easing from the PBOC, which could signal good news for equities that have so far struggled in 2023,” added Gilbert.

Asset classes slipped after the China report, with iron ore futures dropping 1.5% in Singapore. China-focused stocks like Fortescue (ASX:FMG) and BHP (ASX:BHP) also declined around 1%.

Energy stocks, which had gained earlier following a 3% jump in crude prices on Friday, also succumbed in afternoon trading.

Elsewhere, Yamaha Motor said it is backing hydrogen as a clean and viable option for reaching carbon neutrality, and will develop it as a source of fuel.

“We would like to keep many possibilities and opportunities to achieve carbon neutrality,” Yamaha Motor CEO  Yoshihiro Hidaka told Bloomberg.

Looking ahead to this week, analysts will turn their attention to US inflation data on Wednesday July 12th (US time) to further clarify the path of future Fed policy.

 

BIG CAP WINNERS

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Code Name Price % Change Volume Market Cap
LLL Leolithiumlimited 1.25 10.67 12,331,458 $1,110,639,348
CTT Cettire 3.48 5.14 714,156 $1,261,898,508
BGL Bellevue Gold Ltd 1.44 4.91 2,829,936 $1,553,996,852
EMR Emerald Res NL 2.25 4.65 1,260,487 $1,280,243,231
MND Monadelphous Group 12.00 4.08 160,909 $1,112,700,344
SNZ Summerset Grp Hldgs 9.21 3.66 751 $2,068,799,130
SQ2 Block 99.45 3.25 105,744 $2,953,338,604
RRL Regis Resources 2.01 3.08 3,435,004 $1,468,638,108
GQG GQG Partners 1.51 3.07 5,784,070 $4,325,859,961
DEG De Grey Mining 1.38 2.80 1,817,371 $2,091,963,666
KAR Karoon Energy Ltd 2.03 2.78 1,714,336 $1,112,634,671
SYA Sayona Mining Ltd 0.19 2.78 5,716,128 $1,807,044,844
NST Northern Star 12.54 2.49 1,409,461 $14,067,003,041
MEZ Meridian Energy 5.17 2.38 3,648 $6,385,697,063
LFG Liberty Fin Group 3.79 2.16 8,043 $1,127,112,369
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Emerald Resources (ASX:EMR) has achieved full year gold production guidance with 108,866 ounces produced for FY23 at the company’s 100% owned Okvau Gold Mine in Cambodia.

Emerald has now poured over 7,000kgs of gold doré from its operations, and gold sales for the June quarter of 27,897 ounces were done at an average of US$1,973/oz.

Karoon Energy (ASX:KAR) has updated its Contingent Resource estimates for the Neon field (100% owned by Karoon) as at 30 June.

This follows integration of the results available to date from the Neon-1 and Neon-2 control wells drilled earlier this year. Successful control well drilling campaign reduces subsurface uncertainty, and helps narrow Neon Contingent Resource estimates of:

  • 1C Resources increased by 26% to 37.7 MMbbl
  • 2C Resources increased by 9% to 60.1 MMbbl
  • 3C Resources reduced by 3% to 89.5 MMbbl

GQG Partners (ASX:GQG)’s funds under management (FUM) as of end of June was $104.1 billion, up from $98.5bn as at end of May.

“We are pleased with our year to date net flows, despite a difficult industry environment, and continue to see a reasonable pipeline of client demand across multiple geographies and channels,” said GQG’s release.

 

BIG CAP LOSERS

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Code Name Price % Change Volume Market Cap
NEU Neuren Pharmaceut. 11.38 -3.40 281,852 $1,490,943,663
TAH TABCORP Holdings Ltd 1.08 -3.35 5,982,292 $2,555,364,085
WBT Weebit Nano Ltd 5.26 -3.31 801,955 $1,019,784,788
MFG Magellan Fin Grp Ltd 8.39 -2.78 767,462 $1,565,757,288
MAQ Macquarie Technology 64.24 -2.67 10,173 $1,606,721,688
TCL Transurban Group 13.71 -2.11 1,779,521 $43,127,662,900
OCL Objective Corp 13.38 -1.83 6,066 $1,297,674,858
CMW Cromwell Prop 0.54 -1.82 1,118,228 $1,440,376,684
HLI Helia Group Limited 3.43 -1.72 56,690 $1,102,671,384
A2M The A2 Milk Company 4.97 -1.68 1,037,114 $3,645,979,881
APM APM Human Services 2.07 -1.67 1,575,484 $1,926,082,087
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