• ASX 200 lost 0.5% today as cautious traders monitor developments around SVB collapse
  • ASX companies Life360, Xero have announced their exposures to SVB
  • Gold stocks were major winners today

 

Aussie shares didn’t do too badly on Monday considering the fallout on Wall Street over Silicon Valley Bank’s collapse.

At the close of trading, the ASX 200 was down only 0.50% with Mining and Energy stocks taking the lead.

US equities futures have also swung higher in Asia following an assurance this morning (AEDT) that there would be no US taxpayer losses from the SVB saga.

The US Treasury and Fed Reserve announced a range of measures to protect depositors at SVB, and will make available additional funding to eligible US banks to assure they have the ability to meet the needs of all depositors.

Two ASX companies, ikeGPS and Siteminder, announced this morning that they had millions deposited with SVB, and could be struggling to recoup all of it.

Life360 (ASX:360)  said its exposure is expected to be between zero and $5.6 million, with no significant disruption to operations.

Xero (ASX:XRO) meanwhile reported a $5m exposure to SVB, which is less than 1% of XRO cash and equivalents as reported 30 September. The XRO share price finshed 0.39% lower today.

Aussie bonds and the AUD rallied on Monday as traders anticipated US authorities will step in with emergency measures to stabilise the banking system and boost investor confidence.

Gold stocks on the ASX rallied after the yellow metal rose by 2% on Friday on flight to safety –  trading at US$1,883 an ounce right now.

Gold miners Northern Star (ASX:NST), Newcrest Mining (ASX:NCM) rose 3-5%.

Mid cap gold miner Capricorn Metals (ASX:CMM) was the best performer on the ASX today after a strong half year ($145m revenue and and statutory earnings per share of$0.11) which were in line with estimates.

Back home, there were no economic releases but PM Albanese has travelled to the US ahead of a joint AUKUS announcement of the nuclear-powered submarine deal.

Elsewhere regionally, China’s president Xi told the annual National People’s Congress gathering that China must ‘redouble efforts’ to ensure stability, and has vowed to oppose any foreign interference on Taiwan.

Looking ahead to tonight’s session on Wall Street, all eyes will be on the US consumer inflation expectations survey.

 

BIG CAP WINNERS

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Carsales (ASX:CAR) rose 0.5% after resuming from a trading halt following a ~$380min cap raise.

 

BIG CAP LOSERS

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Judo Capital (ASX:JDO) lost 6% on the back of negative sentiment toward smaller banks.

Flight Centre (ASX:FLT) tumbled 1.6% after boosting its planned $40m cap raise at $14.60 to $60m following shareholder demand.

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