ASX finished flattish, with Invocare and Elders in the news. Picture Getty
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The ASX 200 finished flat on Monday, with gains in Mining and Real Estate offset by losses in Banking stocks.
Lithium stocks were among the decliners today, while gold stocks rose.
The spot gold price is currently trading at US$2,016.30 an ounce, driven a little lower by a strong greenback.
“…the macro backdrop for gold is great. We are still looking at a US recession in the second half of this year or early 2024,” said Oanda analyst, Edward Moya.
Whilst Wall Street has mostly taken US debt-ceiling concerns within stride, the issue could severely hamper the economy if the US government defaults on its debt.
That’s the view from Matt Simpson, a senior market analyst at City Index.
Conversely, Simpson believes an excellent buying opportunity could present itself if or when the debt ceiling is inevitably raised once more.
“And that leaves opportunities for both bulls and bears, depending on how this plays out,” he said.
Traders are also currently keeping a close eye on the US dollar, equities and gold ahead of the debt ceiling decision.
“Any concerns and uncertainties are likely to elevate VIX and spur volatility across the board,” said Zoran Kresovic, Head of Sales (APAC) at Eightcap.
“If we see a default on the debt, this is most likely going to cripple the USD currency and its reputation as a reserve currency of the world.
“A default also means household spending will be largely affected. The US economy could also be in recession and the unemployment rate could potentially skyrocket.
“If this does happen, then the stock market will likely follow suit, and other asset classes too, providing investors who like to trade volatility with an opportunity to take advantage of the moves,” added Kresovic.
Swipe or scroll to reveal the full table. Click headings to sort.
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| IVC | InvoCare Limited | 12.44 | 12.17 | 1,499,484 | $1,597,633,529 |
| EVN | Evolution Mining Ltd | 3.93 | 3.84 | 7,092,933 | $6,936,361,686 |
| DEG | De Grey Mining | 1.49 | 3.65 | 1,415,241 | $2,248,080,358 |
| RRL | Regis Resources | 2.15 | 3.62 | 2,057,981 | $1,562,903,665 |
| RMS | Ramelius Resources | 1.38 | 3.56 | 2,634,445 | $1,165,786,976 |
| SYA | Sayona Mining Ltd | 0.22 | 3.49 | 30,513,217 | $1,956,231,924 |
| BGL | Bellevue Gold Ltd | 1.35 | 3.46 | 3,426,847 | $1,469,051,648 |
| NST | Northern Star | 13.99 | 2.98 | 1,397,825 | $15,619,779,337 |
| DBI | Dalrymple Bay | 2.63 | 2.94 | 366,089 | $1,264,192,251 |
| GOR | Gold Road Res Ltd | 1.93 | 2.79 | 2,359,802 | $2,027,432,215 |
| PRU | Perseus Mining Ltd | 2.11 | 2.43 | 2,799,421 | $2,818,052,911 |
| CHC | Charter Hall Group | 11.54 | 2.31 | 1,080,936 | $5,335,408,405 |
| BSL | BlueScope Steel Ltd | 19.40 | 2.29 | 1,841,583 | $8,738,206,192 |
| CMM | Capricorn Metals | 4.32 | 2.25 | 450,814 | $1,586,543,499 |
In stock news, making the headlines today was Newcrest (ASX:NCM), which rose 1.5% after accepting the takeover offer from Newmont worth about $28.8 billion.
The combined group will become the world’s biggest gold producer with assets in places like North and South America, Africa, Australia and Papua New Guinea.
Invocare (ASX:IVC) surged 12%, also on takeover news.
The company said its suitor, private equity firm TPG Capital, has come back with $13 per share offer (up from $12.35 in March), valuing IVC at $1.9bn. Invocare’s board said it was willing to accept the $13 offer in the absence of a higher bid.
Gaming machine manufacturer Aristocrat Leisure (ASX:ALL) rose 1% after announcing that it has agreed to acquire NeoGames for $1.8 billion.
Aristocrat also announced that its on-market share buy-back program has increased by up to $500 million.
Swipe or scroll to reveal the full table. Click headings to sort.
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| ELD | Elders Limited | 7.23 | -12.95 | 6,907,036.00 | $1,298,755,564 |
| NAN | Nanosonics Limited | 5.15 | -8.13 | 1,651,531.00 | $1,692,937,691 |
| WAM | WAM Capital Limited | 1.64 | -5.76 | 1,860,356.00 | $1,898,253,409 |
| ANZ | ANZ Group Holdings | 23.59 | -3.71 | 7,415,285.00 | $73,582,486,159 |
| APE | Eagers Automotive | 14.11 | -3.29 | 457,851.00 | $3,726,258,264 |
| SQ2 | Block | 83.67 | -2.90 | 189,954.00 | $2,580,305,760 |
Listed investment company WAM Capital (ASX:WAM) fell 1.5% despite reporting an increase in its portfolio value during the month of April.
The company said significant contributors for the gains were data centre provider NextDC, and asset manager HMC Capital.
Agribusiness company Elders (ASX:ELD) meanwhile tumbled 13% after reporting a 45% decline in NPAT for the first half. The company also declared a 30 per cent franked dividend of 23c a share, down from 28c a year ago.
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