ASX Large Caps: Shares extend losses; lithium stocks gain as Pilbara reports substantial increase to MRE

• The ASX extended last week’s 1% loss by another 0.2% on Monday
• Traders are cautious about upcoming inflation reports from the US and China
• Pilbara Minerals rose on substantial increase to its MRE

Local shares slipped -0.2% as traders stayed cautious ahead of pivotal inflation reports from the US and China later this week.

The market’s mood has been one of risk-off since the US credit rating downgrade tipped stocks and bonds into negative territories.

This wasn’t helped by market giant Apple, with its shares falling by 5% on Friday after reporting a third consecutive quarter of negative revenue growth.

Analysts believe the US CPI reading this week will give more direction for traders, and a clearer picture of what’s next from the Fed Reserve.

“Some Fed officials said on Friday that slower job growth data means the Fed can afford to be patient, while Michelle Bowman had a contrasting view, warning more rate hike will likely be needed,” said Josh Gilbert, market analyst at eToro.

On the ASX today, healthcare led the selloff, while real estate stocks overperformed. Most lithium miners also rose on the back of Pilbara Minerals (ASX:PLS)’ s update (see details below).

Earnings season is another focus this week, and we’ll see updates from James Hardie, CBA, Newcrest Mining and REA Group over the next few days.

Elsewhere, Asian markets mainly fell today as investors await China’s trade balance and inflation data.

BIG CAP WINNERS

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Pilbara Minerals (ASX:PLS) rose after announcing a substantial increase to its mineral resource estimate (MRE) at its Pilgangoora Operation in WA. PLS’ total MRE now stands at 413.8 million tonnes (Mt) – grading 1.15 per cent lithium oxide, 112 parts per million (ppm) tantalum pentoxide and 0.53 per cent iron oxide.

Nickel Industries (ASX:NIC) traded flattish after announcing that the haul road linking its 80% owned Hengjaya Mine to the Indonesian Morowali Industrial Park (IMIP) in central Sulawesi has been completed. The company is now ready to commence the haulage of nickel laterite ore from its mining operation directly to the IMIP.

GQG Partners (ASX:GQG) rose as funds under management increased from US$104.1 bn in June to US$108.1 bn in July.

Dexus Convenience Retail REIT (ASX:DXC) rose slightly despite reporting a net loss after tax of $8.4 million for the year on the back of $41.3 million of asset devaluations.

Automotive spare parts company G.U.D. Holdings (ASX:GUD) rose after divesting the Davey Water Products business for $64.9 million to Waterco (ASX:WAT). GUD says the divestiture signifies the group’s exit from the water sector and crystalises its ambition to be a pure play automotive business.

BIG CAP LOSERS

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Block Inc (ASX:SQ2) was the worst performing large cap today, down 10% after its parent listed shares on NYSE slipped despite beating analyst expectations on revenue.

Liontown Resources (ASX:LTR) fell slightly after providing a strategy and project update at the 2023 Diggers and Dealers Mining Forum. Amongst many things discussed, Liontown says its flagship Kathleen Valley project is now less than 12 months to achieving target of first production in mid-2024. Cost schedule is on track, with committed spend for the Project at approximately 60% at the end of FY23.

Media company Domain Holdings (ASX:DHG) fell after announcing that John Boniciolli, the Chief Financial Officer, will be leaving Domain in early November. The company has now commenced an executive search process for a new CFO.