• The ASX200 is up 0.31% with the ABS reporting strong wage growth
  • Seven out of eleven sectors were higher, with consumer staples leading the charge
  • Real wages of Australians are going backwards due to the rising cost of living

 

The ASX 200 finished steady today, up 0.32%, with 7 out of 11 sectors higher.

Leading the pack was Consumer Staples, up 1.79%, followed by Consumer Discretionary up 1.39% and Real Estate up 1.26%.

Apparently Aussie wage growth has hit its strongest quarterly growth rate in over 8 years – since March 2014 to be exact.

The Wage Price Index (WPI) grew by 0.72% in the June quarter and including bonuses, wages grew by 0.78%.

It doesn’t sound like much but that’s up 3.13% on a year ago and it’s the strongest annual growth rate we’ve seen since December 2012.

That’s all well and good but in the real wages of Australians are going backwards due to elevated cost of living pressures.

CBA Senior economist Ryan Felsman says one of the tasks of policymakers at the upcoming Albanese Government’s jobs summit next month will be to investigate the imbalance that has arisen between company profits and labour compensation.

“Productivity-driven real wages growth will only occur if a more equitable method of wage setting is implemented,” he said.

 

TODAY’S BIGGEST SMALL CAP WINNERS

(Stocks highlighted in yellow rose after making announcements during the trading day).

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Hearing aid maker Nuheara (ASX:NUH) will now be allowed to sell its products over the counter or online without a medical exam or fitting by an audiologist in the US following a landmark ruling from The US Food and Drug Administration.

Si6 Metals (ASX:SI6) says the liquidators of BCL Limited (BCL) have provided consent for Si6 to undertake its exploration activities on the joint venture tenements (Maibele JV Project in Botswana) owned 60% by Si6 and 40% by BCL.

And NT explorer Tennant Minerals (ASX:TMS) hit a “bonanza” 63m at 2.3% copper and 4.6g/t at the Bluebird prospect.

“The latest drilling results from Bluebird are stunning,” TMS chair Matt Driscoll says.

“Not only have we continued to intersect thick, high-grade copper, but we have also discovered a distinct high-grade gold shoot within the broader mineralised zone with spectacular intersection grades of up to 38.5 grams per tonne gold.”

 

TODAY’S BIGGEST SMALL CAP LOSERS

(Stocks highlighted in yellow fell after making announcements during the trading day).

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WHAT YOU MAY’VE MISSED

The biggest of the news flashes you might not have seen today comes from Metals Australia (ASX:MLS), which has stuck its hand in its pocket and shelled out a solid 79 million shares and $980,000 in cold, hard walkin’ around money, to nab an 80% grab of Payne Gully Gold.

It looks like a good deal for MLS, which delivers the company the Warrambie Ni-Cu-Co Project, a large, granted exploration licence in the Pilbara region of Western Australia.

It also means MLS owns The Tennant Creek Cu-Au Project in the Northern Territory (NT), which includes an exploration project directly along strike to the east of the Warrego copper-gold deposit (production 6.75Mt @ 1.9% Cu, 6.6 g/t Au).

And, MLS has picked up The Murchison Au Project in WA, including granted E51/2058 and four large EL applications located along strike from major gold deposits such as the >5Moz Big Bell deposit and the >3Moz Mt Gibson mine, in un-explored areas of shallow cover.

And if that’s not enough, Metals Australia also managed to bargain the price down by a considerable amount, paying 79 million shares (down from 124 million), and far less in cash than the original $2.47 million.

We might just take the team from Metals Australia with us next time we go car shopping, because that’s the sort of negotiating that could get us into a brand new Ferrari for $1,200 and half a pack of chewing gum.

 

Trading Halts

Steadfast Group (ASX:SDF) – Steadfast Group is steadfastly refusing to trade, ahead of announcing an institutional placement and a share purchase plan.

Greenstone Resources (ASX:GSR) – Greenstone’s got something to say about an exploration update from Mt Thirsty. Speaking of which…

Conico (ASX:CNJ) – Conico also brings news from Mt Thirsty. It’s a JV! And don’t they make a beautiful couple?

Parabellum Resources (ASX:PBL) – Tracing a glorious arc through the sky, Parabellum’s plotting a capital raise.

Metalicity Limited (ASX:MCT) – Metalicity went to the shops for milk, and they’ve come home with a lithium project!

Dateline Resources Limited (ASX:DTR) – Dateline’s got a capital raise in the offing as well – but only for investors deemed sophisticated enough. How very fancy!

 

 

 

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