• The ASX200 is up for a 6-week high today of 2% today
  • US and EU share markets were up 3% and 2.6% respectively on Friday
  • The energy and tech sectors led the charge, followed by financials

 

Take your mind off rising inflation and surging interest rates for a moment because the ASX 200 had just had its strongest lift in six weeks, up a respectable 2% today.

It’s all thanks to the US share market experiencing a 3% lift on Friday (it’s best in two whole years) and the pan-European STOXX 600 index rising 2.6% (its best session in three months).

While the US rally was partially sparked by the banks passing the Fed’s ‘stress tests’ showing how they’re able to withstand a hypothetical severe recession, it was also partially ‘cos Fed policymaker James Bullard said he does not expect the US to enter a recession.

But he also said an aggressive rate hike is the best way to “nip inflation in the bud before it gets entrenched in the economy.”

And Down Under our winning streak has been extended to a third day, our best in six weeks.

All 11 sectors are green today, with the energy (+2.78%), tech (+2.61%) and financial (+2.51%) sectors doing most of the heavy lifting, followed by consumer discretionary (+2.32%) and materials (1.91%).

There’s still four trading days left until the end of the financial year (thank the beard of Zeus) but let’s face it, a small winning streak isn’t enough to save June from being underwhelming – down 7.5% for the month.

 

TODAY’S BIGGEST SMALL CAP WINNERS

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

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Neometals (ASX:NMT) spin-off Widgie Nickel (ASX:WIN), has the ‘Mt Edwards’ project in WA, where 162,600t of nickel across 11 separate resources has already been identified.

Today the company announced a high-grade nickel discovery at Gillet North, within the wider Mt Edwards project.

Massive and semi-massive nickel sulphides have returned intersections of up to 12m at 3.40% nickel from 200m, including 5m at 4.84% nickel from 206m and 18m at 4.69% nickel from 246m.

MD Steve Norregaard says this drill result is, quite simply, “outstanding”.

“The discovery of thick, high-grade mineralisation at Gillett North is extremely exciting for Widgie,” he said.

“A brownfield discovery in the middle of the Widgie South area, high-grade in nature, with ample room to grow, will enhance Widgie’s existing resource base and ultimately enhance the underlying project economics.”

The company wants to be a ‘production ready’ nickel stock by the end of 2023.

Immuno-oncology clinical group Imugene (ASX:IMU) reported a win in the war against advanced gastric cancer.

The compay’s Phase 2 study of HER-Vaxx in Her-2/Neu overexpressing advanced/metastatic gastric/GEJ cancer has shown a 41.5% survival benefit for patients treated with HER-Vaxx plus SOC chemotherapy compared to SOC chemotherapy alone.

Sub-penny struggler BikeExchange (ASX:BEX), says its recent entitlement offer brought just shy of $2 million into the company, and a 7.2% stake buy-in from Melbournian fund managers HG Hiscock.

Kuniko (ASX:KNI) confirmed cobalt mineralisation has been identified in “multiple sections of diamond drill core” from the priority Middagshville target at Skuterud in Norway.

Skuterud consists of four granted licences covering roughly 1,250 hectares in southern Norway, within 100km of the Oslo port.

With five drill holes now complete, KNI says drilling will continue at the Middagshvile target until around mid-July, with around 2,500 metres of drilling completed to date.

Logging of the drill core is occurring in parallel with the drilling, while laboratory assay results are expected around September.

 

TODAY’S BIGGEST SMALL CAP LOSERS

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

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ANNOUNCEMENTS YOU MAY’VE MISSED

 

Metalicity (ASX:MCT) can’t seem to win a trick at the moment, even after it announced great news from the high seas, Cap’n! The workhorse of the Wellard’s livestock shipping fleet, the M/V Ocean Drover, has celebrated the success of its 200th voyage. Wellard (ASX:WLD) says the Ocean Drover and crew have performed admirably since the vessel went into service 20 years ago, with an exceptional 1,787,845 cattle and 5,112,205 sheep enjoying all the luxuries that come with ocean cruising, with a success rate of 99.3% for sheep and 99.9% for cattle – which is better than some human cruise liners can boast.

Meanwhile, OzAurum (ASX:OZM) is now officially $745,880 better off, following the successful completion of its Underwritten Share Purchase Plan (SPP) that was announced on the ASX on 31 May 2022 and closed last Thursday. Investors, it seems, were not as enthused by the news, which prompted a 3.0% drop in OZM shares.

And finally, the delightfully-phonetic CAQ Holdings (ASX:CAQ) (say it out loud… if you laugh, you lose) has revealed a massive refurb of its five-level exhibition centre on China’s Hainan Island. The overhaul of the building cost the company a cool $4.58 million, which CAQ says will easily be covered by a new 10-year lease agreement with Chgo (Hainan) Trading Co Ltd, set to bring in just shy of $18.5 million over the term of the lease. Again, the market seemed largely disinterested by the news, with CAQ shares remaining positively immobile all day.

 

TRADING HALTS

 

Equity Story Group (ASX:EQS) – announcement in relation to a material acquisition

carsales.com (ASX:CAR) – Capital raising.

3D Resources (ASX:DDD) – Capital raising.

Firefinch (ASX:FFX) – update to operational performance and production guidance at the Morila Gold Project.

Grand Gulf Energy (ASX:GGE) – announcement regarding test results at Jesse 1A helium well.

Kuniko (ASX:KNI) – Clarification request regarding earlier release about success in Norway drilling operation.