Closing Bell: ASX closes higher for fifth day as Sovereign Metals spin-out NGX soars 40% after IPO

• S&P/ASX 200 closes higher for the fifth day, up 1.15%, with the Emerging Companies index up 0.039%
• Asian markets trending higher as the Bank of Japan again left its benchmark interest rate unchanged at -0.1%
• Sovereign Metals spin-out of its Malawi graphite assets NGX has risen 40% after its IPO today 

It’s been a good end to the week for the Aussie share market, which has closed higher for the fifth consecutive day. The S&P ASX 200 index closed up 0.35%, while the S&P ASX Emerging Companies index (XEC) – a benchmark for Australia’s micro-cap companies – was 0.039% higher.

Overnight in the US the S&P 500 closed with a 1.2% increase, and the tech-heavy NASDAQ saw a rise of 1.5%. Traders seemed unconcerned by the actions and words of US Federal Reserve officials, who agreed to hold interest rates steady after 10 consecutive hikes, but signalled they’re leaning toward a rise in July if the economy and inflation don’t cool more.

Additionally, traders seemed unperturbed by robust retail sales data in the US, a 25 basis point interest rate hike by the European Central Bank (ECB), and a recession in New Zealand.

Instead, the focus shifted towards speculations of potential economic stimulus in China. Reportedly, the Chinese Government has significantly lowered its cash rate and is contemplating a substantial stimulus package to support crucial sectors.

As a result, the news triggered a surge in both the iron ore price and the Aussie dollar (AUD). The iron ore price is now US$112.75 per metric tonne, while AUD/USD exchange rate stands at 68.82 cents.

All 11 sectors were in the green to finish the week. Leading the winners was energy up 3.34%, the tech sector rose 1.63% and utilities advanced 1.35%. The health sector, which was in intensive care and the red for most of the trading day, managed to pull through and close o.o5% higher.

Asian markets were trending higher also today as the Bank of Japan again left its benchmark interest rate unchanged at -0.1%.

At 4.10pm (AEST) in Japan the Nikkei 225 was up by 0.85%, while the Topix advanced 0.43%.

South Korea’s Kospi was up 0.53% and the Kosdaq rose 0.76%.

Hong Kong’s Hang Seng index extended its rally up 1.29% after gaining over 2% on Thursday, while mainland Chinese stocks also were all higher. The Shanghai Composite rose 0.56% and the Shenzhen Component was up 0.96%.

TODAY’S ASX SMALL CAP LEADERS

Here are the best performing ASX small cap stocks:

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On the winners list is NGX (ASX:NGX), which is up 40% after making its IPO today. NGX is is the Sovereign Metals (ASX:SVM) spin-out of its Malawi graphite assets, which SVM said would enable it to focus on its Kasiya rutile project – “the largest natural rutile deposit in the world”.

Under the spinoff deal, SVM shareholders were entitled to one NGX share for every 11 shares they hold, with the IPO allowing them to participate in purchasing one new NGX share for each NGX share held.

Upon listing, NGX holders take full ownership of the advanced Malingunde project, which already boasts a measured, indicated and inferred resource of 65Mt at 7.2% total graphitic carbon for 4.68Mt of contained graphite, more than half of that in the higher measured and indicated categories.

TODAY’S ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks:

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LAST ORDERS

JCurve Solutions (ASX:JCS) has announced CEO Stephen Canning has resigned after more than eight years at the company helm.

In an ASX announcement the ERP and service management solutions provider said the JCS board has activated its succession plan and expects appoint a new CEO “within a short time period”.

“With up to a six month notice period, the Board notes the commitment from Stephen to ensuring a smooth transition to a new chief executive,” the announcement said.

“Stephen has been an integral part of the company since January 2015 and has guided the company through a significant transformation and, more recently, a step change in the overall Group sales,” chairman Mark Jobling said.

Continuing with resignations, Australia’s biggest pharmaceutical wholesaler Sigma (ASX:SIG) has announced its chief financial officer (CFO) Nigel Simonsz has quit to pursue an external opportunity within a large private enterprise as group CFO and CEO of an international business unit.

“It is disappointing to lose Nigel, who has made a significant contribution to Sigma in his time with the business,” SIG CEO Vikesh Ramsunder said.

“Nigel has instilled strong financial processes into the business that will endure beyond his departure and played an important support role in recent commercial negotiations.”

Simonsz’s last day will be August 31, 2023.  SIG said the company’s head of corporate affairs, will assume the role of interim CFO pending a successful search for a new CFO.

SIG recently won back a lucrative Chemist Warehouse contract from Rival EBOS after offering very competitive terms.

TRADING HALTS

Classic Minerals (ASX:CLZ)  Pending a resource upgrade Kat Gap announcement

Golden Mile Resources (ASX:G88) Capital raise

Latin Resources Limited (ASX:LRS) – Pending announcement on its JORC mineral resources upgrade