Closing Bell: ASX retreats, led by 2pc drop in energy

Once again the energy sector determined the direction of the market but unlike yesterday where it gained, today it finished in the red.

The ASX 200 retreated 0.27% to close at 7,417 points, although the ASX Emerging Companies Index rose 1.35% to 2,561.

Energy retreated by 2.21% and resources lost 1.42%. Most other sectors retreated too although tech and health were exemptions gaining just over 1%.

This retreat mirrored Wall Street’s performance overnight as well as most other Asian markets today.

Traders had feared that rising inflation could force the Federal Reserve to gradually withdraw stimulus measures, which have helped equities perform so well in the last 18 months even with the disruptions to global economies caused by the pandemic.

But unlike Australia, energy shares inched up as traders revelled in the rise in oil prices even with the International Energy Agency reporting global crude demand had dropped for three straight months.

TODAY’S BIGGEST WINNERS

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Gold stock Octanex (ASX:OXX) said that geochemical sampling was underway at its Sefton project.

Calix (ASX:CXL) announced a $24.5 million deal that would see decarbonisation investor Carbon Direct buy a 7% stake in its lime and cement decarbonisation tech subsidiary.

One winner without news was Zoom2U Technologies (ASX:Z2U), which listed less than a week ago at 20 cents but closed up 51% today.

TODAY’S BIGGEST LOSERS

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Mastermyne (ASX:MYE) fell after reporting a fatal underground incident overnight.

ANNOUNCEMENTS YOU MAY’VE MISSED

IDT Australia (ASX:IDT) updated shareholders on its plans to assist the government with producing COVID-19 vaccines. The company says a site audit has been completed by the TGA and it is waiting for the TGA’s determination for a sterile licence.

Avecho (ASX:AVE), a company trying to develop a CBD-based product, announced it had enrolled its first study volunteers. The study will test the company’s 75mg soft-gel product and will recruit a total of 16 volunteers with results expected next quarter.

BNPL stock Openpay (ASX:OPY) extended its funding facility with Global Credit Investments (GCI). The new facility is worth $65 million and has a new maturity date of January 31 2024.

Australian Potash (ASX:APC) announced its K-Brite Potassium Sulphase SOP was allowed by the USA’s premier organic certification body the Organic Materials Review Institute (OMRI). This means it can be used in certified organic production or food processing in compliance with the USA’s Department of Agriculture National Organic Program.

Battery graphite company Renascor Resources (ASX:RNU) won Major Project Status from the federal government for its Siviour Battery Anode Material operation in South Australia. This award provides Renascor with additional support from the Major Project Facilitation Office Agency including a single entry point for federal approvals and coordination with state approvals.

TRADING HALTS

Thursday

Vulcan (ASX:VUL) – capital raising
A-Cap Energy (ASX:ACB) – capital raising
Jadar Resources (ASX:JDR) – acquisition

Friday

Fe (ASX:FEL) – potential acquisition
Eastern Iron (ASX:EFE) – capital raising
intelliHR (ASX:IHR) – capital raising
Sky Network Television (ASX:SKT) – share consolidation