Closing Bell: ASX runs out of puff, closes down 1.5% as energy sector weighs on markets

S&P/ASX 200 closes lower as energy stocks weigh on bourse, with Emerging Companies index also falling
Energy sector weighed down the bourse, losing 4.4% as big energy plays lose ground
Biotech Invex Therapeutics topped the day after good news from the European Medicines Agency

It’s the end of the week and the ASX like many of us (or me at least) has simply ran out of gas after earlier in the week trading at a two-month high. There’s really not much positive to report this afternoon except next week is a new week.

The S&P ASX 200 index closed 1.5% lower as aggressive selling on the Aussie bourse continued, while the S&P ASX Emerging Companies index (XEC) – a benchmark for Australia’s micro-cap companies – was 0.25% lower.

The energy sector weighed down the ASX, losing 4.4% as big energy plays Woodside Energy Group (ASX:WDS) fell 5.2% Santos (ASX:STO) lost 4.6% and New Hope (ASX:NHC) is down 3.8%… and yeah, you get the picture.

The fall in energy stocks came after oil dived overnight amid the ongoing global growth outlook after the UK and Norway both raked hikes more than expected.

Furthermore, crude prices have came under pressure this week after the China National Petroleum Corp (CNPC), China’s largest oil and gas producer, cut its 2023 China crude demand estimate.

The CNPC now forecasts 2023 China crude oil demand to grow by +3.5% to 740 MMT, down from an March estimate of +5.1% to 756 MMT.

Adding to the market-wide woes, real estate was down 2.6% and the bloated fat cats in financials certainly didn’t help the cause, with that sector falling 1.6%. Materials, industrials and tech all also fell more than 1% today.

Today’s fall on the Aussie bourse came despite US stocks bouncing back overnight. At close, the S&P 500 was up 0.37%, and tech heavy Nasdaq climbed 0.95%.

Asian markets were also trending lower today.

At 4.10pm (AEST) Hong Kong’s Hang Seng index fell 1.84% after coming back from a public holiday, while mainland Chinese stocks were closed due to the Dragon Boat Festival.

In Japan the Nikkei 225 was down by 1.48%, while the Topix fell 1.33% on the back of inflation figures. Japan’s core inflation rate eased slightly in May to 3.2% year-on-year, lower than April’s 3.4% but still above the Bank of Japan’s 2% target and economists expectations of 3.1%.

South Korea’s Kospi was down 0.86% and the Kosdaq fell 0.16%.

TODAY’S ASX SMALL CAP LEADERS

Here are the best performing ASX small cap stocks:

Swipe or scroll to reveal full table. Click headings to sort:

Code	Company	Price	%	Volume	Market Cap
IXC	Invex Ther	0.595	55%	644,257	$28,934,231
DLM	Dominion Minerals	0.048	50%	448,056	$6,627,216
EMU	EMU NL	0.003	50%	45,000	$2,900,043
ODM	Odin Metals Limited	0.019	36%	498,109	$10,487,710
AXP	AXP Energy Ltd	0.002	33%	930,334	$8,737,021
CCO	The Calmer Co Int	0.004	33%	3,176,400	$1,334,333
TEM	Tempest Minerals	0.017	31%	14,517,585	$6,588,681
ZEU	Zeus Resources Ltd	0.04	29%	13,619,555	$13,899,191
HOR	Horseshoe Metals Ltd	0.015	25%	531,870	$7,721,744
ERL	Empire Resources	0.005	25%	100,000	$4,451,740
GCR	Golden Cross	0.0025	25%	200,000	$2,194,512
DLI	Delta Lithium	0.905	24%	20,511,225	$380,018,649
MRI	My Rewards International	0.021	24%	1,973,525	$5,237,669
GTG	Genetic Technologies	0.003	20%	900,131	$28,854,145
MBX	My Foodie Box	0.006	20%	145,950	$185,640
OAU	Ora Gold Limited	0.003	20%	19,990,022	$9,842,313
PYR	Payright Limited	0.003	20%	2,171,516	$2,202,213
RLC	Reedy Lagoon Corp.	0.006	20%	1,325,812	$2,833,598
MI6	Minerals260Limited	0.695	20%	1,769,116	$135,720,000
GTI	Gratifii	0.0155	19%	2,625,462	$15,774,558
KNI	Kuniko Limited	0.45	18%	344,138	$19,314,681
SOV	Sovereign Cloud Hldg	0.058	18%	204,607	$8,315,316
MRZ	Mont Royal Resources	0.14	17%	153,666	$8,217,920
ADS	Adslot Ltd.	0.0035	17%	90,000	$7,438,045
AJQ	Armour Energy Ltd	0.0035	17%	293,191	$14,764,026

Biotech Invex Therapeutics (ASX:IXC) topped the day, up 48% on news that the European Medicines Agency (EMA) has granted the company’s Exenatide orphan drug designation (ODD) in the treatment of moderate to severe Traumatic Brain Injury (TBI).

It’s the second ODD for Exenatide in Europe, with IXC receiving an ODD for Idiopathic Intracranial Hypertension (IIH) in 2017, alongside an ODD from the US Food and Drug Administration (FDA), also for IIH.

Tempest Minerals (ASX:TEM) is up another 46%, continuing its run on yesterday’s announcement that they’re going to fly a helicopter over the company’s 100% owned Yalgoo tenements, which is about as positive as news needed to be to give investors something happy to aim at for the day.

And Delta Lithium (ASX:DLI), put on 26% for the day after hitting intercepts of 33m @ 1.9% Li2O from 218m, and 19m @ 1.6% Li2O from 190m, while drilling at its 505km2 Yinnetharra lithium project in the Gascoyne region of WA.

TODAY’S ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks:

Swipe or scroll to reveal full table. Click headings to sort:

Code	Company	Price	%	Volume	Market Cap
CLE	Cyclone Metals	0.001	-33%	1,550,201	$15,396,757
VPR	Volt Power Group	0.001	-33%	10,000	$16,074,312
OPN	Oppen Negotiation	0.011	-27%	603,540	$3,637,950
CTN	Catalina Resources	0.003	-25%	205,551	$4,953,948
LNU	Linius Tech Limited	0.003	-25%	990,708	$15,061,829
M4M	Macro Metals Limited	0.003	-25%	99,999	$7,948,311
FNX	Finexia Financial	0.24	-20%	76,665	$14,389,673
ESR	Estrella Res Ltd	0.008	-20%	6,698,015	$14,835,719
LSR	Lodestar Minerals	0.004	-20%	203,000	$9,216,987
ROO	Roots Sustainable	0.004	-20%	228,499	$693,611
DES	Desoto Resources	0.105	-19%	120,660	$7,790,445
OLI	Oliver's Real Food	0.017	-19%	216,913	$9,255,370
FFF	Forbidden Foods	0.014	-18%	888,248	$2,494,419
TSI	Top Shelf	0.19	-17%	405,031	$19,358,993
CPT	Cipherpoint Limited	0.005	-17%	100,000	$6,955,450
PNX	PNX Metals Limited	0.0025	-17%	300,655	$16,141,874
AUA	Audeara	0.041	-16%	61,125	$7,021,700
CZN	Corazon Ltd	0.016	-16%	653,823	$11,596,281
AUR	Auris Minerals Ltd	0.011	-15%	506,867	$6,196,137
AJX	Alexium Int Group	0.012	-14%	2,930,478	$9,119,457
BEX	Bikeexchange Ltd	0.006	-14%	4,542,509	$7,846,884
GTR	Gti Energy Ltd	0.006	-14%	1,317,430	$13,634,279
RIM	Rimfire Pacific	0.006	-14%	4,088,355	$14,036,713
SI6	SI6 Metals Limited	0.006	-14%	4,501,583	$10,467,762
SRY	Story-I Limited	0.006	-14%	227,273	$2,634,834

LAST ORDERS

Some great news for AML3D (ASX:AL3) today, with the company announcing that it’s locked in the sale of an enterprise-level, ARCEMY® large scale metal 3D printing system to Curtin University.

The sale, valued $1 million, is set to expand Curtin’s additive manufacturing teaching and research capability, and align it with the emerging standard for large scale industrial additive manufacturing technology.

“AML3D is delighted to be able to support Curtin University in expanding its wire additive manufacturing capabilities,” AML3D interim CEO Sean Ebert said.

“This sale represents AML3D delivering against its strategic objectives and is an excellent opportunity to partner with Curtin to expand the applications for our Wire Additive Manufacturing technology in Australia and globally.”

Orbital Corporation (ASX:OEC) has also got some happy sales news, announcing that it’s signed a $1.1 million deal to manufacture and supply heavy fuel engine systems and spare parts, and service technical support with a new customer.

“Over the past 10 years, Orbital UAV has built an enviable position as a world leader in the design and manufacture of engine systems for tactical UAVs,” said Todd Alder, Orbital’s CEO and Managing Director.

“This latest order for our heavy fuel UAV engines demonstrates the growing reputation of our established product range and continues to expand our global customer footprint,” he continued.

The company will deliver Orbital UAV-designed unmanned aerial vehicle (‘UAV’) engines to defence agency organisation, Finance International PL, in the second half of financial year 2024.

Meanwhile, Lithium Australia (ASX:LIT) has informed the market that it has completed a $6.4 Million capital raising (before costs) via the issue of 8,000,000 shares at an issue price of 80 cents/share.

LEL plans to spend the incoming funds to advance the on-going development of the Company’s Solaroz Lithium Brine Project in Argentina, as well as its Burke and Corella Graphite Projects in Queensland.

The cap raise a little awkwardly coincided with Lithium Energy’s major shareholder Strike Resources (ASX:SRK) offloading 3 million LEL shares at $0.80 per share.

Strike remains the largest shareholder with 31,410,000 shares – a 30.49% stake, post Issue – and has told Lithium Energy that it’s got no plans to sell any more of those shares for “at least the next six months”.

And in other fundraising news, Chimeric Therapeutics (ASX:CHM) is finished with its share purchase plan, under which new shares were offered at $0.04 a pop, a 5% discount to the volume weighted average price during the five trading days up to the closing date of 16 June, 2023.

The share purchase plan raised $1.5 million – with a total of 43,785,637 ordinary shares issued today – taking the total raised with the Board and management placement announced on May 15, 2023 to $2.5 million, with an Extraordinary General Meeting set for June 29, 2023 to consider approval of the board and management placement.