Closing Bell: ASX sinks 1.88pc with global markets on edge; GDP data adds to jitters

ASX tumbles by 1.88pc, driven by fears of a US recession
Australia’s GDP hits the slowest pace since the 1990s recession
Semiconductor stocks in Asia tumble after Nvidia’s massive plunge

The ASX sank by 1.88% on Wednesday as worries about a potential US recession drove investors away from stocks.

This came on the back of weak manufacturing reading last night, which has raised questions about the US’ economic trajectory and sparked a selloff in major indexes on Wall Street.

The Nasdaq was down over 3%, led by a 9.5% drop in market darling Nvidia.

Local investors also got a reality check after today’s GDP figures, which showed that Australia’s economy is growing at slowest pace since the 1990s recession.

Australia’s GDP grew by just 0.2% in the June quarter and 1% over the past year, according to the Australian Bureau of Statistics (ABS).

Treasurer Jim Chalmers had earlier warned that the Reserve Bank’s 13 interest rate hikes were “smashing the economy.”

“The GDP figures confirm our fears,” said Andrew Canobi at Franklin Templeton.

“Unfortunately none of this will spur the RBA to ease rates with government spending more than plugging the gap of a retrenching consumer.”

The August employment report will come out on September 19, just before the RBA’s policy meeting on September 24, where it’s widely expected that rates will stay unchanged for the seventh month in a row.

Meanwhile, all 11 ASX sectors were in the red today, with Energy, Tech and Mining all slumping heavily.

BHP (ASX:BHP) was on the back foot again, down another 2% after iron ore futures shedded another 3% in Singapore.

Fortescue Metals (ASX:FMG) was also down 3%, but that’s also because the shares went ex-dividend today.

Energy stocks were also dumped after crude prices sank 5% on the back of ongoing weak sentiment coming from China.

What else is happening?

Over in Asia, semiconductor stocks tumbled, dragging regional indexes down for their worst drop in a month.

The MSCI Asia Pacific Index fell by 2%, Taiwan’s Taiex plummeted 5%, Japan’s Topix dropped 3%, and Korea’s Kospi slid 3%.

This came after Nvidia lost a record US$280 billion in market cap in a single day.

The selloff was initially sparked by analysts saying AI stocks had overshot their true profit potential.

But the mood was further soured after the US Justice Department slapped Nvidia with a subpoena, a big step up in the probe into the top AI player’s anti trust allegations.

Despite the upheaval, many investors reckon this drop isn’t the start of a major market crash, even suggesting picking up some stocks at a bargain as AI spending is still expected to stay strong.

“It feels like a storm in a teacup compared to August,” said Andrew Jackson at Ortus Advisors.

And while China’s economic struggles weigh on sentiment, there’s also hope that the Fed Reserve might cut interest rates on the 18th, which could boost stocks.

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

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

Code	Name	Price	% Change	Volume	Market Cap
EMS	Eastern Metals	0.032	52%	2,351,624	$2,387,201
IBG	Ironbark Zinc Ltd	0.003	50%	544,716	$3,667,296
CYQ	Cycliq Group Ltd	0.004	33%	130,000	$1,336,550
GTR	Gti Energy Ltd	0.004	33%	1,649,099	$7,649,841
NES	Nelson Resources.	0.004	33%	1,000,000	$1,840,783
ASO	Aston Minerals Ltd	0.013	30%	1,379,881	$12,950,643
PR1	Pureresourceslimited	0.105	30%	154,474	$3,556,948
88E	88 Energy Ltd	0.003	25%	37,798,804	$57,867,624
BYH	Bryah Resources Ltd	0.005	25%	200,000	$2,013,147
WML	Woomera Mining Ltd	0.003	25%	615,110	$3,036,278
OZM	Ozaurum Resources	0.043	23%	1,352,075	$5,556,250
AZI	Altamin Limited	0.035	21%	60,000	$12,726,622
FHS	Freehill Mining Ltd.	0.006	20%	20,000	$15,392,639
MOH	Moho Resources	0.006	20%	4,532,425	$2,695,891
OEQ	Orion Equities	0.175	17%	51	$2,347,384
SP8	Streamplay Studio	0.007	17%	732	$6,903,743
MHK	Metalhawk.	0.087	16%	213,964	$7,550,250
EOF	Ecofibre Limited	0.031	15%	47,794	$10,229,595
1AI	Algorae Pharma	0.008	14%	4,285	$11,811,763
CTQ	Careteq Limited	0.016	14%	1,072,152	$3,319,662
MRQ	Mrg Metals Limited	0.004	14%	11,200	$9,490,315
WSR	Westar Resources	0.008	14%	81,517	$2,791,074
Z2U	Zoom2Utechnologies	0.088	14%	2,386	$14,921,516
ALM	Alma Metals Ltd	0.009	13%	880,588	$11,593,650
HLX	Helix Resources	0.005	13%	4,045,000	$13,056,775

Augustus Minerals (ASX:AUG) was rising nicely on Wednesday morning, on news that the company has found a 1km-long stretch of mineralised zone associated with quartz veining, malachite (secondary copper carbonate mineral) and iron oxide after weathered sulphide minerals, 3.7km from its existing Claudius (6.6% Cu, 86ppm Ag) discovery at the Ti Tree project. Rock chip analysis from the new site has returned copper grades up to 3.1% and silver grade up to 11g/t, with the new find now bearing the name Nero.

Lithium Australia (ASX:LIT) was up on news that it has signed a new exclusive agreement with Chinese EV maker BYD Auto to provide battery recycling services for all New Energy vehicles end-of life batteries in Australia. The exclusive agreement has an initial term of three years, and the company expects to significantly increase large-format lithium-ion battery collection volumes, given the scale of BYD Auto as it expands into the Australian market.

Lachlan Star (ASX:LSA) was on the move in the latter part of the morning session, after it published its presentation for the Resources Rising Stars Gold Coast Investor Conference, which kicked off yesterday in Queensland. Lachlan CEO Andrew Tyrrell talked up the company’s Basin Creek Prospect, a near-surface high-grade copper drill target on the Gilmore Suture Zone, which has historical drilling results that include 21.3m at 4.51% Cu, incl. 9.2m at 1.23% Cu and 4.6m at 18.54% Cu.

Earlier, Marquee Resources (ASX:MQR) was up on news that a site in Italy it has options to acquire – the high-grade Sa Pedra Bianca Gold and Silver Project located in northern Sardinia, Italy – has returned antimony grades of up to 6.5% Sb from historical channel sampling and exploratory drilling. Work is being undertaken by an Italian private company recently incorporated to conduct the business activities associated with the project, with Marquee expecting to begin its own exploration in 3-6 months.

ASX SMALL CAP LAGGARDS

Today’s worst performing small cap stocks:

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

Code	Name	Price	% Change	Volume	Market Cap
IEC	Intra Energy Corp	0.001	-50%	15,001,000	$3,381,563
LSR	Lodestar Minerals	0.001	-33%	7,789,000	$3,976,170
EDE	Eden Inv Ltd	0.002	-25%	10,000	$8,216,419
POS	Poseidon Nick Ltd	0.003	-25%	6,212,170	$16,727,902
SMM	Somerset Minerals	0.003	-25%	300,000	$4,123,995
TMK	TMK Energy Limited	0.003	-25%	10,493,280	$27,686,448
IMI	Infinitymining	0.014	-22%	511,163	$2,137,561
FGH	Foresta Group	0.004	-20%	7,791,451	$11,776,895
GCM	Green Critical Min	0.002	-20%	250,000	$3,671,357
RFT	Rectifier Technolog	0.008	-20%	416,990	$13,819,839
RML	Resolution Minerals	0.002	-20%	12,785,707	$4,025,055
SKN	Skin Elements Ltd	0.004	-20%	600,000	$2,947,430
CC9	Chariot Corporation	0.110	-19%	123,307	$12,099,761
SES	Secos Group Ltd	0.018	-18%	38,213	$13,125,421
NXS	Next Science Limited	0.200	-17%	216,488	$70,118,456
TON	Triton Min Ltd	0.008	-17%	810,196	$14,115,499
AL8	Alderan Resource Ltd	0.003	-17%	500,000	$3,818,584
ODE	Odessa Minerals Ltd	0.003	-17%	1,200,004	$3,129,848
PUR	Pursuit Minerals	0.003	-17%	309,268	$10,906,200
ROG	Red Sky Energy.	0.005	-17%	758,888	$32,533,363
T3D	333D Limited	0.005	-17%	201,500	$716,670
VR1	Vection Technologies	0.010	-17%	12,799,248	$13,519,068
XPN	Xpon Technologies	0.010	-17%	397,416	$4,349,298

IN CASE YOU MISSED IT

C29 Metals (ASX:C29) has expanded its landholding at the Ulytau uranium project in Kazakhstan with the grant of a new tenement licence. The new tenement hosts a similar mineralised trend observed within rest of Ulytau.

Celsius Resources (ASX:CLA) has received the key Certification Precondition for its flagship MCB copper-gold project in the Philippines that confirms that Free, Prior and Informed Consent (FPIC) was obtained from the Balatoc Indigenous Cultural Community. It can no proceed with finalising financial arrangements with potential investors.

Cyclone Metals (ASX:CLE) has started production of DR pellets suitable for use in direct reduction steel production using concentrates sourced from its Iron Bear magnetite project in Canada. DR pellets command a price premium of more than US$30/t over standard blast furnace pellets with no additional cost.

Frontier Energy (ASX:FHE) has lodged the Reserve Capacity Security required to secure its assigned 87.2MW of Certified Reserve Capacity from the Australian Energy Market Operator, which will determine the Capacity Credits and Reserve Capacity Price before the end of September.

Drilling at GTI Energy’s (ASX:GTR) Lo Herma ISR uranium project in Wyoming’s Powder River Basin is progressing well with ~80% of the planned drill program expected to be completed by the end of this week. The current focus of the program is in the northeastern area of the project with the aim of extending mineralisation both along trend and at depth. Once this is completed, the campaign will move to the east of the project.

Meanwhile, the company has extended the closing date for its non-renounceable entitlement offer to raise up to $2m to September 23, 2024. Under the offer, existing shareholders have the opportunity to subscribe for one new share priced at 0.4c each for every five shares held. This includes one free attaching option exercisable at 1c and expiring four years from the date of issue for every three new shares.

Reconnaissance drilling at Intra Energy’s (ASX:IEC) Maggie Hays Hill project in WA’s Lake Johnston Greenstone Belt has identified a potential ~2km lithium trend with niobium. Drilling has also identified a new gold target in the north.

Koba Resources’ (ASX:KOB) maiden drill campaign across the Yarramba uranium project has intersected shallow, high-grade mineralisation in multiple holes at the Oban deposit. Drilling will now turn towards a largely undrilled prospect close to a major deposit.

Lumos Diagnostics (ASX:LDX) will soon count Andrew and Nicola Forest’s private investment vehicle Tattarang as its largest shareholder after it launched a $10m equity raising. Tattarang’s wholly owned subsidiary Tenmile Ventures Pty Ltd is acquiring 45 million shares, or a 9.3% holding in the company and will act as a sub-underwriter.

Sovereign Metals (ASX:SVM) has proven that very high quality coated spherical purified graphite anode material produced using natural flake graphite feedstock from its Kasiya project is suitable for use in batteries after testing found that it had performance comparable to CSPG sourced from leading Chinese manufacturers.

Green Technology Metals (ASX:GT1) has received the first tranche – $3.875m – of the $8m strategic investment from South Korean electric vehicle battery metals producer EcoPro. This investment was made 12.5c – a 40% premium to the 90-day volume weighted average price of the company’s shares or 95% to the last traded price at that time.

It supports the company’s strategy to become Ontario’s first 12.5c – a 40% premium to the 90-day volume weighted average price of the company’s shares or 95% to the last traded price. Tranche 2 of the investment will be completed once shareholder approval is received at the general meeting on September 28, 2024.

TRADING HALTS

Gratifii (ASX:GTI) – pending the release of an announcement in respect of a material acquisition and a pending accelerated entitlement offer.

Lumos Diagnostics (ASX:LDX) – pending an announcement in relation to a capital raising in the form of a pro-rata accelerated non-renounceable entitlement offer.

Prominence Energy (ASX:PRM) – pending an announcement with regards to a proposed capital raising.

Nexus Minerals (ASX:NXM) – pending an announcement to the market regarding a capital raising to sophisticated and professional investors.

Golden Deeps (ASX:GED) – pending an announcement to the market in relation to a capital raising.

At Stockhead, we tell it like it is. While Green Technology Metals, C29 Metals, Lumos Diagnostics, Celsius Resources, Cyclone Metals, Frontier Energy, GTI Energy, Intra Energy Corporation, Koba Resources, Sovereign Metals are Stockhead advertisers, they did not sponsor this article.

Today’s Closing Bell is brought to you by Webull Securities. Webull Securities (Australia) Pty. Ltd. is a CHESS-sponsored broker and a registered trading participant on the ASX.