Closing Bell: ASX wins friends and influences portfolios after Monday outperformance
Australia’s share market put in a powerful statement of confidence on Monday as an S&P500 switcheroo in sentiment pushed traders into opportunities across a diverse group of local sectors and themes.
At match-out on Monday December 4, the S&P/ASX 200 (XJO) index was up 51 points, or +0.73%:
From the get go at 10am in Sydney, growth stocks looked attractive after easing US inflation and economic growth added big bets on Wall Street to the already hefty weight saying the US Fed will wield the axe on interest rates as early as the first half of next year.
The late season rally, which has taken the US S&P 500 benchmark index ahead by circa +20% year-to-date as well as a few points off a fresh 12 month high on Friday, filtered directly through to the broader Australian market with a diversity of stocks making strong gains.
Gold stocks looked undeniable on the ASX while the Mining, Real Estate and IT Sectors led gains following the rally on Wall Street amid growing expectations that central banks are close to peak tightening.
An absolute flurry of bets have been placed on the smallest of the small cap IT sector stocks on Monday.
If pent-up speculation for fan favourite growth-tech has been building over the past 11 months, then today has seen it spill out all over the sector:
Among the adult tech names to make strides into the first full week of December trade, WiseTech was up 2.3% while NextDC jumped well over +3%.
In the materials space, iron ore giants BHP and Rio Tinto are up about 2% while in the world of gold Northern Star and Evolution Mining are up over 3.5% a piece and Newmont is +2.5% higher.
Origin shareholders have met in Sydney to deny Brookfield and Friends their $20bn offshore intentions.
The consortium, led by the Canadian private equity giant and EIG partners, offered an all-up circa $9.40 a share for Origin and its various energy assets.
That apparently undervalued the energy play, with only 66.97% of shareholders backing the vote, although major shareholder AustralianSuper – with 17.5% stake – is the main culrpit behind the no sale.
Aussie Super said late on Monday arvo, via an official statement, that they thought it was a super result.
“AustralianSuper believes Origin has a highly strategic portfolio of assets to participate in, and for members to benefit from, the energy transition.
“We have never wavered in our belief that the value and future value of Origin is better in the hands of members and other shareholders rather than a private equity consortium seeking to make a quick return based on the proposed scheme terms and we are pleased that this is the outcome.”
And we’re surely still watching gold…
Gold is soaring.
The precious metal is ahead by… well it’s a lot…
Up more than 3.3% to above $2,100 early on Monday very early – smacking into fresh all-time highs.
Read More: Gold is glittering right now
The US Federal Reserve will hold interest rates steady at this month’s meeting and could start cutting rates next year. Boom.
Markets now see a 60% chance that the US central bank could reduce its policy rate in March next year and are fully pricing in a cut in May.
Ahead of Monday trade in New York, US Futures linked to all 3 major US indices were lower:
Here are the best performing ASX small cap stocks:
Swipe or scroll to reveal full table. Click headings to sort:
Smashing Monday open was the Aussie medical device company, Compumedics (ASX:CMP), which has been cleared by the US FDA to go get its flagship Somfit sleep aid device to be marketed in the USA.
Compumedics can now begin its commercialisation activities in the key USA market, following initial commencement of sales activities for Somfit in the Australian market since the beginning of FY24.
In Australia, sales of Somfit generated $1.2m of orders taken to date since the launch in July.
CMP and clearly many, many punters reckon there’s a significant poorly-rested market in the US worth circa US$110m-180m in potential revenue, from which the company ‘will target 10% to 30% within the next 24 months.’
A Monday badge of honour for Boab Metals (ASX:BML):
Yes, the base and precious metals explorer has been absolutely hectic upon the small caps greatest hits charts clocking about +60% before the ASX cops pulled the shares over for a glance under the hood.
Erstwhile lover of numbers, Stockhead’s Rob Badman says BML’s now up more than 90% over the past 30 days, although YTD it’s still down about 33%.
The WA company’s last piece of major news came almost a month ago, on November 8, when it made significant intercepts at the Keep Seismic prospect within its 75% owned Sorby Hills lead-silver-zinc project in the Kimberley region of WA.
• Hole SHSD_185 – 9.55m at 5.10% PbEq (2.59%Pb& 2.26% Zn) and 17.6g/t Ag from 242.55m.
• This includes – 3.12m at 13.43% PbEq (6.37% Pb & 6.36% Zn) and 26.5g/t Ag from 245.36m.
Boab’s MD and CEO Simon Noon rated the zinc-lead sulphide intersections “an outstanding success given the conceptual nature of the target and its location in an area, and at a depth where no mineralisation has been intersected before.”
The company believes that find will be a catalyst for further exploration and has great expectations for the Sorby Hills site.
Helium is a noble gas and Noble Helium (ASX:NHE) could very well have more of it.
The Tanzania-focused explorer this morning reported it has successfully completed wireline logging and sampling at the Mbelele-2 well, at the company’s 100% owned North Rukwa Helium Project in Tanzania.
CEO Justyn Wood called the maiden drilling program ‘an incredible success’.
“Both operationally and in confirming the potential for a significant helium resource at Mbelele.”
NHE says multiple data points throughout the campaign point to ‘a prolific helium system: a probable 10-15 metre column of nitrogen and helium at the crest, helium-rich downhole samples calculated at 2-3% helium in exsolved gas and helium-rich gas bubbles in the drilling mud at multiple depths in both wells.’
“These results also significantly de-risk the balance of the company’s North Rukwa acreage, with clear evidence we are in a globally unique and prolific helium producing system, supporting the company’s well-researched thesis that the North Rukwa rift basin has the potential to emerge as a globally significant primary helium province,” Wood added.
Here are the day’s worst performing ASX small cap stocks:
Swipe or scroll to reveal full table. Click headings to sort:
Origin Energy (ASX:ORG) – A meeting of Origin shareholders is being held today at 2.00pm to consider the proposed acquisition of Origin
Gold Hydrogen (ASX:GHY) – Pending the release of an announcement regarding exploration results from its Ramsay 2 well, the second well of its maiden drilling program
Avenira (ASX:AEV) – Pending an announcement regarding a capital raise
Newfield Resources (ASX:NWF) – Pending the release of an announcement by the Company in relation to an update on the non-renounceable entitlement offer and the accompanying shortfall offer
Beacon Minerals (ASX:BCN) – In relation to a material proposed project acquisition
Carbonxt Group (ASX:CG1) – Pending an announcement regarding a capital raise