• Benchmark ASX 200 index ends -1.16% lower, -2.65% for the week. A bad week
  • All ASX Sectors bar Energy in the red. Bad
  • Small caps led by NYR, BMM

 

The match is out on the ASX, Friday.

This is where we stand:

Via MarketIndex

Local markets have spluttered from the get-go today, where Wall Street weakness came at us from all sides – US Treasury yields could easily surpass 5% one feels, while no one at the Fed seems to think a few soothing words about inflation might do any good and, of course, we have ill-omens of a bloodier conflict spiralling out of control at any moment in the Middle East.

It’s been a little too much emotional baggage for traders on Friday.

The benchmark dropped 81 points, or 1.16% as all sectors except energy traded deeply in the red. The ASX200 passed under 7,000 for the second time in October this week and has closed the day barely above 6,900.

The Aussie dollar is back at the bottom end of 63 US cents.

Materials, Property, Healthcare, IT and The Telcos and the banks all made hard work of it. We’re not at 12-month lows, but we’re very close.

 

ASX Sectors on Friday

Via MarketIndex

 

ALL your ASX Indices on Friday

Via MarketIndex

Ripped from the headlines

It’s all about China on Friday.

First up, the central bank, The People’s Bank of China (PBoC), injected a record wad of short-term funding – CNY 733 billion – (Au$160.33bn) into the local financial system via reverse repurchase contracts on Friday, in an attempt to jumpstart the ailing economy amid a dearth of demand and a painful-to-watch property downturn.

The confidence-cash boost comes hot on the heels of the PBoC’s earlier decision to hold lending rates at a record low of 3.45% for the one-year loan prime rate and at 4.2% for the five-year rate.

The central bank’s board last week added a net CNY 289 billion (Au$63.2bn) into the market via a medium-term lending facility, which was, by a long way, the biggest monthly injection since December 2020.

The PBoC has pretty much promised more monetary easing is a button away if the case arises, signalling to harried investors that it still has room to deal with any of the many headwinds.

This week, the local bureau of stats says the Chinese GDP expanded more than expected in Q3, fuelling hopes China could yet achieve the official target growth of around 5% this year.

Meanwhile, US Department of Treasury data shows Chinese investors sold the most US bonds and stocks in August in four years on Friday, as per a report this arvo from Bloomberg.

Chinese traders cashed out to the tune of more than $US21 billion in US treasuries and equities.

Japanese investors have also been offloading US stocks, Bloomberg reports.  The yen remains a wet sot compared to the USD so switching treasuries for cash greenbacks is a nice return right now.

Finally, China still owns The Port of Darwin is the slightly conciliatory note the PM Anthony Albanese will be able to take to Beijing after his government decided not to strip the state-connected Chinese giant Landbridge of it’s very multi-year lease on the Port.

In a Friday arvo missive the Department of the Prime Minister and Cabinet, after seeking a review of the oddball arrangement, said the word was: no worries.

“The Government has accepted that advice,” the department said. “Monitoring of security arrangements around the Port of Darwin will continue.

“Australians can have confidence that their safety will not be compromised, while ensuring that Australia remains a competitive destination for foreign investment.”

 

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:

Wordpress Table Plugin

The share price of local biotech, Nyrada (ASX:NYR) is up +20% today.

It’s been a week since the drug discovery and development company – specialising in novel small molecule drugs to treat cardiovascular and neurological diseases – dropped its quarterly activities report and 4C.

The Company has x2 main programs, each targeting market sectors of significant size and considerable unmet clinical need. These are a cholesterol-lowering drug and a drug to treat brain injury, specifically traumatic brain injury and stroke.

Nothing out today, I can see, but here’s their highlights from last week’s 4C/

• Cholesterol-Lowering Program:
– New PCSK9 inhibitor candidate identified and progressing to assessment.
– Alternative applications for NYX-1492 investigated.
– Peer-reviewed journal paper noting anti-inflammatory properties of NYX-1492 to be published.
• Brain Injury Program:

– Presentation on pathophysiological role of TRPC ion channels delivered at US Department of Defense  (sic) Military Health System Research Symposium.
– Formulation work and planning for NYX-BI03 Good Laboratory Practice (GLP) study.
– Peer-reviewed journal paper published validating the pathophysiological role of TRPC ion channels in preventing brain injury progression.
• Sound position:
– R&D tax rebate of $3.2 million expected (subject to Government agency review).
– Pursuing non-dilutive funding opportunities in Australia and US.
– Cash position of $2.3 million as at 30 September 2023.

 

The share price of Balkan Mining and Minerals (ASX:BMM), is still also hovering around the +19% after shedding significant value over the past few days. No news.

 

In the memory tech field is Aussie Weebit Nano Limited (Weebit Nano (ASX:WBT), which late Thursday inked a commercial deal with DB HiTek, one of the world’s largest foundries.

WBT, a “leading developer of advanced memory technologies for the global semiconductor industry,”says the deal will see DB license Weebit ReRAM for its customers “to integrate as embedded non-volatile memory (NVM) in their systems on chips (SoCs)”.

The South Korean DB HiTek is a global top-10 foundry with annual revenue of more than $2 billion.

Coby Hanoch, CEO of Weebit Nano says under the agreement, Weebit ReRAM will be available in DB HiTek’s 130nm Bipolar-CMOS-DMOS (BCD) process – ideal for many analog, mixed-signal, and power designs in consumer, industrial, and other IoT devices.

For these applications, Weebit ReRAM provides a low-power, low-voltage, cost-effective NVM that is easy to integrate and “has proven excellent retention at high temperatures”.

As a back-end-of-line (BEOL) technology which does not require process tuning, ReRAM offers significant advantages over flash for BCD processes. Weebit ReRAM also provides higher density and endurance than conventional Multi-Time Programmable (MTP) technologies.

The agreement includes technology transfer, qualification, and licensing. In addition to its 130nm BCD process, DB HiTek has the option to use Weebit ReRAM technology for other process nodes.

“DB HiTek is one of the world’s top-tier foundries for analog and power integrated circuits. As one of the world’s largest contract chip manufacturers, DB HiTek’s extensive customer base can gain significant advantage from using Weebit ReRAM in their new product designs, including improvements to retention, endurance, and power consumption.

“Our collaboration with DB HiTek is commencing immediately, beginning with the transfer of our technology to the company’s production fab. We are seeing increasingly strong market demand for Weebit ReRAM and expect to sign further commercial agreements, including many of the toptier foundries and integrated device manufacturers as well as fabless design companies, in the coming months,” Mr Hanoch says.

 

Ionic Rare Earths (ASX:IXR) is ahead by about 13% on news that it has received, via Rwenzori Rare Metals, advice from the Ugandan Directorate of Geological Survey and Mines (DGSM) that the Large-Scale Mining Licence for the Makuutu Heavy Rare Earth Project has been approved.

 

Whitebark Energy (ASX:WBE) has added  another +12% on the previous news that the company’s Wizard Lake gas play is back online.

 

Finally, Tesoro Gold (ASX:TSO) is also ahaed strongly on old news.

 

TODAY’S ASX SMALL CAP LAGGARDS

Here are the best performing ASX small cap stocks:

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

Wordpress Table Plugin

 

TRADING HALTS

Lincoln Minerals (ASX:LML) – Pending an announcement in connection with a capital raising.

Calidus Resources (ASX:CAI) – Pending an announcement in relation to a significant transaction in relation to Pirra Lithium.

Atlantic Lithium (ASX:A11) – Pending the release of an announcement regarding permitting of the Ewoyaa lithium project.

Latin Resources (ASX:LRS) – Pending the release of an announcement in relation to a

capital raising.

Chimeric Therapeutics (ASX:CHM) – Pending an announcement in relation to new data for Phase 1A CLTX CAR T brain cancer clinical trial.

Kingsrose Mining (ASX:KRM) – Pending the release of an announcement of drilling results from the Company’s Råna Project.