Closing Bell: Investors burnt as CSL and WiseTech torch the ASX; healthcare sector whacked

• ASX drags as CSL and WTC wipe out $20 billion in market cap intraday
• Healthcare and info tech smashed by heavyweight losses
• Resources stocks under pressure as US-China trade deal takes shape

ASX hammered by big cap losses

It was already shaping up to be a difficult day for the ASX, with the double whammy of falling gold prices and delayed restrictions on Chinese rare earth exports ready to shove resource stocks lower.

That’s exactly what happened, but they were joined by CSL (ASX:CSL) (-15.22%) and Wisetech Global (ASX:WTC) (-14.5%), which took the rest of the bourse with them.

The two collectively wiped about $20 billion in market cap from the ASX.

If not for those heavy losses, the ASX 200 would’ve been trading up about 0.3% at lunchtime.

Instead, healthcare, info tech and materials bled the market, which fell 0.48% or 43 points with five sectors lower by trade end.

CSL let loose the bears when it cut earnings guidance in half and shelved the demerger of its US vaccine arm for the near-term.

WiseTech is under fire because of an ASIC investigation and an Australian Federal Police raid on its offices yesterday.

No charges or allegations have been laid as yet, but the AFP is said to have requested documents related to alleged trading by WisTech’s founder Richard White and three other company employees.

In better news, Domino’s (ASX:DMP) is flying 8.48% higher on rumours of a potential takeover by Bain Capital.

AUB Group (ASX:AUB) is on a similar track, up 7.03% after fielding an unsolicited, non-binding takeover proposal from an EQT Group affiliate at $45.00 per share. That’s a 25% premium to its last closing price, a tasty bit of value-add for shareholders.

Eagers Automotive (ASX:APE) climbed 5.98% after revealing a strategy update yesterday. The stock was also recently initiated by RBC Capital in its research coverage. RBC gives APE a price target of $32 and a sector perform rating.

Resources on the run

The ASX struggled to find its balance today, with both the ASX 200 Resources and All Ords Gold indices taking heavy losses.

Lithium, rare earths and graphite stocks have also been on the receiving end.

With China promising to delay rare earth export restrictions by a year as US-China negotiations finally make headway, the pressure to build out domestic US supply has eased significantly.

Resources stocks are crowding the ASX 200 biggest fallers’ list. The only exceptions are today’s villains, CSL and WTC.

Grange Resources (ASX:GRR), Focus Minerals (ASX:FML) and Lindian Resources (ASX:LIN) bucked the trend to add between 13.04% and 6.34%.

GRR landed with both feet firmly on the ground after releasing its quarterly report, detailing increased concentrate production, pellet sales and lower operating costs for its Savage River iron ore and magnetite mine.

FML had a similar run on its reporting, achieving a record month of gold poured in August to deliver 8,274 ounces. Focus banked about $112.8 million from its gold and silver sales plus toll mining fees during the quarter, while spending just $1.05 million on exploration.

LIN is riding a different kind of wave – investor relief.

Malawi’s newest president just imposed an export ban on unprocessed minerals leaving Malawi.

Lindian is unconcerned; the ban only covers minerals which haven’t been beneficiated within Malawi first, and LIN plans to produce a concentrate product on-site at its Kangankunde rare earths project.

Nothing doing – business as usual.

ASX Leaders

Today’s best performing stocks (including small caps):

In the news…

Mount Ridley Mines (ASX:MRD) has lifted the curtain on a maiden resource of gallium at its namesake project in WA’s Esperance region.

MRD reckons it’s got about 838.7Mt at 29.3 parts per million in the ground. With Chinese export bans driving gallium prices up 56% to US$375/kg by October, it could be a highly valuable source of strategic critical minerals.

Javelin Minerals (ASX:JAV) is building out a gold and copper pipeline, leveraging a comprehensive review of historical exploration data at the Coogee project to drum up fresh targets.

The project already holds a resource of 3.6Mt at 1.08g/t gold for 127,000oz of gold and 1Mt at 0.41% copper for 4,122t of copper, on a granted mining lease ready for development.

Ashley Services Group (ASX:ASH) was on the up after achieving a $22 million or 17% lift in revenues on the prior quarter, with revenue hitting $150.3m.

The group also had some other financial wins, managing to offset inflationary impacts with cost savings to keep overheads steady. EBITDA was $3.74 million, up an impressive $2.8 million for the quarter.

Clara Resources (ASX:C7A) also gained after selling off a parcel of land within the Kildanga exploration tenement in Queensland for $230,000.

It’s part of a wider review initiated after C7A received unsolicited interest concerning Kildanga.

The review is considering divestment, joint ventures, or other partnership opportunities with the goal of maximising value from the Ashford Coking Coal project.

ASX Laggards

Today’s worst performing stocks (including small caps):

In Case You Missed It

Stellar Resources (ASX:SRZ) could be on the trail of a polymetallic discovery east of the world famous Renison Bell tin mine in Tasmania.

West Coast Silver (ASX:WCE) adds two seasoned geologists to its Technical Advisory Board.

White Cliff Minerals (ASX:WCN) has confirmed sediment hosted copper mineralisation with a diamond drilled hole at the Rae project in Canada.

Caspin Resources’ (ASX:CPN) drilling blitz is under way at its Weethalle project in NSW, testing a promising 2km IP anomaly.

Maiden Resolution Minerals (ASX:RML) drilling at Golden Gate has delivered a 189.2m hit at 1.3g/t, confirming an intrusive-related gold system comparable to Stibnite nearby.

Everest Metals Corporation (ASX:EMC) is a key step closer to producing gold and silver from its Mt Dimer Taipan project after signing a mining agreement with Bain Global Resources.

Altech Batteries’ (ASX:ATC) sodium-nickel-chloride batteries have proven exceptionally safe in a series of destructive tests.

GoldArc Resources (ASX:GA8) strikes a deal with Mineral Mining Services to fast-track the Leonora South project into production.

With real estate private credit gaining traction among SMSFs and institutions, understanding how to manage risk in this sector has never been more crucial. Here are three ways to do it right.

Arika Resources’ (ASX:ARI) latest drilling at Yundamindra has highlighted Yellow Brick Road as an emerging multi-lode gold system.

Trading halts

Arafura Rare Earths (ASX:ARU) – cap raise
Encounter Resources (ASX:ENR) – cap raise
Polymetals Resources (ASX:POL) – serious safety incident at Endeavor Mine
Scorpion Minerals (ASX:SCN) – drilling results from Pharos gold project
Pantera Lithium (ASX:PFE) – tenement agreement

At Stockhead, we tell it like it is. While Javelin Minerals and Mount Ridley Mines are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.