Closing Bell: It’s a win for the ASX, loss for the newly unemployed as Aussie jobless rate rises

• S&P/ASX 200 closes up 0.40%, while the emerging companies index rises 0.43%
• Algerian mining regulator issues a mining permit for Terramin’s Tala Hamza zinc-lead project
• Retail component of Next DC’s entitlement offer opens and is expected to raise $202 million.

The S&P ASX 200 index has closed up on Thursday. The S&P ASX Emerging Companies index (XEC) – a benchmark for Australia’s micro-cap companies – closing up 0.49%.

The Aussie unemployment rate jumps to 3.7% in April with an estimated 4,300 jobs lost last month, according to official estimates from the Australian Bureau of Statistics (ABS).

Economists were expecting the unemployment rate to remain steady at 3.5% with the creation of  25,000 jobs.

The weaker than expected April jobs data provides the Reserve Bank of Australia (RBA) with an option to pause its hawkish hiking cycle next month. However, the rate of inflation still remains key.

In the US stocks surged in New York overnight with major indexes in Wall Street up by over 1% as hopes grew the country’s debt ceiling impasse could be resolved by the end of this week.

JP Morgan boss Jamie Dimon said US government will probably not default, while US President Biden was confident there will be no default.

Six of the Aussie 11 sectors were in the green today with tech leading the winners up 2.64%, followed by materials up 1.30% and energy up 0.72%.

Leading the laggards was healthcare down 0.46%, followed by realestate which fell 0.38% and consumer discretionary which lost 0.32%.

TODAY’S ASX SMALL CAP LEADERS

Here are the best performing ASX small cap stocks:

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Up on the winners list today is Terramin Australia (ASX:TZN) which announced it is closer to developing one of the largest zinc and lead orebodies in the world after the Algerian mining regulator issued a mining permit for the 49%-owned Tala Hamza project.

The permit was  the final regulatory, financial and environmental hoop TZN had to jump though prior to development.

TZN said the permit allows for the processing of 2Mtpa of ore, instead of the 1.3Mtpa envisaged in the 2018 mining study “indicating that project returns will be enhanced over the anticipated 20+ year mine life”.

You can read more about TZN in Reuben Adams’ Resources Top 5.

TODAY’S ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks:

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LAST ORDERS

Data centre company NextDC (ASX:NXT) has announced the retail component of its entitlement offer opens today and is expected to raise a~$202 million.

Eligible retail shareholders can take part in the retail entitlement offer at $10.80/new share being the same price and ratio applied to the institutional entitlement offer which recently closed, raising ~$416 million.

Eligible retail shareholders can also apply for additional new shares up to a maximum of 100% in excess of their entitlement, at the offer price.  The retail entitlement offer is due to close at 5pm (AEST) on May 31, 2023.

Ecograf (ASX:EGR) has nabbed $2.9 million in Federal Government funding towards a battery anode material product qualification facility, that is forecast to cost $5.8 million.

The facility, expected to be commissioned in early 2024, will support EGR’s product testing activities and offtake discussions with prospective anode, battery and electric vehicle customers in Europe, North America and Asia.

The new product qualification facility is a key step to secure offtake arrangements for the development of the Company’s planned commercial scale purification facilities in major global battery markets.

The funding is part of the Federal Government $48.9m Critical Minerals Development Program.

TRADING HALTS

Green Technology Metals (ASX:GT1) Pending strategic investment and execution of offtake term sheet

WA1 Resources (ASX:WA1) Pending material exploration results

Magnum Mining (ASX:MGU) Pending announcement for signing of a Hismelt licence

Osmond Resources (ASX:OSM) Pending a Joint Venture/Deed of Assumption and cap raise

ImpediMed (ASX:IPD)  Pending a cap raise announcement

Encounter Resources (ASX:ENR) Also pending a capital raise announcement

Widgie Nickel (ASX:WIN) Also planning a capital raise

Galan Lithium (ASX:GLN)  A cap raise too

Wellnex Life (ASX:WNX) Pending a material acquisition and capital raise announcement

International Graphite (ASX:IG6) Pending announcement of Federal Government grant

Lithium Plus Minerals (ASX:LPM) Pending announcement regarding a placement

Dotz Nano (ASX:DTZ)  Pending announcement on strategic acquisition

AUB Group (ASX:AUB)Proposed cap raise and institutional placement