Closing Bell: Local markets lift on Tuesday despite hawkish glimpse into Michele Bullock's RBA board

Benchmark ASX 200 index closes 0.4% higher after Wall Street did “okay”
ASX Sectors led by InfoTech rallying after yesterday’s not-so-great day
Small caps led by PIM, AHF and a smattering of nice little miner news.

The ASX200 has closed higher, despite some hawkish moments from the Reserve bank’s statement on monetary policy (SOMP), taking its leads from a positive session on Wall Street as optimism around corporate earnings offset rising US Treasury yields.

IT stocks led the gains after a strong showing overnight on the Nasdaq Composite. The tech names are up well over 1.5%, following the the tech-heavy’s near 2% gain.

Things at home reversed fairly quickly once the RBA made it clear that we’re still living on the edge, and while the board held rates on hold again this month, it was a lot closer than punters thought.

The devil in the RBA’s October board minutes confirmed for CBA’s economic team that the upcoming November meeting is “live.”

CBA’s Gareth Aird writes that the RBA’s historic tightening cycle “is not necessarily over.”

Led by M. Bullock, the board warned some further monetary tightening may be needed to bring back inflation to the target range of 2 to 3% in late 2025.

The committee reiterated as per usual any rate adjustment will be dependant on how the economy and various indicators hold up.

Following the statement, retail names and both consumer discretionary and staples stocks dropped, and remain the worst performing of the 11 sectors, dragged by Coles and Woolworths, which are both down 0.8 per cent.

Overnight, both oil and gold prices backed off a little on hopes Israel’s response to the Hamas attacks will be more measured than previously expected as US President Joe Biden said he expected to visit Jerusalem.

ASX Sectors on Tuesday

Small cap wrap

GUD Holdings (ASX:GUD) says it’s just entered into an agreement to acquire RVX and its subsidiary Vision X Europe AB from the company’s Swedish owners.

The RVX leadership team is to remain in place and the acquired business is to become part of the BWI group.

RVX will complement BWI’s business with established sales and distribution facilities in Sweden with reach across Scandinavia and other Northern European countries (including Germany and Poland).

Its customers include Original Equipment Manufacturers like Volvo and Scania and their respective networks of truck and car dealerships.

While RVX predominantly sells light bars, the product suite extends to truck and bus camera and digital mirror systems, and accessories aimed at pickups and all-terrain vehicles. In addition, RVX’s customer base includes original equipment and aftermarket sellers.

CEO George Davies:

“Rindab has the market expertise to drive the distribution of Vision X lighting and other products through its network of original equipment and aftermarket customers and to enter new European markets, giving BWI a footprint into one of the stronger and larger lighting management markets globally.”

The deal is expected to complete on 1 November 2023 with a completion payment of SEK83.6 million (c.A$12m), subject to customary cash and working capital adjustments. Including subsequent earn out payments up to a maximum of SEK15 million.

Mighty Kingdom (ASX:MKL) says it’s received ‘several unsolicited enquiries’ about buying the game developer.

“In response to this interest, the board of Mighty Kingdom has decided to undertake a strategic review process of the company with the view of maximising shareholder value,’’ the company says.

“As part of this review process, MKL is considering all options with respect to its business including, but not limited to, a whole or partial divestment, joint venture arrangement or a strategic investment into the company to further growth and development.

“The Company has not made a decision at this stage with respect to terms and deal structure that it is prepared to consider and therefore makes no assurances that a transaction will eventuate.

“Mighty Kingdom cautions shareholders not to make any investment decisions about the Company’s shares on the assumption that a transaction will proceed and further market updates will be provided following any material developments arising as a result of the review process.”

Mighty Kingdom also said it had conducted a share placement to raise $1m, with director and sophisticated investors taking up the shares at 1c a pop.

Ripped from the headlines

The Shanghai Composite fell 0.1%, while the tech-laden Shenzhen Component lost 0.2% by mid-arvo on Tuesday, sliding for the third straight session amid a lack of market-moving cues.

Punters are looking ahead to China’s Q3 gross domestic product figures on Wednesday, with economists expecting a 4.4% year-on-year expansion, down from a 6.3% growth in the previous quarter.

In Japan, the Nikkei 225 Index rallied 1.8% while the broader Topix Index jumped 1.3%, breaking a 2-day decline.

Investors also look ahead to Japan’s September inflation report due later in the week, which will come ahead of the central bank’s monetary policy meeting on Oct. 30 and 31.

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:

Code	Company	Price	%	Volume	Market Cap
PIM	Pinnacleminerals	0.15	67%	13,343,130	$2,301,750
AYM	Australia United Min	0.003	50%	241,000	$3,685,155
BAT	Battery Minerals Ltd	0.037	48%	608,134	$2,990,112
RIM	Rimfire Pacific	0.0085	42%	14,661,559	$12,631,468
KEY	KEY Petroleum	0.002	33%	30,889,542	$2,951,892
NME	Nex Metals Explorat	0.02	33%	138,889	$5,287,988
PPK	PPK Group Limited	1.08	32%	216,354	$73,217,220
CYQ	Cycliq Group Ltd	0.005	25%	323,881	$1,430,067
ERL	Empire Resources	0.005	25%	1,008,600	$4,451,740
HFY	Hubify Ltd	0.02	25%	823,572	$7,938,181
TMX	Terrain Minerals	0.005	25%	250,000	$5,030,575
AHF	Aust Dairy Limited	0.021	24%	698,710	$11,149,736
VMS	Venture Minerals	0.011	22%	1,294,165	$17,550,117
ZEU	Zeus Resources Ltd	0.011	22%	602,158	$4,133,529
DCN	Dacian Gold Ltd	0.27	20%	10,542,197	$273,780,211
ADV	Ardiden Ltd	0.006	20%	23,202,354	$13,441,677
ECT	Env Clean Tech Ltd.	0.006	20%	519,916	$14,237,776
MHC	Manhattan Corp Ltd	0.006	20%	2,504,285	$14,684,899
SI6	SI6 Metals Limited	0.006	20%	1,050,000	$9,969,297
FLN	Freelancer Ltd	0.25	19%	50,679	$94,692,125
BMR	Ballymore Resources	0.13	18%	314,732	$16,081,699
RLG	Roolife Group Ltd	0.013	18%	1,409,300	$7,948,139
SRI	Sipa Resources Ltd	0.026	18%	620,082	$5,019,479
JPR	Jupiter Energy	0.021	17%	16,000	$22,865,945
M2M	Mtmalcolmminesnl	0.035	17%	100,661	$3,070,305

Pinnacle Minerals (ASX:PIM) led the way in small caps today, up 66.7% on news it is set to acquire a 75% interest in the Adina East Lithium Project in the James Bay lithium district.

The project covers 72.7km2 of land in the red-hot lithium region, just down the road from Winsome Resources’ (ASX:WR1) Adina Lithium Project, and next door to Winsome’s Tilly Lithium Project and Loyal Lithium’s (ASX:LLI) Trieste Lithium Project.

Pinnacle has acquired the interest from Electrification and Decarbonization AIE, which will also stump up US$500,000 in offtake pre-payment in consideration for offtake rights to 25% of any minerals extracted from Adina East Project.

The vertically-integrated dairy group Australian Dairy Nutritionals (ASX:AHF) says it’s listed the Brucknell South farm near Nullawarre, in Victoria for sale.

The organic A2 milk produced by the farm is surplus to the raw milk requirements of the Group’s Depot Road infant formula manufacturing facility and will not impact production of the Ocean Road Dairies organic A2 infant formula range at the site.

The Group’s remaining farm, Yaringa, produces sufficient organic A2 protein milk for the Depot Road facility at full capacity.

The sale will release necessary cash reserves for the Group as it pursues its revised FY24 strategy including growing sales of the Ocean Road Dairies range domestically and internationally and investigating opportunities to increase utilisation at the Depot Road facility.

Battery Minerals (ASX:BAT), jumped early on the news it’s entered into a binding agreement to acquire the advanced Spur Gold project, in the heart of the highly prospective Lachlan Fold Belt.

BAT says Spur’s got multiple epithermal gold targets including near term, high impact drill targets, down-dip from open historic drill intercepts previously reported by Golden Cross Resources (ASX:GCR)

The Spur Project is located 14km west from Newcrest Mining’s (ASX:NCM) Cadia Valley Operations, which boast a 32.1Moz Au, 7.2Mt Cu, Measured and Indicated Mineral Resource in central western New South Wales.

Battery Minerals managing director, Peter Duerden says the deal represents ‘a transformative opportunity for the company, providing high-quality, nearterm drill targets, down-dip from open wide historic gold intercepts in the East Lachlan.’

And PPK Group (ASX:PPK) collected over 40% this morning, after its subsidiary, BNNT Technology, announced it would significantly reduce the price of its Australian-made boron nitride nanotubes (BNNT) following a series of production improvements.

Eddy Sunarto’s been super-busy and has this longer update for us all to absorb.

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:

Code	Company	Price	%	Volume	Market Cap
WIA	WIA Gold Limited	0.029	-28%	4,827,836	$36,827,398
CTN	Catalina Resources	0.003	-25%	254,195	$4,953,948
FHS	Freehill Mining Ltd.	0.003	-25%	26,000	$11,379,204
MXC	Mgc Pharmaceuticals	0.0015	-25%	2,455,492	$8,855,936
JAN	Janison Edu Group	0.29	-25%	8,011,483	$97,178,247
DDT	DataDot Technology	0.004	-20%	227,462	$6,054,764
GTG	Genetic Technologies	0.002	-20%	100,000	$28,854,145
LNU	Linius Tech Limited	0.002	-20%	158,500	$10,574,477
MTL	Mantle Minerals Ltd	0.002	-20%	150,000	$15,368,615
THR	Thor Energy PLC	0.022	-19%	1,534,133	$4,761,086
ILA	Island Pharma	0.066	-18%	169,185	$6,501,477
88E	88 Energy Ltd	0.005	-17%	10,026,647	$132,711,930
FAU	First Au Ltd	0.0025	-17%	800,000	$4,355,980
SIS	Simble Solutions	0.005	-17%	2,238,000	$3,617,704
SKN	Skin Elements Ltd	0.005	-17%	3,347,280	$3,416,917
FBM	Future Battery	0.092	-16%	5,468,387	$56,089,658
ZMI	Zinc of Ireland NL	0.017	-15%	828,878	$4,262,886
HFR	Highfield Res Ltd	0.285	-15%	1,503,009	$131,381,551
EXT	Excite Technology	0.006	-14%	13,816	$8,464,692
LRL	Labyrinth Resources	0.006	-14%	387,349	$8,312,806
NGS	NGS Ltd	0.012	-14%	5,409,355	$3,517,184
AW1	Americanwestmetals	0.1075	-14%	6,066,816	$46,277,845
AL8	Alderan Resource Ltd	0.013	-13%	6,481,289	$9,250,420
DCL	Domacom Limited	0.013	-13%	19,187	$6,532,527
EMC	Everest Metals Corp	0.115	-13%	31,091	$17,660,012