• ASX rises on Monday after Wall Street banked a belter on Friday
  • All 11 local sectors higher, InfoTech winning the race for Best in Show
  • Aruma Resources led the small caps winners

 

The local benchmark moved strongly into positive territory on Monday on broad based gains.

At match out the S&P/ASX200 was higher, gaining 68.30 points or 0.80% to 7,989.60.

 

Via Google

 

Monday on the ASX was out of the gate with a handy boost from some positive leads out of New York on Friday, and an extra hand from heady US Futures.

Tech, Utilities, Telco’s, Healthcare, Consumer and Energy stocks led the gains after Wall Street enjoyed more friendly US inflation data, firming the many bets that US rates have peaked.

A great many members of the S&P/ASX 200 Information Technology (XIJ) index were up and at it early on Monday, the rotation into rate-sensitive sectors on full display.

 

 

Via MarketIndex

 

Among the local movers in the bigger capped corners of the market, Star Entertainment Group (ASX:SGR) was up over 7.3%

Healthcare stocks were higher, led by Opthea (ASX:OPT) and Clarity Pharmaceuticals (ASX:CU6)  both gaining between 5 and 6%.

After slumping earlier this month on the smell of short selling, shares in Oleg Vornik’s DroneShield (ASX:DRO) jumped 5

On the other end of the ledger, shares in online retailer Kogan are now down 3% after analysts didn’t embrace KGN’s earnings update,

By the close, all 11 ASX sectors were in the green.

 

ASX Sectors on Monday near 4pm

 

Via MarketIndex

 

Small Cap Wrap

We’ve been watching Prodigy Gold (ASX:PRX) which updated the gold resource estimate for its Hyperion Gold deposit in the NT.

The new estimate is 8.64 million tonnes at 1.5 grams per tonne gold, totalling 407,000 ounces. This is an increase from the previous estimate of 4.4 million tonnes at 2.2 grams per tonne, which totalled 314,000oz.

 Credit Clear (ASX:CCR) expects to report underlying EBITDA of about $4 million for FY24. This follows a record revenue quarter ending June 30. The company’s projected full-year revenue is $42 million, slightly above earlier guidance.

The updated EBITDA estimate of $4 million also exceeds the previous forecast of over $3.7 million. Final results will be confirmed in the annual report.

Adore Beauty (ASX:ABY) has appointed Sacha Laing as its new CEO, starting October 1. Laing has previously been the CEO of Alquemie Group, General Pants Co, and Colette by Colette Hayman, and has held senior roles at Country Road Group and David Jones.

TechGen Metals (ASX:TG1) has provided an update on its Blue Devil Project, at Halls Creek in WA and says there’s been some promising results from previous rock chip sampling.

Recent fieldwork in July, including six rock chip samples, revealed high-grade copper and gold, with assays showing 24.9% copper and 18.5 grams per tonne gold. The project has had limited drilling so far and no geophysical testing. TechGen is planning geophysical surveys to explore for copper-gold-silver mineralization in this promising area.

Bubs Australia (ASX:BUB) reported strong financial results for the quarter ending June 30. Full-year revenue reached $100.2 million, up 35% from last year, with the fourth-quarter revenue at $29.9 million, a 50% increase. The baby retailer is progressing with its US clinical trials and expects FDA approval by October 2025. Cash outflow for Q4 was reduced to $3.6 million due to better management. The company’s total cash and available debt facilities amounted to $22.5 million.

 

NOT THE ASX

It’ll be an unusually busy week on the macro home front with retail sales, CoreLogic and trade data.

But the market monster could be Wednesday’s quarterly CPI read.

Morgan Stanley says local markets aren’t priced for an RBA which leaves current positioning “somewhat vulnerable” if the central bank does hike as Morgan Stanley expects on the back of a potentially “hot” CPI report this week.

Inflation in Australia has bucked the global trend and has been edging higher all year, reaching 4.0% y/y in May in the monthly measure.

The Reserve Bank of Australia has been iffy about raising interest rates again, but tbrace for impact if these far more reliable quarterly numbers compel the board that further hoisting of the cash rate is needed.

The latest risk-off episode in the markets has been devastating for the Australian dollar so a hotter-than-expected set of CPI figures could provide the currency with a much-needed boost. Also on Aussie traders’ radar will be Chinese manufacturing PMIs out on Wednesday and Thursday, amid the ongoing pessimism about China’s economy.

Around the hood on Monday, markets were mixed. The Hang Seng index was up 1% at midday in Honkers.

The major signal of weakness on Monday is coming out of the mainland, where China’s 10-year government bond yields crashed to an all-time low on Monday.

The 10-year hit 2.16%, and comes on the back of the People’s Bank of China (PBoC) cutting the 1-year medium-term lending facility (MLF) rate by 20 basis points, (from 2.5% to 2.3%) last week, in a move surprising in both its timing and scope – being the largest cut to the MLF since April 2020.

The PBoC waited a day or so and then lowered the key lending 1-year loan prime rate (LPR), China’s benchmark for most corporate and private loans, by 10 basis points to 3.35%.

The 5-year LPR, your basic property mortgage, was also clipped by 10 basis points to 3.85%. But trying to stimulate property in China is like saturday night in the

The oddity is that these staggered decisions came after the Third Plenum party bosses got together to not do a great deal at the hyped-up policy meet.

The PBoC seems to be providing all the leadership vs a stagnant Chinese economy.

Just like US presidential candidate Donald Trump is with crypto – sending Bitcoin vers US$70kon Monday, after ispeaking at the Bitcoin 2024 conference in Nashville over the weekend.

Mr Trump said he will make America “the crypto capital of the world” as Republican Senator Cynthia Lummis of Wyoming presented a legislative proposal to establish an official US strategic reserve of 1 million BTC over the next five years, accounting for almost 5% of total BTC supply.

US Futures are higher at 4pm in Sydney.

 

Via Fox

 

ASX SMALL CAP WINNERS

Here are today’s best performing ASX small cap stocks.

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

Wordpress Table Plugin

 

Aruma Resources (ASX:AAJ) has turned up with very high grades of copper from historical surface samples taken by international miners Sumitomo and Anglo American at its recently acquired exploration license of the Fiery Creek project in QLD.

Grades of up to 36% copper were found at multiple prospects across the project area, which majors have long held yet has been underexplored due to depressed copper prices.That took away exploration interest from other majors such as BHP, Glencore and Rio Tinto that also held the tenure. AAJ reckons Fiery Creek has high prospectivity for an economic resource within the fertile Mt Isa copper belt.

“The underexplored nature of the project area combined with the positive historic results and favourable geological setting in the prolific Mt Isa minerals district provide an exciting exploration opportunity for Aruma,” AAJ MD Glenn Grayson says.

Terra Uranium (ASX:T92) has received assay results from sampling during the recent field visit to the Amer Lake project, with samples up to 7,950 ppm uranium (0.94% U3O8). The company has also revealed that assessment reporting is now complete and submitted to the Nunavut Mining Recorder for processing which is anticipated to extend the mineral claims expiry by at least 5 – 7 years.

ActivEX (ASX:AIV) was up thanks to a positive quarterly report, with headway made at both its Gilberton Gold Project in North Queensland, and the Aramac REE Project in Central Queensland. The company also outlined plans for further exploration work in the near term.

Beforepay Group (ASX:B4P) was also climbing after a happy quaterly on Monday morning, with the company revealing it has achieved a net profit before tax of $1.4m and an EBITDA of $2.7m. This is the company’s fourth consecutive quarterly un-audited net profit.

New Age Exploration (ASX:NAE) is up on news it has commenced drilling in the next step of its six-month exploration program at the Wagyu Gold Project in the Pilbara, WA, following the successful completion of a cultural heritage survey. The drill program will test high priority targets, including a “Hemi-Style” intrusive gold target.

Nagambie Resources (ASX:NAG) was moving quickly on Monday after alerting the market to the fact that the market prices of antimony (Sb) and gold (Au) have currently increased 110% and 24% respectively above the conservative forecasts considered at the time its maiden JORC Resource was announced, which claimed 415,000 tonnes averaging 3.6g/t Au plus 4.3% Sb for in-ground metal content of 47,800oz gold and 17,800t antimony.

 

ASX SMALL CAP LAGGARDS

Here are the day’s least performing ASX small cap stocks.

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

Wordpress Table Plugin

 

TRADING HALTS

Industrial Minerals (ASX:IND) – pending release of an announcement in relation to a proposed capital raising.

Syntara (ASX:SNT) – pending an announcement in relation to the outcome of a capital raising.

Lark Distilling Co (ASX:LRK) – pending an announcement in relation to a proposed capital raising.

Far East Gold (ASX:FEG) – pending an announcement regarding a potential capital raising.

Adavale Resources (ASX:ADD) – pending the release of an announcement in relation to a proposed capital raising and a project acquisition.

TrivarX (ASX:TRI) – pending an announcement regarding the performance results of its Phase 2 SAMDE study.

Nanoveu (ASX:NVU) – pending an announcement regarding EyeFly3D Joint Venture.

Regional Express (ASX:REX) – ending a material announcement in relation to a news article published on Saturday, 27th July 2024.

Lotus Resources (ASX:LOT) – pending an announcement regarding a material agreement, namely a Mine Development Agreement with the Government of Malawi.

Mineral Commodities (ASX:MRC) – pending an announcement regarding a major environmental incident at the Tormin mineral sands mine in South Africa.

Metalicity (ASX:MCT) – pending an announcement in relation to a capital raising.

Rincon Resources (ASX:RCR) – pending an announcement in relation to assay results and a price query.

 

ICYMI – PM Edition 

AdAlta (ASX:1AD) has strengthened its cash position and established key partnerships in Q4 FY24 as it advanced its “east to west” cellular immunotherapy for solid cancers strategy. It has selected Cell Therapies as its preferred manufacturing partner.

Arizona Lithium (ASX:AZL) is preparing to drill the first two licenced wells on the second established pad at its Prairie lithium project in Saskatchewan, Canada, to de-risk the company’s path to being able to increase production on a modular basis.

Marmota (ASX:MEU) has started a reverse circulation drilling program to finalise design of the open pit at its advanced Aurora Tank gold deposit in South Australia that already features a slew of outstanding high-grade intersections.

New Age Exploration (ASX:NAE) has started aircore drilling at its Wagyu gold project in WA’s Pilbara region to test high priority targets
including a Hemi-style intrusive gold target.

 

At Stockhead, we tell it like it is. While AdAlta, Arizona Lithium, Marmota, New Age Exploration are Stockhead advertisers, they did not sponsor this
article.

Featured Companies

You might be interested in