Closing Bell: Market gives up majority of week’s gains on broad retreat

The ASX 200 added just 0.41pc this week despite setting a new intraday high on Thursday. Pic: Getty Images

ASX falls 73 points, sliding back below 9000 points
Only three sectors marginally higher, XGD up 1.27pc
Defence-related, energy and info tech stocks tumble

The ASX 200 couldn’t maintain much of its gains this week, giving up the fight just after midday to slide 0.81%.

The 73-point slide has taken us back below the 9000-point mark, 1.26% off August’s all-time closing high.

The bourse has gained just 0.41% over the week, trading mostly sideways overall.

Given how chaotic US politics and global geopolitics have been recently, it’s no surprise traders have run out of energy – somewhat literally judging by the chart below.

Only three sectors crept into the positive today, while energy and info tech took the hardest hits.

Gold climbs, defence stocks slide

The story for the full trading week is a sight better, though, so let’s roll with that at 4.30pm on a Friday arvo shall we? Five of our 11 sectors made progress. Well played, that handful – gold stars.

Healthcare lifted 1.9%, materials 1.84% and real estate 1.56% over the week.

The All Ords Gold index added 5.35% over the same period, riding a golden wave as the precious metal set new all-time highs one after the other.

The general rally in gold stocks has also continued unabated.

Nova Minerals (ASX:NVA) rocketed 127% higher this week.

Challenger Gold (ASX:CEL) surged 20%, Newmont Corp (ASX:NEM) 13% and Kingsgate Consolidated (ASX:KCN) added 4.3% over the same period.

Defence-related stocks are moving sharply in the other direction after a rip-roaring six months of gains.

The ceasefire in Gaza coupled with upcoming talks between US President Trump and Russian President Putin in Hungary has created a decidedly risk-off sentiment in the subsector.

Austal (ASX:ASB) shed more than 7% this week, while Droneshield (ASX:DRO) plummeted 21%.

Electro Optic System (ASX:EOS) was also one of the harder-hit, down 31% the past five days, alongside Elsight’s (ASX:ELS) 30% slide.

That said, most of these stocks are still up more than 200% for the last six months, with the exception of Austal.

The much more established shipping manufacturer still blasted 36% higher over the half year, even if it couldn’t match the startlingly oversized gains of its brethren.

The VanEck Global Defence ETF shed 6.80% for the week, although it’s still up 61% for the year to date.

Aussie insurers follow US counterparts lower

Banks and insurance companies are under fire over on Wall Street, as lower inflation undercuts premiums and sentiment around the industry’s short to medium-term outlook shifts.

On Wednesday, US banking stocks – Zions Bancorporation, Jefferies, and Western Alliance – fell sharply after disclosing losses on defaulted loans and initiating a lawsuit over alleged fraud.

Travelers Companies, a major insurance stock considered a bellwether of the broader sector, shed 2.6% on Thursday.

“It shows you can’t take credit quality for granted, and poor performing credit quality at one bank can drag down the group quite fast,” said Argus Research banking analyst Stephen Biggar.

Insurance companies on the ASX are being caught in the rip tides.

QBE Insurance (ASX:QBE) shed 8.79% today. Insurance Australia (ASX:IAG) fell 6.17% while Medibank Private (ASX:MPL) slid 2.51%.

ASX Leaders

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

Code	Name	Last	% Change	Volume	Market Cap
HWK	Hawk Resources.	0.035	106%	36688293	$4,605,801
RLC	Reedy Lagoon Corp.	0.005	67%	7892992	$2,330,120
JNO	Juno	0.04	43%	1530107	$5,858,637
ZNO	Zoono Group Ltd	0.048	41%	1748243	$13,811,200
LIB	Liberty Metals	0.004	33%	96679805	$7,266,417
EE1	Earths Energy Ltd	0.01	25%	3689832	$4,239,714
EM2	Eagle Mountain	0.01	25%	1609008	$9,080,298
MEL	Metgasco Ltd	0.0025	25%	190247	$3,674,173
NTM	Nt Minerals Limited	0.0025	25%	807091	$2,421,806
LDR	Lode Resources	0.315	21%	12094800	$42,063,878
ESK	Etherstack PLC	0.665	21%	849305	$73,052,101
AUR	Auris Minerals Ltd	0.012	20%	3621921	$5,481,199
CNJ	Conico Ltd	0.012	20%	1710759	$2,721,457
NAE	New Age Exploration	0.003	20%	22694803	$6,764,779
QXR	Qx Resources Limited	0.006	20%	9374873	$9,213,247
CCM	Cadoux Limited	0.057	19%	1231376	$17,804,044
PNT	Panthermetalsltd	0.013	18%	10324345	$3,309,950
ORP	Orpheus Uranium Ltd	0.06	18%	309445	$14,366,553
SHN	Sunshine Metals Ltd	0.03	18%	34255791	$63,791,102
ZAG	Zuleika Gold Ltd	0.021	17%	600000	$13,443,839
BLZ	Blaze Minerals Ltd	0.0035	17%	1500000	$8,625,000
ERL	Empire Resources	0.007	17%	3419230	$8,903,479
JAV	Javelin Minerals Ltd	0.0035	17%	2125484	$22,710,675
M2R	Miramar	0.0035	17%	393483	$3,584,770
SHE	Stonehorse Energy Lt	0.007	17%	1302957	$4,106,610

In the news…

Hawk Resources (ASX:HWK) is locked-in to earn up to 80% in the Olympus scandium project in WA, supported by a $5 million placement that enjoyed strong support.

Management says the acquisition ties in with the company’s long-term goals, wherein HWK will focus on producing copper in the near-term before transitioning to critical minerals moving forward.

Metgasco (ASX:MEL) has fielded interim results from a phase 2 production uplift program at the Southern Flank gas fields.

MEL was unable to initiate flow at the Vali-1 Toolachee well, but the Vali-2 Toolachee flow is indicating a variable gas rate of 0.25MMscfd at 300-350 psi FWHP and water rate of 30-40 bwpd. The company will begin work at Vali-3 in November.

Lode Resources (ASX:LDR) is chugging along on the antimony bandwagon, having hit high-grade mineralisation in the first round of drilling at the Magwood project in NSW. LDR’s drill bit hit multiple intersections of antimony over a 2.5km structure, topping out at 0.6m at 31.1% antimony and 0.7m at 26.4%.

Etherstack (ASX:ESK) subsidiary Etherstack Wireless has secured a five-year, £14.2m contract with the UK Home Office to supply critical communications software for use in the UK’s Emergency Services Network.

ESK will deploy its 3GPP LMR-IWF (InterWorking Function) into the UK government network to allow public safety agencies to communicate from their existing TETRA digital radio network.

ASX Laggards

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

Code	Name	Price	% Change	Volume	Market Cap
ERD	Eroad Limited	1.69	-34%	4283372	$479,922,829
EEL	Enrg Elements Ltd	0.001	-33%	4950000	$4,880,668
BOC	Bougainville Copper	1.68	-27%	417571	$926,454,375
MTL	Mantle Minerals Ltd	0.0015	-25%	9665018	$14,466,230
COB	Cobalt Blue Ltd	0.195	-24%	7127548	$126,104,744
GRL	Godolphin Resources	0.021	-22%	9699274	$18,796,230
CZN	Corazon Ltd	0.23	-22%	322085	$7,284,111
BIT	Biotron Limited	0.004	-20%	1699200	$6,636,229
ERA	Energy Resources	0.002	-20%	222308	$1,013,490,602
PGM	Platina Resources	0.032	-20%	3823701	$25,797,213
ROG	Red Sky Energy.	0.004	-20%	3593600	$27,111,136
HRE	Heavy Rare Earths	0.054	-19%	1273785	$13,938,270
PNN	Power Minerals Ltd	0.1775	-17%	16079681	$46,411,914
AVH	Avita Medical	1.35	-17%	3701089	$139,533,550
E25	Element 25 Ltd	0.375	-17%	882837	$119,220,996
DTM	Dart Mining NL	0.005	-17%	44059369	$17,282,634
OMG	OMG Group Limited	0.01	-17%	7204713	$10,691,923
SRN	Surefire Rescs NL	0.0025	-17%	18740747	$12,076,828
MTM	Metallium Ltd	1.1075	-16%	7710455	$816,068,699
BM8	Battery Age Minerals	0.205	-16%	4008401	$44,624,747
PVW	PVW Res Ltd	0.031	-16%	971553	$9,206,746
BML	Boab Metals Ltd	0.42	-16%	3482302	$139,614,220
BMM	Bayanminingandmin	0.215	-16%	2858942	$34,296,580
CLA	Celsius Resource Ltd	0.011	-15%	8244313	$40,761,350
AGD	Austral Gold	0.115	-15%	2546646	$82,662,033

In Case You Missed It

Experienced app marketing and growth specialist Sasha Grant has been appointed as head of growth for PainChek’s (ASX:PCK) Infant App.

Mt Malcolm Mines (ASX:M2M) has reported up to 4.5g/t gold in a continuous 700m long gold corridor outlined in RC drilling at its Malcolm project in WA.

Orthocell (ASX:OCC) has raised $30 million to accelerate global commercialisation of its flagship nerve-repair product Remplir.

Pinnacle Minerals (ASX:PIM) is fast-tracking its critical minerals strategy by initiating a US OTCQB listing as a stepping stone to a potential Nasdaq entry.

Andromeda Metals (ASX:ADN) has raised $13 million in a placement alongside planned security purchase plan to raise an additional $2.5 million.

Reprocessing of historical data by Godolphin Resources (ASX:GRL) has identified a new geophysical target that could extend Lewis Ponds’ precious and base metals to the north.