• Small caps creep up 0.018%, ASX 200 stays flat
  • Energy sector jumps with Karoon Energy and Terracom both up 7%+
  • The RBA is aiming for a soft landing for the economy

 

The ASX 200 was unchanged today with only six out of eleven sectors higher, and the small cap index crept up 0.018% or 1.30 points to finish at 7,10360.

The Energy sector led the way, up 3.96%, with strong performances from Karoon Energy (ASX:KAR) up 7.34% and Terracom (ASX:TER) up 7.82%.

There’s still a bit of the dreaded ‘recession’ word being thrown around and the Reserve Bank has warned its treading a narrow path in its attempts to get inflation back down to the 2-3 per cent target range while at the same time, keeping the economy on an ‘even keel’.

CBA chief economist Craig James and senior economist Ryan Felsmen say it’s a delicate balancing act trying to engineer a ‘soft landing’ for an economy when inflation is soaring and home prices are declining sharply.

“With borrowing costs expected to lift further, highly indebted homeowners are coming under financial pressure at a time when food, insurance and electricity costs are skyrocketing,” they said.

“That said, Australia’s labour market is a key pillar of economic strength at the moment, suggesting that a recession is a long way off.”

Basically, if people can hold on to their jobs and continue to spend, the better the chance of slowdown, not shutdown.

Overall, the CBA Group economists expect the strong labour market, excess consumer savings and a long pipeline of residential home building work to support economic activity together with solid non-mining investment, bumper agricultural production, buoyant demand for energy exports and robust government spending.

“In response to a deteriorating global economic backdrop, and slowing domestic economy, we also expect the Reserve Bank to begin cutting interest rates in the December quarter of 2023, which could stabilise the property market,” they said.

 

TODAY’S BIGGEST SMALL CAP WINNERS

(Stocks highlighted in yellow rose after making announcements during the trading day).

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Adslot (ASX:ADS) issued an announcement this morning to let us all know that we’re invited to a webinar on 29 August.

It’s highly likely that the inclusion of the words “Commercial Upgrade” in the title of the webinar is what’s caused the sudden interest in the company.

BBX Minerals (ASX:BBX) has reported continuous platinum mineralisation at the Tabocal prospect at its Três Estados project in Brazil.

Scattered Platinum mineralisation was encountered close to surface, with continuous intervals were reported from 28.84m and from 54m (open at depth).

And Miramar (ASX:M2R) has kicked off drilling at the Whaleshark Copper Gold Project, 40km east of the town of Onslow in Western Australia, testing for geochemical anomalism beneath the mobile metal ion (MMI) anomalies.

 

TODAY’S BIGGEST SMALL CAP LOSERS

(Stocks highlighted in yellow fell after making announcements during the trading day).

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WHAT YOU MAY’VE MISSED

Aussie Internet of Things (IoT) play X2M Connect Limited (ASX:X2M) has finished the week on a good note, announcing it had completed the retail component of its 1 for 3 non-renounceable entitlement offer at a price of 8.5 cents/share to raise up to $3.97 million before costs.

Participants will receive one free attaching option for every two shares subscribed for and issued exercisable at 16 cents each on or before August 31, 2022.

The institutional entitlement offer, which closed on July 26, raised $2.26 million with several shareholders taking up their full entitlement. X2M has raised $1.33 million through the retail entitlement offer and oversubscribed firm commitment from existing and new shareholders from the balance of $380k.

Meanwhile, construction, materials, and equipment services provider MAAS Group (ASX:MGH) has announced it raised ~6.4 million through the placement of more than 1.6 million shares through its share purchase plan (SPP).

The SPP complemented MGH’s recent placement announced on July 29 comprising of ~$35 million to sophisticated and institutional investors plus ~$70 million to founders and management.

MGH said proceeds of the cap raising will be used to fund growth and acquisition initiatives, including near-term opportunities in the construction materials segment.

Podium Minerals (ASX:POD) has appointed Christopher Edwards of Endeavour Corporate as company secretary. Edwards replaces Hannah Hudson who has resigned from the post.

The exploration and resources development company focused on platinum group metals, gold and base metals said Edward had more than 15 years of experience assisting publicly-listed companies, specialising in the minerals exploration industry.

Red River (ASX:RVR) saw its share price rise 3.70% today on news its underground operations have resumed at Thalanga in northern Queensland today.

RVR announced a fall of ground has occurred in the far west underground mine pm August 4.

The operator sustained no serious injuries. RVR produces copper, zinc and lead concentrates at its Thalanga base metal operation.

The company said it would like to thank all involved for significant work that has taken place to ensure a safe restart at the mine.

 

Trading Halts

EQT Holdings (ASX:EQT) – pending an announcement around a proposed material acquisition and proposed equity raising.

 

 

 

 

 

 

 

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