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Lunch Wrap: ASX surges as Chemist Warehouse hits bourse after Sigma merger
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- Local markets rose in morning trade, despite hotter than expected US inflation figures overnight
- The ASX 200 surged to another record high around midday
- Shares of combined Chemist Warehouse and Sigma Healthcare start trading on ASX following the merger
The ASX was up 0.30% at 12.45pm (AEDT) as retail pharmacy giant Chemist Warehouse hit the local bourse after the completion of its merger with pharmaceutical distributor Sigma Healthcare (ASX:SIG).
Sigma, which is up 4.5% today, now owns 100% of the issued shares in CW Group Holdings Limited (Chemist Warehouse) with shares of the combined group starting trade today.
The deal brings together some of the strongest brands in the pharmaceutical sector including Amcal and Discount Drug Stores.
“We expect the share price of SIG to be volatile over coming weeks as institutional and investor buying will likely be met by some CWG shareholder selling,” Morgans healthcare senior analyst Scott Power said.
Following a recent trading update Morgans have upgraded its SIG FY25 forecasts, with its target price, which includes a liquidity premium, increasing slightly to $3 from $2.98 with an add recommendation maintained.
On Wall Street, the S&P 500 index closed 0.3% lower, the Dow Jones fell 0.5% and the technology-focused Nasdaq index ended flat as US CPI data came in hotter than expected for January.
Latest figures out Wednesday show the US Consumer Price Index (CPI) increased by 3.0% in January, higher than anticipated by most economists.
Excluding volatile components such as food and energy, core inflation remains elevated at 3.3% year-on-year.
“The latest data shows that US CPI has come in above expectations,” deVere Group CEO Nigel Green said.
“This suggests that the Fed will be even less likely to cut rates this year.”
US Fed chairman Jerome Powell’s congressional testimony this week has further reinforced a cautious approach by the central bank to rate cuts.
However, Green said there could be a potential answer with advances in technology perhaps providing a crucial buffer against rising prices.
“Traditional models suggest that tax reductions and tariffs could fuel inflation, yet the rapid evolution of technology may provide a counterbalance.
“The integration of AI, automation, and digital efficiencies across industries could mitigate price pressures and help stabilise the economy.”
Gold prices have pulled back for a second consecutive day following Tuesday’s historic peak when the precious metal hitting US$2,942.25 per ounce.
Cryptocurrency giant Bitcoin is trading just above US$98,000 at the time of writing.
The Aussie dollar is trading around US63 cents.
At around midday, the ASX 200 briefly surpassed its previous peak of 8566.9 which was set after CPI inflation data topped expectations on January 31.
And here’s where things stood on the ASX around 1.10-ish AEDT:
ASX small cap winners:
Here are the best performing ASX small cap stocks for February 13 [intraday]:
| Code | Description | Last | % | Volume | MktCap |
|---|---|---|---|---|---|
| NRZ | Neurizer Ltd | 0.002 | 100% | 1,452,410 | $3,224,671 |
| 88E | 88 Energy Ltd | 0.0015 | 50% | 2,584,079 | $28,933,812 |
| ADG | Adelong Gold Limited | 0.008 | 45% | 66,679,916 | $6,148,939 |
| CDT | Castle Minerals | 0.0035 | 40% | 69,955,863 | $4,742,035 |
| AXP | AXP Energy Ltd | 0.002 | 33% | 5,510,000 | $8,737,021 |
| GTR | Gti Energy Ltd | 0.004 | 33% | 2,155,465 | $8,888,849 |
| LNU | Linius Tech Limited | 0.002 | 33% | 310,000 | $9,226,824 |
| RLL | Rapid Lithium Ltd | 0.004 | 33% | 8,543,298 | $3,097,334 |
| MRZ | Mont Royal Resources | 0.032 | 28% | 322,968 | $2,125,745 |
| SPG | Spc Global Holdings | 0.84 | 27% | 151,834 | $127,368,042 |
| AMS | Atomos | 0.005 | 25% | 10,000,372 | $4,860,074 |
| CRR | Critical Resources | 0.005 | 25% | 103,280 | $9,727,853 |
| GMN | Gold Mountain Ltd | 0.0025 | 25% | 1,037,256 | $9,158,446 |
| MOH | Moho Resources | 0.005 | 25% | 100,000 | $2,865,898 |
| PSL | Paterson Resources | 0.01 | 25% | 3,120,028 | $3,648,303 |
| RR1 | Reach Resources Ltd | 0.011 | 22% | 4,627,113 | $7,869,882 |
| ASO | Aston Minerals Ltd | 0.017 | 21% | 3,394,559 | $18,130,900 |
| YRL | Yandal Resources | 0.205 | 21% | 73,819 | $52,569,947 |
| LAT | Latitude 66 Limited | 0.06 | 20% | 677,342 | $7,170,035 |
| AKN | Auking Mining Ltd | 0.006 | 20% | 15,374,115 | $2,873,894 |
| LNR | Lanthanein Resources | 0.003 | 20% | 600,246 | $6,109,090 |
| ODE | Odessa Minerals Ltd | 0.006 | 20% | 526,968 | $7,997,663 |
| VFX | Visionflex Group Ltd | 0.003 | 20% | 704,838 | $8,419,651 |
| FME | Future Metals NL | 0.013 | 18% | 3,858,436 | $6,325,445 |
| KAL | Kalgoorlie Gold Mining | 0.083 | 17% | 19,393,243 | $19,390,697 |
Adelong Gold (ASX:ADG) has executed a binding purchase agreement to acquire a 100% interest in EL006430, to be renamed the Apollo Gold Project in Victoria. Adelong said the project was located within the highly prospective Melbourne Zone that hosts Southern Cross Gold’s Sunday Creek project and features multiple zones of thick, high-grade gold mineralisation, presenting an immediate exploration and development opportunity.
AXP Energy (ASX:AXP) is up 33% after reporting that its Pathfinder #2 well’s current production of 20 barrels of oil and 280,000 cubic feet of gas from the Niobrara Formation demonstrates the ability for additional production to be brought online over the coming months. It added that additional gas production from the Amerigo Vespucci well has now been tied into the gas to power operation at the Pathfinder #2 production hub with the well to start pumping operations once the well head pressure stabilises the next 7-10 days.
ASX SMALL CAP LOSERS
Here are the worst performing ASX small cap stocks for February 13 [intraday]:
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| MEL | Metgasco Ltd | 0.003 | -40% | 100,000 | $7,287,934 |
| 1TT | Thrive Tribe Tech | 0.002 | -33% | 557,000 | $6,095,169 |
| ALM | Alma Metals Ltd | 0.004 | -33% | 5,200,000 | $9,518,072 |
| CTN | Catalina Resources | 0.003 | -25% | 500,000 | $5,265,048 |
| M2R | Miramar | 0.003 | -25% | 4,426,970 | $1,587,293 |
| DUN | Dundasminerals | 0.034 | -24% | 1,064,917 | $4,824,826 |
| ECT | Env Clean Tech Ltd. | 0.002 | -20% | 430,000 | $7,929,526 |
| HCD | Hydrocarbon Dynamics | 0.002 | -20% | 2,000 | $2,695,273 |
| MRD | Mount Ridley Mines | 0.002 | -20% | 25,000 | $1,946,223 |
| WOA | Wide Open Agricultur | 0.004 | -20% | 48,913 | $2,668,433 |
| PBL | Parabellumresources | 0.043 | -19% | 11,000 | $3,301,900 |
| MGL | Magontec Limited | 0.21 | -18% | 133 | $14,525,266 |
| EPM | Eclipse Metals | 0.005 | -17% | 1,235,728 | $17,158,914 |
| EVR | Ev Resources Ltd | 0.005 | -17% | 558,168 | $11,595,020 |
| IPB | IPB Petroleum Ltd | 0.005 | -17% | 70,000 | $4,238,418 |
| LML | Lincoln Minerals | 0.005 | -17% | 1,000,000 | $12,337,557 |
| MTB | Mount Burgess Mining | 0.005 | -17% | 90 | $2,037,225 |
| SPQ | Superior Resources | 0.006 | -14% | 230,000 | $15,189,047 |
| SVG | Savannah Goldfields | 0.02 | -13% | 179,932 | $10,605,662 |
| M24 | Mamba Exploration | 0.014 | -13% | 453,373 | $3,759,316 |
| BUS | Bubalusresources | 0.15 | -12% | 17,336 | $8,039,992 |
| BCK | Brockman Mining Ltd | 0.015 | -12% | 91,582 | $157,763,946 |
| WC1 | Westcobarmetals | 0.015 | -12% | 358,810 | $2,990,511 |
| OCT | Octava Minerals | 0.04 | -11% | 891,196 | $2,745,419 |
| HFY | Hubify Ltd | 0.008 | -11% | 259,063 | $4,600,227 |
In case you missed it
Riversgold (ASX:RGL) is gearing up to restart drilling in March 2025 at its Northern Zone gold project in Western Australia. The program aims to follow up on significant results to date, including 8m at 4.86 g/t gold from 34m and 7m at 4.07 g/t from 48m.
Also kicking off drilling is Arika Resources (ASX:ARI) , launching a diamond drilling campaign at the Pennyweight Point and Landed at Last prospects within its Yundamindra gold project in WA. The program will comprise three holes for ~500m, following the recently completed 5000m Phase 2 RC drilling. Assay results from Phase 2 are pending, with assays expected soon.
Koonenberry Gold (ASX:KNB) is raising $2 million through a placement to new and existing institutional investors to drive exploration at its Enmore and Lachlan projects in New South Wales. The funds will go towards expanding the drilling program at Sunnyside from 2000m to 3000m and to advance exploration at Prince of Wales and Breakfast Creek to drill-ready status.
At Stockhead, we tell it like it is. While Riversgold, Arika Resources and Koonenberry Gold are Stockhead advertisers, they did not sponsor this article.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
