• The ASX is poised to open lower on Monday
  • Did Elon Musk’s SpaceX dump all its BTC holding?
  • Investment advisor bullish on China

 

The ASX is set to slip at the open after a flat session on Wall Street on Friday. At 8am AEST, the ASX 200 index futures was pointing down by around -0.3%.

US traders mainly kept to the sidelines as they awaited Jerome Powell’s speech at the Jackson Hole gathering this week, August 24-26.

Nigel Green of the deVere Group says he expects “central banks, including the Fed Reserve, the Bank of England and the ECB, to start cutting interest rates within the next 12 months.”

“Investors should consider now the prospect of inflation falling faster than many have anticipated, to seize the opportunities and mitigate risks,” he said.

To stock news, megacap tech stocks have slumped for a third straight week last week.

Nvidia rose 0.5% post-market after raising its current quarter revenue guidance by 50%.

Bitcoin briefly touched below US$25k amid rumours that Elon Musk’s SpaceX had sold its BTC holdings after writing down US$373 million.

Social media was set ablaze with the question: Did SpaceX simply write down the value, or did it sell that amount?

Bitcoin was trading at US$26,197 several moments ago.

Back home, another hectic week of earnings on the ASX is expected.

Today, stocks to release their updates include: A2 Milk (ASX:A2M), Ampol (ASX:ALD), Bluescope Steel (ASX:BSL, and McGrath (ASX:MEA).

 

Webull bullish on China

CEO of investment advisor Webull Australia, Rob Talevski, said he was able to see firsthand the potential opportunities for investors after a trip to China in March this year.

“When I landed in mainland China, I was taken aback by the level of electrification of transport – from two wheels to four wheels and heavy vehicles.

“In fact, I struggled to spot a traditional combustion engine, whereas at home in Australia, EVs are still seen as a novelty on our roads,” he said.

Talevski believes Chinese companies such as EV maker BYD are solving real world problems for the world’s second largest population.

“The technology is cutting edge, and the designs allow for practical everyday solutions that are now being exported to the world.”

However, possible investment opportunities in China aren’t based just on EVs, he added.

Stocks like Trip.com, Tencent, and Alibaba, Baidu could also present opportunities for investors, along with stocks like Yum China which operates the likes of KFC, Pizza Hut and Taco Bell in a land of 1.4b people.

“Like any investment, those entering the Chinese market should make a steady, cautious approach. Build a small watchlist, get to know the companies, and perhaps start with a paper-trading portfolio.”

 

In other markets …

Gold traded flat on Friday at US$1,890.34 an ounce.

Aussie dollar still trades close to the US63c handle, now at US64.09c.

Both the AUD and NZD are often seen by investors as a proxy for China because of the trade exposure between the countries.

“We’re reaching a point where the Aussie dollar would be giving some discomfort to the Reserve Bank,” said BetaShares chief economist, David Bassanese.

Crude prices also traded flattish, with WTI now trading at US$81.26 a barrel.

Iron Ore 62% fe meanwhile rose by +0.5% to US$106.10/tonne.

 

5 ASX small caps to watch today

Echo IQ (ASX:EIQ)
EIQ has announced a significant expansion to its EchoSolv’s cardiology decision-support platform.The company will be rolling out six new solutions between November and January 2024 designed to support cardiologists in assessing diastolic dysfunction, heart failure, and hypertension amongst others. The product expansion will significantly increase EchoSolv’s addressable market, says EIQ.

1ST Group (ASX:1ST)
1ST’s product Visionflex has received a material purchase order from WA Primary Health Alliance (WAPHA) to deliver virtual healthcare across 75 Commonwealth-funded Residential Aged Care Facilities (RACF) in WA. The initial purchase represents $1.1m in upfront revenue in H1FY24, of which $660k has been received. Additional orders from WAPHA, for other RACF’s in Western Australia, are expected to materialise within FY24.

Smart Parking (ASX:SPZ)
Revenue for the full year was 18% higher than pcp to $45.17m. Net statutory profit after tax was $6.4m, up 565% from FY22. This increase is due to strong underlying business performance and was assisted by foreign exchange gains of $1.2m, and tax adjustments related to historical tax losses.

Adairs (ASX:ADH)
The home furnishings retailer reported record group sales of $621.3m, up +10.1% on pcp. Gross profit was $285.5m, up +5.8% on pcp with margins adversely impacted by warehousing and supply chain costs. Looking ahead, the company said near-term outlook is likely to remain challenging given prevailing macro-economic headwinds.

Viking Mines (ASX:VKA)
Assays have confirmed substantial zones of high-grade vanadium mineralisation hosted in Vanadiferous Titanomagnetite (VTM) at the Kinks South target. Significant V2O5 intercepts from the recent program include 38m at 0.76% V2O5.

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