- Aussie shares finished 0.3% higher on Friday, down over 2% for the week
- Energy stocks advanced, while real estate declined
- Market on edge after a string of bank collapses
The ASX 200 index was modestly higher by 0.2% on Friday, but finished the week 2.3% lower.
It was the sixth week in a row the index had finished lower, the longest losing streak since the depths of GFC (Global Financial Crisis) of 2008.
Investors were edgy on Friday despite a surge on Wall Street last night as major US banks like JPMorgan Chase, Bank of America, Citigroup and Wells Fargo agreed to deposit US$30 billion with First Republic Bank in an effort to shore up public confidence in the bank.
San Francisco’s First Republic Bank is a wealth specialist that caters to super wealthy clients including Mark Zuckerberg, and has recently been caught up in the banking crisis triggered by SVB and Credit Suisse.
The multi-billion dollar lifelines last night however have eased investor concerns and bolstered sentiment in battered banking stocks.
Christian Baylis, Investment Manager, Blossom, said, ”Australia will be caught in the vortex of what happens offshore, because ultimately we find ourselves in international markets.
“As the saying goes, the US sneezes and we catch a cold. In practical terms, this banking crisis will mean lower equity markets and a more restrictive funding environment.”
On the ASX, advances in Energy stocks were offset by losses in Real Estate stocks, where REITs have fallen by around 2%.
Most property stocks fell, with Goodman (ASX:GMG) and Scentre Group (ASX:SCG) slipping by 1% each.
Energy stocks meanwhile climbed as crude prices bounced back around 1% overnight amid the return of risk appetite on Wall Street .
Coal stock Yancoal (ASX:YAL) was up by 6%, and Neuren Pharma (ASX:NEU) rose another 8%
Market darling Neuren NEU has gained over 40% since Monday when it announced a “historic” world’s first US FDA approved drug, DAYBUE (trofinetide), for the treatment of Rett syndrome.
Latitude Financial (ASX:LFS) is still on trading following a data breach which has compromised customer details announced yesterday.
Not the ASX
Elsewhere, Britain is banning Chinese-owned app TikTok from ministers’ and civil servants’ mobile phones, bringing the UK government in line with the US and the EU.
Earlier, the US government said TikTok’s investors should sell their shares, or face a possible ban of the App in the US.
Baidu’s share price meanwhile surged 14% in Hong Kong after Citigroup analysts tested the company’s ChatGPT-like service Ernie, and granted it their preliminary approval.
Overnight, the European Central Bank (ECB) convened a policy meeting at which it raised interest rates by 50bp.
ECB president Christine Lagarde said the banking crisis that had unfolded has not deterred the central bank’s resolve to reduce inflation.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| CMM | Capricorn Metals | 4.38 | 15.44 | 2,550,892 | $1,424,123,483 |
| RRL | Regis Resources | 1.80 | 9.24 | 2,937,381 | $1,245,792,776 |
| NST | Northern Star | 11.13 | 5.50 | 4,886,362 | $12,131,924,603 |
| LFS | Latitude Group | 1.22 | 4.96 | 180,898 | $1,205,491,532 |
| GOR | Gold Road Res Ltd | 1.48 | 4.77 | 5,600,886 | $1,525,206,518 |
| DEG | De Grey Mining | 1.47 | 4.64 | 3,454,545 | $2,185,633,681 |
| BGL | Bellevue Gold Ltd | 1.19 | 4.39 | 4,957,554 | $1,287,202,240 |
| PRU | Perseus Mining Ltd | 2.03 | 3.31 | 3,851,753 | $2,687,065,017 |
| NCM | Newcrest Mining | 24.11 | 3.30 | 3,129,378 | $20,859,163,905 |
| SFR | Sandfire Resources | 5.59 | 3.23 | 1,974,406 | $2,471,785,330 |
| HLS | Healius | 2.79 | 2.77 | 5,567,471 | $1,543,353,268 |
| YAL | Yancoal Aust Ltd | 6.80 | 2.56 | 7,788,522 | $8,754,513,467 |
| MEZ | Meridian Energy | 4.80 | 2.13 | 26,560 | $5,938,517,854 |
Paladin Energy (ASX:PDN) and Contact Energy (ASX:CEN) rose by 6% each on sentiment.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| JDO | Judo Cap Holdings | 1.28 | -6.59 | 1,091,061 | $1,509,034,625 |
| SNZ | Summerset Grp Hldgs | 7.55 | -6.21 | 1,654 | $1,868,907,875 |
| SKC | Skycity Ent Grp Ltd | 2.15 | -5.92 | 2,649,594 | $1,733,267,877 |
| NIC | Nickel Industries | 0.91 | -4.45 | 8,936,728 | $2,888,165,696 |
| PPT | Perpetual Limited | 23.15 | -4.26 | 519,583 | $2,712,052,641 |
| SDR | Siteminder | 3.63 | -3.97 | 698,349 | $1,038,951,416 |
| LYC | Lynas Rare Earths | 6.85 | -3.59 | 8,942,627 | $6,426,016,951 |
| WBT | Weebit Nano Ltd | 8.38 | -3.57 | 1,132,009 | $1,508,939,030 |
| AUB | AUB Group Ltd | 26.54 | -3.35 | 332,222 | $2,788,028,024 |
| GQG | GQG Partners | 1.46 | -3.31 | 612,691 | $4,458,736,205 |
| PTM | Platinum Asset | 1.76 | -3.30 | 1,469,742 | $1,067,755,598 |
| HUB | HUB24 Ltd | 28.54 | -3.12 | 196,841 | $2,359,111,491 |
| CPU | Computershare Ltd | 23.68 | -3.11 | 1,319,575 | $14,755,144,972 |
| KLS | Kelsian Group Ltd | 6.40 | -3.03 | 518,110 | $1,442,375,788 |
Transport company Kelsian Group (ASX:KLS) fell 8% after it raised a $130 million capital at $5.55 per new share. The funds will be used to acquire AAAHI (All Aboard America Holdings) in the US.