• The ASX got an Data Nerd Bailout when the ABS dropped happy-ish CPI data
  • The benchmark recovers from early flesh wounds to end the day flat
  • Ordinary Aussies ‘outraged’ over changes to super that will never, ever affect them

The market has been thrown something of a lifeline after a set of not-entirely-awful CPI and GDP figures landed with a thud just before lunch today, arresting the benchmark’s -0.5% and driving the market higher to close 0.1% higher for the day after coming back from the dead like a foul-smelling zombie hunting for gaaaaaaaaains.

All the heavy lifting to get the market moving forward came through the Materials and Energy sectors, which – if we’re being honest with each other here – were both due a win after some truly tepid performances over the past couple of weeks.

Materials closed the day up 2.29%, and Energy was close behind on 1.62% – but Telcos (-2.26%), Real Estate (-1,73%) and the bloated, wheezing Financials sector dropped a pre-diabetic 1.21%.

 

FROM THE HEADLINES

The ABS data sets released today have dominated the headlines as well as the hearts and minds of investors, with probably the best way to describe the numbers today as “not completely sh-t”.

Mid morning saw the market responding to better than expected inflation figures for January, with the consumer price index (CPI) climbing 7.4% – a slowdown that is well below the 8.0% prediction that had numerous people screaming about how the sky was falling down.

The data also showed that the nation’s economy grew 0.5% in the final quarter of 2022, which was well down on many economists’ crystal ball gazing, but left Australia with an annual growth of 2.7%.

Household spending continued to climb in December, as inflation took its horrifying toll on the hip pockets and pocket books because wages aren’t anywhere close to being able to keep up, despite a number of companies boasting bumper profits throughout the past two weeks of earnings.

The ABS head of national accounts, Katherine Keenan, noted that while the household spending climbed, the rate at which it is climbing has slowed.

“Spending on discretionary services drove the rise in household consumption, however growth markedly slowed in comparison to the September quarter,” Keenan said, which – through the magic of Basic Mathematics – means that household savings have declined for the fifth-consecutive quarter, from 7.1% to 4.5%.

“The fall was driven by increased interest payable on dwellings, income tax payable and increased spending,” Keenan said, and while she didn’t mention any discretionary consumer options by name, it’s getting pretty clear that Aussie households are getting to the point where they’re going to have to choose between keeping the family home, or maintaining the family Netflix subscription.

The take home is basically that things are still a bit sh-t, but not as sh-t as we thought it would be, which leaves the door open for more shenanigans from the RBA board when they sit down to drink 9 gallons of gravy for lunch and then spend the afternoon hitting Aussie families with the interest rate stick until we’re bleeding and raw. Again.

Meanwhile, yesterday’s announcement of changes to the tax rate for Australians with more than $3 million in their superannuation accounts has proven to be more contentious than the Labor government expected.

A number of media outlets have reported the changes as a “broken promise” by the Albanese government, despite implementation of the initiative being delayed until after the next Federal election.

The delay will give voters a chance to add it to the teetering pile of issues to consider before heading to their local church hall for a sausage sandwich to eat while they scribble crude dick’n’balls on the ballot paper and stuff it in the box.

However, that hasn’t stopped talk of one policy initiative running off the rails and veering into scare tactics territory, with Treasurer Jim Chalmers forced onto the back foot when Seven’s Sunrise host David Koch emerged from the back of a mine collapse ambulance to pepper Chalmers with questions about a possible capital gains tax on the family home.

Earning every eye-watering penny he’s costing Seven, Kochie did everything but hit Chalmers on the head with a bewildered Cash Cow to get the Treasurer to commit to a ‘no family home tax’ policy – but couldn’t.

Chalmers later clarified the Albanese government’s position during an appearance at Parliament House, saying: “We have no intention of going after the capital gains tax on the family home. We won’t be pursuing that policy.”

Now here’s Katie with the weather.

 

NOT THE ASX

It turned into quite a busy day on Asian markets today, with the Hang Seng leading the region with a +3.37% gutbuster, driven in no small part by its Tech sector piling on 5.04% throughout the session.

In mainland China, the data nerds released figures showing that China’s official manufacturing purchasing managers’ index – which I think measures how tall the nation’s purchasing managers are, but I’m not sure – rose to to 52.6 in February, the highest since April 2012.

It must be good news, because the Shenzhen Component rose 1.02% and the Shanghai Composite gained 0.9%.

In Japan, the Nikkei climbed just 0.19%, after a private survey suggested that factory activity in February shrank at its fastest pace in two and a half years, sparking fears of a supply drought for dangerously weird sex-related gadgets.

 

ASX SMALL CAP LEADERS

Here are the best performing ASX small cap stocks:

Swipe or scroll to reveal full table. Click headings to sort:

Code Company Price % Volume Market Cap
GLV Global Oil & Gas 0.002 100% 1,721,737 $3,428,807
SIH Sihayo Gold Limited 0.002 100% 55,408 $6,102,128
AQX Alice Queen Ltd 0.0015 50% 3,633,239 $2,530,288
SIT Site Group Int Ltd 0.003 50% 3,139,800 $2,102,490
WBE Whitebark Energy 0.0015 50% 3,073,303 $6,464,886
RXH Rewardle Holding Ltd 0.018 29% 2,574,103 $7,368,501
VAL Valor Resources Ltd 0.005 25% 6,667,723 $15,092,139
LRD Lordresourceslimited 0.19 23% 57,151 $5,160,279
RDN Raiden Resources Ltd 0.006 20% 55,555 $8,272,912
SI6 SI6 Metals Limited 0.006 20% 18,993,469 $7,476,973
MYX Mayne Pharma Ltd 3.94 19% 1,410,792 $284,777,817
1AE Auroraenergymetals 0.13 18% 80,149 $13,502,960
NZS New Zealand Coastal 0.0035 17% 6,371,102 $3,381,015
OXX Octanex Ltd 0.007 17% 141,760 $1,553,866
CY5 Cygnus Metals Ltd 0.335 16% 424,511 $53,323,521
USQ Us Student Housing R 1.1475 15% 5,651 $55,541,218
NUC Nuchev Limited 0.195 15% 727 $8,799,326
CYQ Cycliq Group Ltd 0.008 14% 1,830,000 $2,432,617
MRQ Mrg Metals Limited 0.004 14% 60,000 $6,950,715
ANR Anatara Ls Ltd 0.034 13% 102,441 $3,597,720
BSE Base Res Limited 0.26 13% 4,343,920 $270,942,726
RSH Respiri Limited 0.062 13% 2,300,127 $46,333,999
FRX Flexiroam Limited 0.045 13% 990,014 $25,676,531
GFN Gefen Int 0.045 13% 200,000 $2,724,005
SKS SKS Tech Group Ltd 0.18 13% 5,000 $17,501,144
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In the Glorious World of Small Caps, Rewardle Holdings (ASX:RXH) is topping the ladder after a spike in interest saw its trading price jump 21.4% since open. There’s no particular reason for it, but today’s volume is about 28 times the four-week average, so something’s happening.

I did promise earlier in the day that I would report back if I found out why the communications company is moving the way it has today, but – perversely – everyone’s being a bit tight-lipped about it, so I guess we’ll have to wait to see if the ASX drops RXH a speeding ticket in the mail.

Mayne Pharma (ASX:MYX), has shaken off the board’s recent call to cancel a proposed capital return, which chairman Frank Condella has acknowledged as a potential disappointment to shareholders.

MYX is up 20.1% for the day, most likely because the reasoning for the decision to hang onto the capital has been positioned by the board as necessary for the “successful execution of our strategy [which] will see a return to profitability and restoration of value which is expected to drive future returns for our shareholders”.

Little miner CuFe (ASX:CUF) is up 18.7% as the run on iron ore continues to gather momentum, while Cygnus Gold (ASX:CY5) has climbed 15.5% today, moving with the wind being generated around the countless Canadian lithium plays that has restarted the market’s love affair with the battery metal sector.

 

ASX SMALL CAP LAGGARDS

Here are the least best performing ASX small cap stocks:

Swipe or scroll to reveal full table. Click headings to sort:

Code Company Price % Volume Market Cap
LAW Lawfinance Ltd 0.011 -27% 757,229 $958,015
DUB Dubber Corp Ltd 0.23 -26% 4,435,317 $95,387,452
CCE Carnegie Cln Energy 0.0015 -25% 712,267 $31,285,147
GTG Genetic Technologies 0.003 -25% 3,624,400 $46,166,633
3DP Pointerra Limited 0.12 -23% 4,264,838 $105,059,962
MDX Mindax Limited 0.047 -20% 913,441 $117,590,403
AUK Aumake Limited 0.004 -20% 97,650 $4,372,235
DOU Douugh Limited 0.008 -20% 6,308,750 $9,823,359
CBH Coolabah Metals Limi 0.11 -19% 354,036 $5,062,500
LME Limeade Inc. 0.255 -18% 15,205 $79,503,860
VN8 Vonex Limited. 0.056 -18% 2,086,342 $24,604,346
OLI Oliver'S Real Food 0.024 -17% 979,834 $12,781,226
8IH 8I Holdings Ltd 0.029 -17% 126,772 $12,507,460
AVW Avira Resources Ltd 0.0025 -17% 3,363,506 $6,401,370
DDT DataDot Technology 0.005 -17% 333,332 $7,463,217
INP Incentiapay Ltd 0.005 -17% 320,124 $7,590,382
MMI Metro Mining Ltd 0.01 -17% 80,454,054 $52,365,956
NOU Noumi Limited 0.11 -15% 556,773 $36,024,211
LSA Lachlan Star Ltd 0.011 -15% 348,617 $17,147,165
ADR Adherium Ltd 0.003 -14% 7,000 $17,487,534
NES Nelson Resources. 0.006 -14% 183,777 $4,120,160
NET Netlinkz Limited 0.012 -14% 13,633,231 $48,886,842
AMX Aerometrex Limited 0.37 -14% 21,293 $40,674,631
NNG Nexion Group 0.031 -14% 61,065 $5,483,083
AQS Aquis Ent Ltd 0.16 -14% 5,274 $6,608,048
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LAST ORDERS

Golden Mile Resources (ASX:G88) has announced that it has received further “exciting” rare earth element and scandium assay results from exploration work at its 100% owned Quicksilver clay hosted nickel-cobalt project.

Among the highlights of the results are intercepts such as 4m@3,295 ppm TREO (including 1m @ 7,915ppm TREO) and 10m @ 2,548ppm (including 1m @ 3,949ppm), along with significant scandium assays including best high-grade results of 1m @ 165ppm Sc from 21m, and 2m @ 102ppm Sc from 8m.

Golden Mile says that the oxide REE mineralisation is “an indication of an unknown nearby primary source of REE mineralisation at depth”, and the company is forging ahead with stage 3 metallurgical diamond drilling.

G88 is aiming to de-risk the proposed multi-product flowsheet (Ni, Co, Fe, Cr and industrial) and provide confidence to proceed to a scoping study later on down the track.

Meanwhile, Cluey (ASX:CLU) has announced that it is undertaking an equity raising of up to approximately $10.6 million, raising funds to “underpin Cluey’s path to profitability and provide capital for Cluey to execute targeted growth opportunities”, according to today’s release.

The equity raising is structured as a fully underwritten $2.6 million placement to institutional, professional and sophisticated investors, combined with a 1-for-2.6 accelerated, non-renounceable entitlement offer to raise up to $8.0 million, with $6.4 million of the entitlement offer already underwritten.

Both the institutional placement and the entitlement offer are being conducted at the same offer price of $0.15 per new Cluey share, a 37.5% discount to the $0.24 closing price of the Company’s shares on 28 February 2023, and a 42.1% discount to the 5-day VWAP for the period ending 28 February 2023, being $0.26.

And lastly, Generation Development Group (ASX:GDG) has revealed that after a selective share buy back and cancellation of shares by Lonsec Holdings, GDG has increased its shareholding in Lonsec from 40.7% to 49.2%.

And on top of that, several members of GDG’s board and management team have each acquired a small shareholding directly in Lonsec, totalling 2.1%.

Now, that’s where the announcement ends – there’s nothing else mentioned in it at all… just a notification that GDG’s holding 49.2%, and its board and management team are holding 2.1% on top of that, which adds up to… 51.3% of Lonsec.

So, if I was a gambling man, I’d bet that we might be hearing more about GDG and Lonsec shortly. Watch this space.

 

TRADING HALTS

Cluey (ASX:CLU) – Capital raising.

Rhythm Biosciences (ASX:RHY) – Results from a Therapeutic Goods Administration submission.

Eneco Refresh (ASX:ERG) – Results from a fire at its Melbourne factory.

Matrix Composites & Engineering (ASX:MCE) – Capital raising.

Peregrine Gold (ASX:PGD) – Capital raising.

Pushpay (ASX:PPH) – Material announcement – possibly a double-denim move. Stay tuned.

Retail Food Group (ASX:RFG) – Announcement regarding material capital initiatives.

 

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