The ASX is slightly down after losing its gains during the course of the day.
The S&P/ASX200 is down just 2.30 points today to 7,249.30. The index has lost 0.50% for the last five days but sits 4.92% below its 52-week high.
Top-performing stocks in this index were South32 Ltd (LSE:S32, ASX:S32, OTC:SHTLF, JSE:S32) and Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF), up 5.15% and 4.85% respectively. The bottom-performing stocks in this index were Novonox Ltd and Lynas Rare Earths Ltd, down 6.76% and 6.27% respectively.
BHP Group Ltd (LSE:BHP, ASX:BHP) was another that led the charge, hitting its highest level in 15 weeks as iron ore prices bounced. Bloomberg reported BHP’s trading volume to be 93% above its 20-day average.
China’s economic expansion could have a positive impact on iron ore miners moving forward.
BHP finished the day at $48.08, a rise of 4.02%.
Rio Tinto Ltd climbed 4.04% and Fortescue Metals Group (ASX:FMG) Ltd finished 4.07% to the green.
Materials and energy were the best-performed sectors, up 2.85% and 1.30% respectively. All other sectors finished in the red with Consumer Staples -1.32% and Financials down 1.81%.
Looking forward, the market may be well served by eToro market analyst Josh Gilbert’s assessment that inflation has now peaked.
"Australian monthly inflation decelerated in January, indicating that inflation in Australia has likely peaked and price pressures are slowly starting to ease. Some of the most significant price falls came from fruit and vegetables, and holiday travel.
"Fruit and vegetables will likely see further price declines in the months ahead as local weather improvements drive down prices. Both of these price dips will be welcomed by Aussie households who have weathered the brunt of cost of living pressures, and potentially wrote off the prospect of much-needed holiday time after a tough few years, as recession conversations grow.
"The positive for investors is this is exactly what the RBA wanted; a decline in inflation coming in well below forecasts. The data may also mean that the central bank might feel it does not need to be as aggressive with its tightening for the rest of this year.
"However, this result is unlikely to divert the RBA from handing down another 25-basis-point hike in March, given that the inflation fight isn’t over yet and is still well off the RBA”s 2% target."
Super changes
The government continues to cop fire after being accused of backflipping on its promise to leave superannuation unchanged.
While video emerged of Prime Minister Anthony Albanese emphatically saying there would be no changes to super, Treasurer Dr Jim Chalmers has said no major changes would be made.
The latter is correct.
The change is modest and affects a very small percentage of Australians: those with $3 million or more in their super funds.
“It's a modest change that has come before the government … Previous governments have made similar calls, the Turnbull government made a decision that affected eight times as many people now,” assistant Trade and Manufacturing Minister Tim Ayres told Sky News.
“They still have the benefit of very generous tax concessions there, they're just slightly less generous than they were before."
Finance Minister Katy Gallagher has said there may be changes beyond superannuation in the pipeline.
“I think we want to focus on evaluating, you know, programs as they exist. I’m not saying it’s easy. I’m not saying there’s anything jumping out,” Gallagher told RN Breakfast.
“We are determined to be responsible budget managers and part of that is having a look at what we’re currently doing, being mindful of the pressures that are coming our way, and that we have inherited a budget mess.”
Gallagher said closing the wage gap in feminised industries was also on the agenda, a move that would also balance super differences.
“One of the big issues around super is the fact that women earn less and so closing the gender pay gap is a really important part of that,” Gallagher said.
“The other issue, which we’ve made no secret, we would like to do when we make room in the budget which is looking at how we ensure for those gaps in women’s earnings and when they’re on leave for… parental leave, things like that.”
Earnings updates
Salesforce
Salesforce’s Q4 earnings beat estimates across the board, but the key was its full-year forecast that showed that profitability is set to soar by 35% this year.
Josh Gilbert said, “Salesforce’s Q4 earnings beat estimates across the board but the key was its full-year forecast that showed that profitability is set to soar by 35% this year. Revenue rose by 14% in the quarter, and the company also announced a US$50 buyback as it moves away from large acquisitions.
"This outlook shows that profitability is the major focus for the business heading into the full year, signalling a shift away from growth. This forecast is likely to please investors, who have seen shares rise by 26% YTD, despite recent challenges, including staff layoffs, board member changes and a global slowdown in cloud spending by enterprises.
"Although growth looks set to slow, Q4 was a solid quarter for Salesforce, with forecasts well above estimates and demonstrating the company’s resilience in the face of challenges. This year will also show that it can go head-to-head with competition, such as tech giants like Microsoft, for market share on cloud and collaboration tools.”
Zoom
Zoom's Q4 results have offered some reprieve for investors, showing signs of customer retention and earnings that beat market expectations.
"In a post-pandemic world, Zoom’s business has struggled, with shares falling more than 80% in the last two years. However, its Q4 results have offered some reprieve for investors, showing signs of customer retention and earnings that beat market expectations. Zoom said it finished Q4 with 213,000 customers, a jump of 12% from a year ago,” Gilbert said.
"The macro environment is straining Zoom’s growth, but these results show it hasn’t entirely run out of ideas and that its software may continue to be a must-have for enterprises. The positive for investors is its full-year earnings forecast, which came in well above Wall Street expectations at US$4.11 to US$4.18 compared to US$3.53.
"Zoom is doing what it can to try to navigate this macro environment with staff lay-offs to protect margins and new offerings like phone and contact centre to help attract new customers.
"Although this forecast will please investors short term, things won’t be all plain sailing. With limited growth, stiff competition from rivals such as Microsoft, and a slowdown in corporate budgets, it looks to be another challenging year ahead for Zoom."
Five at five
Race Oncology higher on initiating collaboration to understand Zantrene’s cardioprotection mechanism
Race Oncology Ltd (ASX:RAC) is trading higher after initiating a new collaborative research project with the University of North Carolina aimed at uncovering at the molecular level how Zantrene® protects the heart from chemotherapy.
Alligator Energy lifts Blackbush deposit resource by 23% at Samphire ISR Uranium Project
Alligator Energy Ltd (ASX:AGE) has upgraded the uranium mineral resource estimate (MRE) for Blackbush deposit within the Samphire in-situ recovery (ISR) uranium project in South Australia, increasing the resource by 23%.
ClearVue Technologies wins Hong Kong Government tender for solar glass study
ClearVue Technologies Ltd (ASX:CPV, OTCQB:CVUEF) has won a tender to complete a measurement and verification study (M&V) with the Electrical and Mechanical Services Department (EMSD) of the Government of Hong Kong, Special Administrative Region (SAR) of the People's Republic of China.
Kinetiko inks MoU for South African gas supply with FFS Refiners
Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF), which has trained its sights on advanced shallow conventional gas and coal bed methane in South Africa, has signed a non-binding Memorandum of Understanding (MoU) with FFS Refiners Proprietary Ltd to finalise a gas supply agreement (GSA).
Brookside Energy identifies 389 feet of net pay for production testing at Juanita
Brookside Energy Ltd (ASX:BRK) has identified 389 feet of net pay for production testing across the primary, secondary and tertiary pre-drill target zones at Juanita Well in Oklahoma’s world-class Anadarko Basin.
On your six
The smart money in medicine: the silent pandemic
When antibiotics – which have underwritten our way of life for the last 100 years – are no longer effective, mundane medical procedures will become almost impossibly risky.
The one to watch
Evion Group says expandable graphite project on track for production this year
Evion Group NL (ASX:EVG) MD Tom Revy tells Proactive that solid progress is being made on pre-construction work at the Panthera expandable graphite joint venture (JV) project in Kurkumbh, India, with production expected later in the year.