It is now two days in a row that expectations and reality have failed to connect, with the ASX trading lower today.
The S&P/ASX200 had dropped 12.70 points or 0.17% to 7,439.50 at time of writing, having been up 0.1% half an hour after open.
Over the last five days, the index has gained 1.57% and is currently 2.53% off its 52-week high.
The bottom performing stocks in this index are CSR Limited (ASX:CSR) down 4.59% and Perseus Mining Limited down 2.98%.
The market has been dragged down by the financials sector, with NAB down 2.1% on profit-taking after initially rising as much as 1.5% to a 2-year high of $29.54 after its full-year report.
NAB shares were down after hitting two-year highs.
Macquarie believes NAB shares are due for consolidation.
"Operationally, NAB is performing well, and in our view, deserves a premium relative to ANZ and WBC," Macquarie's Victor German said.
"NAB is trading at a 13% premium to ANZ and 9% premium to WBC, but a 29% discount to CBA.
In our view, a cleaner and operationally stronger result, suggests that the premium to ANZ and WBC is deserved."
Macquarie has an Outperform rating and a $29 target.
Other major banks fell 0.7%-0.8% and Macquarie was flat.
Materials was up led by with BHP rising 1.3%, Lynas up 7.6% and Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF) up as high as 21%.
Chalice has made the biggest nickel sulphide discovery in 20 years.
“The resource confirms that Gonneville is the largest nickel sulphide discovery globally in over two decades, and the largest PGE discovery in Australia’s history," Chalice said.
Chalice has labelled today’s news as a major milestone.
"Given its sheer scale, the attractive suite of six payable metals it contains and its premier location close to world-class infrastructure and services in Perth, Chalice clearly has the potential to become a leading global player in the green metals space."
"The high-grade sulphide component of the maiden resource is very important to the project, as it provides a degree of optionality for mine development that is not often seen in mining projects of this nature.
"The vast majority of competitor projects worldwide are narrow, high-grade underground deposits, whereas high-grade mineralisation at Gonneville starts near surface, which could be a material factor when considering project economics in the initial years of operation."
Seven West also in the good books
Seven West will beat analyst forecasts, believing it is "well-positioned" to hit its target of a 40% share of the metropolitan TV advertising market in the current six-month period, while also on track to target cost savings of $15 million-$20 million in FY22.
"The revenue growth and cost savings give us confidence that we will exceed analysts’ consensus forecast for FY22 EBITDA of approximately $260 million by between 7% and 10%, excluding any benefits from Prime," Seven West Media CEO James Warburton says.
"Our company is in much better shape than it was two years ago and we are not going to stop now.
"We will continue to work harder and smarter to make Seven West Media even stronger and more successful – and to grow its value for all our stakeholders."
On the small cap front
Castillo Copper Ltd (LSE:CCZ, ASX:CCZ) is up 11.43%. CCZ has made broad progress across its portfolio over the financial year to date, progressing its copper operations in Queensland and Zambia while simultaneously conducting due diligence on the Litchfield and Picasso lithium projects in the Northern Territory and Western Australia, respectively.
Buru Energy Ltd (ASX:BRU) is up 7.14%. BRU is drilling ahead at the Rafael 1 exploration well onshore Canning Basin in Western Australia’s southwest Kimberley region after setting 7-inch (178mm) casing.