Predicting the movement of the ASX in the morning is becoming increasingly more difficult.
The ASX started slowly as predicted, down 0.2% in morning trading, but has moved in the opposite direction with the S&P/ASX200 gaining 17.60 points or 0.24% to 7,387.50 at time of writing, despite crossing below its 125-day moving average.
Over the last five days, the index is virtually unchanged but is currently 3.21% below its 52-week high.
Top-performing stocks in this index so far are Evolution Mining Ltd (ASX:EVN) up 8.48% and Nufarm Ltd up 3.27% as it continues its topsy turvy run.
The healthcare sector has led the way with a 1.4% bump. Consumer staples shares edged 1.2% higher.
The four major banks are also higher after the CBA turned around a 1% fall.
Evolution’s big deal
Evolution shares are at their highest level since July.
The gains followed news that the blue-chip would spend $1 billion to buy the Ernest Henry mine in Queensland from Swiss giant Glencore.
This deal will give Evolution exposure to copper and silver.
Macquarie analysts have now lifted their share price target on Evolution by 8% to $4.20.
Evolution will add Ernest Henry to its portfolio on January 1, which will lift its forecast copper production for the current financial year from 17,000 to 19,000 tonnes to 34,000 to 38,000 tonnes and its annual copper output by about 40,000 tonnes a year in subsequent fiscal periods to about 60,000 tonnes.
A deeper look at Nvidia
This morning we spoke briefly about Nvidia. Here’s a more in-depth look from eToro’s Josh Gilbert.
“Nvidia announced its Q3 earnings of US$1.17 per share on revenue of US$7.1 billion, compared to analyst expectations of US$1.11 per share on revenue of US$6.80 billion.
“Nvidia is the poster child of chip technology right now and shareholders have been reaping the rewards this year, as shares gained a whopping 123% year-to-date.
“The leader in the semiconductor space beat analysts’ expectations and saw its revenues climb by 50% year-over-year, whilst earnings grew by 60%. This was led by solid performance in the gaming and data centre segments, with both setting record revenues and demonstrating strong double-digit gains year-over-year.
"This once again illustrates how Nvidia continues to move from strength-to-strength with demand soaring for its graphic chips.
"The good news doesn’t stop there for Nvidia shareholders, as its Q4 outlook was bullish with forecasts beating analysts’ estimates. The company anticipates US$7.40 billion in revenue for Q4, above expectations of US$6.86 billion.
“Nvidia shares have soared in the last month on the back of news from Meta (the new name for Facebook) that it would be boosting capital expenditures to start funding the vision of the ‘metaverse’.
"Nvidia’s omniverse is likely to emerge as the leader in helping develop digital words and unlocking AI technology. Alongside its high valuation, potential in the metaverse, growing demand for automotive and AI technology, Nvidia has emerged as a great growth story.
“The company’s pending acquisition of ARM Holdings is still yet to be completed, however, if the purchase is pushed through, it should help to substantially expand Nvidia’s customer base and open up a vast addressable market. Of course, supply constraints still pose a short-term risk for Nvidia with demand so high, but it’s anticipated that Nvidia has the potential to navigate these issues.”
On the small cap front
Volt Resources Ltd (ASX:VRC) is up 15.38%. VRC acquired three licence applications in Serbia – Jadar North, Petlovaca and Ljig - that are considered prospective for lithium-borate mineralisation.
Alchemy Resources Limited (ASX:ALY) is up 8.33%. ALY has improved its understanding of mineralisation at its wholly-owned Karonie Gold Project in Western Australia with a high-resolution magnetic survey, discovering multiple prospective targets including more than 10 kilometres of potential strike at the new Karonie East target.
Infinity Lithium Corporation Ltd (ASX:INF) is up 7.32%. INF has set up an incorporated subsidiary Infinity GreenTech Pty Ltd to commercialise a new low-carbon lithium hard rock processing technique.
Latrobe Magnesium Ltd (ASX:LMG) is up 5.83%. LMG’s revenue forecast has been buoyed by two supply agreements into Japan and North America and a strong projected price on the commodity.
Medallion Metals Ltd (ASX:MM8) is up 4.67%. MM8 continues to improve the outlook of Harbour View deposit within the Kundip Mining Centre (KMC) of its greater Ravensthorpe Gold Project (RGP) through results of up to 9.2 g/t gold and 7.2% copper.
AdAlta Ltd (ASX:1AD) is up 2.38%. 1AD has bolstered its patent portfolio with a second US patent for its AD-214 treatment from the company’s flagship i-body platform, granted by the US Patent and Trademark Office.