The ASX is trading lower today.
The S&P/ASX200 has dropped 50.60 points or 0.69% to 7,327.80.
This index has lost 1.05% for the last five days, but sits 4.00% below its 52-week high.
The bottom-performing stocks at time of writing were Mesoblast Ltd (ASX:MSB) (again) down 5.34% and Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF) down 5.15%.
Generally speaking, mining and energy stocks were lower but consumer staples and finance indices were higher.
United Malt led consumer staples higher gaining nearly 2% to $4.47.
On the downside was Blackmores after it announced its CFO had quit. It fell more than 3% to $90.19.
"We sincerely thank Gunther for his significant contribution to Blackmores and wish him and his family the very best for the future," Blackmores CEO Alastair Symington said.
“It is always important to have succession planning underway and we are very pleased to welcome Patrick Gibson to the role of CFO."
Banks were up, with Westpac Banking Group Ltd 0.8% higher to $21.10.
Technology One led tech losses, down nearly 3% to $12.70.
Helloworld is up nearly 5% to $2.40 after it announced the sale of its corporate and entertainment businesses to Corporate Travel Management, which is in a trading halt.
Merged entity receives Baa3 credit rating
The newly merged Santos and Oil Search company has received a Baa3 credit rating from Moody's with a stable outlook.
"Moody’s noted Santos’ investment grade credit profile is supported by the improved size and scale of its operations following the merger with Oil Search, with a diversified geographic presence across key Australian hydrocarbon basins and an increased exposure to low-cost LNG production," Santos says in a statement.
“Santos’ investment grade credit ratings provide access to a broad range of liquid global debt capital markets and this new Moody’s rating is further evidence of the stronger balance sheet created by the merger,” Santos CEO Kevin Gallagher said.
CSL upgraded to buy
Following its acquisition of Vifor Pharma, Citi analysts have upgraded their stock rating for CSL Limited (ASX:CSL) to buy.
The analyst has also raised the biotech giant’s target price to $340 from $325.
"CSL is acquiring Vifor Pharma at roughly ~14x FY23 EBITDA (including the full run rate of US$75 million in cost synergies)," Citi's note to clients said.
"Time will tell if CSL has paid a full price given that the revenue is currently subdued because of the pandemic, and several new products are yet to launch, but the transaction should be ROIC dilutive in FY23.
"Our standalone DCF (discounted cash flow) valuation for this transaction is $15. Combined, our new DCF valuation is $340.
"We have not incorporated the earnings into our model given the regulatory approvals required," Citi said.
Morgan Stanley (NYSE:MS) has had its say as well.
“CSL’s business is currently experiencing depressed plasma collections, which we see as transient,” Morgan Stanley (NYSE:MS) said.
“However, there may be medium- to long-term disruption risk from ’FcRn’and influenza vaccine manufactured via mRNA technology. In theory, diversification could be wise, although it could lead to near-term de-rating until any potential synergies are evident to the market.”
Morgan Stanley has an equal weight rating on CSL and $280 price target.
CSL is currently in a trading halt.
On the small cap front
Maximus Resources Ltd (ASX:MXR) is up 12.07% after uncovering multiple occurrences of visible gold within the completed Western Australian Government Exploration Incentive Scheme (EIS) co-funded diamond drilling at Redback gold deposit.
Medallion Metals Ltd (ASX:MM8) is 10.53% higher. MM8 intersected high-grade gold mineralisation at Ariel Prospect, about two kilometres north of the Kundip Mining Centre which already hosts the company’s current JORC 2012 mineral resource estimate (MRE) of 674,000 ounces at 2.4 g/t gold.
West Wits Mining Ltd (ASX:WWI) is 6.06% higher. WWI is on track for first ore in February, with all key site infrastructure at the Qala Shallows Project, part of the Witwatersrand Basin Project in South Africa, complete.
Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) is 3.17% higher. RCE has recruited its first cohort in a Phase I intravenous (IV) clinical trial of lead compound RECCE® 327 (R327), the company’s intravenous and topical therapy.
Lake Resources NL (ASX:LKE, OTCQB:LLKKF) is 1.80% higher. LKE’s drilling program at Kachi Lithium Project in Argentina continues to reinforce the company’s optimism – derived from previous assay results – that lithium brines extend well beyond the limits of the current resource.
Suvo Strategic Minerals Ltd (ASX:SUV) is up 1.67%. SUV has further confirmed the high levels of halloysite present at Trawalla deposit of the Pittong Kaolin operation, returning grades of up to 32.4% in the most recent round of test-work.
Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF) is 1.43% higher. MUS has made more progress toward a mineral resource estimate for its Big Sky prospect within the Cue Gold Project in Western Australia.
Emyria Ltd (ASX:EMD) is up 1.37%. EMD moved a step closer to commercialisation of proprietary treatment, EMD-003, an ultra-pure cannabidiol (CBD) capsule formulation, with positive data from a pre-clinical animal study comparing it favourably to the only Therapeutics Goods Administration-approved CBD treatment, Epidyolex oil.