Mining and energy stocks have led the ASX higher today.
The S&P/ASX200 had gained 33.50 points or 0.46% to 7,329.20 at time of writing.
This index has lost 0.33% for the last five days but sits 3.98% below its 52-week high.
The top-performing stocks so far are Virgin Money UK PLC (LSE:VMUK) up 6.10% and St Barbara Ltd (ASX:SBM) up 5.77%.
What we saw in morning trading:
- Ampol climbed 3.2%.
- Santos added 2%.
- Woodside Petroleum was 1.4% higher.
- Regis Resources was 4.9% higher.
- Perseus Mining Limited gained 4.8%.
- BHP was up 0.7%
- Rio Tinto was 0.8% higher.
- Technology stocks weighed on the market.
- Afterpay fell 7.1%
- Zip lost 8.3%.
As we reported this morning, Afterpay is the subject of a regulatory review into BNPL practices. However, the company has welcomed the review.
“Afterpay welcomes efforts to ensure that there are appropriate regulatory protections for consumers in the diverse BNPL industry and that providers are meeting high standards and delivering positive consumer outcomes while protecting their data," a spokeswoman said.
“Afterpay provides consumers with better transparency, lower costs, and better budgeting tools than traditional forms of credit and promotes responsible spending.
"Afterpay also promotes and enables responsible credit use by pausing accounts from future purchases if a payment is late, capping late fees and not charging interest. These built-in safeguards mean that Afterpay customers are actually half as likely to be delinquent than credit card customers.”
Buy or hold Qantas
Ord Minnett has maintained its BUY recommendation for Qantas Group Ltd and has lowered its price target from $6.50 to $6.30.
"We maintain our Buy recommendation on Qantas, however, and remain comfortable with the prognosis for a domestic aviation recovery," a note to clients said.
"We reiterate our Buy recommendation as we remain positive on: 1) a domestic leisure led recovery; 2) a prevailing rational domestic market; and 3) strong loyalty business earnings."
However, Citi has taken a ‘wait and see’ approach, although maintains a BUY rating.
"While we understand concerns around Omicron, we largely believe at these levels the risk/reward is largely in the investor's favour," a note to clients on Friday said.
“Early website traffic suggests a bounce back from Omicron fears, while planned capacity remains strong.
"Additionally at these levels, we largely think International is not priced in, and subsequently we remain Buy rated given the favourable risk/reward."
Macquarie has also gotten in on the act rating the airline as ‘outperform’.
"While the recovery has hit a speed bump in 1H FY22 with the new COVID variant, domestic and international border policies are easing, setting the business up for a snap-back in profitability in 2H FY22, in our view," Macquarie said in a note to clients on Friday.
"We see FY23 earnings exceeding pre-COVID levels, with Qantas a structurally better business, considering cost out and cash generation will continue to reduce debt levels, also supported by recent land-sale proceeds.
"There may be upside to our forecasts on higher travel demand (we are at the low end of FY23 international capacity guidance), upside to our cost-out assumptions and longer-term Qantas Loyalty estimates.
"We think valuation is compelling."
The target price is $6.10 based on FY23E earnings and is unchanged.
On the NFT front
Cryptocurrency exchange CoinSpot has partnered with Sydney’s first major international NFT exhibition 'Satellite', a free event that will give Sydney-siders their first peek at the world of NFTs (non-fungible tokens).
Running from March 9 through to April 3, 2022, at Twenty Twenty Six Gallery in Bondi Beach, Satellite will present more than 40 unique pieces from some of the world’s leading NFT artists including Beeple, Trevor Jones, BossLogic and Serwah Attfua to name a few.
Some of the exhibited pieces will also be auctioned off with all sales proceeds directly supporting not-for-profit ‘Citizens of the Great Barrier Reef’.
To drive education and awareness of the emerging asset class, CoinSpot experts will answer questions around the purchase of Ethereum and how they can use it to bid on the digital artworks available at the exhibition.
Working directly with renowned digital artist Kode Abdo, who is better known in the digital art world as BossLogic, CoinSpot has also commissioned a bespoke NFT which will be available during the exhibition for attendees to bid on.
All proceeds from the NFT will also be donated to ‘Citizens of the Great Barrier Reef’ to support their initiative of protecting and conserving the Great Barrier Reef, and reefs around the world.
“Traditionally only available online, the Satellite exhibition brings NFTs off the web and into a physical space, while showcasing and celebrating emerging local and international artists, many of whom are creating pieces that are gaining worldwide attention,” Coinspot market executive Tim Wilks said.
“It’s an exciting time for the crypto space as more Australians are joining the ecosystem.”
On the small cap front
Alkane Resources Limited (ASX:ALK) is up 16.67%. ALK has intersected further broad mineralisation at its Boda Prospect, a landmark porphyry gold-copper system within the Northern Molong Porphyry Project (NMPP) in Central West New South Wales.
Duke Exploration Ltd (ASX:DEX) is up 12.12%. DEX has processed new geophysical data to rank drill targets at its flagship Bundarra copper property in central Queensland.
Chimeric Therapeutics Ltd (ASX:CHM) is 6% higher. CHM has passed a key milestone by completing the second dose cohort in the Chlorotoxin CAR T (CLTX CAR T) phase 1 dose-escalation study at the City of Hope, a world-renowned cancer research and treatment organisation near Los Angeles.
Radiopharm Theranostics Ltd (ASX:RAD) is up 5.56% after collaborations with international partners have boosted the company’s hopes that its RAD201 therapy can successfully combat breast cancer.
Alto Metals Ltd (ASX:AME) is 5% higher. ALT has struck shallow, high-grade gold during reverse circulation (RC) drilling at and near the Lord Henry pit at Sandstone Gold Project in WA.
SenSen Networks Ltd (ASX:SNS, OTCQB:SNNSF) is 4.35% higher. SNS has extended its contract of sale with Crown Melbourne Ltd to provide its proprietary, patent-pending, sensor AI gaming products to Crown Melbourne’s casino.