The ASX has closed higher today.
The S&P/ASX200 gained 25.20 points or 0.25% to 7,093.30. Over the last five days, the index has lost 0.39% and sits 4.95% above its 52 week low.
Top-performing stocks in this index are Brambles (ASX:BXB) Ltd up 10.98% and Pilbara Minerals Ltd (ASX:PLS) up 5.67%.
Morningstar is steady on Brambles, with analyst Mitchell Hawker maintaining a $12.70 per share fair value estimate on the back of Brambles’ takeover talks (tipped at $20 billion) with CVC.
"At current prices, shares in Brambles screen at an approximate 9% discount to our fair value estimate. We view the prevailing interest in Brambles as supportive of our positive outlook for the global pallet pooler," Hawker said.
"We have a positive outlook for Brambles underlying business over the short, medium and long term. We think Brambles derives a wide economic moat through a cost advantage in the proliferation of pallet pooling within its key markets globally.
"As a result, Brambles is poised to benefit from a lucrative long-term secular growth trajectory as its pallet pooling model displaces whitewood pallets in underserved markets globally."
While Brambles fared well today, blue chip iron ore miners suffered.
After weaker than expected data out of China, BHP lost 1.4%, Rio Tinto was down 1.7% and Fortescue Metals also lost 1.7%, wiping a combined 14 points off the S&P/ASX 200 index.
Chinese data showed industrial production fell 2.9% year-on-year versus an expected 0.5% rise, to be up 4% year to date versus 5% expected.
Retail sales fell 11.1% versus a 6.6% fall expected, to be down 0.2% year to date versus 1.2% expected.
Petrol prices rise again
Up the road from my house petrol is $2.15 per litre. About a kilometre away it is circa $1.70. There’s price gouging going on among certain petrol suppliers, but with oil and gas prices rising globally, it’s difficult to know where the price of petrol at the bowser should sit.
The Australian Institute of Petroleum reports the national average unleaded petrol price rose by 5.4 cents last week to $1.85 per litre. The price of unleaded is currently at a six-week high.
Commsec chief economist Craig James has reported the national average is $1.93.5 cents per litre - up 34.6 cents from recent lows driven by the cut 22 cents cut to fuel excise.
"Today, some retailers are charging near $2.20 a litre. With the wholesale price near $1.80 a litre, and assuming gross retail margins near 15 cents a litre, pump prices should be closer to $1.95 a litre," James said.
"Certainly, the weaker Aussie dollar is not doing motorists any favours, pushing up the local cost of imported fuel."
Crypto in ATO’s sights
Cryptocurrency will come under the watchful of the Australian Tax Office (ATO) this tax season.
The ATO has warned it will crackdown down on digital currency holders who fail to disclose their assets.
Crypto losses cannot be offset against wages or salary and this will be heavily scrutinised.
According to Assistant Commissioner Tim Loh mistakes won’t be tolerated.
“Through our data collection processes, we know that many Aussies are buying, selling or exchanging digital coins and assets so it’s important people understand what this means for their tax obligations” he says.
“Crypto is a popular type of asset and we expect to see more capital gains or capital losses reported in tax returns this year.
"Remember you can’t offset your crypto losses against your salary and wages.”
The ATO will be scrutinising record-keeping, work-related expenses and rental property income and deduction.
On the small cap front
- Matador Mining Ltd finished 5.13% higher.
- Marvel Gold Ltd finished 7.69% higher.
- Nexus Minerals Ltd finished 6.45% higher.
- GTI Resources Ltd finished 6.67% higher.
- Meeka Gold Ltd finished 10% higher.
- Kingfisher Mining Ltd finished 11.36% higher.
- Hygrovest Ltd finished 1.67% higher.
- Australian Strategic Materials Ltd finished 9.32% higher.
- Allup Silica Ltd finished 8.7% higher.