The ASX was higher and it seems a rise in interest rates didn’t hurt today’s investor confidence
The benchmark S&P/ASX200 gained 53.5 points or 0.81% to 6,648.00. Over the last five days, the index has gained 1.22% but is down 10.7% for the last year to date.
Top-performing stocks in this index were Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF) Ltd up 7.47% and Imugene Ltd (ASX:IMU, OTC:IUGNF) up 9.09%.
Coal miners had mixed results, following the Australian Bureau of Statistics’ report that in May coal has usurped iron ore as Australia’s most valuable export commodity.
The report shows coal exports rose to $14.7 billion in May, compared with $14.5 billion for the value of iron ore exports – the first time in 13 years coal has exceeded iron ore exports.
Whitehaven Coal Ltd was 1.7% higher and Yancoal Australia Ltd (ASX:YAL) lifted 2.9%. On the flipside, New Hope Corporation Ltd fell 1.7% and Stanmore Resources Ltd lost 4.1%.
Coal prices were marginally higher at nearly $US400 a tonne, up from about $US160 a tonne at the start of the year.
It wasn’t all bad news for the iron ore sector. Singapore iron ore futures for July were up 1.6% to $US113.95 today and August futures are up 2.1% to $US113.30.
The bounce in iron ore prices saw Rio Tinto Limited rise 3.3%, Fortescue Metals Group (ASX:FMG) Ltd climb 3.2% and BHP Group Ltd (LSE:BHP, ASX:BHP) rise 2.1%.
In the news today
Don’t fear China says Ardern
New Zealand Prime Minister Jacinda Ardern is in the country. Speaking at the Lowy Institute, Ardern said we shouldn’t automatically consider China as being a Russian ally.
China is New Zealand’s biggest trade partner.
“Let’s not assume that China does not have a role to play in placing pressure in response to what is the loss of territorial integrity,” she said at the think tank in Sydney.
“Let’s not just isolate and assume that it is only democracies that take this view.”
Geoffrey Miller, an analyst at the Democracy Project at the Victoria University of Wellington, said of Ardern’s speech: “She was trying to put some rhetorical distance between New Zealand and Australia, on China and New Zealand foreign policy in general,” he said. “She is using all these code words that China will like. That will go down well with Beijing.”
Meanwhile Foreign Minister Penny Wong said it was in Australia and China’s best interests to “stabilise” their relationship.
Speaking at the G20 Summit in Bali, Wong said, “Australian ministers remain open to engage, we are willing to engage, and that willingness extends to any meetings on the margins of the G20.”
ASX 200 outperforms global markets
According to JP Morgan, the ASX 200 has outperformed its global peers for the first time in almost 20 years.
A report by the investment bank authored by Jason Steed and Emily Macpherson noted that this past financial year saw the first “meaningful outperformance” against the MSCI World index since 2005, an outcome spread across 80% of the market’s sectors.
There were 217 new listings on the ASX this year – a 4% rise and 128 delistings.
“It’s been a real tale of two halves,” said James Posnett, general manager of listings at the ASX. “The first half of the year was the best half by number of listings since 2007.
“This half, the markets have not been very favourable and this (calendar) year to date we have done 67 admissions out of the 217 (for the financial year).”
The ASX has been helped by an uptick in junior miners backed by higher commodity prices.
“Other sectors, it’s been extremely quiet and that’s just a reflection of the global market and the geopolitical issues we’re seeing at the moment,” Posnett said.
JP Morgan’s authors have seen a big positive for the local market.
“In comparison to the likes of the US and UK, the Australian macro backdrop looks relatively benign,” the analysts wrote in a client note.
“Inflation is running at 5.1% and wage growth at 2.4%, both of which are below the rates being experienced in other markets. While our economists and consensus project both to rise into year-end, the high is expected to be well below other (markets).”
The ASX 200 outperformed the MSCI World index by 761 basis points in the past year, with the Utilities sector leading the way with the biggest outperformance at 32.3%. Other sector winners include Communications, Industrials, Materials and Energy.
Healthcare and IT underperformed.
Here’s a look at five of today’s top small cap stories.
Chalice Mining higher on intersecting new sulphide mineralised zone at Dampier target within Julimar Project in Western Australia
Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF) has unearthed a new nickel-copper-platinum group element (PGE) sulphide zone in maiden drilling at Dampier target, 10 kilometres north of the Gonneville deposit within the Julimar Nickel-Copper-PGE Project in Western Australia. Chalice finished 7.4% higher for the day.
Latrobe Magnesium awards pre-feasibility study for 'green magnesium' plant to Bechtel
Latrobe Magnesium Limited (ASX:LMG) has started a pre-feasibility study (PFS) for its 100,000 tonnes per annum 'green magnesium' plant, awarding the project to global engineering, construction and project management company, Bechtel. LMG was 8.1% higher.
Kingston Resources kicks off development and expansion strategy at Mineral Hill with $10 million debt facility
“We are delighted to be working with PURE Asset Management (Resources Fund), who has recognised the opportunity at Mineral Hill. Through enabling the acceleration of the work programs required to restart mining, this funding package is set to deliver benefits to all shareholders," Kingston Resources Ltd (ASX:KSN) MD Andrew Corbett said. Kingston was 3.4% higher today.
CV Check launches free digital credential passport app, OnCite
IT service management company CV Check Ltd (ASX:CV1) has validated some seven million worker credentials to date and is confident of increasing uptakes with the launch of the app, which is available for download from Google Play and the App Store. CV1 was 5.5% higher today.
Caspin Resources grows potential of Serradella prospect at Yarawindah Brook as early results return PGE-nickel-copper
“There are still many results still to come, particularly in the areas we think are more prospective. But we think just these few results are already providing us with the focus for the next round of drilling," said Caspin Resources Ltd (ASX:CPN) CEO Greg Miles. Caspin was 9.3% higher today.
On your six
We are in the heart of tax time now and investors are asking the question about what deductions they can claim…
Deductions you could be claiming in relation to your shares
H&R Block (NYSE:HRB) provides a guide on what can be claimed in a tax return in regard to a share portfolio.
The one for good luck
GTI Energy spinout gets set to list on the ASX as it readies for gold exploration
GTI Energy Ltd (ASX:GTR) spinout Regener8 Resources’ Steve Foley speaks with Proactive’s Elisha Newell about the birth of Regenr8 and its aims moving forward.