The ASX was higher today on broad gains. The benchmark S&P/ASX200 gained 66.90 points or 1.01% to 6,672.50. Over the last five days, the index has gained 1.06% but is down 10.37% for the last year to date.
Top-performing stocks in this index were Tyro Payments Ltd up 8.46% and Pendal Group Ltd up 8.24%.
Surprisingly, Woolworths Group Ltd was down 0.3% after it snapped up retail digital media company Shopper Media Group for $150 million cash.
“We’re excited about the opportunity to bring together the complementary capabilities of our retail media business, Cartology, with Shopper’s expertise in out-of-home media,” chief executive Brad Banducci said in an ASX statement on Monday.
Meanwhile, Australia and New Zealand Banking Group Ltd was flat after it announced a $4.9 billion acquisition of Suncorp Bank
“It’s going to be a real test,” Royal Bank of Canada (TSX:RY) equities boss Karen Jorritsma said of the Australian Competition and Consumer Commission’s view. “And people will watch the approach from the new chair [Gina Cass-Gottlieb] to see how it’s handled, given the sensitivity around the four major banks already having significant market share and pricing power."
“The takeover of Suncorp by ANZ will simply increase the power of the major banks in Australia. That’s not great news for banking consumers,” Heritage Bank CEO Peter Lock said.
“It’s even worse that we’re losing a Queensland-based bank and the different perspective that brings. Having all the major banks based in Sydney and Melbourne means that there is a metropolitan perspective that dominates when it’s not really representative of the rest of the country.
In the news today
Petrol prices are falling and according to Commsec, bigger price drops are on their way.
According to Commsec chief economist Craig James crude oil prices have been falling on concerns that global rate hikes will lead to slower economic activity.
"Movements in the petrol price also affect inflation – directly and indirectly – the latter being the impact on transport costs, especially food," James said.
The Australian Institute of Petroleum reports the national average unleaded petrol price fell by 8 cents to 204.1 cents a litre last week. The wholesale prices fell by 17.5 cents.
The news comes as the ACT Government said it planned to ban the purchase of new petrol vehicles from 2035 and set a target of 80 to 90% of newly sold cars being zero-emissions by 2030.
“What we want to do is stop new petrol vehicles from coming into the system,” Emissions Reductions Minister Shane Rattenbury told reporters on Monday morning.
“With more than 60% of our emissions coming from transport, this is a key area for the ACT Government to work with the community, with the business sector, and with the car makers.
“This action plan is all about making it easier for Canberrans to get into the EV space.”
Warnings on gas
The Australian Energy Market Operator (AEMO) says the electricity market could face a fresh gas shortage crisis as Lochard Energy's Iona gas storage facility in Victoria is on track to fall to an all-time low of just 6 petajoules on July 31. The depletion of inventories could lead to "total system" gas supply shortfalls for the state.
"This reduction in Iona supply capacity increases the risk of curtailment during peak demand days and during periods of high gas generation demand," AEMO said.
"This threat to system security will continue until September 30, 2022, or until a time that AEMO otherwise considers that the threat to gas supply caused by Iona storage inventory depletion has subsided."
While AEMO wants a market response to its shortfall notice, it remains a concern.
"AEMO reserves the right to determine an appropriate operational response if the market response is insufficient to avert the threat to system security. This may include intervening to apply scheduling constraints and directions to relevant participants if necessary that may limit withdrawals from the declared transmission system."
During winter gas demand is on average three times higher but problems are being exacerbated due to international factors including Russian sanctions.
Meanwhile, according to consultancy Energy Edge, a cap on Victoria's gas prices incentivised producers to direct supplies to other states.
"The issue with the current Declared Wholesale Gas Market is that the market has been under an administered price cap of $40/GJ since May 30, 2022. Therefore, there are no market signals with Victoria as gas prices can't go higher than $40/GJ," Energy Edge managing director Joshua Stabler said.
"Perversely, as the market signals will exist in Adelaide and Sydney (uncapped), market participants will be economically incentivized to support other regions in preference to Victoria."
Here’s a look at some of the top small cap stories of the day.
RemSense Technologies acquiring virtual plant background IP from Woodside Energy, shares up
“Ensuring the IP is owned by RemSense is an important step for RemSense Technologies Ltd (ASX:REM) in establishing our enterprise-grade, scalable digital twin solution," said MD Steve Brown.
Azure Minerals defines three more high-grade massive nickel sulphide shoots at Andover's Ridgeline as strong results continue
Azure Minerals Ltd (ASX:AZS) continues to deliver high-grade nickel, as well as strong copper and cobalt values, from drilling at Andover Nickel-Copper-Cobalt Project in the West Pilbara region of Western Australia, including promising visually-identified intersections.
Galena Mining achieves 73% construction progress at Abra Base Metals Mine
Galena Mining Ltd (ASX:G1A) has made strong construction progress, achieving 73% completion at its Abra Base Metals Mine in the Gascoyne Region of Western Australia.
Evolution Energy Minerals delivers “exceptional” yield and performance results from coated spherical graphite tests
Evolution Energy Minerals Ltd (ASX:EV1) has demonstrated the premium quality of graphite sources from its Chilalo Graphite Project in Tanzania with electrochemical testing returning much higher than average yields based on unoptimised test-work, results described by the company as "exceptional".
Emyria expands MDMA-related drug candidate library with addition of 19 new compounds
“Emyria Ltd’s preclinical drug discovery program, inspired by MDMA, is making great progress. We are strengthening Emyria’s intellectual property portfolio and potential slate of proprietary drug candidates targeting major unmet needs,” MD Dr Michael Winlo said.
On your six
Should you borrow money to buy shares? If you do you could claim a tax deduction for borrowing to finance your portfolio.
Borrowing to buy shares
If you’ve got an appetite for risk, you can claim a tax deduction for money borrowed that finances a share portfolio – a so-called ‘margin’ loan.
The one for good luck
EchoIQ continues on its very healthy path to commercialisation
EchoIQ Ltd (ASX:EIQ) COO Philip Woolff speaks with Proactive’s Elisha Newell about the medtech business and its work in heart health solutions, notably aortic stenosis.