The ASX gained 0.54% today.
The S&P/ASX200 gained 38.1 points or 0.54% to rise to 7,102.4 today, and 1.03% over the last five days, sitting comfortably above the 52-week average for now, though the index has lost 6.33% over the year.
The top performing stocks for today were BHP Group Ltd (LSE:BHP, ASX:BHP), up 4.39% on record dividends, and Event Hospitality and Entertainment Ltd, up 3.97%.
As for the small caps, Cobre Ltd (ASX:CBE) jumped 66.67% today, on extending the mineralised footprint at the Ngami Copper Project an addition kilometre.
What’s in the news today?
Plant-based meat sector to reach A$3 billion by 2030
In a win for the vegetarians and vegans among us, the Australian plant-based meat industry is forecast to reach A$3 billion in value by 2030, demonstrating the growing popularity of meat alternatives like the Impossible and Beyond Meat burgers.
While plant-based meat still has a long way to go – the meat industry in Australia was valued at some A$17.6 billion in 2018-19 – it’s a strong indicator that large portions of the population are beginning to substitute meat products for other alternatives.
eToro market analyst Josh Gilbert asks:
How far are we from a plant-based BBQ party?
With a forecast 500 million extra mouths to feed by the end of the decade, meat substitutes are gaining popularity due to their lower environmental impact.
This long-term trend, however, has been temporarily disrupted by the cost-of-living crisis, which is driving consumers back to less expensive items, such as chicken. (see below)
This is helping make traditional protein physical commodities, like cattle and hogs and related stocks, an investment shelter from the rising recessionary storm.
This year, stocks like Beyond Meat and Oatly have felt the full force of consumers opting for cheaper alternatives.
As a result, both companies' share prices have dropped by more than 40% this year, with Beyond Meat cutting its full-year revenue outlook as it struggles to increase sales.
In addition, McDonald's last month chose not to proceed with the permanent introduction of Beyond Meat products in the US amid low hype, signifying the struggles the company is facing in entering mainstream consumption.
This may be a bump in the road to longer-term adoption.
According to Food Frontier, two-thirds of Australians have yet to try plant-based meat alternatives, and 79% of those are omnivores.
These tiny consumption levels show there are opportunities and untapped consumer segments.
This optimism reflects in the growth forecasts of Australia's plant-based meat sector that is set to reach A$3 billion by 2030.
Last year, private local plant-based companies racked up stellar funding, and investors should keep an eye on their next moves.
We can expect more activity given that so many Aussies have yet to try a plant-based burger.
Commodities fall as China’s economic recovery slows
Chinese imports of major commodities like crude oil and iron ore fell in August, echoing a shortfall in economic expansion for the second-largest economy in the world.
Authorities in China expected the economy to expand 5.5% in 2022, according to the Reserve Bank, but fell well short of that at 3.35%.
Economic recovery in the People’s Republic has been hampered by ongoing pandemic restrictions and economic turmoil which is expected to continue for the near future, putting a damper on iron ore and oil demand from the nation.
The price of iron ore has fallen 3.1% to US$109.50 on a 13% drop in Chinese crude steel output, while copper was down 1.59%, nickel 4.4% and aluminium 3.24%.
The West Texas Intermediate oil index fell 4.3% after falling about 5% over the last two market sessions, a welcome respite for the average Australian.
Gold wasn’t spared the bloodletting, falling 1.03% as investors parked their capital in a strong US dollar.
The pain isn’t likely to be long-lived; BHP chief executive Mike Henry believes China will remain a major player in the commodity market in the near-term.
“We expect China to emerge as a source of stability for commodity demand in the year ahead, with policy support taking hold,” Henry said.
A similar pattern was playing out this time last year, with China’s slowing economy putting downward pressure on the commodity market right up until it came out of lockdown.
Prices were slowly beginning to exceed their previous highs when Russia invaded Ukraine and sent them surging to new heights, only to fall back down to pre-war levels in this inflationary environment.
The Five at Five
Emyria wins ethics approval to begin EMD-RX5 Phase 3 trial for treatment of psychological distress
The successful completion of the trial will support EMD-RX5’s registration with the Therapeutic Goods Administration (TGA) as a schedule 3, over-the-counter treatment (OTC) for the symptoms of psychological distress, for which there is currently no approved treatment.
Provaris Energy moves a step closer to commercialisation with submission of HyEnergy Export feasibility study to WA Government and project partners
“The outcomes will demonstrate the advantages of our compressed hydrogen solution. The suitability of offshore loading and compressed hydrogen can position Western Australia as an early mover in large-scale hydrogen exports," MD and CEO Martin Carolan said.
Gascoyne Resources welcomes "major discovery coup" on discovery of gold lode system at Dalgaranga
“The power of a good geology team and a great drill crew being brought to bear on a fertile high-potential mineral system is immense," enthused MD and CEO Simon Lawson.
Prescient Therapeutics enters into OmniCAR cell production agreement with Q-Gen Cell
Q-Gen Cell will produce and deliver the OmniCAR cell lines from its Brisbane facility to be used for Prescient's upcoming clinical trials.
Noxopharm and UNSW to present pancreatic cancer research at leading US oncology conference
“It is very encouraging to have this abstract accepted by such a prestigious US conference, as it helps raise the international profile of Noxopharm and UNSW, demonstrates the value of the explant model, and shows the potential of our pre-clinical drug candidates,” CEO Dr Gisela Mautner said.
On your six
Bring it in: the sporting philosophy to help investors find opportunities
Pitcher Partners' Andrew Wilson says while there is a risk that inflation continues climbing in the short-term, there are also early signs that inflation pressures may be peaking. If recession risks transpire, they may aid the battle against inflation.
The one for good luck
Coffee with Samso: Adavale Resources - the East African nickel belt
Adavale holds 100% of the Kabanga Jirani Nickel Project consisting of six granted licences and one application covering nearly 1145 square kilometres.