The ASX climbed 0.68% during the week, the All Ords 0.53% and the Small Ordinaries bucked the trend, falling 1.78%.
International indices were also up overall, with the NASDAQ adding 1.45% over the week, the FTSE 100 1.02% and the Nikkei 225 jumping 1.47%. Only Hang Seng fell, shedding 1.58%.
Nine of eleven sectors were up over the last five days, Energy (3.34%), Materials (3.46%) and Consumer Staples (3.49%) climbing the most, while Financials (-0.74%) and Utilities (-1.91%) fell.
Commodities were all down for the week, with nickel (-7.50%), platinum (-5.43%) and palladium (-5.45%) taking the biggest hits.
The West Texas Intermediate also fell 3.84% over the week average, though it climbed 3.54% today.
Coffee prices soar, but Australian consumers refuse to give up the brew
Analysis by Josh Gilbert, Market Analyst at eToro
Arabica coffee prices have held near decade highs, as consumers did not want to give up their morning brew despite the cost-of-living crisis around the world.
This is especially true in Australia, where 75% of us enjoy at least one cup a day, according to McCrindle.
That’s not surprising, given we have arguably some of the best coffee in the world. Starbucks’ recent earnings results also showed that consumers aren’t willing to give up their morning ritual.
Net sales rose by 14.5% to US$7.64 billion, beating expectations of US$7.6 billion.
In Australia, coffee roasters already increased their wholesale coffee prices at the start of the year and they’re set to raise them again.
Typically, coffee roasters won’t change their prices for many years, so seeing multiple price increases in one year is a testament to not only growing cost of beans but also energy, freight and labour prices driving cost pressures.
So, it won't come as a surprise if your local coffee shop will add A$1 or more on your takeaway latte.
Brazil leads the coffee trade as the largest Arabica producer, sending 40% of global exports.
Unfortunately for us Aussies, the weather in Brazil has been terrible, meaning crop growth has been heavily affected, and COVID has also sent freight costs through the roof, meaning your morning latte may cost a few extra dollars soon.
Potential BBBY selldown spooks meme stock investors
Data from the global investment trading platform, Capital.com, has revealed that retail investor’s bullish attitude toward the popular meme stock Bed Bath and Beyond (BBBY) may be dwindling.
Trading volumes in Contract for Differences (CIDs) for BBBY dropped by 21% on Wednesday from its peak on Tuesday. The number of trades executed on Capital.com’s platform also fell 11% in that period.
At its highest point on Tuesday, BBBY’s trade volume had soared 432%, with total number of trades climbing more than 200%.
The platform’s trading community also reduced long positions by 5% between Monday and Wednesday, falling to 72% long at close. The number of short trades were also affected, falling some 29% as long trades dropped 17%.
The sudden change in sentiment followed ‘activist’ investor Ryan Cohen filing for a proposed sale of his stake in the struggling company.
“News that Ryan Cohen may be selling his stake in BBBY appears to have spooked the meme stock faithful,” Capital.com chief market strategist David Jones said.
“Unlike the frenzy of the past— with the likes of GME and AMC— BBBY traders seem more inclined to follow institutional wisdom than to blindly battle for companies with poor fundamentals.
“Could this be a turning point for meme stock traders? Perhaps traders have learnt from the past frenzies that while short term gains can be impressive, sentiment in short squeezes can reverse just as quickly, so this time around they may be being more cautious.”
Former resources minister reveals then Nationals leader knew of Morrison’s resource portfolio
In the latest chapter of the scandalous saga relating to former Prime Minister Scott Morrison’s five secret ministerial portfolios, former resources minister Keith Pitt revealed to Q+A last night that then deputy prime minister Michael McCormack was aware Morrison had sworn himself into the resources portfolio at some point in 2021.
Morrison has said he did so due to the extraordinary circumstances surrounding the COVID-19 pandemic, but so far, the only action he appears to have taken in his multi-ministerial capacity was to block the approval of a gas permit for the PEP-11 licence off the coast of Sydney.
While many climate-conscious Australians will no doubt welcome that particular decision, it does beg the question; what on earth did a gas permit have to do with the “extraordinary circumstances” of the pandemic?
The decision to overturn the extension of the licence is likely to be reviewed by the Federal Court; BHP told the ABC it had lodged paperwork for a judicial decision on the rejection on June 6, 2022.
Multiple Liberal and Labor ministers have now called for Morrison to resign from parliament, with former NSW Liberal Catherine Cusack stating moves like these are why she left.
"This is the sort of behaviour that has basically made me feel forced out of politics, because it is not the behaviour of normal people," Cusack said.
Pitt has refused to condemn Morrison despite his revelations to Q+A, stating: "He [Morrison] is elected by the people of Cook as I am by the people of Hinkler.
"This is how our constitution works and how you are elected to the parliament. It is entirely a decision for Scott and the people he represents."
Nonetheless, Pitt has also voiced his support for a inquiry into the Government’s actions during the pandemic.
"There has been talk about a royal commission and an investigation and an inquiry and I'm quite supportive of that, as long as it includes all levels of government," he said.
"There were some strange decisions at a state level as well — whether that's Premier Palaszczuk stopping people from accessing hospital because they were on the wrong side of the line — or mass lockdowns in Victoria."
On the small cap front
Gascoyne Resources Ltd (ASX:GCY) jumped 32.4% this week, after the company discovered a substantial new high-grade gold lode system on the immediate western flank of its new Gilbey’s North prospect.
Resource Mining Corporation Ltd (ASX:RMI) soared 40.9%, having hit lateritic nickel in maiden drilling at Kabulwanyele in Tanzania
Cobre Ltd (ASX:CBE) surged an incredible 206.8% over the last five days, having doubled down on the Kalahari Copper Belt after extending the mineralised strike a further kilometre at the Ngami Copper Project.