Resources stocks weigh as recession fears grow: ASX closes 0.5% lower

Market Reports

by Lauren Evans

Australian shares spent the afternoon in the red as commodity prices plunged on recession fears. The energy sector tumbled 5.8 per cent, with materials down 5 per cent. Real estate was the best sector, up 3.2 per cent, with information technology up 3.1 per cent.

At the closing bell, the S&P/ASX 200 was 0.5 per cent or 35 points lower at 6,595.

The best-performing stock in the ASX 200 was Megaport (ASX:MP1), closing 14 per cent higher at $6.26 . This was followed by Life360 (ASX:360), up 14.2 per cent to $3.70 and Zip Co (ASX:ZIP), up 13.7 per cent to 58 cents.

The worst-performing stock in the ASX 200 was St Barbara (ASX:SBM), closing 9.5 per cent lower at 81 cents. This was followed by Coronado Global Resources (ASX:CRN), down 9.4 per cent to $1.48 and Champion Iron (ASX:CIA), down 8.7 per cent to $4.75.

Buy-now, pay-later shares jumped in the range of 14 to 32 per cent. The biggest mover was Sezzle (ASX:SZL), which soared 32.1 per cent to 51.5 cents, while Laybuy (ASX:LBY) added 14.3 per cent to 4.4 cents and Ioupay (ASX:IOU) closed 24 per cent higher at 8.2 cents.

Energy stocks tumbled as Woodside Energy (ASX:WDS) dropped 6.9 per cent to $30.20, Santos (ASX:STO) fell 6.1 per cent to $7.02 and Beach Energy (ASX:BPT) closed 8 per cent lower at $1.61.

Rio Tinto (ASX:RIO) led iron miners lower, down 7.4 per cent to $93.37, with BHP Group (ASX:BHP) down 5.6 per cent to $37.76 and Fortescue Metals (ASX:FMG) down 4.9 per cent lower at $16.48

Gold stocks dropped as Newcrest Mining (ASX:NCM) dropped 6.6 per cent to $19.60, Evolution Mining (ASX:EVN) fell 4 per cent to $2.41 and Northern Star (ASX:NST) closed 4.2 per cent lower at $6.91.

Meanwhile, the four major banks lifted. National Australia Bank (ASX:NAB) rose 1.8 per cent to $28.15, Westpac (ASX:WBC) added 0.9 per cent to $19.85, ANZ Banking (ASX:ANZ) advanced 0.9 per cent to $22.40 and Commonwealth Bank (ASX:CBA) closed 0.8 per cent higher at $92.00.

Company news

Immutep (ASX:IMM) granted a Japanese patent for its IMP761, an immunosuppressive agonist antibody targeting LAG-3 for autoimmune diseases. Shares closed flat at 32 cents.

Strike Energy (ASX:STX) provided an update on the Walyering Gas Field after mobilisation of all equipment to the W6 well site had concluded with rig up and swabbing operations also completed. Shares closed 3.1 per cent lower at 25 cents.

Victorian gold explorer North Stawell Minerals (ASX:NSM) provided an update on its exploration programs. Shares closed flat at 14 cents.

Zenith Minerals (ASX:ZNC) advised that lithium bearing pegmatites have been intersected at the Waratah Well project in Western Australia. Shares are trading 1.9 per cent higher to 26.5 cents. Shares closed 7.7 per cent lower at 24 cents.

Paradigm Biopharmaceuticals (ASX:PAR) activated the first trial site in the UK for the phase 3 clinical trial evaluating knee osteoarthritis. Shares closed 2.9 per cent lower at $1.02.

ResApp Health (ASX:RAP) announced that its SleepCheckRx received clearance from the US Food and Drug Administration, which enables ResApp to commercially market the test in the US. Shares closed 3.7 per cent lower at 13 cents.

Incitec Pivot (ASX:IPL) appointed Chris Opperman as chief financial officer of the fertilisers business. Shares closed 2.4 per cent lower at $3.21.

Residential construction business Sunland Group (ASX:SDG) is on track to achieve its FY22 profit guidance of between $92 million and $98 million. Shares closed 5.9 per cent higher at $2.88.

Insurance Australia Group (ASX:IAG) finalised its aggregate reinsurance cover for the 2023 financial year, while the main catastrophe reinsurance program for 2022 remains unchanged. Shares closed 1.2 per cent higher at $4.32.

SportsHero (ASX:SHO) entered a marketing and sponsorship agreement with PT Top Skor, who are the owners and operators of youth football leagues throughout Indonesia. Shares closed 4.2 per cent higher at 2.5 cents.

Battery materials company Talga Group (ASX:TLG) reported the first drilling results from its Vittangi graphite project in Sweden. Shares closed 1.4 per cent higher at $1.11.

Anson Resources (ASX:ASN) announced its plans to fast track its JORC resource upgrade at the US paradox lithium project via test work on the newly discovered diamond core from the project area. Shares closed flat at 10.5 cents.

Renascor Resources (ASX:RNU) reported on the recent drilling at its Siviour Graphite Deposit in South Australia, confirming intersections within the project area are amongst the thickest and highest grade graphite to date. Shares closed 4.8 per cent higher at 16.2 cents.

EML Payments (ASX:EML) collaborated with Spain’s national post office Correos to load around 500,000 prepaid cards worth $603 (€400) each. Shares closed 11.7 per cent higher at $1.43.
 
Futures

The Dow Jones futures are pointing to a fall of 164 points.
The S&P 500 futures are pointing to a fall of 21 points.
The Nasdaq futures are pointing to a fall of 65 points.
The SPI futures are pointing to a fall of 48 points when the market next opens.

Asian markets

Japan's Nikkei has lost 1.1 per cent.
Hong Kong's Hang Seng has lost 2.2 per cent.
China's Shanghai Composite has lost 1.8 per cent.

Commodities and the dollar

Gold is trading at US$1767.19 an ounce.
Iron ore is 4.0 per cent higher at US$114.30 a ton.
Iron ore futures are pointing to a fall of 2.2 per cent.
Light crude is trading $0.24 higher at US$88.70 a barrel.
One Australian dollar is buying 67.90 US cents.

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