Two-day winning streak over: ASX closes down 1.02%

Market Reports

by Lauren Hayes

Local markets halted a two-day winning streak today and not even the energy sector could lift the S&P/ASX 200, which closed 1.02 per cent or 69.40 points lower at 6,730.70. Energy outperformed (up 3.13 per cent), with heavyweights Woodside and Santos both releasing positive Q3 updates this morning. Financials were flat and all other sectors closed in the red, led by Information Technology, which was down 3.76 per cent.

The September jobs data released showed net employment added 900 jobs, missing forecasts of a gain of 25,000 new positions.


The Dow Jones futures are pointing to a rise of 11 points.
The S&P 500 futures are pointing to a fall of 11.25 points.
The Nasdaq futures are pointing to a fall of 79.50 points.
The SPI futures are pointing to a fall of 77 points when the market next opens.

Best and worst performers

The best-performing sector was Energy, up 3.13 per cent. The worst-performing sector was Information Technology, down 3.76 per cent.

The best-performing stock in the S&P/ASX 200 was NOVONIX (ASX:NVX) following their release to the market this morning announcing a US$150m grant from the Biden Administration. NVX closed 7.04 per cent higher at $2.28. It was followed by shares in Adbri (ASX:ABC) and Woodside Energy (ASX:WDS).

The worst-performing stock in the S&P/ASX 200 was Sandfire Resources (ASX:SFR), closing 13.23 per cent lower at $3.28. It was followed by shares in Megaport (ASX:MP1) and St Barbara (ASX:SBM).

Asian markets

Japan's Nikkei has lost 1.00 per cent going into the close.
Hong Kong's Hang Seng is trading down 2.42 per cent.
China's Shanghai Composite has so far lost 0.39 per cent.

Company news

The big news overnight was the awarding of $2.8 billion in grants for EV battery production from the Biden administration with the grants subject to some further negotiations. NOVONIX (ASX:NVX), Piedmont (ASX:PLL), and Syrah (ASX:SYR) were among the recipients.

NOVONIX announced today it will receive $150m, which will be dedicated to expansion of domestic production of high-performance, synthetic graphite anode materials. NOVONIX’s Co-Founder and CEO Dr Chris Burns commented: “We are proud to have been selected to negotiate this funding in recognition of our readiness to accelerate the domestic battery supply chain and meet growing global demand from the electric vehicle and stationary grid storage markets. Since inception, our mission has been to enhance batteries through innovation and pave the way for the clean energy transformation. We are excited to partner with the US Department of Energy to further our mission of establishing a domestic supply chain for synthetic graphite used in lithium-based batteries and creating long-term sustainable value for our stakeholders.” Shares in NOVONIX closed 7 per cent higher at $2.28, while shares in Piedmont closed 9 per cent higher at 92 cents and Syrah closed 10.8 per cent higher at $2.08.

Taruga Minerals (ASX:TAR) announced today that their second batch of key assays have been returned and the results were exceptional. It was the highest grades of rare earths that they have seen at the Morgan Creek’s project. CEO Thomas Line commented: “The new results increase the mineralised strike at Morgans Creek from 1.4km to 4.3km. We are excited to return to complete systematic drilling over the Yednalue formation and other new clay-hosted REE targets at Morgans Creek early in Q1 2023.” Shares closed 6.3 per cent higher at 3 cents.

Askari Metals (ASX:AS2) has signed a strategic agreement with a Shanghai-listed lithium heavyweight company to develop Australian lithium assets. The agreement is in relation to the development of the Barrow Creek (NT) and Eastern Pilbara Lithium (WA) lithium projects. Executive Director Mr Gino D’Anna stated: “Our aggressive exploration mandate has enabled us to delineate areas of high-priority and we are rapidly planning the re-commencement of field activities at our lithium exploration projects, including the recently acquired Myrnas Hill Lithium Project.” Shares closed 19 per cent higher at 47 cents.

icetana (ASX:ICE) a global software company providing artificial intelligence solutions to detect real-time anomalous events on video surveillance systems, released its activities report and Appendix 4C for the quarter ended 30 September 2022 (Q1 FY23) this morning. Matt Macfarlane, CEO of icetana, commented: “Our enhanced product took a leap forward this quarter, with the initial launch of Version 2 (next generation) and early feedback from early trial customers has been very promising. I am pleased with the changes to our shareholdings that have resulted in investors who take a long term perspective on investing and have additional cash available to invest as the business grows. Previous value-adding venture fund investors were unable to deploy additional capital due to the life cycle of their fund. The December quarter will be very important for our enhanced product as we progress many deals that have been initiated on the back of targeted marketing activities.” Shares closed flat at $0.045.

Commodities and the dollar

Gold is trading at US$1634.90 an ounce.
Iron ore is 1.1 per cent lower at US$93.75 a tonne.
Iron ore futures are pointing to a fall of 2.5 per cent.
Light crude is trading $1.13 higher at US$85.65 a barrel.
One Australian dollar is buying 62.65 US cents.

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