ASX closes 0.8% lower to hit its lowest point since October 2022

Market Reports

by Peter Milios

On Monday, the ASX experienced a decline of 0.8 percent at 6772.9 points.

This drop below 6800 points marked the first time it had done so this year and is its lowest point since October 2022. The decline was influenced by renewed fears that the conflict between Israel and Hamas could escalate into a regional war, causing investors to move away from equities.

Additionally, a more cautious start to Israel's ground offensive in Gaza led to a drop in oil prices, with Brent crude falling towards $US89 a barrel and West Texas Intermediate near $US84, affecting energy stocks negatively, which were down 2 percent.

Futures

The Dow Jones futures are pointing to a rise of 65 points.

The S&P 500 futures are pointing to a rise of 13 points.

The Nasdaq futures are pointing to a rise of 66.25 points.

The SPI futures are down 58 points.

Best and worst performers

The best-performing sector was Information Technology, up 0.43 per cent. The worst-performing sector was Energy, down 2.59 per cent.

The best-performing large cap was Newmont Corporation (ASX:NEM), closing 3.09 per cent higher at $61.34. It was followed by shares in Xero (ASX:XRO) and Fisher & Paykel Healthcare Corporation (ASX:FPH).

The worst-performing large cap was IGO (ASX:IGO), closing 9.01 per cent lower at $9.69. It was followed by shares in Whitehaven Coal (ASX:WHC) and New Hope Corporation (ASX:NHC).

Asian markets

Japan's Nikkei has gained 1.27 per cent.

Hong Kong's Hang Seng has gained 2.08 per cent.

China's Shanghai Composite has gained 0.99 per cent.

Company news

Tamboran Resources (ASX:TBN) have announced an operational update, in which results have demonstrated an over pressured regime, with a pore pressure gradient of at least 0.54 pounds per square inch (psi) per foot. In response, Managing Director and CEO, Joel Riddle, said, “the results provide confidence that the upcoming flow test of the SS-1H well can replicate or exceed commercial flow tests achieved at the T2H and T3H wells in the Santos-operated EP 161 acreage.” Shares closed 3.7 per cent lower at 13 cents.

TG Metals (ASX:TG6) high grade lithium intercepted at Lake Johnston. TG Metals CEO, Mr. David Selfe stated, “there appears to be multiple pegmatites with consistent widths of between 8 to 12 metres, that are completely mineralised with spodumene.” Shares closed 252 per cent higher at 37 cents.

West Africa’s newest gold producer Tietto Minerals (ASX:TIE) advises that on 29 October 2023 it received a conditional, non-binding indicative proposal from Zhaojin Capital, to acquire 100% of the issued shares not already owned by Zhaojin for cash consideration of A$0.58 per share by way of an off market takeover offer. Zhaojin currently owns 7.02% of the shares in the Company. Shares closed 32.9 per cent higher at 56.5 cents.

Commodities and the dollar

Gold is trading at US$2,010.50 an ounce.

Iron ore is 2.4 per cent higher at US$121.80 a tonne.

Iron ore futures are pointing to a 2.22 per cent rise.

Light crude is trading $-1.30 lower at US$84.24 a barrel.

One Australian dollar is buying 63.52 US cents.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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