Distributive policy

Energy rallies on optimism surrounding China’s COVID-Zero policy: ASX closes down 0.27%

Energy, materials and real estate were the only sectors in the green today.

Energy was the best performer of the pack, fueled by hopes that a policy shift in China will fuel demand for commodities such as iron ore and steel.

Thus, Rio Tinto (ASX:RIO)BHP Group (ASX: BHP) and Fortescue Metals (ASX: FMG) increased by 1.55%, 1.16% and 2.32% respectively.

Overall, the markets remained relatively stable today. They balanced the geopolitical news that Russia may have fired a missile that hit Poland today, despite there being no concrete evidence that Russia was at fault, and the domestic news surrounding the hard data on wages in Australia, suggesting a lower rate hike next month.

Overall, at the close, the S&P/ASX 200 was down 0.27% or 19.40 points at 7122.20.

Futures contracts

Dow Jones futures point to a 68-point drop.
S&P 500 futures point to a decline of 11.50 points.
Nasdaq futures point to a fall of 44.25 points.
SPI futures are pointing to a 37 point drop when the market next opens.

Best and Worst Performers

The best performing sector was energy, up 1.18%. The worst performing sector was utilities, down 1.47%.

The best performing stock in the S&P/ASX 200 was Nufarm (ASX: NUF), closing up 8.86% at $5.90. It was followed by shares in Sandfire Resources (ASX: SFR) and Whitehaven Coal (ASX:WHC).

The worst performing stock in the S&P/ASX 200 was Imugene (ASX:IMU), closing down 9.52% at $0.19. It was followed by shares in De Gray Mining (ASX: DEG) and Saint Barbara (ASX: SBM).

Asian News

Losses accelerated in China at Hang Seng today, driving mainland markets lower at the near market close.

Overall so far, Japan’s Nikkei has gained 0.07%, Hong Kong’s Hang Seng has lost 1.41% and China’s Shanghai Composite has lost 0.33%.

Company News

sea ​​bass oil (ASX:LOW) has confirmed that it has identified a significant gas resource in the Cooper Basin in South Australia. The gas resource was identified following an independent geological assessment by Fluid Energy Consultants, representing a significant new gas play in the region and a potential new source of gas for the domestic market. In response, Bass Oil’s Managing Director, Mr. Tino Guglielmo, said, “A new gas resource of this type can be marketed efficiently thanks to the mature infrastructure of the Cooper Basin. As we pursue this opportunity with vigor, we are also mindful of maximizing the benefits for our shareholders. Shares closed up 67.57% at $0.062.

Stealth Global Assets (ASX: SGI), a leading industrial distribution group, today announced its business results for the first four months of fiscal 2023. Highlights: the company increased its revenue by 22% to $36 million; and the company recorded double-digit sales growth across all customer segments. Shares closed at $0.13.

archery materials (ASX:AXE) informed shareholders that the company has implemented an early-stage prototype of an integrated biochip platform with automated handling and reading of liquid samples. This work is a major step towards the commercialization of Archer’s biochip technology. Commenting on Archer’s biochip development progress, CEO Dr. Mohammad Choucair said, “Archer will focus on building advanced and sophisticated versions of this system that could be used in commercial or applied research settings. Shares closed up 4.55% at $0.69.

Commodities and the dollar

Gold is trading at US$1,774.07 per ounce.
Iron ore is 0.4% higher at US$95.70 a tonne.
Iron ore futures are pointing up 2.43%.
Light crude is trading $0.57 lower at US$85.68 a barrel.
One Australian dollar buys 67.54 US cents.






Pierre Milios

Peter Milios is a recent graduate from the University of Technology – specializing in finance and accounting. Peter currently works under equity research analyst Di Brookman for Corporate Connect Research.