ASX 0.36% lower at noon amidst significant selloff




Australia's share market experiences volatility with a significant multi-day selloff, but recovers partially as US futures show slight improvement.

At noon, the S&P/ASX 200 is 0.36 per cent lower at 7,073.80.

While finding support from the June 1st low at 7076.6, the index is still expected to record its fourth consecutive daily decline.

Over the past four days, it has decreased by 3.7% following a 3.5% increase over the previous seven days.

The SPI futures are pointing to a fall of 13 points.

Best and worst performers

The best-performing sector is REITs, up 0.23 per cent. The worst-performing sector is Communication Services, down 0.6 per cent.

The best-performing large cap is Northern Star Resources (ASX:NST), trading 1.46 per cent higher at $12.48. It is followed by shares in Evolution Mining (ASX:EVN) and Newcrest Mining (ASX:NCM).

The worst-performing large cap is Mineral Resources (ASX:MIN), trading 3.36 per cent lower at $69.54. It is followed by shares in Qantas Airways (ASX:QAN) and Whitehaven Coal (ASX:WHC).

Asian markets

Asia-Pacific markets started the final week of June mixed, even as U.S. markets snapped a multi-week winning streak Friday.

In an early Monday note, CMC Markets analyst Tina Teng, wrote that “economic concerns took central stage again as recession fears mounted, with spiking rates in both Europe and the US rattling global markets.”

Over the weekend, Europe also saw a brief rebellion by the Wagner private military group in Russia, pushing oil prices up on Monday.

In Japan, the Nikkei 225 reversed earlier losses and gained 0.14%, while the Topix rose 0.13%. Japan’s service sector prices climbed 1.6% year-on-year in May, unchanged from the previous month’s figure.

South Korea’s Kospi was also in the green, climbing 0.45%, while the Kosdaq saw a larger gain of 0.55%.

Hong Kong’s Hang Seng index rebounded from last week’s losses and opened 0.42% higher. In contrast, mainland Chinese stocks fell, with the Shanghai Composite down 0.79% and the Shenzhen Component 0.78% lower.

Company news

Metal Hawk (ASX:MHK) has discovered thick, high-grade rare earths at the Fraser South project in WA. Managing Director Will Belbin commented: “With our very large tenement holding positioned directly over these fertile granites, there is ample opportunity to expand and discover new additional broad zones of mineralisation.” Shares are trading 107 per cent higher at 18 cents.

Ragnar Metals (ASX:RAG) has released several announcements this morning. The company has acquired two rare earth and two lithium projects, and has sold its wholly owned subsidiary Ragnar Metals Sweden to BHP Metals for $9.8m. Shares are trading 42.1 per cent higher at 2.7 cents.

ECS Botanics (ASX:ECS) has secured two binding offtake agreements worth at least $11.9m to supply medicinal cannabis dried flower. ECS Managing Director, Nan-Maree Schoerie commented, “We view respected companies such as Entoura and Precision, who focus on improving patient access through affordable quality products and education, as ideal partners in supporting the growth of the medicinal cannabis industry in Australia.” Shares are trading 15 per cent higher at 2.3 cents.

Commodities and the dollar

Gold is trading at US$1782.70 an ounce.

One Australian dollar is buying 66.83 US cents.

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Source: Finance News Network


Name 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.