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ASX drops 0.9% to its lowest point in a week

The ASX has experienced a third consecutive day of significant decline due to persistent aggressive selling.

At noon, the S&P/ASX 200 is 0.88 per cent lower at 7,132.30, reaching its lowest point in a week at 7135.6. All sectors are down, with the energy sector being the weakest performer.

Following a seven-day winning streak that saw a remarkable 3.8 per cent increase, the index has now decreased by 3.1 per cent over the span of three days.

The bond yield curve exhibits bear flattening, as the 3-10 spread becomes “inverted” by 3 basis points, indicating a potential recession. However, it is challenging to attribute the entire decline of this week solely to the rise in interest rates.

The SPI futures are pointing to a fall of 62 points.

Best and worst performers

The best-performing sector is Consumer Staples, up 0.13 per cent. The worst-performing sector is Energy, down 3.13 per cent.

The best-performing large cap is Infratil (ASX:IFT), trading 1.55 per cent higher at $8.84. It is followed by shares in Endeavour Group (ASX:EDV) and Spark New Zealand (ASX:SPK).

The worst-performing large cap is Santos (ASX:STO), trading 3.93 per cent lower at $7.33. It is followed by shares in Allkem (ASX:AKE) and Woodside Energy Group (ASX:WDS).

Asian news

Asia-Pacific markets were mixed Friday as investors look to inflation data out of Japan and Singapore, as well as flash estimates from the au Jibun bank on Japan’s manufacturing and services activity.
In Japan, the Nikkei 225 tumbled 1.34 per cent, while the Topix also fell 1.41 per cent. Japan’s core inflation rate in May eased slightly to 3.2 per cent year-on-year, lower than April’s 3.4 per cent but still above the BOJ’s 2 per cent target. The May core inflation rate was slightly above the 3.1 per cent expected by economists polled by Reuters.

South Korea’s Kospi fell 0.71 per cent, but the Kosdaq extended its gains from Thursday to rise marginally.

Separately, Hong Kong’s Hang Seng index slid 1.68 per cent on its open as it comes back from a public holiday, dragged by health-care and tech stocks. Mainland Chinese markets are closed for a public holiday Friday.

Company news

Tamboran Resources (ASX:TBN) made several announcements this morning. The Amungee 2H (A2H) well in EP 98 has achieved gas breakthrough. The company has completed analysis of two flow tests in the Santos-operated EP 161 permit, in which Tamboran owns 25 per cent. Tamboran has signed two MOUs with BP and Shell for supply of 4.4 MTPA of LNG from the company’s proposed NTLNG development. And, lastly, the company has selected APA Group as preferred Beetaloo Basin pipeline partner. Tamboran is currently in a trading halt and last traded at 20 cents.

Solis Minerals (ASX:SLM) has announced that drilling has commenced at Jaguar Lithium Project in Brazil. Executive Director, Matt Boyes, commented: “The program is designed to provide our first indication of the potential strike, depth and thickness, along with confirmation of mineralisation style and grade.” Shares are 11.6 per cent higher at $1.06.

North Stawell Minerals (ASX:NSM) has announced visible gold and high-grade gold results returned in down-plunge diamond drilling at the Wildwood project in Victoria. Chief Executive Russell Krause said: “Targeting the down-plunge continuation of mineralisation beneath the historic Inferred Mineral Resource has added significant confidence in the continuity of plunging mineralisation.” Shares are flat at 12 cents.

Commodities and the dollar

Gold is trading at US$1782.70 an ounce.
One Australian dollar is buying 67.37 US cents.