Rebound in financials boosts ASX

The sharemarket had a positive day on Tuesday, finishing 0.82 per cent higher at 6,955.40, with the financials sector leading the way with a 1.2 per cent gain.

Macquarie (ASX:MQG) added 3.3 per cent, while Incitec Pivot (ASX:IPL) rose 3.8 per cent due to the announcement of a $2.5 billion deal to sell its ammonia plant in the US.

The energy and materials sector also rebounded. New Hope Coal (ASX:NHC) surged 8.6 per cent after reporting better than expected profits and dividends.

US futures closed slightly higher, with Euro Stoxx 50 futures up 0.5 per cent.


The Dow Jones futures are pointing to a rise of 8 points.
The S&P 500 futures are pointing to a rise of 2.25 points.
The Nasdaq futures are pointing to a rise of 8 points.
The SPI futures are pointing to a rise of 58 points when the market next opens.

Best and worst performers

The best-performing sector was Consumer Discretionary, up 1.5 per cent. The worst-performing sector was Utilities, down 1.63 per cent.

The best-performing large cap was Incitec Pivot (ASX:IPL), closing 3.85 per cent higher at $3.24. It was followed by shares in Yancoal Australia (ASX:YAL) and Whitehaven Coal (ASX:WHC).

The worst-performing large cap was Meridian Energy (ASX:MEZ), closing 3.29 per cent lower at $4.70. It was followed by shares in Cleanaway Waste Management (ASX:CWY) and Origin Energy (ASX:ORG).

Asian markets

Japan’s Nikkei has lost 1.42 per cent.
Hong Kong’s Hang Seng has gained 0.25 per cent.
China’s Shanghai Composite has gained 0.39 per cent.

US government examining ways to guarantee all bank deposits if crisis worsens

Bloomberg cited people with knowledge of the calls who said Treasury staff reviewing ways in which regulators could use emergency authority to temporarily guarantee deposits of more than $250K on most accounts without formal approval from Congress. Officials don’t view such an action as necessary, though are developing a strategy if situation worsens. Earlier, Bloomberg reported coalition of midsize US banks had asked regulators to extend FDIC insurance to all deposits for next two years. One way would involve using Treasury Department’s authority to leverage money from Exchange Stabilization Fund, which has typically been used as a backstop for Fed’s emergency lending facilities. Hopes of obtaining Congressional authority to guarantee all bank deposits above $250K were dealt a blow after , House Freedom Caucus came out in opposition (Bloomberg).

Company news

Besra Gold (ASX:BEZ) has announced an up to US$300m for a non-binding drawdown offtake funding facility term sheet, signed with major shareholder Quantum Metal Recovery, to facilitate development of the 3 million ounce Bau Gold Project. Besra’s Chairwoman, Jocelyn Bennett commented: “We [now] plan to commence an update of the 2013 feasibility study and accelerate our plans to begin pilot production in the calendar year 2023.” Shares closed 52.5 per cent higher at 6.1 cents

Mincor Resources (ASX:MCR) has received a $1.40 cash takeover offer from Wyloo Consolidated Investments, an investment vehicle of Australian billionaire Twiggy Forest. Forest currently owns 19.87 per cent of Mincor and this will help his push into the nickel and the EV battery minerals industry. Shares closed 42.3 per cent higher at $1.48.

MGC Pharmaceuticals (ASX:MXC) announced that ArtemiC™, their proprietary clinically tested for COVID 19 treatment, has been listed as over-the-counter status on the National Drug Code Database of the US FDA. In response, Roby Zomer, CEO and Managing Director of MGC Pharmaceuticals, commented: “[This] provides significant access to the largest healthcare market in the world and stands as a major milestone MGC’s growth progression.” Shares closed 85.7 per cent higher at 1.3 cents.

Renegade Exploration (ASX:RNX) has announced that their drilling has hit large copper sulphide zones at their Mongoose Project in Queensland. In response, Director, Mr Robert Kirtlan, said, “Within two months of assuming control of Mongoose we have completed a maiden RC program and it has all the hallmarks of being very successful.” Shares closed 40 per cent higher at 1.4 cents.

Commodities and the dollar

Gold is trading at US$1,985.90 an ounce.
Iron ore is 4.2 per cent lower at US$126.50 a tonne.
Iron ore futures are pointing to a 1.6 per cent fall.
Light crude is trading $0.74 lower at US$66.90 a barrel.
One Australian dollar is buying 66.92 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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