Hi, I am Holly, and you are watching Kalkine TV live from Sydney. This is The Stocks in
Action show. First, let's look at ASX 200 and the ASX listed stocks that are trending
today.
The S&P/ASX200 is down just -1.40 points today to 7258.70. The bottom performing stocks in
this index are SILVER LAKE RESOURCES down -7.96 per cent and RAMELIUS RESOURCES, down
-6.92 per cent. Over the last five days, the index has gained +1.10 per cent and is currently
+0.32 per cent off of its 52-week high.
On Thursday, the benchmark index was in an uptrend and closed the session 0.59 per
cent higher, at 7260.1, an all-time high closing for the index.
8 of 11 sectors are higher along with the S&P/ASX 200 Index. Utilities is the best performing
sector, gaining 1.39 per cent and 5.79 per cent for the past five days.
On that note, let us quickly glance through some significant market movements globally.
US stock markets closed lower on Thursday, 3 June, dragged down by bluechip stocks
as investors waited for the latest economic data from the Labor Department in a lacklustre
session.
The S&P 500 shed 0.36 per cent to 4,192.85. The
Dow Jones dropped 0.07 per cent to 34,577.04. The NASDAQ Composite Index was down 1.03 per
cent to 13,614.51. The small-cap Russell 2000 shed 0.81 per cent to 2,279.25.
On Thursday, The US dollar rose to a three-week high on the back of stronger-than-expected
US jobs data that pointed to an improving labour market and reinforced signs that the
US economy is on its way to recovery from the bruises given by the COVID-19 pandemic.
The dollar index rose 0.622 points, or 0.69 per cent, to 90.531 after falling around 2 per
cent in April and another 1.6 per cent in May.
The 10-year US Treasury yields climbed on Thursday with less activity by market participants
ahead of the government's May employment report. The benchmark 10-year notes last fell 10/32
in price to yield 1.625 per cent, from 1.591 per cent on Wednesday.
And lets look at some trending updates from the cryptocurrency and commodity space.
The largest cryptocurrency, Bitcoin, was gradually recovering from its worst fall this year and
was up by 3.52 per cent to US$38,899 on Thursday. Its peers, Dogecoin was down 4.45 per
cent and Ethereum, was down up 4.8 per cent.
On Thursday, gold slid as much as 2.3 per cent as robust US employment data and service
sector data propelled the dollar higher and boosted expectations that the strong economic
data may reignite taper talk from the US Fed.
Correction in gold’s price also impacted other precious metals, with silver slipping
as much as 4.3 per cent and platinum shedding 3.7 per cent.
On Thursday, Chinese coke futures surged as much as 6 per cent to settle at a three-week
high, supported by fears of supply shortages and resilient demand from steel mills. Chinese
coke is used mainly in iron ore smelting.
The September delivery month of iron ore futures on the Dalian Commodity Exchange closed 3.08 per
cent up at 1,172 Yuan, buoyed by rising coke prices.
However, copper and other industrial metal prices fell to five-week lows after a strong
US jobs data fuelled concerns that monetary policy could be tightened, knocking growth-related
assets. Also, the strengthening of the US dollar made metals costlier for buyers with
other currencies.
Alright then, its time for a short break. Stay tuned as I’ll be back with more trending
updates
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Hello, welcome back. I am Holly, and you are watching Kalkine TV live from Sydney. This
is The Stocks in Action show. Before the break, we were discussing commodity space. Lets look
at crude oil updates now that could impact the stocks in this space.
Crude oil prices inched higher on Thursday, recording the second consecutive daily rise
on the back of an abrupt fall in US crude inventories.
August delivery Brent crude oil futures traded flat at US$71.40 per barrel, while WTI crude
oil futures for July delivery traded 0.04 per cent down at US$68.78 per barrel.
US crude inventories tumbled by 5.1 million barrels last week, a more than expected fall
of 2.7 million barrels, whereas gasoline stocks jumped by 1.5 million barrels and distillates
stocks jumped 3.7 million barrels.
The crude oil prices have been fuelled on expectations from forecasters, including OPEC,
stating that the demand will surpass the supply during the second half of 2021.
The slowdown in talks of the 2015 US-Iran Nuclear deal revival has reduced the expectations
of oil supplies from Iran, which also supported oil prices.
Well, on that note, let’s have a look at some MAJOR NEWS from the ASX listed companies.
First up is Ovato Limited. The company has entered into a binding sale agreement to sell
the entire issued share capital of Ovato Retail Distribution and Ovato Retail Distribution
NZ to Are Media.
The consideration for the transaction comprises a headline purchase price of AU$15 million
in cash and the acceptance of a negative working capital position of approximately AU$27 million.
As per the ASX announcement, are media is a 16.4 per cent shareholder of Ovato.
Also, the Company shared on Friday that Kevin Slaven will be stepping down as CEO and Managing
Director and remain in business until the end of June.
James Hannan, currently Chief Operating Officer with over 18 years of experience, has been
appointed as the new CEO and MD effective immediately.
Moving on to the following news
CIMIC Group Limited’s company CPB Contractors has been confirmed as the builder of the first
build-to-rent residential tower to be constructed in Sydney’s central business district, over
Sydney Metro’s new Pitt Street Station, the Company announced.
The design and construct contract for the tower was awarded by Pitt Street Developer
South and will generate revenue of approximately AU$150 million to CPB Contractors.
The ASX announcement said that work on the station above which this tower will be built
is already underway, with the NSW Government has awarded the AU$463 million station contract
to CPB Contractors in 2019.
Alright then, its time for a short break. Stay tuned as I’ll be back with more trending
updates
Hello, welcome back. I am Holly, and you are watching Kalkine TV live from Sydney.
This is The Stocks in Action show. Before the break, we were discussing ASX listed stocks
that are in action today.
Meanwhile, this ASX listed stock is in the news today
Cirralto Limited has acquired Appstablishment Software Group, Cirralto’s long-term licensing
and collaborative partner.
The merged entity, trading under Cirralto Limited, will utilise the software and integration
framework developed by Appstablishment, coupled with its own payments technology in
order to improve business efficiency while providing access to increased payment options
so they can get paid quicker and better manage their cash flow.
Moving on to the next news
Noxopharm Limited shared that Novartis experimental drug, 177Lutetium-PSMA-617, is all set to
become an important new treatment for late-stage prostate cancer on the basis of Phase 3 clinical
trial data released overnight by the Company.
Noxopharm shared it has welcomed this outcome given its recent LuPIN trial data showing
an even stronger survival outcome when 177Lutetium-PSMA-617 is combined with Veyonda.
The Company stated that now it has a chance to help grow the market for 177Lutetium-PSMA-617
and potentially radioligand therapy more broadly.
As per the ASX release, the data is being presented to the Annual Conference of the
American Society of Clinical Oncology (ASCO), the foremost cancer conference in the world.
Meanwhile, this ASX listed stock is in the news today
Financial research firm Citi has upgraded steel producer BlueScope Steel to "buy" from
"neutral" and has hiked the price target to AU$25.00 from AU$22.00, as per the Refinitiv
data.
Citi stated BSL is building cash fast and can improve earnings through its North Star
expansion, benefiting from spot steel prices surging to record highs.
It expects BSL to look for large scale capital management within 2 years.
Citi said declining China steel exports will improve spreads prospects for Australian steel
exports.
The brokerage has also raised BSL's FY22 EBIT forecast by 40 per cent to AU$2.86 billion
and FY23 EBIT forecast by 22 per cent to AU$1.57 billion.
Alright then, that’s all for now. Stay tuned with Kalkine TV for more live market
updates. We will be back with more news on markets, the economy and diverse themes and
sector.