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Good Afternoon and welcome to Market Close for Monday of Week 51, I’m Jon Davidson. The echoes of a bad Friday session on Wall Street hit the ASX via futures on Monday but even as the XTX tech index actually went green intraday, a slump in materials locked in a red day.
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Also over the weekend, gold and silver staged a sharp pullback; while gold is back to where it was, more or less – the price is currently at US$4,320 an ounce as at 2.20pm on Monday – silver prices fell from close to US$65/oz back down to US$62/oz, still well within record territory. Echoes of each scare likely to dissipate if strength continues.
Perhaps more meaningful for materials sector weakness on Monday however, that cohort leading laggards, iron ore prices fell to US$100/tn on Monday, retreating from strength seen across the last fortnight. Discretionary the only sector in the green in arvo trades, up half a percent.
Let’s turn to companies in the green:
Electro Optic Systems jumped +25% back to $6.30/sh on Monday as the company locked in a new contract; strength for the defence sector was also likely partially informed by events at Bondi over the weekend.
4D Medical meanwhile jumped higher eyeing $2.40 a share after its next-gen lung imaging tech was effectively greenlit for sales in Canada.
Finally, Robex Resources back on the way up after being able to make a better offer than Perseus for Predictive Discovery last week as that battle continues.
And as for companies in the red:
Deep Yellow fell along with a basket of uranium companies as uranium prices hit recent monthly lows below US$80/lb, however the ever-volatile benchmark pared some losses on Monday, eyeing US$78/lb.
Silver volatility remains favourable among swing traders as Unico Silver fell nearly -8% on Monday afternoon as traders continue to digest silver price movements and daily trends.
Finally, ASX Ltd itself fell -7% on Monday after the bourse revealed it’s been hit with a $150M capital charge, meaning it needs to raise that much to satisfy ASIC which recently took the stock market operator to court. Dividends for the next three quarters were also trimmed.
That’s Market Close, I’m Jon Davidson, have a great evening and we’ll see you tomorrow.
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