Market Close: ASX shrugs off CPI read of 3.8%; gold above US$4,150/oz as lithium strength continues

Good Afternoon and welcome to Market Close for Wednesday of Week 48, I’m Jon Davidson. A green day at least as Wall Street overnight regained all losses from last week’s September jobs data scare, as the final hour of trade got underway the XJO was back to 8,600pts. Australian inflation also climbed to 3.8% for the month, but the market wasn’t really bothered. 

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Some analysts are expecting a Wall Street Santa rally to kick off on the back of insatiable retail demand for ETFs, which could, fingers crossed, provide some upside to the ASX next month, but I’m still fairly sure a climb back to 9,000pts would need multiple upside catalysts between now and then. But, as market watchers know, anything can happen – that’s what makes it interesting.

Looking at sectors, materials in the lead as gold gets back on an upswing, currently gold’s up 4.5% Month on Month, meanwhile IT led the laggards down nearly half a percent, even after the good mood on Wall Street. 

Looking at companies in the green, 

Electro Optic jumped 5% intraday as a long-running ASIC investigation fizzled out into a measly $4M fine; price action suggests investors were predicting something worse, but after the year its had, $4M could just be the price of doing business. 

Elsewhere, HotCopper forums biotech darling Mesoblast popped 15% intraday after yesterday’s revenue announcement regarding its flagship drug Ryoncil; however, YTD returns remain down -11%. 

Finally, Domino’s Pizza saw some love on Wednesday as Citigroup increased its stake in the company from just over 5% to 6.5% of the company, the fast food chain has been suffering from CEO exits and poor overseas performance in recent history. 

And turning to the reds, 

Invictus Energy fell -30% to 9.5cps, matching the price of a capital raising to Qatari investors earlier this year, as the company revealed the Qatari royal family wants a 50% stake in Invictus, presumably at 9.5cps.

Elsewhere, European Lithium sold off down nearly -9% in the final hour as Pilbara Minerals appears to be sucking lithium price momentum out from under the junior, likely given its pedigree and the fact it pays dividends.

Finally, Temple and Webster also fell -30% on Wednesday after sales expectations were missed in its latest trading update; revenues were up 18% but this wasn’t enough to stop a brutal sell-off, nor was a perhaps fatally optimistic address from the company’s chair. 

That’s Market Close for Wednesday, I’m Jon Davidson, have a great night and we’ll see you on Thursday.