Six-month high ASX 200 November 2022

Market Jumps to 6-Month High After Strong Week – Weekly Review

WEEKLY MARKET REPORT

The all-conquering Australian stock market ended the week yet again up 0.2%, capping four straight jumps to post a 1.5% gain for the week.

That took the ASX 200 to 7259.50 points, which is a six-month high.

It wasn’t a unanimous rise, with gains in nine of the 11 sectors overcoming declines in energy and materials, but there was plenty of encouragement for investors as banks continued their run on strengthened profitability as interest rates continue to rise.

CBA leads banks higher

Commonwealth Bank (ASX:CBA) led the way higher, up 1.1% to a record close of $109.20, but all bank stocks were higher as they attracted new investors.

Biotech giant CSL (ASX:CSL) was another good performer, gaining 0.25% on the day to close temptingly close to $300 per share at $299.72 after falling had hovered above this mark for most of the day after the release of news about his milestone a gene therapy treatment for hemophilia B had been approved.

Job losses spur Wesfarmers

Retail giant Wesfarmers (ASX:WES) saw its shares rise 0.6% to $49.16 after reports that its popular warehouse hardware outfit Bunnings would face a series of layoffs.

Up to 300 jobs will coincide with most of them at the national support center and head office as they prepare for more usual post-pandemic trading patterns.

Some of the job losses will be caused by natural turnover and by not filling vacancies, but the reorganization also aims to move in-house training online, with layoffs on offer in the coming months.

Other stocks that should do well were retailer Harvey Norman (ASX:HVN) and energy retailer AGL (ASX:AGL), with shares in both rising more than 3%, while ultrasound probe disinfectant specialist Nanosonics ( ASX: NAN) saw its shares soar 11%. on the back of broker upgrades.

Chinese Covid cases hit miners

All was not smooth on the ASX as miners weighed on the index, with BHP (ASX:BHP) share price falling 0.8%, typical of a widespread negative tone for materials, dragging the sector down as a whole sent 1.1%.

The main reason that drove miners lower was a fresh spike in Covid cases in China, which are expected to lower demand for commodities amid tough lockdown laws.

Things were even worse for lithium stocks, as key provider Allkem (ASX:AKE) shrank a whopping 8.6% on the day, with similar declines for all lithium miners.

Shares in small-cap fashion retailer City Chic (ASX: CCX) fell more than 28% after the company issued a trading update warning that margins would shrink.

Small Cap Stock Action

The Small Ords Index was up 0.87% this week to close at 2896.3 points.

Chart November 2022 ASX 200 chart
ASX 200 compared to small orders

Small-cap companies that made headlines this week were:

Codrus Minerals (ASX:CDR)

Codrus Minerals has entered into a farm-in and joint-venture agreement with private seller Talgomine Minerals to earn up to a 90% interest in the Karloning Rare Earth Project in WA.

The company called the transaction an “exciting growth and diversification opportunity” to explore high-value metals such as praseodymium, neodymium, terbium and dysprosium, which are critical to the manufacture of high-strength permanent magnets.

Karloning’s high-grade samples include 5,740 ppm dysprosium oxide, 2,658 ppm neodymium oxide, 3,516 ppm terbium oxide and 235 ppm praseodymium oxide.

Blackstone Minerals spun off Codrus last year to advance projects in Australia and the US.

Materials for Archers (ASX:AXE)

Supercomputers were used to analyze Archer Materials 12CQ quantum qubit material and prove the uniqueness of the technology.

The company has run “key simulations” more realistically and efficiently than ever before to validate the qubit’s properties and confirm its intrinsic, metal-like character.

Archer’s Chief Executive Officer, Dr. Mohammad Choucair said the company’s technology has evolved to a stage that requires high-performance computers and relies on the “few people and institutions in the world that can do this type of work.”

Southern Cross Gold (ASX:SXG)

Drilling at Southern Cross Gold’s 100% owned Sunday Creek project in Victoria has identified nine separate zones of gold-antimony mineralization and at least eight new vein sets.

The zones were identified by one drill hole that intersected 305.8m grading 2.4 g/t gold equivalent (1.6 g/t gold and 0.5% antimony) from 319.2m.

Within the 305.8m zone were 12 high-grade intervals averaging greater than 20 g/t gold, including five averaging greater than 100 g/t gold, with assays up to 181 g/t gold and 9.7% antimony ( 196.3 g/t gold equivalent). several areas of visible gold.

Following the discovery, Southern Cross announced it had received firm commitments for a share placement to raise $16 million.

Shares will be issued at $0.58 each, representing an 11.5% premium to the 15-day volume-weighted average price and a 1.7% discount to the last traded price prior to the increase.

The funds will be used to expand the current fleet from three drill rigs to five to advance exploration at Sunday Creek.

Increase Uranium (ASX: EL8)

The discovery of a new uranium zone has expanded the total mineralization at Elevate Uranium’s Koppies Project in Namibia to over 19 km.

The new zone is known as the Koppies 4 and is believed to be a continuation of mineralization at the Koppies 3 target identified in September.

Elevate said Koppies 3 and 4 have the potential to significantly increase the project’s overall uranium resources.

An initial resource was announced in May for Koppies 1 and 2 totaling 20.3 million pounds of uranium oxide equivalent.

Investigator Resources (ASX:IVR)

Investigator will begin a resource expansion drilling campaign at its flagship Paris project in South Australia.

The project already hosts the highest grade undeveloped silver deposit in the country and is expected to grow with new drill results.

The drilling is being conducted against a backdrop of declining global reserves and increasing demand for the use of silver in technologies that will support the world’s transition to net zero.

In addition, the Company announced today that it will acquire up to an 80% equity interest in the Molyhil Tungsten Project near Alice Springs in an agreement signed with Thor Mining.

The three-stage deal includes an initial commitment expense of $1 million over 18 months to earn a 25% interest in Molyhil and related properties and Thor’s 40% interest in the adjacent Bonya deposit.

Molyhil hosts a current mineral resource estimate of 4.38 Mt grading 0.27% tungsten trioxide and 0.10% molybdenum for 11,800t tungsten trioxide and 4,400t molybdenum.

It was previously granted ‘Major Project’ status by the Northern Territory Government.

The investigator said the deal presents a “strategic opportunity with identified exploration upside, resource upgrade and recovery improvements.”

Tungsten has applications in aerospace, steel hardening, cutting and drilling, armor plate, electronics and jewelry.

It is considered a rare and valuable industrial metal that complements Investigator’s silver commodity focus.

Global demand has pushed tungsten prices up over 50% in the past year.

Netlinkz (ASX:NET)

Australian technology company Netlinkz has inked a deal with Elon Musk’s SpaceX organization to distribute its satellite-based broadband internet service Starlink in markets in Australia and New Zealand.

The high-speed, low-latency product is bundled with Netlinkz’s proprietary Virtual Secure Network (VSN) solution to offer customers a “new level of connectivity.”

Remote and rural communities top the priority list, followed by markets such as Malaysia, Indonesia, Qatar, Singapore, Japan, the Pacific Islands, Africa and Pakistan.

E2 Metals (ASX:E2M)

On Friday, E2 Metals impressed investors with the news that it would acquire one of the largest undeveloped silver-gold resources, Pinguino, located in Argentina’s Santa Cruz province.

Pinguino is located just 15km north of E2 Metal’s flagship Conserrat gold-silver in the region and the combined project makes the Company the owner of the largest undeveloped silver resource in the region.

The new project has an inbound resource of 82 million silver equivalent ounces and E2 Metals is acquiring it for approximately $10 million through a mix of cash advances, stock and milestone payments.

Advertisement (ASX:AV1)

In the ASX-listed technology sector, Adveritas is the latest company to be targeted for an acquisition.

The company announced on Friday that it had received an indicative proposal from Nasdaq-listed global major Integral Ad Science.

Adveritas is considering the proposal, which values ​​it at $0.11 per share — equivalent to about $50 million.

Integral Ad Science, with a market capitalization of $1.52 billion, analyzes the value of digital ad placements and has developed technology to combat ad fraud.

Adveritas developed its proprietary and award-winning omnichannel ad verification platform, TrafficGuard, to prevent ad fraud.

Next week

There is little doubt about the biggest planned announcement for the coming week with the October 1 CPI on Wednesday which could really move the market either way.

A weaker-than-expected read could bolster confidence that the Reserve Bank may not have to hike rates as big and as fast as some fear, while a breakout in headline inflation to 7.4% or more poses a real challenge for the pivot -Brigade could represent.

Other local publications to watch out for are retail, building permits, construction, private sector credit, home prices, business investment and lending indicators, which are predicting an increase in home loans due to the refinancing wave.

Overseas, it’s quite a busy week with Chinese PMIs expected to show a continued decline, while in the US there’s a plethora of numbers including economic growth, home prices, manufacturing, employment, home sales, construction and personal income and spending .

The other left thing to watch out for is Reserve Bank Governor Dr. Philip Lowe speaking at a panel discussion to celebrate the 80th anniversary of the Bank of Thailand.

This week’s top stocks


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