The ASX extended its gains for a second day on Friday, with the benchmark ASX 200 index trading 0.5% higher this afternoon bringing the index’s weekly performance to -0.93%.
Strength from Financials led the gains. The big banks were in the green — Commonwealth Bank rose 1.4%, ANZ 1.3%, National Australia Bank gained 1.7%, and Westpac is up 1.8% after Barrenjoey upgraded it to a ‘neutral’ rating.
Yet Magellan Financial Group had the worst performance on the ASX 200, losing almost 20% after reporting a $4 billion drop in funds under management to $35 million in September.
Materials stocks were also in the green with BHP (ASX:BHP) Group up 1.1%
The energy sector is again in the red as oil prices fell further overnight. West Texas Intermediate is now near $US82 per barrel — crossing below its 50-day moving average on the chart for the first time since July.
Financial Stability Review released
The RBA’s latest Financial Stability Review released today says it estimates that 5% of owner-occupiers with variable-rate mortgages had essential expenses and mortgage costs that exceeded their income in July 2023, up from around 1% in April 2022.
However, at this stage the banks are not too worried as only a "very small share of borrowers" are in negative equity where their loan value exceeds the value of a property.
“While almost all borrowers have been able to make adjustments that have allowed them to continue servicing their debts and cover essential spending, the share falling behind on their mortgage payments has begun to pick up from a low level.”
The review did find that if inflation and interest rates remain high for an extended period, it could lead to a significant deterioration in credit quality and "lenders cutting back on the provision of credit". The result could be a "disorderly declines in asset prices" that could disrupt the financial system’s functioning.
Five at Five
Nova Minerals stakes additional claims at its Estelle Gold Project
Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) has staked an additional 63 square kilometres of mining claims at its Estelle Gold Project on the Estelle Gold Trend in Alaska’s prolific Tintina Gold Belt.
Read more
Green Technology Metals reveals new LCT pegmatites at Junior in Ontario
Five months of extensive field exploration across its Eastern Hub projects in Ontario, Canada, have provided Green Technology Metals Ltd (ASX:GT1) with the confirmation that lithium-cesium-tantalum (LCT) pegmatite outcrops are present at its Junior Lithium Project in Ontario, Canada.
Read more
Recce Pharmaceuticals raises further funds to progress trials from entitlement shortfall
Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) reports it raised a total of around $11 million across its recent placement, entitlement offer and shortfall as it develops a new class of synthetic anti-infectives designed to address the urgent global health problems of antibiotic-resistant superbugs and emerging viral pathogens.
Read more
Anson Resources finalises processing plant site for Green River Lithium Project
Anson Resources Ltd (ASX:ASN) has finalised the location for its proposed processing plant within the Paradox Basin, in Utah, USA, on the heels of a successful geotechnical engineering study.
Read more
Global Lithium Resources sees signing of Manna native title agreement by year’s end
Global Lithium Resources Ltd (ASX:GL1) is continuing to engage with the Kakarra Part B Native Title claim group for the land underlying its 100%-owned Manna Lithium Project in Western Australia and anticipates the signing of the Native Title Mining Agreement before the year is out.
Read more
On your six
China’s faltering economy reveals structural weakness in global ageing population
It seems the industrial golden age of exponential population and economic growth may be coming to an end. All around the world, birth rates are falling, and populations are ageing. The structures that once held up our advanced infrastructure, pension schemes and high economic growth are faltering as we speak.
Read more
One to watch
Future Metals’ MD describes potential acquisition as “highly strategic”
In a strategic move, Future Metals NL (ASX:FME, AIM:FME) is set to acquire 100-square kilometres of highly prospective tenure within 20 kilometres of its existing Panton Project, situated in the East Kimberley region of Western Australia.
Watch more