After hitting a four day high early on Wednesday, the ASX has reversed course to end the session flat (+0.2 points at 8,314.2 points).
The Industrials and Healthcare sectors were the best-performing sectors of the day, while Financials finished lower as did Consumer Discretionary stocks.
Mid-year budget update
Treasurer Jim Chalmers and Finance Minister Katy Gallagher released the Federal Government’s mid-year budget update today, revealing a slightly smaller deficit in the 2024-25 financial year than what was presented in May, but larger anticipated deficits over the coming three years.
Chalmers now expects a deficit of $26.9 billion for the current financial year, down from the $28.3 billion forecast in May helped by higher income tax receipts thanks to a stronger jobs market.
But the budget is expected to slip deeper into deficit over the following three years, as better-than-expected revenues are outweighed by growing spending pressures.
Treasury forecasts predict a gloomier economy in the new year with lower growth, lower wages and lower household spending but with higher employment.
From the current financial year until 2027-28, Chalmers had forecast cumulative deficits of $122.1 billion but now says the deficit will reach $143.9 billion — $21.8 billion worse than at budget in May.
Economy displays resilience
Despite the weak Treasury outlook, National Australia Bank CEO Andrew Irvine expressed confidence in Australia’s economic resilience at NAB’s annual general meeting today, despite seven consecutive quarters of per capita recession.
Irvine highlighted strong business sentiment and a resilient job market, bolstered by unemployment falling to 3.9% in November.
“Restrictive interest rates are working to bring inflation into the Reserve Bank’s target range, and we expect rates to decrease in the first half of 2025,” he said.
That said, ASIC data has revealed that Australia notched a record number of insolvencies in the calendar year, with 12,405 businesses collapsing between January and November. That’s an increase of 62% compared with November last year and 158% of May 2022 levels.
Qantas to compensate staff
Qantas has agreed to pay A$120 million in compensation to 1,820 ground crew workers unlawfully dismissed during the COVID-19 pandemic, following a protracted legal battle in the Federal Court.
The payout will compensate affected workers for economic loss and non-economic harm, including hurt and suffering, with the final compensation figure for each individual capped at around 12 months’ pay, as determined by the court.
ASIC sues Binance
ASIC is suing Binance Australia Derivatives — part of the global Binance group — for alleged customer protection failures.
The regulator claims that from July 2022 to April 2023, Binance misclassified 505 retail investors as wholesale clients, exposing them to high-risk crypto derivative products without adequate consumer safeguards.
These clients represented 83% of Binance’s Australian customer base and received a share of A$13 million in compensation in 2023.
ASIC deputy chair Sarah Court criticised Binance’s compliance systems as “woefully inadequate”, alleging the company failed to provide product disclosure statements, determine appropriate target markets, or train staff adequately.
Orthocell at new high
Orthocell Ltd (ASX:OCC, OTC:ORHHF) hit a new record of $1.27, climbing 10.92% from the previous high, Altech Batteries Ltd (ASX:ATC, OTC:ALTHF) rose 11.63% to a daily high of $0.048 after securing a third offtake heads of agreement for CERENERGY GridPack and Sprintex was up by 11.48% to $0.068 on securing a financing boost from its largest shareholder.
Other increases in the small cap sector were recorded by Polymetals Resources Ltd (ASX:POL), which was up as much as 8.23% to $0.855, Tryptamine Therapeutics Ltd (ASX:TYP, OTC:TYPTF) rose by 7.9% to $0,041 after releasing positive early results in an irritable bowel syndrome trial, Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) hit $1.095, a lift of 6.32% on the previous close and Solis Minerals Ltd (ASX:SLM, TSX-V:SLMN, OTCQB:SLMFF) increased by 5.8% to $0.073.
Five at Five
Maximus Resources shallow high-grade gold continues at 8500N Paleochannel with up to 56.5 g/t
Maximus Resources Ltd (ASX:MXR, OTC:MXRRF) has received final assay results from a first phase RC drill program at its 100%-owned 8500N Paleochannel, near Kambalda in Western Australia, which show shallow high-grade gold mineralisation continues in the northern zone of the paleochannel.
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Tryptamine Therapeutics fields positive early results in Phase 2a irritable bowel syndrome trial
Tryptamine Therapeutics Ltd (ASX:TYP, OTC:TYPTF) continues its run of good clinical outcomes with encouraging interim results from the first four participants in its Phase 2a clinical trial assessing TRP-8802 – oral psilocybin – for Irritable Bowel Syndrome (IBS).
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Apollo Minerals looks to 2025 after encouraging Salanie gold drilling campaign
Apollo Minerals Ltd (ASX:AON, OTC:APOMF) has received all assays from its 2024 exploration activities at the Salanie Gold Project in Gabon, with site planning now underway for drilling activities to start in early 2025.
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Surefire Resources starts magnetite concentrate production
Surefire Resources NL (ASX:SRN) has begun magnetite concentrate production from its 100%-owned Victory Bore Iron-vanadium-titanium project in the Mid West of Western Australia.
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Livium to establish battery materials demonstration plant in Australia
Livium Ltd (ASX:LIT, OTC:LMMFF) has outlined a path forward in the development strategy for its Battery Materials division, VSPC, as it progresses toward commercialisation.
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On your six
Tech Bytes: European Commission opens investigation into TikTok over Romanian election interference
The European Commission has launched formal proceedings against TikTok following allegations the social media platform failed to prevent election interference during Romania's recent presidential vote.
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One to watch
Year wrapped: Pantoro targets gold growth at Norseman
Pantoro Ltd (ASX:PNR, OTC:PNTOF) managing director Paul Cmrlec talks with Proactive’s Tylah Tully about the company’s achievements in 2024 and plans for the Norseman Gold Project in Western Australia in 2025, with a particular focus on developments at the Scotia Mine.
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