The ASX regained some stature in afternoon trading after being down as much as 2%. By 2pm, the market had recovered some of its losses, to be sitting 1.56% in the red.
The S&P/ASX200 had dropped -108.40 points or -1.51% to 7,055.00, setting a new 50-day low at time of writing. The index has lost -2.10% for the last five days but is virtually unchanged over the last year to date.
The bottom performing stocks in this index are Pinnacle Investment Management Group Ltd and Block Inc (NYSE:SQ). down -5.64% and -5.49% respectively.
One highlight on a dreary day, where only three stocks were higher on the ASX 200 at lunch time, was Regis Resources Ltd (ASX:RRL). The WA gold miner was 2% higher and up nearly 30% from this time last year.
Regis reported record FY23 gold production of 458,354 ounces, just over the lower end of its 450,000-500,000 ounces guidance for the year ended June 30.
The company reported a strong June quarter with a cash and bullion build of $39 million to hit $243 million at the end of June.
"With commercial production declared at both Garden Well underground (Duketon) and Havana open pit (Tropicana) we have commenced the journey from investment phase to having two cash generating pillars that can be used to help fund our growth project, McPhillamys once approved," Regis managing director Jim Beyer said.
Looking at the sectors, it was sea of red. Real Estate was hit hardest, down 2.46%, followed closely by Information Technology and Consumer Discretionary losing 2.28% and 2.14% respectively.
Over the course of the week, Utilities was up over 1%, followed by Communication Services and Energy, which were both just in the green. The worst performing sectors included Healthcare and Information Technology down over 1% followed by Materials, which was just in red for the week.
The best performing stocks in the ASX top 100 include Northern Star Resources Ltd (ASX:ASX:NST) and Block Inc (NYSE:SQ) CDI, as they are both up over 5% followed by Lynas Rare Earths and Seek Ltd, which are both up over 4%. The worst performing stocks include AMP Ltd and the Star Entertainment Group Ltd down over 9% followed by Reliance Worldwide Corporation (ASX:RWC) Ltd and Reece Ltd (ASX:REH), which are both down over 3%.
On the small cap front the S&P/ASX Small Ordinaries was down 1.47% at time of writing.
Bullish on lithium
Leading brokerage firm UBS continues to express a strong bullish sentiment for the lithium industry, propelled by structural tailwinds. Among the lithium producers, Western Australian company IGO stands out as the firm's top choice. UBS has placed a valuation of $19 on IGO's shares, in contrast to the market price of $15.10 as of Friday morning.
The broker shared its optimism for both lithium and copper, pointing to the medium to long-term appeal of these commodities, driven by increasingly favourable supply and demand fundamentals.
"We remain positive on both lithium and copper into the medium to long term due to increasingly attractive supply and demand fundamentals," the broker stated.
“We remain cautious iron ore on a growing market surplus. While China stimulus is likely, we do not expect it to materially lift demand. Expectations of global rate cuts have been delayed, but we remain positive on gold yet selective the equities given a challenging operating environment.”
UBS advised a selective stance on equities due to the challenging operating environment.
What's next for the Australian stock market?
Wealth Within chief analyst and founder Dale Gillham looks ahead at what we may see happen with the market in the near future.
Once again, the All Ordinaries Index has been interesting to watch as it continued to display the extremes of both bullish and bearish sentiment. After rising 1% earlier in the week, the market fell over 1.5% in the last two days to now be trading slightly in the red overall for the week.
Last week I mentioned that while it may feel like the market is bearish, it has not been overly bearish or bullish. Given what has transpired this week, if the market continues its downward move on Friday to close lower the situation may change. I continue to stress that I am concerned that there may be further falls to 7,000 points or slightly below and if Friday is bearish, it raises the possibility that we will see an increased bearish sentiment over the next few weeks.
While we continue to experience a time when anything can happen in the market with sentiment swinging from bullish to bearish quite quickly, overall I am positive about our market longer term. In the short term, I believe we can expect more downside over the next few weeks with the market looking very good for the remainder of the year and, of course, the financial year. Now is not the time to act on emotion, but rather stay the course and get ready to profit from the next move up.
Five at five
Maximus Resources hits ‘intense’ biotite alteration at Wattle Dam Gold Mine; MRE underway
Maximus Resources Ltd (ASX:MXR) has intersected zones of intense biotite alteration from its completed drill program at the Wattle Dam Gold Project in Western Australia.
Read more
AuKing Mining takes full control of Koongie Park Project; JV partner Astral converts to 1% royalty
AuKing Mining Ltd (ASX:AKN) has taken full ownership of the Koongie Park Copper-Zinc Project in Western Australia’s highly mineralised Halls Creek region, less than two years after agreeing to jointly develop the asset with Astral Resources NL (ASX:AAR).
Read more
MGC Pharma expands US market presence with second $1 million ArtemiC order
In a significant stride for the company, MGC Pharmaceuticals Ltd (LSE:MXC, OTC:MGCLF, ASX:MXC) has received a second order from US-based AMC Pharma worth US$1 million for the production of ArtemiC™, an oral spray made up of artemisinin, curcumin, Vitamin C, and Boswellia serrata.
Read more
Race Oncology highlights mid-year milestones in cancer drug pipeline
In a half-yearly update, Race Oncology Ltd (ASX:RAC) has outlined significant progress on its preclinical and clinical programs around its Phase 2/3 cancer drug, bisantrene, both in Australia and internationally.
Read more
Aeris Resources produces 48,000 ounces of gold, 27,000 tonnes of copper and 22,000 tonnes of zinc in FY23
Aeris Resources Ltd (ASX:AIS) largely met its production guidance for financial year 2023, with total production equalling 48,220 ounces of gold, 27,372 tonnes of copper and 22,479 tonnes of zinc.
Read more
On your six
Genetic Technologies: revolutionising preventative healthcare
If you could know you were predisposed to develop a serious disease in your lifetime with pinpoint accuracy, would it motivate you to make different health choices? Genetic Technologies Limited (ASX:GTG, NASDAQ:GENE, OTC:GNTLF), a leading biotech company, is on a mission to revolutionise preventative healthcare by predicting individual risk of serious diseases and the people who are likely to succumb to down the track, using a combination of genetics and clinical risk factors.
Read more
The one to watch
Helix Resources traverses sky and soil as it deepens target portfolio
Helix Resources Ltd (ASX:HLX) managing director Mike Rosenstreich brings Proactive up to speed on the latest electromagnetic survey results from the Collerina Copper Project in New South Wales.
Watch