The ASX is likely to open lower this morning, with ASX 200 Futures trading 31 points lower, down -0.42% as of 8:20 am AEDT after it added 25 points (0.34%) yesterday to close at 7,530.
If the ASX does finish down today, it will be on the back of US stocks falling overnight.
Federal Reserve speakers in the US mooted further cash rate hikes to bring down inflation, which muted investor sentiment.
Leading the Nasdaq lower, was Google (Alphabet (NASDAQ:GOOGL) Inc. Class A) which fell 7.44%. The company lost US$100 billion of market cap after its Chatbot Bard made a factual error at its first public demo. The new AI intelligence chatbot, which is meant to rival ChatGPT, delivered the wrong answer to an online advertisement.
Other companies to drag Wall St down were fellow tech stocks, Zoom Video Communication Inc. which fell 6.27%, Snap Inc (NYSE:NYSE:SNAP) fell 5.32%, and Meta Platforms Inc (NASDAQ:FB) lost 4.27%.
On the flipside, Uber Inc. topped earnings expectations and guides to a profitable 202.
Tesla (NASDAQ:TSLA) also gained.
“The share price of Tesla gained 5.53% to trade above $200 for the first time in almost three months on reports that Tesla’s Model Y and Model 3 were the top-selling vehicles in California last year,” wrote IG Markets analyst Tony Sycamore.
Of the ASX yesterday, Sycamore noted, “The heavy-weight Financial (0.9%) and Materials (0.76%) sectors led the advance, which we haven’t seen for quite some time. At the same time, Consumer Staples (-0.61%) and Health Care (-0.61%) stocks underperformed.
“At a stock level, Boral Limited (ASX:BLD) was the star of the show, adding 12.78% following a strong trading update. Suncorp Group Ltd added 4.57% following robust earnings from the banking division. City Chic Collective Ltd fell 6.96% and Elders Ltd fell 5.86% to $8.83. The Elders’ share price is 42% below where it was nine months ago.”
Over in Europe, European share markets hit nine-month highs.
European Central Bank policymaker Klaas Knot said the central bank may extend its streak of large interest rate hikes into May if core inflation didn't ease.
The energy sector was the top performer, up 1.7%, boosted by a 10.6% lift in Finnish refiner Neste after a strong earnings result. The continent-wide FTSEurofirst 300 index lifted 0.2% and the UK FTSE 100 index gained 0.3%.
Here’s what we saw (source Commsec):
- The Euro fell from highs near US$1.0759 to lows near US$1.0708 and was near US$1.0715 at the US close.
- The Aussie dollar dipped from highs near US69.94 cents to lows near US69.18 cents and was near US69.25 cents at the US close.
- The Japanese yen eased from near 130.59 yen per US dollar to around JPY131.50 and was near JPY131.40 at the US close.
- Global oil prices advanced 1.7% on Wednesday after Iran, a member of OPEC, said the group is likely to stick with current policy at its next meeting. Limiting oil's price gains was US Government data showing US oil production rose last week to the highest level since April 2020. Crude inventories rose by 2.4 million barrels to 455.1 million barrels.
- The Brent crude oil price rose US$1.40 or 1.7% to US$85.09 a barrel.
- The US Nymex crude oil price added US$1.33 or 1.7% to US$78.47 a barrel.
- Base metal prices tumbled. The copper futures price dipped 1.1% after comments by US Federal Reserve officials and as the US dollar strengthened.
- The aluminium futures price slid 2% after data showed LME inventories soared 27% to 495,750 tonnes, the highest in about two months, after arrivals in Gwangyang port in South Korea.
- The gold futures price rose US$5.90 or 0.3% to US$1,890.70 an ounce.
- Spot gold was trading near US$1,875 an ounce at the US close.
- Iron ore futures rose US46 cents or 0.4% to US$123.21 a tonne as traders assessed demand prospects in top steel producer China.
Myopharm is seeking to raise up to A$2 million in its pre-IPO raise – the final raise expected before its listing to the ASX. The company hopes to raise a total of $5 million during the IPO process.
The currently unlisted biotech is focused on treating chronic and lifestyle metabolic diseases and has two business streams a clinically validated nutritional arm and its pharmaceutical product divisions.
Myopharm plans to complete its listing on the ASX in late 2023/early 2024 once it achieves an enterprise value (EV) of A$13 million to A$18 million.
It is tightly held at the moment with just 140 shareholders and its top five, including CEO Karinza Phoenix, owning 44% of the company. It is now looking for pre-IPO investors including high net worth, sophisticated, family office and retail investors.
According to Phoenix, current and interested investors include pharmacists, doctors and people personally affected by the disease.
The company has wholly owned IP in Type 2 diabetes: prediabetes affects some 10% of the 8 billion global population and remains a serious problem particularly in India where it continues to grow.
In a major move, Myopharm recently acquired Melbourne-based nutritional company Omni Innovation for A$802,000 from a shareholder group including EVE Health Group Ltd, which owned a 38% stake.
The acquisition gives Myopharm an expected launch of its Type 2 diabetes nutritional OMNI-D product in Australian pharmacies in 1Q23.
Myopharm is also in the process of acquiring a Type 2 diabetes-focused pharma company and capital from the pre-IPO raise will be used to assist in the buyout.
Funds will also be used to complete additional clinical studies for OMNI-D and develop products in other disease indications.
Further acquisitions, including international, are also being looked at, particularly companies with specialised nutritional and pharmaceutical products for other metabolic and lifestyle diseases.