The ASX has looked to finish the week on a high, following another volatile performance over the last five days ahead of the ASX taking a break on Monday for the King’s Birthday holiday.
Most sectors were relatively flat for the week, with Energy the worst performer down 0.41% and Information technology the best up 1.82% at time of writing.
Looking at small cap stocks, Eclipse Metals eclipsed on Friday with an early 20% boost, Imugene Ltd (ASX:IMU, OTC:IUGNF), along with Evion Group NL (ASX:EVG) had a good day rising around 10% and Magnetite Mines Ltd (ASX:MGT) +13.75%.
Limeade Inc was a notable performer.
The company announced healthcare giant WebMD Health Services' intent to acquire the company for AU$0.425 cents per share/CDI.
The offer price represents a 325% premium to the last traded price of Limeade securities on the ASX and a 217% premium to the 30-day volume-weighted average price (VWAP) to June 7, 2023. The offer price implies a fully diluted market capitalisation for Limeade of around A$111.5 million and an enterprise value in the vicinity of A$112 million.
“Limeade and WebMD Health Services creates the only truly complementary combination of culture and wellbeing in the market, allowing us to maximise health and wellbeing for all people and deliver better service, support and capabilities for our clients. We are confident that the combination will bring together WebMD Health Services human expertise and Limeade technical innovation into a comprehensive solution that will have a positive impact on people and companies worldwide,” Limeade CEO Henry Albrecht said.
What's next for the Australian stock market?
Wealth Within chief analyst and co-founder Dale Gillham takes a crystal ball to what the ASX might do in the near future.
Probability indicates that the market should be falling and to some degree it has, as it is now seven weeks since the last peak on the All Ordinaries Index. That said, over the last 16 trading days, we have only seen the market down around 1.3%, while over the last nine trading days, the fall is just 0.6%. While technically the market is falling, it is neither strong nor convincing.
Currently the All Ordinaries Index is still trading above the low of last week, which is a good sign although we still need to expect further falls. With the All Ordinaries Index down 0.59% so far this week, my opinion may change slightly if it rises today and closes the week in positive territory, as this may indicate an exhaustion of the down move.
While there is a high probability it could fall below 7,000 points, a strong rise right now will change the probability of the market rising for the remainder of June and into July. For now, it’s wise to sit on your hands, be patient and protect your capital, as the time to profit will come soon.
The week that was
This week has thrown up plenty of headlines. Today’s announcement that Donald Trump has been indicted, and that Ukraine has a secret plan to attack Russia (doesn’t seem so secret). The PM has again backed stage 3 tax cuts next year. Kathleen Folbigg was released from prison. Oil continues to drop on demand concerns, despite Saudi Arabia cutting production. The Reserve Bank of Australia raised rates, putting even more pressure on Australians. The R word reared its ugly head after the cash rate hike. And on and on it goes.
Meanwhile, a US rate hike next week is also likely …
Fed meets: is a rate hike likely?
IG analyst Tony Sycamore believes the US will again jack up its cash rate. Here’s what he had to say …
The minutes from the Fed’s May meeting showed that members were divided about whether to hike rates in June or to pause the rate hiking cycle. However, since the May meeting, five key hawkish developments have occurred.
1. The debt ceiling was raised before the X-date avoiding costly disruptions.
2. The impact of the banking crisis has been less meaningful than feared.
3. Core personal consumption expenditure (PCE) increased by 4.4% year-on-year from 4.2% previously.
4. Non-farm payrolls increased by a robust 339,000 in May.
5. Two early pausers, the RBA and the BoC, hiked rates this week.
In our opinion, the net impact of the five developments above tips the scales narrowly in favour of a 25bp rate hike to 5.25%-5.5% before an extended pause.
Five at five
Aldoro Resources higher on kicking off nickel-PGE drill program at Narndee
With a drill rig mobilised, Aldoro Resources Ltd (ASX:ARN) is kicking off its nickel-PGE drill program this coming week, targeting four new IP targets at its Narndee Nickel Project in Western Australia, and seeing the company's shares rise as high as 16.6% in mid-day trade.
Read more
Solis Minerals gets cornerstone shareholder support in A$8 million placement to advance lithium projects in Brazil
Solis Minerals Ltd (ASX:SLM, TSX-V:SLMN, OTCQB:SLMFF) has received firm commitments to raise A$8.155 million through a placement of shares to sophisticated and professional investors as well as North American institutional funds.
Read more
Magnetite Mines strengthens Razorback project economics with maiden 362 million tonne Iron Peak ore reserve
Magnetite Mines Ltd (ASX:MGT) has bolstered its Razorback Iron Ore Project economics upon delivering a maiden 362 million tonnes at 16.8% mass recovery probable ore reserve for its Iron Peak Deposit, increasing Razorback reserves to 2 billion tonnes.
Read more
Imugene advances VAXINA MAST trial to next cohort in IV monotherapy and combination studies
The clinical stage immuno-oncology company Imugene Ltd (ASX:IMU, OTC:IUGNF) has advanced its Phase 1 metastatic advanced solid tumours (MAST) trial evaluating the safety of novel cancer-killing oncolytic virus CF33-hNIS (VAXINIA) to the next cohort of the intravenous (IV) arms of both the monotherapy and combination study.
Read more
Creso Pharma and Apotheke Dr. Hysek partner to import MDMA and psilocybin treatments to Australia
Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) has partnered with Swiss-based pharmacy Apotheke Dr. Hysek AG for the import and distribution of authorised MDMA and psilocybin products into Australia.
Read more
On your six
Sexy commodities and hard work: Brett Hazelden
Brett Hazelden believes in two things: the “sexiness” of rare earths and the possibilities inherent in simple, honest hard work.
Read more
The one to watch
Surefire Resources eyes HPA upside at Victory Bore vanadium play
Surefire Resources NL (ASX:SRN) managing director Paul Burton sits down with Proactive’s Elisha Newell to chart growing high purity alumina (HPA) potential at the flagship Victory Bore Vanadium Project in WA.
Read more