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Highlights
- ASX200 falls as Chinese stimulus underwhelms.
- Commodity stocks struggle; IT sector sees gains.
- Novonix, Nagambie Resources rise on positive developments.
The Australian Securities Exchange (ASX200) experienced a 0.35% drop, closing at 8,266 points as market participants reacted to recent stimulus measures from China, which fell short of expectations. Weakening iron ore and oil prices, impacted by fading momentum from China’s Golden Week, have further strained the performance of key commodity stocks.
In a positive turn, the Information Technology sector led gains, rising 1.4%, while Real Estate and Health Care followed with increases of 1.25% and 0.7%, respectively. Conversely, Materials saw the most significant losses, down 2.8%, followed by Staples, which fell 1.8%, and Utilities, down 0.7%.
Positive Performers
Among those in the green, Novonix (ASX:NVX) surged 12.5% following the announcement of a new supply agreement with Stellantis, a global automotive leader with brands including Maserati, Jeep, and Fiat. This development marks a significant advancement for Novonix, a synthetic graphite producer, boosting confidence in its future prospects. Novonix closed the day at $0.81.
Nagambie Resources (ASX:NAG) saw the largest gains on the bourse, closing up 33.33% after updating its mineral resource estimate for a high-grade gold-antimony deposit at its Victoria-based mine. The company reported a 110% increase in gold-equivalent resources, utilizing advanced computer modeling for this significant revision. Nagambie Resources ended the day at $0.02, reflecting investor enthusiasm about its resource potential.
Incitec Pivot (ASX:IPL) managed a 0.32% rise despite reporting a $311 million net loss for the past year. Most of this loss stemmed from a $791 million impairment related to its fertilizer division, which the company is planning to divest. The focus on becoming a pure-play explosives and chemicals company appears to have supported its stock, which closed at $3.11.
Stocks in Decline
On the downside, Infomedia (ASX:IFM) dropped 11.3% after issuing a guidance downgrade. The company now anticipates revenue in the range of $142 million to $149 million, a decrease from prior expectations of $144 million to $154 million. Infomedia closed at $1.29, reflecting concerns over the revised forecast.
Endeavour Group (ASX:EDV), owner of popular liquor outlets BWS and Dan Murphy’s, fell 4.86% as its trading update undershot market expectations. The company reported a 0.5% rise in group sales to $3.1 billion for the recent quarter, leading Endeavour Group to close at $4.50.
Lastly, Champion Iron (ASX:CIA) experienced a 9.76% decline, primarily due to going ex-dividend, with shareholders set to receive an $0.11 per share dividend. The drop in iron ore prices also weighed heavily on the stock, which ended the day at $5.64.
The day’s market movement highlights the influence of external economic factors and company-specific updates on ASX-listed stocks, with varied performances reflecting shifts in investor sentiment across sectors.
