Closing Bell: Investors burnt as CSL and WiseTech torch the ASX; healthcare sector whacked

CSL and WiseTech blew up in investors’ faces today, pushing the ASX lower. Pic: Getty Images

ASX drags as CSL and WTC wipe out $20 billion in market cap intraday
Healthcare and info tech smashed by heavyweight losses
Resources stocks under pressure as US-China trade deal takes shape

ASX hammered by big cap losses

It was already shaping up to be a difficult day for the ASX, with the double whammy of falling gold prices and delayed restrictions on Chinese rare earth exports ready to shove resource stocks lower.

That’s exactly what happened, but they were joined by CSL (ASX:CSL) (-15.22%) and Wisetech Global (ASX:WTC) (-14.5%), which took the rest of the bourse with them.

The two collectively wiped about $20 billion in market cap from the ASX.

If not for those heavy losses, the ASX 200 would’ve been trading up about 0.3% at lunchtime.

Instead, healthcare, info tech and materials bled the market, which fell 0.48% or 43 points with five sectors lower by trade end.

ASX Sectors Source: Market Index
ASX Indices Source: Market Index

CSL let loose the bears when it cut earnings guidance in half and shelved the demerger of its US vaccine arm for the near-term.

WiseTech is under fire because of an ASIC investigation and an Australian Federal Police raid on its offices yesterday.

No charges or allegations have been laid as yet, but the AFP is said to have requested documents related to alleged trading by WisTech’s founder Richard White and three other company employees.

In better news, Domino’s (ASX:DMP) is flying 8.48% higher on rumours of a potential takeover by Bain Capital.

AUB Group (ASX:AUB) is on a similar track, up 7.03% after fielding an unsolicited, non-binding takeover proposal from an EQT Group affiliate at $45.00 per share. That’s a 25% premium to its last closing price, a tasty bit of value-add for shareholders.

Eagers Automotive (ASX:APE) climbed 5.98% after revealing a strategy update yesterday. The stock was also recently initiated by RBC Capital in its research coverage. RBC gives APE a price target of $32 and a sector perform rating.

Resources on the run

The ASX struggled to find its balance today, with both the ASX 200 Resources and All Ords Gold indices taking heavy losses.

Lithium, rare earths and graphite stocks have also been on the receiving end.

With China promising to delay rare earth export restrictions by a year as US-China negotiations finally make headway, the pressure to build out domestic US supply has eased significantly.

Resources stocks are crowding the ASX 200 biggest fallers’ list. The only exceptions are today’s villains, CSL and WTC.

ASX Biggest Fallers Source: Market Index. Note: Mid-cap and up only

Grange Resources (ASX:GRR), Focus Minerals (ASX:FML) and Lindian Resources (ASX:LIN) bucked the trend to add between 13.04% and 6.34%.

GRR landed with both feet firmly on the ground after releasing its quarterly report, detailing increased concentrate production, pellet sales and lower operating costs for its Savage River iron ore and magnetite mine.

FML had a similar run on its reporting, achieving a record month of gold poured in August to deliver 8,274 ounces. Focus banked about $112.8 million from its gold and silver sales plus toll mining fees during the quarter, while spending just $1.05 million on exploration.

LIN is riding a different kind of wave – investor relief.

Malawi’s newest president just imposed an export ban on unprocessed minerals leaving Malawi.

Lindian is unconcerned; the ban only covers minerals which haven’t been beneficiated within Malawi first, and LIN plans to produce a concentrate product on-site at its Kangankunde rare earths project.

Nothing doing – business as usual.

ASX Leaders

Today’s best performing stocks (including small caps):

Code Name Last % Change Volume Market Cap CT1 Constellation Tech 0.002 100% 1025982 $1,474,734 CHRCA Charger Metals 0.015 67% 30000 $384,379 EDE Eden Inv Ltd 0.065 55% 13465185 $15,508,649 PVT Pivotal Metals Ltd 0.024 33% 27731873 $16,330,066 PAB Patrys Limited 0.046 31% 4399485 $11,925,502 TIO Temasresourcescorp. 0.255 28% 11305313 $11,000,000 PHX Pharmx Technologies 0.165 27% 5986093 $77,935,883 JNO Juno 0.044 26% 337152 $7,323,297 WRK Wrkr Ltd 0.15 25% 5550563 $228,009,050 BEL Bentley Capital Ltd 0.02 25% 461098 $1,218,047 FBR FBR Ltd 0.005 25% 6844153 $26,207,891 MSI Multistack Internat. 0.005 25% 612428 $545,216 TMX Terrain Minerals 0.005 25% 7194094 $10,727,257 WEL Winchester Energy 0.0025 25% 333333 $2,726,038 NYR Nyrada Inc. 0.57 23% 3040611 $111,170,822 ALM Alma Metals Ltd 0.011 22% 4507478 $16,715,134 OLI Oliver’S Real Food 0.011 22% 1079637 $4,866,587 FLG Flagship Min Ltd 0.22 22% 2006359 $51,529,913 CAZ Cazaly Resources 0.039 22% 33148755 $14,955,652 ABX ABX Group Limited 0.12 21% 4846421 $29,502,943 CXU Cauldron Energy Ltd 0.023 21% 3874485 $33,996,447 CPM Coopermetalslimited 0.063 19% 352890 $4,152,849 CP8 Canphosphateltd 0.064 19% 247236 $16,565,068 CTE Cryosite Limited 1.3 18% 20973 $53,690,519 CTO Citigold Corp Ltd 0.013 18% 8749615 $33,000,000 WordPress Table

In the news…

Mount Ridley Mines (ASX:MRD) has lifted the curtain on a maiden resource of gallium at its namesake project in WA’s Esperance region.

MRD reckons it’s got about 838.7Mt at 29.3 parts per million in the ground. With Chinese export bans driving gallium prices up 56% to US$375/kg by October, it could be a highly valuable source of strategic critical minerals.

Javelin Minerals (ASX:JAV) is building out a gold and copper pipeline, leveraging a comprehensive review of historical exploration data at the Coogee project to drum up fresh targets.

The project already holds a resource of 3.6Mt at 1.08g/t gold for 127,000oz of gold and 1Mt at 0.41% copper for 4,122t of copper, on a granted mining lease ready for development.

Ashley Services Group (ASX:ASH) was on the up after achieving a $22 million or 17% lift in revenues on the prior quarter, with revenue hitting $150.3m.

The group also had some other financial wins, managing to offset inflationary impacts with cost savings to keep overheads steady. EBITDA was $3.74 million, up an impressive $2.8 million for the quarter.

Clara Resources (ASX:C7A) also gained after selling off a parcel of land within the Kildanga exploration tenement in Queensland for $230,000.

It’s part of a wider review initiated after C7A received unsolicited interest concerning Kildanga.

The review is considering divestment, joint ventures, or other partnership opportunities with the goal of maximising value from the Ashford Coking Coal project.

ASX Laggards

Today’s worst performing stocks (including small caps):

Code Name Price % Change Volume Market Cap DTR Dateline Resources 0.2725 -28% 61873263 $1,297,853,576 BMH Baumart Holdings Ltd 0.008 -27% 24900 $1,792,726 AUH Austchina Holdings 0.0015 -25% 461670 $6,050,767 CRB Carbine Resources 0.006 -25% 767987 $9,534,926 WYX Western Yilgarn NL 0.051 -25% 1251068 $10,698,151 VML Vital Metals Limited 0.205 -23% 964436 $38,820,932 SQX SQX Resources Ltd 0.145 -24% 568411 $7,421,875 PIM Pinnacleminerals 0.13 -24% 1118485 $17,078,780 VRC Volt Resources Ltd 0.005 -23% 5637008 $30,451,521 HRZ Horizon 0.054 -23% 44466768 $209,632,090 GLA Gladiator Resources 0.028 -22% 6900419 $29,298,686 PVW PVW Res Ltd 0.021 -22% 606925 $6,718,436 AAJ Aruma Resources Ltd 0.018 -22% 10444024 $9,426,332 BEZ Besragoldinc 0.058 -22% 2173815 $30,747,294 VBS Vectus Biosystems 0.11 -21% 40000 $7,466,666 LRD Lordresourceslimited 0.021 -25% 5920028 $4,956,057 AGD Austral Gold 0.071 -20% 783526 $54,495,710 CST Castile Resources 0.1 -20% 944482 $38,218,573 ALR Altairminerals 0.016 -20% 10219617 $103,203,372 BYH Bryah Resources Ltd 0.004 -20% 13004515 $5,142,663 CTN Catalina Resources 0.004 -20% 18108204 $12,205,095 FBR FBR Ltd 0.004 -20% 69101820 $32,759,864 QXR Qx Resources Limited 0.004 -20% 200000 $9,213,317 RKB Rokeby Resources Ltd 0.004 -20% 1090531 $9,132,806 RNX Renegade Exploration 0.004 -20% 13018386 $10,348,984 WordPress Table

Closing Bell: Investors burnt as CSL and WiseTech torch the ASX; healthcare sector whacked

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