Closing Bell: ASX claws back as GDP sparks RBA rate cut talk

The ASX rebounded slightly late Wednesday after weak GDP data reared its head. Rate cut talks ensued.

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• Aussie shares rebound slightly after GDP data

• RBA rate cut talk grows amid weak growth

• Rio Tinto and Sumitomo ink $615m copper deal

Aussie shares were down by about 0.4% on Wednesday, after falling as much as 0.8% earlier in the day.

The slight rebound came after the ABS released data showing Australia’s GDP grew just 0.3% in the September quarter, with annual growth dropping to 0.8% – the weakest since the 1990s recession (excluding the Covid period).

Some experts now suggest the Reserve Bank may have to consider cutting interest rates sooner to support growth. 

But, inflation remains high, which makes the decision a tough one for the central bank.

“If you’re the RBA and the case to cut isn’t compelling, you’d probably wait for cleaner data and more data,” said Su-Lin Ong at Royal Bank of Canada.

On the ASX today, shares were mainly dragged down by a sell-off in property and utilities stocks.

Source: Market Index

Source: Market Index

A notable announcement from the large end of town came from Rio Tinto (ASX:RIO) and Japan’s Sumitomo Metal Mining (SMM) with a major deal in the copper sector.

The two giants have agreed to form a joint venture to develop the Winu copper-gold project in WA’s Great Sandy Desert. As part of the deal, SMM will acquire a 30% stake for $615 million, a move that boosted Rio Tinto’s stock by 0.3%.

Pro Medicus (ASX:PME), the medical imaging software company, rose by 3% after founders Dr Sam Hupert and Anthony Hall reassured investors they have no plans to sell more shares in the foreseeable future.

Also read > Health Check: Pro Medicus founders cashed up for the holiday season

Meanwhile, the Commonwealth Bank (ASX:CBA) has appointed Luke Yeaman as its new chief economist, replacing Stephen Halmarick. Yeaman, previously a senior Treasury official, brings lots of experience in economic forecasting and global policy.

Regionally, most Asian stock markets fell on Wednesday amid political turmoil in South Korea triggered by a brief martial law declaration by President Yoon.

South Korea’s Kospi Index dropped around 2%, while broader Asian markets, including Japan and China, also saw losses. 

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

Code	Name	Price	% Change	Volume	Market Cap
NRZ	Neurizer Ltd	0.003	200%	12,408,963	$2,817,861
VPR	Voltgroupltd	0.002	100%	3,649,032	$10,716,208
PTR	Petratherm Ltd	0.345	68%	19,326,280	$63,385,301
M4M	Macro Metals Limited	0.018	64%	50,721,027	$39,854,176
MTL	Mantle Minerals Ltd	0.002	50%	3,625,000	$6,197,446
NIM	Nimyresourceslimited	0.073	40%	1,796,800	$9,095,776
MX1	Micro-X Limited	0.099	39%	3,895,174	$41,293,867
ARN	Aldoro Resources	0.125	37%	5,229,405	$12,250,761
NYM	Narryermetalslimited	0.049	36%	6,258,323	$4,770,219
BM8	Battery Age Minerals	0.135	35%	1,858,225	$10,177,414
BYH	Bryah Resources Ltd	0.004	33%	252,000	$1,509,861
TEE	Topendenergylimited	0.130	30%	1,980,478	$8,828,125
GED	Golden Deeps	0.032	28%	2,688,565	$3,788,059
MTM	MTM Critical Metals	0.150	25%	22,582,796	$48,793,053
WYX	Western Yilgarn NL	0.032	23%	434,762	$2,627,548
FXG	Felix Gold Limited	0.087	23%	3,678,019	$23,334,563
LYK	Lykosmetalslimited	0.017	21%	5,128	$2,636,978
ALM	Alma Metals Ltd	0.006	20%	200,457	$7,832,611
AQD	Ausquest Limited	0.012	20%	3,532,322	$10,549,347
JRV	Jervois Global Ltd	0.012	20%	1,356,877	$27,027,638
ODE	Odessa Minerals Ltd	0.006	20%	2,138,375	$6,341,413
RDG	Res Dev Group Ltd	0.024	20%	488,874	$59,017,162
KNG	Kingsland Minerals	0.190	19%	5,263	$11,609,746
LKY	Locksleyresources	0.019	19%	809,532	$2,346,667
BVS	Bravura Solution Ltd	1.960	18%	3,283,521	$742,025,873

AusQuest (ASX:AQD) is set to begin its maiden RC drilling program at the Cangallo porphyry copper project in southern Peru in mid-December. The program will test a large, undrilled copper target with drilling expected to last 3-4 weeks, followed by assay results in January 2025. AQD said the project has shown promising copper and gold values.

Petratherm (ASX:PTR) assays from maiden drilling at the Rosewood prospect within its Muckanippie project in South Australia have returned bonanza heavy mineral sands concentrations, with assays still pending from a further 45 drill holes.

Aldoro Resources (ASX:ARN) has confirmed niobium mineralisation over 262 metres at Line 4 of its Kameelburg carbonatite, with an average grade of 0.52% Nb2O5. Highlights include 94 metres at 0.93% Nb2O5, with a 30-metre section showing 1.2% Nb2O5. Niobium is a high-value commodity, currently trading at US$57,000 per tonne.

Micro-X (ASX:MX1) has been awarded a US$8.2m contract by the US Advanced Research Projects Agency for Health (ARPA-H) to develop a lightweight and portable Full Body CT scanner. The contract will fund the first two years of development, with an option for a further US$8.2m over the next three years, contingent on milestones. MX1 said this non-dilutive funding will enable the company to retain full rights to the technology as it works towards FDA approval.

Top End Energy (ASX:TEE) is making the most of an active land rush in the American Midwest, acquiring a natural hydrogen exploration project from Serpentine Energy in Kansas. The company is also bringing on board Serpentine’s founder, Luke Velterop, and has completed a $6 million raise to accelerate its exploration.

Bravura Solutions (ASX:BVS) has upgraded its FY25 guidance, expecting cash EBITDA between $33m and $36m, EBITDA between $41m and $44m, and revenue between $240m and $245m, following a successful business transformation. The company also plans to restart dividend payments in February 2025, with the first payment in March, alongside a capital return of at least $0.163 per share in January

ASX SMALL CAP LAGGARDS

Today’s worst performing small cap stocks:

Code	Name	Price	% Change	Volume	Market Cap
1TT	Thrive Tribe Tech	0.001	-50%	515,721	$1,406,723
IBG	Ironbark Zinc Ltd	0.002	-50%	204,880	$7,334,591
CYB	Aucyber Limited	0.125	-38%	1,103,863	$32,712,672
T3D	333D Limited	0.010	-33%	6,666	$2,642,752
AXP	AXP Energy Ltd	0.001	-33%	8,154,593	$8,737,021
ERL	Empire Resources	0.002	-33%	80,690	$4,451,740
HCD	Hydrocarbon Dynamic	0.002	-33%	12,000	$2,783,525
88E	88 Energy Ltd	0.002	-25%	1,142,030	$57,867,624
AMD	Arrow Minerals	0.002	-25%	8,683,635	$26,447,256
LNU	Linius Tech Limited	0.002	-25%	7,496,315	$12,302,431
SKN	Skin Elements Ltd	0.003	-25%	20,461	$2,357,944
ADX	ADX Energy Ltd	0.037	-21%	4,315,260	$26,923,915
CSS	Clean Seas Ltd	0.120	-20%	139,269	$30,196,992
AYT	Austin Metals Ltd	0.004	-20%	477,090	$6,620,957
BMO	Bastion Minerals	0.004	-20%	750,000	$4,223,623
AMS	Atomos	0.009	-18%	15,088,835	$13,365,203
ROG	Red Sky Energy.	0.009	-18%	31,139,963	$59,644,499
ADD	Adavale Resource Ltd	0.003	-17%	1,000,000	$3,704,796
BPP	Babylon Pump	0.005	-17%	57,582	$14,997,294
ERA	Energy Resources	0.003	-17%	3,772,791	$1,216,188,722
GGE	Grand Gulf Energy	0.003	-17%	1,374,194	$7,351,161
PL3	Patagonia Lithium	0.080	-16%	11,000	$6,213,071
CLU	Cluey Ltd	0.038	-16%	3,871	$15,877,068

IN CASE YOU MISSED IT

Axel REE (ASX:AXL) has confirmed continuous, widespread, and high-grade rare earth element mineralisation through channel sampling across its Caladão project in Brazil’s Minas Gerais state. The company reported that magnet rare earth oxides make up, on average, 32% of the total rare earth oxide content across the 8km of sampling.

Prodigy Gold (ASX:PRX) has lodged a mineral lease application for the 407,000oz Hyperion gold deposit, moving the project closer to development-ready status. The application covers 19.8km² in the Tanami region of the Northern Territory, hosting Newmont’s 20Moz Callie mine.

Octava Minerals (ASX:OCT) has reached an agreement with Global Lithium (ASX:GL1) to sell its Talga project in WA’s Pilbara – for $200,000 cash, and $200,000 worth of GL1 ordinary shares.

The transaction makes sense. Global Lithium holds a large tenement adjoining the Talga project, which includes the Archer lithium resource (18Mt at 1% Li2O) and is also prospective for gold and base metals. OCT managing director Bevan Wakelam says the deal allows the company to focus on its high-grade Yallanlong antimony project and Byro rare earth project in WA, with drilling underway.

At Stockhead, we tell it like it is. While Axel REE, Top End Energy, Prodigy Gold, Petratherm and Octava Minerals are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Closing Bell: ASX claws back as GDP sparks RBA rate cut talk