Closing Bell: ASX slips as Fed decision looms

The ASX closed just into the red on Wednesday, ahead of another important Fed decision.

The ASX fell in the final session. Picture via Getty Images

• ASX gives back gains ahead of Fed decision

• Vulcan and DigiCo rise

• MinRes completes $780m gas deal with Hancock Prospecting

The ASX gave back its earlier gains this afternoon as investors adopted a more cautious approach ahead of the US Federal Reserve’s rate decision later tonight (US time). 

The benchmark ASX 200 ended up flattish after earlier rising by about 0.30% at lunch time.

Overnight, Wall Street closed lower as investors braced for the Fed’s final policy meeting of the year. 

While a 25 basis point rate cut is widely expected, investors are being urged to act with caution.

“Policymakers can’t risk further stoking inflation, especially as President-elect Trump’s proposed agenda of tax cuts, deregulation and large-scale infrastructure spending is expected to drive inflation higher in the coming months,” said de Vere’s Nigel Green.

The Fed’s decision will be announced Thursday AEDT.

Back on the ASX, four of the 11 sectors were in the red today:

Source: MarketIndex

Source: MarketIndex

In the large caps space, Mineral Resources (ASX:MIN) has completed its $780 million gas deal with Gina Rinehart’s Hancock Prospecting in the Perth Basin and Carnarvon Basin in WA. Shares were down 0.1%.

Vulcan Energy Resources (ASX:VUL) rose 2.25% following the announcement of a €879 million financing deal for its Lionheart project in Germany. The deal involves a group of banks and Export Finance Australia.

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

Security	Description	Last	%	Volume	MktCap
AMD	Arrow Minerals	0.002	100%	3,270,870	$13,223,628
AYM	Australia United Min	0.004	100%	979,323	$3,685,155
IBG	Ironbark Zinc Ltd	0.003	50%	2,047,671	$3,667,296
OBL	Omni Bridgeway Ltd	1.375	42%	1,643,720	$272,693,739
FTC	Fintech Chain Ltd	0.007	40%	202,000	$3,253,848
NPM	Newpeak Metals	0.014	40%	3,993,728	$3,054,051
GTR	Gti Energy Ltd	0.004	33%	130,000	$8,888,849
NRZ	Neurizer Ltd	0.002	33%	5,700,237	$4,226,791
ASO	Aston Minerals Ltd	0.009	29%	4,741,457	$9,065,450
AKN	Auking Mining Ltd	0.005	25%	100,083	$1,565,401
T3D	333D Limited	0.010	25%	2,008	$1,409,468
TMK	TMK Energy Limited	0.003	25%	13,095,666	$18,651,130
STN	Saturn Metals	0.205	24%	214,233	$50,966,006
BDG	Black Dragon Gold	0.031	24%	3,786,696	$7,547,068
SBW	Shekel Brainweigh	0.022	22%	375,000	$4,105,102
BCB	Bowen Coal Limited	0.006	20%	24,227,589	$53,875,163
ERA	Energy Resources	0.003	20%	6,170,702	$1,013,490,602
LNR	Lanthanein Resources	0.003	20%	7,175,640	$6,109,090
CDR	Codrus Minerals Ltd	0.019	19%	20,000	$2,646,200
PR2	Piche Resources	0.098	17%	5,306	$6,744,405
BUY	Bounty Oil & Gas NL	0.004	17%	516,666	$4,495,503
OSL	Oncosil Medical	0.007	17%	7,016,666	$27,639,481
PAB	Patrys Limited	0.004	17%	250,000	$6,172,342
WBE	Whitebark Energy	0.007	17%	1,921,331	$1,514,001
TRE	Toubani Res Ltd	0.150	15%	353,617	$29,764,795

Litigation financing company Omni Bridgeway (ASX:OBL) has agreed with Ares Management to establish Fund 9, acquiring OBL’s co-investment in 150+ assets. Ares will pay $310 million for a 70% stake, with OBL retaining 30%. The deal provides OBL a 3.2x return on invested capital and a 2% management fee from Fund 9. Ares also has the option to buy up to $35 million in OBL equity. 

DigitalX (ASX:DCC) has raised $15.4 million through a private placement and rights issue. Tony Guoga joins as strategic advisor to expand digital asset services, investing $4.7 million. DCC expects 41 Bitcoin from Mt Gox in 2025, valued at $7 million, and growth in its Bitcoin ETF.

Clarity Pharmaceuticals (ASX:CU6) said it has developed a new FAP-targeted radiopharmaceutical, SAR-bisFAP, designed for cancer diagnosis and treatment. This product uses copper isotopes for imaging and therapy, showing strong tumour targeting and retention in pre-clinical models. FAP is widely expressed in many cancers, offering a broad treatment potential. 

Iceni Gold (ASX:ICL) has signed a farm-in deal with Gold Road Resources (ASX:GOR) worth up to $44 million for exploration on its Guyer Gold Trend in Western Australia. GOR will invest $5 million initially, with the potential to earn up to 80% of the project. GOR is also taking a 9.9% stake in Iceni for $3.05 million. Exploration starts in January 2025.

ASX SMALL CAP LAGGARDS

Today’s worst performing small cap stocks:

Code	Name	Price	% Change	Volume	Market Cap
PER	Percheron	0.007	-88%	302,818,681	$64,158,820
PGY	Pilot Energy Ltd	0.005	-55%	84,734,632	$16,420,716
NTD	Ntaw Holdings Ltd	0.250	-35%	2,075,919	$64,567,430
MTL	Mantle Minerals Ltd	0.001	-33%	167,650	$9,296,169
PKO	Peako Limited	0.002	-33%	500,000	$3,285,425
TD1	Tali Digital Limited	0.001	-33%	1,380,000	$4,942,733
TKL	Traka Resources	0.001	-33%	12,450	$2,963,488
VML	Vital Metals Limited	0.002	-33%	1,690,214	$17,685,201
APC	APC Minerals	0.013	-32%	2,488,683	$1,941,289
EWC	Energy World Corpor.	0.017	-26%	68,753	$70,815,189
88E	88 Energy Ltd	0.002	-25%	1,600,303	$57,867,624
AXP	AXP Energy Ltd	0.002	-25%	1,509,994	$11,649,361
CR9	Corellares	0.003	-25%	1,023,116	$1,860,370
LNU	Linius Tech Limited	0.002	-25%	300,000	$12,302,431
TX3	Trinex Minerals Ltd	0.002	-25%	21,989	$3,657,305
VRC	Volt Resources Ltd	0.003	-25%	6,796,333	$16,634,713
ERG	Eneco Refresh Ltd	0.010	-23%	80,000	$3,540,659
VMT	Vmoto Limited	0.056	-20%	3,341,647	$29,311,256
DDT	DataDot Technology	0.004	-20%	100,000	$6,054,764
EAT	Entertainment	0.004	-20%	182,325	$6,543,930
FHS	Freehill Mining Ltd.	0.004	-20%	2,450,235	$15,392,639
REE	Rarex Limited	0.008	-20%	7,715,241	$8,008,458
RRR	Revolverresources	0.029	-19%	131,961	$9,832,473

Percheron Therapeutics (ASX:PER) plunged by almost 90% after announcing that its phase IIb trial of avicursen for Duchenne muscular dystrophy (DMD) did not meet its primary endpoint or show significant efficacy in secondary endpoints.

Based on these results, the company has decided to terminate the trial and will conduct a strategic review of its pipeline in early 2025. Percheron said it remains committed to advancing DMD research and will provide further updates in the new year.

IN CASE YOU MISSED IT

Race Oncology (ASX:RAC)has strengthened its leadership team with the appointment of Dr Megan Baldwin as non-executive director. Baldwin brings over 25 years’ experience in therapeutic drug development and is the founder of Opthea, a late-stage biopharmaceutical company.

Everest Metals Corporation (ASX:EMC) has achieved up to 91% rubidium recovery through direct extraction from ore at its 3.6Mt Mt Edon project in WA. This is timely, as rubidium is one of 35 critical minerals identified by several countries globally, with its market expected to grow significantly in the coming years.

In Norway, Kingsrose Mining (ASX:KRM) has uncovered another zone of nickel-copper mineralisation at its Råna project. The company said there's promising polymetallic sulphide mineralisation, and is now evaluating the potential for further discoveries, considering current nickel market conditions.

Altech Batteries (ASX:ATC) has secured its third offtake agreement for its Cerenergy salt batteries, this time with Axsol, a leading German provider of integrated renewable energy solutions. The deal covers the supply of 10 megawatt-hours (MWh) of Cerenergy energy storage capacity in the first year, with a rise to 30 MWh in years after. This partnership also allows Altech to break into the Western defence sector.

Tungsten Mining (ASX:TGN)has raised $4.5 million through the issue of convertible notes to professional and sophisticated investors.The funds will be used to acquire the Mt Mulgine project and support ongoing project development, with TGN now holding all mineral rights to the project.

Godolphin Resources (ASX:GRL) has struck a 37m-wide sulphide zone in its third drill hole (GLPDD007) as part of a 1,500m drilling program at its Lewis Ponds project in NSW. It follows the success of the previous two drill holes, including a 40m intersection of semi-massive sulphide mineralisation in GLPDD006. Further assay results are expected in late January 2025.

In the US, cleantech company Carbonxt Group (ASX:CG1)has achieved mechanical completion of its cutting-edge activated carbon production plant in Kentucky and increased its ownership stake to 40%. The plant is primed to meet the growing demand for premium activated carbon products in North America, with sample production scheduled for the March quarter, which will allow CG1 to finalise potential offtake agreements.

At Stockhead, we tell it like it is. While Race Oncology, Everest Metals, Kingsrose Mining, Altech Batteries, Tungsten Mining, Godolphin Resources, Carbonnxt Group and Race Oncology 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 slips as Fed decision looms