Lunch Wrap: ASX set to snap winning streak as Moody’s US downgrade puts markets on edge

ASX eases off the boil as Moody’s rattles nerves. Meanwhile Domino’s reshuffles and MinRes picks its new chairman.

ASX snaps streak as Moody’s spooks markets. Picture via Getty Images

• ASX looks set to snap winning streak as Moody’s spooks markets

• New Hope tanks on coal squeeze and soft prices

• Domino’s reshuffles, MinRes names new chair

The ASX was down 0.15% by Monday lunch AEST, on track to snap its longest winning streak since August and fall just short of a ninth straight win.

Local mood turned after Moody’s threw a bit of cold water on markets, downgrading US government debt from its prized AAA status to Aa1.

Its reason is ballooning US deficits, rising interest costs, and a fiscal house that’s looking increasingly creaky at the seams.

Moody’s timing didn’t help. Congress is about to go ahead with a Trump-era bill loaded with permanent tax cuts and a US$4 trillion lift to the debt ceiling.

This morning, the S&P 500 futures contracts fell 0.8% on the Moody's news, while Nasdaq 100 futures dropped 1% – a sign where Wall Street could open later tonight.

Elsewhere, gold found its shine again, climbing as much as 1.5% to US$3,245 an ounce after its roughest week in six months, as Moody’s US downgrade pulled investors back toward safe ground.

Iron ore slipped further below the psychological US$100-a-tonne mark, with Singapore futures trading at US$99.85 this morning.

On the ASX, that left a dent in the majors. BHP (ASX:BHP) fell 1.7% and Rio Tinto (ASX:RIO) dropped 1.3%.

Energy stocks were the worst performers despite oil prices holding flat.

Source: Market Index

In the large caps space, New Hope Corp (ASX:NHC) was among the hardest hit, tumbling 7.5% this morning after its quarterly update laid out a tough picture for investors.

Production held up across the group, but margins copped a whack. NHC’s quarterly EBITDA dropped 27% as the average realised coal price slipped to $147.50/t, down from $159/t in January.

And it’s not just the price chart softening. At New Acland, the miner said it was still battling to move coal out the gate, with rail constraints leaving stocks piling up and waiting.

Mineral Resources (ASX:MIN) also lost over 6% after naming Malcolm Bundey as its next chair. The Brickworks deputy chair and former Pact Group CEO will take over from James McClements in July.

And still in large caps, Domino’s Pizza Enterprises (ASX:DMP) slipped 1.7% after flagging the exit of its Australia/NZ CEO Kerri Hayman, who’s set to hang up the apron in August after nearly four decades with the pizza giant.

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for May 19 :

Security	Description	Last	%	Volume	MktCap
RDN	Raiden Resources Ltd	0.007	63%	55,018,242	$13,803,566
PIL	Peppermint Inv Ltd	0.003	50%	854,216	$4,475,279
XAM	Xanadu Mines Ltd	0.076	49%	39,554,693	$97,522,075
NSX	NSX Limited	0.032	45%	2,114,653	$11,075,006
SFG	Seafarms Group Ltd	0.002	33%	100,246	$7,254,899
SIS	Simble Solutions	0.004	33%	514,408	$2,628,991
ASR	Asra Minerals Ltd	0.003	25%	66,666	$5,412,094
BP8	Bph Global Ltd	0.003	25%	945,021	$2,101,969
LML	Lincoln Minerals	0.005	25%	146,733	$8,410,279
OLI	Oliver'S Real Food	0.005	25%	469,592	$2,162,928
RLL	Rapid Lithium Ltd	0.003	25%	968,621	$2,489,889
TFL	Tasfoods Ltd	0.005	25%	753,402	$1,748,382
LDR	Lode Resources	0.155	19%	2,595,504	$21,031,939
8CO	8Common Limited	0.020	18%	545,196	$3,809,613
AMN	Agrimin Ltd	0.089	17%	322,673	$26,087,971
UVA	Uvrelimited	0.110	17%	520,224	$5,658,800
BLU	Blue Energy Limited	0.007	17%	450,071	$11,105,842
CTQ	Careteq Limited	0.014	17%	640,299	$2,845,425
M24	Mamba Exploration	0.014	17%	822,908	$3,541,987
OVT	Ovanti Limited	0.004	17%	501,402	$8,380,545
OFX	OFX Group Ltd	1.315	16%	427,130	$263,428,096
ASE	Astute Metals NL	0.029	16%	1,657,822	$15,453,506
EOS	Electro Optic Sys.	1.490	16%	2,645,566	$248,908,208

Raiden Resources (ASX:RDN) has hit gold in all eight holes from its Phase 2 drilling at the Vuzel project in Bulgaria, confirming a shallow, potentially large gold system. Top results included 24.8m at 1.96g/t from surface, with a high-grade zone of 13.3m at 3.4g/t.

Another hole returned 56m at 1.09g/t, including 8.3m at nearly 5g/t. The flat, near-surface nature of the gold means cheaper, faster follow-up drilling, said Raiden. The explorer is now testing 1.5km of a 4km target zone, with more assays pending and rigs still turning.

Stock exchange operator NSX (ASX:NSX) is set to be fully acquired by Canada’s CNSX, owner of the Canadian Securities Exchange, in a $0.035-a-share deal. CNSX already owns a slice of NSX and now wants the lot, offering a 59% premium to Friday’s close. The NSX board is backing the deal, saying it’ll bring financial muscle, tech upgrades and a stronger shot at shaking up Aussie capital markets.

Agrimin (ASX:AMN) says the strategic review of its Mackay Potash Project is still ticking along, with a sharp eye on cost control while market conditions remain tough. At the same time, its 40%-owned Tali Resources is now planning an ASX listing by mid-2025, and intends to offer Agrimin shareholders priority access to up to $2 million worth of shares in the IPO.

And, Xanadu Mines (ASX:XAM) has entered into a bid deal with Bastion Mining, which’s offering 8 cents a share, a 56% premium to Xanadu’s last close.

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for May 19 :

Code	Name	Price	% Change	Volume	Market Cap
EEL	Enrg Elements Ltd	0.001	-50%	10,161	$6,507,557
AOA	Ausmon Resorces	0.001	-33%	140,669	$1,966,820
VPR	Voltgroupltd	0.001	-33%	10	$16,074,312
HMD	Heramed Limited	0.014	-26%	8,581,508	$16,636,452
OSL	Oncosil Medical	0.003	-25%	760,099	$18,426,329
AZL	Arizona Lithium Ltd	0.007	-22%	30,212,220	$41,056,331
SRH	Saferoads Holdings	0.087	-21%	29,758	$4,807,595
EIQ	Echoiq Ltd	0.255	-20%	7,141,237	$206,460,067
HLX	Helix Resources	0.002	-20%	125,000	$8,410,484
TEM	Tempest Minerals	0.004	-20%	3,404	$3,672,649
TYX	Tyranna Res Ltd	0.004	-20%	600,000	$16,442,127
ZMM	Zimi Ltd	0.009	-18%	879	$4,702,982
IVX	Invion Ltd	0.079	-17%	96,009	$7,360,447
AQX	Alice Queen Ltd	0.005	-17%	4,370,921	$6,881,340
EM2	Eagle Mountain	0.005	-17%	142,889	$6,810,224
EMU	EMU NL	0.020	-17%	234,588	$5,069,963
ERA	Energy Resources	0.003	-17%	4,686,336	$1,216,188,722
MEM	Memphasys Ltd	0.005	-17%	675,910	$11,901,589
CNQ	Clean Teq Water	0.170	-15%	83,418	$14,448,461
HTM	High-Tech Metals Ltd	0.145	-15%	1	$7,849,468
ARV	Artemis Resources	0.006	-14%	2,122,460	$17,699,705
GCM	Green Critical Min	0.012	-14%	5,379,945	$27,484,496
MOH	Moho Resources	0.006	-14%	382,458	$5,116,122
XPN	Xpon Technologies	0.012	-14%	995,862	$5,799,545

IN CASE YOU MISSED IT

Impact Minerals (ASX:IPT) has raised the final $635,000 for a renounceable rights issue, under a shortfall offer. The funds will support a drilling program at the Arkun project, which will test the Caligula nickel-copper-platinum group element anomaly. With $180,000 from the WA government’s Exploration Incentive Scheme partially funding the drilling program, IPT is keen to get drills turning at Arkun.

At Stockhead, we tell it like it is. While Impact Minerals is a Stockhead advertiser, 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 Lunch Wrap: ASX set to snap winning streak as Moody’s US downgrade puts markets on edge