Lunch Wrap: ASX surges as Chemist Warehouse hits bourse after Sigma merger

The ASX 200 burst upwards in morning trade, despite hotter than expected US inflation figures overnight. Chemist Warehouse, via Sigma merger, turns heads on bourse arrival.

Pic via Getty Images

• Local markets rose in morning trade, despite hotter than expected US inflation figures overnight

• The ASX 200 surged to another record high around midday

• Shares of combined Chemist Warehouse and Sigma Healthcare start trading on ASX following the merger 

The ASX was up 0.30% at 12.45pm (AEDT) as retail pharmacy giant Chemist Warehouse hit the local bourse after the completion of its merger with pharmaceutical distributor Sigma Healthcare (ASX:SIG).

Sigma, which is up 4.5% today, now owns 100% of the issued shares in CW Group Holdings Limited (Chemist Warehouse) with shares of the combined group starting trade today.

The deal brings together some of the strongest brands in the pharmaceutical sector including Amcal and Discount Drug Stores.

"We expect the share price of SIG to be volatile over coming weeks as institutional and investor buying will likely be met by some CWG shareholder selling," Morgans healthcare senior analyst Scott Power said.

Following a recent trading update Morgans have upgraded its SIG FY25 forecasts, with its target price, which includes a liquidity premium,  increasing slightly to $3 from $2.98 with an add recommendation maintained.

On Wall Street, the S&P 500 index closed 0.3% lower, the Dow Jones fell 0.5% and the technology-focused Nasdaq index ended flat as US CPI data came in hotter than expected for January.

Latest figures out Wednesday show the US Consumer Price Index (CPI) increased by 3.0% in January, higher than anticipated by most economists.

Excluding volatile components such as food and energy, core inflation remains elevated at 3.3% year-on-year.

"The latest data shows that US CPI has come in above expectations," deVere Group CEO Nigel Green said.

"This suggests that the Fed will be even less likely to cut rates this year."

US Fed chairman Jerome Powell's congressional testimony this week has further reinforced a cautious approach by the central bank to rate cuts.

However, Green said there could be a potential answer with advances in technology perhaps providing a crucial buffer against rising prices.

"Traditional models suggest that tax reductions and tariffs could fuel inflation, yet the rapid evolution of technology may provide a counterbalance.

“The integration of AI, automation, and digital efficiencies across industries could mitigate price pressures and help stabilise the economy."

Gold prices have pulled back for a second consecutive day following Tuesday's historic peak when the precious metal hitting US$2,942.25 per ounce.

Cryptocurrency giant Bitcoin is trading just above US$98,000 at the time of writing.

The Aussie dollar is trading around US63 cents.

At around midday, the ASX 200 briefly surpassed its previous peak of 8566.9 which was set after CPI inflation data topped expectations on January 31.

And here’s where things stood on the ASX around 1.10-ish AEDT:

ASX small cap winners:

Here are the best performing ASX small cap stocks for February 13 :

Code	Description	Last	%	Volume	MktCap
NRZ	Neurizer Ltd	0.002	100%	1,452,410	$3,224,671
88E	88 Energy Ltd	0.0015	50%	2,584,079	$28,933,812
ADG	Adelong Gold Limited	0.008	45%	66,679,916	$6,148,939
CDT	Castle Minerals	0.0035	40%	69,955,863	$4,742,035
AXP	AXP Energy Ltd	0.002	33%	5,510,000	$8,737,021
GTR	Gti Energy Ltd	0.004	33%	2,155,465	$8,888,849
LNU	Linius Tech Limited	0.002	33%	310,000	$9,226,824
RLL	Rapid Lithium Ltd	0.004	33%	8,543,298	$3,097,334
MRZ	Mont Royal Resources	0.032	28%	322,968	$2,125,745
SPG	Spc Global Holdings	0.84	27%	151,834	$127,368,042
AMS	Atomos	0.005	25%	10,000,372	$4,860,074
CRR	Critical Resources	0.005	25%	103,280	$9,727,853
GMN	Gold Mountain Ltd	0.0025	25%	1,037,256	$9,158,446
MOH	Moho Resources	0.005	25%	100,000	$2,865,898
PSL	Paterson Resources	0.01	25%	3,120,028	$3,648,303
RR1	Reach Resources Ltd	0.011	22%	4,627,113	$7,869,882
ASO	Aston Minerals Ltd	0.017	21%	3,394,559	$18,130,900
YRL	Yandal Resources	0.205	21%	73,819	$52,569,947
LAT	Latitude 66 Limited	0.06	20%	677,342	$7,170,035
AKN	Auking Mining Ltd	0.006	20%	15,374,115	$2,873,894
LNR	Lanthanein Resources	0.003	20%	600,246	$6,109,090
ODE	Odessa Minerals Ltd	0.006	20%	526,968	$7,997,663
VFX	Visionflex Group Ltd	0.003	20%	704,838	$8,419,651
FME	Future Metals NL	0.013	18%	3,858,436	$6,325,445
KAL	Kalgoorlie Gold Mining	0.083	17%	19,393,243	$19,390,697

Adelong Gold (ASX:ADG) has executed a binding purchase agreement to acquire a 100% interest in EL006430, to be renamed the Apollo Gold Project in Victoria. Adelong said the project was located within the highly prospective Melbourne Zone that hosts Southern Cross Gold's Sunday Creek project and features multiple zones of thick, high-grade gold mineralisation, presenting an immediate exploration and development opportunity.

AXP Energy (ASX:AXP) is up 33% after reporting that its Pathfinder #2 well’s current production of 20 barrels of oil and 280,000 cubic feet of gas from the Niobrara Formation demonstrates the ability for additional production to be brought online over the coming months. It added that additional gas production from the Amerigo Vespucci well has now been tied into the gas to power operation at the Pathfinder #2 production hub with the well to start pumping operations once the well head pressure stabilises the next 7-10 days.

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for February 13 :

Code	Name	Price	% Change	Volume	Market Cap
MEL	Metgasco Ltd	0.003	-40%	100,000	$7,287,934
1TT	Thrive Tribe Tech	0.002	-33%	557,000	$6,095,169
ALM	Alma Metals Ltd	0.004	-33%	5,200,000	$9,518,072
CTN	Catalina Resources	0.003	-25%	500,000	$5,265,048
M2R	Miramar	0.003	-25%	4,426,970	$1,587,293
DUN	Dundasminerals	0.034	-24%	1,064,917	$4,824,826
ECT	Env Clean Tech Ltd.	0.002	-20%	430,000	$7,929,526
HCD	Hydrocarbon Dynamics	0.002	-20%	2,000	$2,695,273
MRD	Mount Ridley Mines	0.002	-20%	25,000	$1,946,223
WOA	Wide Open Agricultur	0.004	-20%	48,913	$2,668,433
PBL	Parabellumresources	0.043	-19%	11,000	$3,301,900
MGL	Magontec Limited	0.21	-18%	133	$14,525,266
EPM	Eclipse Metals	0.005	-17%	1,235,728	$17,158,914
EVR	Ev Resources Ltd	0.005	-17%	558,168	$11,595,020
IPB	IPB Petroleum Ltd	0.005	-17%	70,000	$4,238,418
LML	Lincoln Minerals	0.005	-17%	1,000,000	$12,337,557
MTB	Mount Burgess Mining	0.005	-17%	90	$2,037,225
SPQ	Superior Resources	0.006	-14%	230,000	$15,189,047
SVG	Savannah Goldfields	0.02	-13%	179,932	$10,605,662
M24	Mamba Exploration	0.014	-13%	453,373	$3,759,316
BUS	Bubalusresources	0.15	-12%	17,336	$8,039,992
BCK	Brockman Mining Ltd	0.015	-12%	91,582	$157,763,946
WC1	Westcobarmetals	0.015	-12%	358,810	$2,990,511
OCT	Octava Minerals	0.04	-11%	891,196	$2,745,419
HFY	Hubify Ltd	0.008	-11%	259,063	$4,600,227

In case you missed it

Riversgold (ASX:RGL) is gearing up to restart drilling in March 2025 at its Northern Zone gold project in Western Australia. The program aims to follow up on significant results to date, including 8m at 4.86 g/t gold from 34m and 7m at 4.07 g/t from 48m.

Also kicking off drilling is Arika Resources (ASX:ARI) , launching a diamond drilling campaign at the Pennyweight Point and Landed at Last prospects within its Yundamindra gold project in WA. The program will comprise three holes for ~500m, following the recently completed 5000m Phase 2 RC drilling. Assay results from Phase 2 are pending, with assays expected soon.

Koonenberry Gold (ASX:KNB) is raising $2 million through a placement to new and existing institutional investors to drive exploration at its Enmore and Lachlan projects in New South Wales. The funds will go towards expanding the drilling program at Sunnyside from 2000m to 3000m and to advance exploration at Prince of Wales and Breakfast Creek to drill-ready status.

At Stockhead, we tell it like it is. While Riversgold, Arika Resources and Koonenberry Gold 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 Lunch Wrap: ASX surges as Chemist Warehouse hits bourse after Sigma merger