Lunch Wrap: Cooled Aussie inflation data helps ASX makes strides

The ASX leapt further into the green as local inflation data cooled, plus there’s fallout for health and resources from the Federal Budget.

How quick can Anthony Albanese run those election papers up to Government House? Pic: Getty Images

• ASX grabs some more green as local inflation data cools

• Budget muddies the waters for healthcare sector and small businesses 

• Resources sector and financials lead the gainers at lunch

As the mixed reactions and consternation washes about after Australia's latest federal budget reveal, the ASX moved up quite nicely in early morning trading.

At the time of writing, the ASX 200 index has pushed into green territory by 0.77% as it tries to maintain the momentum into the afternoon session. 

Australia’s February CPI (Consumer Price Index) data has risen less than expected, so this has given the local market something to smile about, even if it's bit of a downer for the Aussie dollar and bond yields.

The annual headline CPI has has risen 2.4 per cent, which flies in the face of wide expectations it would again rise by 2.5 per cent. Meanwhile, the annual trimmed mean CPI rose 2.7 per cent from 2.8 per cent.

All that being said, according to The Australian's Jack Quail, the Reserve Bank still remains "unlikely to deliver a second consecutive rate cut when its new specialist rate-setting board convenes for the first time next week, even as fresh figures showed inflation eased last month".

On Wall Street overnight, the S&P 500 and Dow Jones indexes closed 0.2 per cent higher and 0.1 per cent lower, respectively, while the tech-heavy Nasdaq rose 0.5 per cent.

Adding context there, hopes for a moderate outcome on Trump's tariffs obsession is tipping the balance slightly more than another drop in consumer-sentiment data.

According to Reuters, US consumer confidence has plunged to the lowest level in more than four years in March, with households fearing a recession in the future and higher inflation because of the tariffs effect.

Meanwhile, the bull goose crypto (and the one that really matters most right now and always) – that'd be Bitcoin – is inching back towards US$88k, as the Trump family venture has announced the launch of a new stablecoin. What a time to be alive, and so forth. 

World Liberty's USD1 will reportedly be pegged to the US dollar and backed by both US Treasuries and dollars. 

Per Reuters: USD1 will be "fully backed by a reserve portfolio audited regularly by a third-party accounting firm," World Liberty said, without giving details of the accounting firm, or the date of its launch.

Regarding the budget, according to reports on The Australian (and from Stockhead's Tim Boreham with regards to the healthcare sector), it generally underwhelmed. 

 The Australian Chamber of Commerce and Industry wasn't a fan…

“There appears to be no coherent strategy to take the pressure off small business, just an almost random list of largely unrelated announcements,” ACCI chief executive Andrew McKellar said.

“In particular it seems the government has not announced an extension of the instant asset write-off for small business.”

Miners are angry about the discontinuation of the Junior Minerals Exploration Incentive, a scheme that gives tax breaks to investors in early stage explorers.

BDO, which did modelling for the policy's biggest flag waver the Association of Mining and Exploration Companies, has come out swinging.

"The omission of the JMEI from the Federal Budget is a setback for the mining and exploration sector," BDO global head of natural resources Sherif Andrawes said.

BDO's latest report recommended topping up the JMEI to the value of $200m over four years, with the accounting firm claiming every dollar the government spent generated $6 in capital market raisings and $2 on exploration.

Based off the modelling AMEC claims the $182.2m in tax credits generated $769m in GDP value.

"This is a critical investment in Australia’s future and supports mineral exploration - a long-term, high-risk activity," AMEC CEO Warren Pearce said.

“And by doubling the investment, you’re doubling the benefits."

This fight could well be carried into the election.

ASX market news

Nine of 11 ASX sectors are all in positive territory as we close on 1pm AEDT today, with ressies (materials) and financials having a much better day so far on the whole than yesterday.

Healthcare's lagging a bit, perhaps partly due to the federal budget not giving it a whole lot new to go on.

Making news of note in the big caps, Paladin Energy (ASX:PDN) shares have taken a near double-digit dive today on guidance withdrawal.

This is in relation to the uranium producer's African mining operations, which has been hammered and hampered by Namibia’s one-in-50-year rainfall.

The group did note that it had resumed partial operations at the Langer Heinrich Mine in Namibia, but it has withdrawn full-year production guidance as it deals with the impact of the unseasonal rain on its operations.

Meanwhile, Australia's third-largest telco, TPG Telecom (ASX:TPM) has been slapped on the wrist by consumer regulator the ACCC, copping a $75,120 fine for allegedly failing to implement measures to separate its wholesale and retail staff – which contravenes carrier separation rules, apparently.

Here’s what the ASX sectors look like at about 1.10pm.

Source: Market Index

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for March 26 :

Code	Description	Last	%	Volume	MktCap
EMH	European Metals	0.34	100%	2,796,280	$35,265,600
LNU	Linius Tech Limited	0.0015	50%	4,365	$6,151,216
WYX	Western Yilgarn NL	0.052	44%	1,673,893	$4,472,144
EEL	Enrg Elements Ltd	0.002	33%	100,000	$4,880,668
GGE	Grand Gulf Energy	0.002	33%	250,000	$3,675,581
EMN	Euro Manganese	0.059	31%	3,172,426	$9,353,885
ADD	Adavale Resource Ltd	0.0025	25%	6,968,769	$4,574,558
ERA	Energy Resources	0.0025	25%	158,537	$810,792,482
EV1	Evolution Energy	0.02	25%	354,566	$5,802,408
HPC	The Hydration Company	0.01	25%	50,000	$2,439,305
MTB	Mount Burgess Mining	0.005	25%	593,961	$1,358,150
LSR	Lodestar Minerals	0.016	23%	6,258,510	$3,358,328
KGD	Kula Gold Limited	0.006	20%	533,332	$4,606,268
RWD	Reward Minerals Ltd	0.061	20%	26,974	$13,577,198
RGT	Argent Biopharma Ltd	0.155	19%	20,850	$7,705,395
ENV	Enova Mining Limited	0.007	17%	355,000	$8,481,005
PIL	Peppermint Inv Ltd	0.0035	17%	286,262	$6,634,438
NSX	NSX Limited	0.022	16%	205,001	$8,705,978
HAW	Hawthorn Resources	0.053	15%	20,000	$15,410,718
BM8	Battery Age Minerals	0.069	15%	505,171	$7,147,851
GBZ	GBM Rsources Ltd	0.008	14%	375,000	$8,197,490
VAR	Variscan Mines Ltd	0.008	14%	250,000	$5,480,004
DM1	Desert Metals	0.024	14%	1,056,013	$6,842,232
LRV	Larvotto Resources	1.005	14%	5,643,076	$360,807,048
AQD	Ausquest Limited	0.0625	14%	4,874,445	$74,064,733

European Metals (ASX:EMH) is up 100% in morning trade after the European Commission declared Cinovec,~100 km from Prague on the border with Germany, to be a strategic project under its recently implemented Critical Raw Materials Act.

EMH said the declaration confirms the importance of Cinovec in supplying battery grade lithium chemicals to the European battery supply chain and will bring explicit support from regional institutions, along with simplified and accelerated permitting.

Euro Manganese (ASX:EMN) has risen 31% after announcing that its Chvaletice  Manganese project in the Czech Republic has also been designated a strategic project under the European Union’s  Critical Raw Materials Act.

EMN said the designation was a “milestone achievement”, representing significant endorsement of the importance of the Chvaletice manganese project to European strategic and critical raw material supply independence.

Linius Technologies(ASX:LNU) has risen 50% after announcing establishment of  a  $750,000  convertible  note facility and binding commitments for $300,000 in notes from professional and sophisticated investors.

LNU says the funding provides additional runway for unlocking growth, delivering on a growing pipeline and scale from new and existing partnerships with industry leaders  Prime Focus,  Fujitsu,  Magnifi,  and Avid along with its goal of achieving cashflow breakeven.

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for March 26 :

Code	Name	Price	% Change	Volume	Market Cap
BYH	Bryah Resources Ltd	0.003	-25%	20,000	2,507,203
MMR	Mec Resources	0.003	-25%	3,732,838	7,399,063
REC	Recharge Metals	0.01	-23%	1,697,755	3,334,370
YAR	Yari Minerals Ltd	0.004	-20%	26,666	2,411,789
VN8	Vonex Limited	0.024	-17%	107	21,825,502
HLX	Helix Resources	0.0025	-17%	768,356	10,092,581
LNR	Lanthanein Resources	0.0025	-17%	260,000	7,330,908
RMI	Resource Mining Corp	0.005	-17%	407,930	3,914,087
TUA	Tuas Limited	5.27	-16%	1,851,543	2,933,556,631
OPL	Opyl Limited	0.028	-15%	9,119	6,367,955
KPO	Kalina Power Limited	0.006	-14%	27,469	20,221,206
ODE	Odessa Minerals Ltd	0.006	-14%	851,666	11,196,728
ROG	Red Sky Energy	0.006	-14%	50,000	37,955,590
REE	Rarex Limited	0.019	-14%	30,954,725	17,618,608
RWL	Rubicon Water	0.255	-14%	60,000	71,005,054
SVM	Sovereign Metals	0.845	-13%	1,665,640	584,882,882
INF	Infinity Lithium	0.02	-13%	255,590	10,639,618
MRQ	Mrg Metals Limited	0.0035	-13%	42,857	10,906,075
PCL	Pancontinental Energy	0.007	-13%	45,265,038	65,092,687
SP8	Streamplay Studio	0.007	-13%	100	10,250,916
ASQ	Australian Silica	0.022	-12%	34,782	7,046,509
BKY	Berkeley Energia Ltd	0.52	-11%	177,772	260,791,078
KRR	King River Resources	0.008	-11%	21,739	13,753,987
NHE	Noble Helium	0.016	-11%	220,782	10,465,908
EXR	Elixir Energy Ltd	0.026	-10%	8,138,020	40,492,099

IN CASE YOU MISSED IT

Challenger Gold (ASX:CEL) has drawn down the first US$2 million from its US$20 million project finance facility to fund early mining work for toll milling. The tranche 1 proceeds will also cover corporate overheads and working capital

At Stockhead, we tell it like it is. While Challenger Gold is a Stockhead advertiser, it did not sponsor this article.

Originally published as Lunch Wrap: Cooled Aussie inflation data helps ASX makes strides