• S&P/ASX 200 SPI futures are flat despite a continued sell-off in the technology sector in US markets.
  • Today’s Announcements: Novonix (NVX) advances in its process to dual list on the Nasdaq | Incitec Pivot (IPL) acquires French explosives manufacturer, Titanobel, for A$142 million | Strike Energy provides an update on the South Erregulla plant |

The ASX is expected to commence the week on a flat note despite a continued sell-off in US markets.

  • The SPI futures index is up marginally by 2 points, despite an ongoing sell-off in the US markets. US indices fell as investors sold in response to data showing that jobs rose by less than expected in December. Further, markets remain under pressure on the belief that the Federal Reserve will continue with plans to remove monetary stimulus. The Dow Jones index closed down 5 points, or less than 0.1 per cent. The S&P500 slipped by 19 points or 0.4 per cent. And the Nasdaq lost 145 points or 1 per cent.
  • In commodities markets, the Brent crude oil price lost US24 cents or 0.3 per cent to US$81.75 a barrel and the US Nymex crude price fell by US56 cents or 0.7 per cent to US$78.90 a barrel. Oil prices fell on Friday after investors weighed softer US jobs data and news of soaring Omicron cases with oil production outages in Libya and unrest in Kazakhstan. The drag in oil prices may weigh on the energy sector today.
  • Bullion gained ground, with the gold futures price adding $8.20 or 0.5 per cent to $1,797.40 an ounce. But spot gold was trading only marginally lower, near US$1,796 an ounce at the US close.
  • Iron ore lost US95 cents or 0.7 per cent to US$127.30 a tonne overnight. Despite the fall, share prices of London-listed iron ore miners rose, with both RIO and BHP up by around 2.6 per cent.

Novonix (NVX) has advanced in the process required to dual-list on the Nasdaq.

  • Battery material supplier Novonix (NVX) has commenced processes to dual list on the US Nasdaq, after initially submitting a draft registration statement on the May 10,  2021. On the Nasdaq the securities will be in the form of American Depository Receipts (ADRs) with the ticker “NVX”, under which each ADR will represent four ordinary shares of Novonix.
  • Incitec Pivot (IPL), an Australian-based manufacturer of industrial explosives, chemicals and fertilisers, has entered into an agreement to acquire French-based industrial explosives manufacturer, Titanobel. The purchase price of €91 million (or A$142 million) will be funded from IPL’s existing cash and debt reserves. The acquisition is expected to be earnings accretive a year later, and will provide Dyno Nobel, a current subsidiary of IPL, with exposure to European markets.
  • Strike Energy (STX), an Aussie based gas and geothermal resource producer and explorer, has provided an update on the drilling operations at their South Erregulla plant. Minor delays have been encountered to the spud (initial drilling) of the well due to STX having to mobilise the required personnel into quarantine. These staff are expected to commence full duties related to spud activity towards the end of this week.

Originally published by CommSec

Authors: Divik Nigam, Associate Equity Market Analyst and Craig James, Chief Economist.