Adani fights off report with Capital Raise

Another positive day on the ASX200 with the day's trade ending 0.33% higher moving up by 25.00 points to close at 7,501.70, albeit lower than the sessions high of 0.82%.

There were eight of the 11 sectors which ended the day in the green. The Real Estate sector had the best performance, increasing its value by 1.46%, while the Energy sector had the worst performance, decreasing its value by 1.16%.

The majority of technology companies closed in the red, with notable declines seen in Wisetech (-1.7%), Altium (-1.2%), and NextDC (-1.0%). Despite this, several companies, such as Xero (up 0.1%), and Block (up 0.9%), managed to buck the trend.

This index's best-performing companies were Flight Centre Travel Group and James Hardie Industries which saw respective increases of 8.09% and 4.29% in their share prices.

Quick Singles

•  Nitro Software Ltd (ASX: NTO) traded flat today to close $2.14 following the supplementary bidder's statement on its off-market takeover offer of Alludo BidCo

• Reject Shop Ltd (ASX: TRS) increased 1.7% to $4.17 following the resignation of its CEO, Phil Bishop and the release of Preliminary 1H23 Results and Trading Update.

• Credit Corp Group Limited (ASX: CCP) was up 1.7% to $22. This follows the release of the half-year results for the debt collection company.

• Nufarm (ASX:NUF) share price decreased 1.9% to $5.81 following a shareholder revolt at the company's annual general meeting today.

Economy News

The U.S. consumer confidence index unexpectedly decreased in January, falling to 107.1 from 109.0 in December.

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Top Story

Adani raises funds despite short report

Adani Group, an Indian multinational conglomerate, has successfully raised $3.6 billion in capital in its local markets. This comes after being hit with severe fraud charges by US short-seller Hindenburg Research last month. Despite the charges being expected to impact Adani's Australian enterprises, including the $2.5 billion Carmichael coal mine and its infrastructure, the successful capital sale will ease the burden on its extensive network of assets.

The past few weeks have seen Adani's share values drop by $70 billion, resulting in a significant loss of personal wealth for its founder, Gautam Adani, who has fallen out of the top 10 of Bloomberg's billionaire index. However, Adani's Australian subsidiary, Bravus, has rejected the claims made in the Hindenburg Research report, stating that three transactions in question comply with Austrac regulations. These transactions include a $147 million purchase of assets from Adani Mining by the privately owned Carmichael Rail, a $100 million line of credit from Adani Global to Carmichael Rail, and a $100 million security deposit from a private family trust in the Caribbean for use in North Queensland.

Overall, Adani's successful capital raise proves to be a major test passed in the face of fraud charges, showing the resilience and strength of the energy behemoth.

Movers and Shakers

✅Biggest Winners

Mesoblast Ltd (ASX: MSB) has increased its share price by more than 10.5% to $1.05. The biotech firm announced this morning that it has resubmitted its Biologics License Application (BLA) to the US Food and Drug Administration (FDA) for approval of remestemcel-L in the treatment of children with steroid-refractory acute graft versus host disease (SR-aGVHD). The resubmission includes significant new information, as required by the FDA.

Flight Centre Travel Group Ltd. (ASX: FLT) share price increased by 8.2% to $17.14. The travel agency's intention to pay $211 million to acquire the luxury travel company Scott Dunn, based in the United Kingdom, has received favourable feedback from investors. Flight Centre has secured $180 million from institutional investors to back the acquisition at a 7.8% discount, or $14.60 per new share. Yesterday, Flight Centre also provided a strong trading update.

❌ Biggest Losers 

Panoramic Resources Ltd (ASX:PAN) share price fell 5.6% to $0.17. The company presented its quarterly activities report for 31 December 2022. DHEM survey planning for March quarter after Savannah Extension drill results showed high-grade mineralisation across wider widths. A$27.4 million in cash, up from A$25.1 million in the preceding quarter. Production guidance for FY23 of 6,600–7,100t nickel, 4,100–4,500t copper, and 400–500t cobalt in concentrate stays unchanged, but at the lower end.

Clinuvel Pharmaceuticals Ltd (ASX: CUV) share price dropped 4.1% to $24.13 despite a good cash balance and annual revenue growth. Compared to the prior year, receipts for the 12-month period ending on December 31 increased by 36%. For the quarter ending in December, client payments surpassed operating cash outflows by 47%, resulting in a net cash inflow of $3,726,000. In the December quarter, operating expenditures totaled $7,227,000, a reduction of 12.7% compared to the previous reported quarter (Q1 FY23).

Small-Cap of the Day

Lode Resources Stock Soars After Bonanza Find at Webbs Consol Silver Project

Shares in Lode Resources experienced a significant increase of 179% in intraday trading, reaching a high of 37 cents, due to a major discovery at the company's Webbs Consol silver project in New South Wales. The market was highly impressed with the latest offering from the Tangoa West Lode, which produced a substantial 116.1 meters grading at 1003 grams per tonne silver equivalent from 90.9 meters.

Further explorations within the broad zone have also resulted in a series of high-grade hits. These include 9 meters grading at 1592 g/t silver equivalent from 185 meters, 8.1 meters grading at 2200 g/t silver equivalent from 196 meters, and an additional 3.1 meters grading at an impressive 3325 g/t silver equivalent from 201 meters.

It is worth noting that the internal high-grade hits have been increasing in grade with depth, presenting a valuable target for a future drilling campaign planned to explore the lode to vertical depths of 450 meters. This exciting discovery has investors eager to see what the future holds for Lode Resources and its Webbs Consol silver project.

Outlook

2nd February

• US ADP Employment Report (est. 170k)

• US ISM Manufacturing (est. 48)

• US FOMC Rate Announcement (est. 4.63%)

• AU Building Approvals

3rd February

• US Jobless Claims (est. 200k)

4th February

• US Non-farm payrolls (est. 185k)

• US Unemployment rate (est. 3.6%)

That's it from the team at ASX-News today. We hope you enjoyed our EOD wrap-up. Good night and happy investing!