ASX Nearing all-time as Homeowners Face Higher Rates

The ASX 200 finished the week strong ending the day 46.5 pts, or 0.62% higher to close at at 7558.10 as index's all-time high closes in. Even as heavyweight iron ore miners fell on the day, the local share market shows no sign of slowing down or taking a breather. The healthcare sector led the way higher after CSL shares jumped more than 3 percent to a 15-month high. This came after an update from CSL's main competitor in Japan, Takeda. CSL shares ended the day $313.81.

There were nine of the eleven sectors that finished the day in the green. The Health Care and Real Estate sectors had the best overall performance, gaining +2.51% and +2.40 respectively, while the Materials sector had the poorest overall performance, losing 1.39%.

Pinnacle Investment Group and Brainchip Holdings, both of which saw their share prices increase by 5.56% and 9.58% respectively, were the best performing stocks on the index.

Quick Singles

• DroneShield (ASX:DRO) share price was halted at $0.37. It comes as the company prepares to announce news of a capital raise.

• Pinnacle Investment Management Group Ltd (ASX: PNI) share price decreased 2.7% to $9.39 following the release of the company's half-year financial results for the six months ending 31 December (1H FY23).

• VIP Gloves (ASX:VIP) has requested a halt in response to an announcement regarding a sale and leaseback transaction involving the Company's major assets.

US Economy News

The number of new claims for unemployment benefits in the United States fell by 3,000 from the previous week to 183,000 in the week ending January 28th, the lowest since April and far below market expectations of 200,000.

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Top Story

Home Loans Transfer on the Rise as Aussies Brace for Higher Interest Rates

Sydney, Australia - The latest data shows that there was a surge in the transfer of home loans in December, with around $19 billion transferred to new lenders, marking an 18% increase compared to the same period in 2021. However, this was a minor decrease of 1.5% compared to November.

The rise in home loan transfers can be attributed to homeowners scrambling to figure out how to handle their monthly household budgets as they realize that the good times have come to an end. Meanwhile, the demand for first-time homebuyer mortgages has dropped significantly, with only 4.9% of buyers opting to lock in a fixed rate, indicating that the general sentiment is in favor of interest rates falling in the near future.

The Reserve Bank of Australia is set to meet on Tuesday, and a 25 basis point increase is widely expected. This has already been priced in, so no major surprises are expected when the announcement is made.

In conclusion, homeowners are making a rush to transfer their home loans to new lenders as they prepare for the possibility of higher interest rates. Meanwhile, the demand for first-time homebuyer mortgages has dropped, and the sentiment among buyers is in favor of falling interest rates.

Movers and Shakers

✅Biggest Winners

Lithium Energy Ltd (ASX: LEL) share price ended the week up 10.8% to $0.92 on news of "exceptional" drilling results. The company said in an announcement today that its Burke Graphite Project is one of the world's highest-grade graphite deposits. Beyond graphite, the company holds a 90% stake in the Solaroz Lithium Project in Argentina. This week, it was reported that significant intersections of highly conductive brines had been discovered in the northern section of the lithium project.

Janus Henderson Group (ASX: JHG) share price increased by 12.9% to $41.46 despite a 39% decline in profits per share (EPS) to $2.60 for the year ending 31 December 2022. Meanwhile, its assets under management (AUM) decreased 34% year-over-year to $287.3 billion but climbed 5% quarter-over-quarter.

❌ Biggest Losers 

Insurance Australia Group Ltd (ASX: IAG) share price fell 2.1% to $4.73. after the company provided an update on its vulnerability to the storms and flooding in New Zealand. IAG reported that its AMI, State, NZI, and partner brands have together received more than 15,000 claims to date.

Bega Cheese Ltd. (ASX: BGA) share price fell by roughly 4% to $3.64. after the CEO of this diverse food company, Paul van Heerwaarden, announced his departure.

Small-Cap of the Day

Southern Hemisphere Mining Soars as High-Grade Samples Found at Llahuin Project

Southern Hemisphere Mining (ASX:SUH) has seen a massive boost in its share price, with an increase of 23.5% following the release of the results of its rock chip sampling and mapping program at the company's Llahuin project. The program has uncovered high-grade samples at Cerro de Oro, including 4.12% copper, 0.36g/t gold, and 1,495g/t silver, and at 22LHR000183, which holds 2.74% copper, 0.58g/t gold, and 1,045g/t silver.

Investigations of a North-South striking vein over a 90m strike have also proved successful, with values of 16.6% copper, 0.94g/t gold, and 1g/t silver, and 16.3% copper, 1.13g/t gold, and 4g/t silver, respectively, being found 1km north of Cerro de Oro.

Southern Hemisphere Mining is excited about these results, which have confirmed the presence of high-grade samples at the Llahuin project. The company looks forward to further exploring and developing the area.

Outlook

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!