- West Africa-focused mineral sands producer Sierra Rutile has gained significant new shareholders since its IPO in July
- The money is flowing back into the healthcare sector, including pharmaceutical retailer Sigma Healthcare
- First Sentier is selling its sizeable interests in uranium company Boss Energy and oil and gas producer Karoon Energy
Trading Places is Stockhead’s semi-annual, damn fascinating round-up of the latest buying and selling of ASX small and mid-cap stocks. This is where the rubber really hits the road for fund managers, advocacy groups, distant (and not-so-distant) relatives, and other famous or notorious investors.
Specifically, Trading Places tracks significant shareholder movements – namely when a trade in a company’s shares crosses or crosses the 5% threshold.
Substantial shareholders are usually directors, individual investors, institutional investors… or their distant (and not so distant) relatives, whom they refer to as publicly traded affiliates or similar. You can see these listed positions in detail in the company’s ASX announcement.
Shareholders are required by common decency (and the law) to publicly declare through the stock market when their personal holding falls below or above 5%, and from there any movement in their holdings while holding above 5%.
Becoming and ceasing to be significant shareholders are worth noting, in our opinion, when a trade takes an investor above or below the 5% threshold.
Here’s the form to get you started in case you’re getting nervous reading it.
Fortnight overview
The ASX has had two positive weeks in a turbulent year of economic uncertainty and rate hikes. The S&P/ASX 200 (ASX:XJO) is modestly up 0.39% over the past five days, with information technology, materials and utilities leading the rally.
For the first time since June, the S&P is back above 7000, showing resilience to rising economic uncertainty and the US recession (broadly defined as a contracting economy with two consecutive quarters of falling GDP).
Coinciding with the slightly stronger markets, there has also been some large buying and selling on the ASX recently.
buyer
| code | company | market capitalization | modification date | holder | mission |
|---|---|---|---|---|---|
| SRX | Sierra Rutile | $182.4M | 7/27/2022 | Mention of the Blackrock Group and its subsidiaries | 6.61% |
| SRX | Sierra Rutile | $182.4M | 7/27/2022 | Vanguard Group and its controlled companies | 5.34% |
| SRX | Sierra Rutile | $182.4M | 02/08/2022 | State Street Corporation and its subsidiaries | 6.33% |
| TO SAY | Sigma Healthcare | $667.34M | 02/08/2022 | Superannuation and Investments HoldCo and related entities are publicly traded | 5% |
| TO SAY | Sigma Healthcare | $667.34 million | 02/08/2022 | Comet Asia Holdings II Pte. Ltd and affiliated companies | 5% |
| HLS | healer | $2.33 billion | 01/08/2022 | State Street Corporation and its subsidiaries | 5.06% |
| RHC | Ramsay health care | $16.38 billion | 04/08/2022 | Mention of the Blackrock Group and its subsidiaries | 5.01% |
| SRX | Sierra Rutile | $182.4M | 7/27/2022 | Mention of the Blackrock Group and its subsidiaries | 6.61% |
| SRX | Sierra Rutile | $182.4M | 7/27/2022 | Vanguard Group and its controlled companies | 5.34% |
Sierra Rutile (ASX:SRX) has gained significant new shareholders since listing on the ASX on July 27th. SRX forked Iluka Resources (ASX:ILU) to become an independent mineral sands producer and developer with a focus on West Africa.
As Stockhead’s Josh Chiat explained, natural rutile is a premium titanium raw material used in markets such as pigment, aerospace and welding, which Sierra believes may be the best raw material to weather the storm of a potential recession survive.
While prices for base metals traded on the LME such as copper, zinc and aluminum have fallen recently, mineral sands prices have continued to rise. However, Sierra’s share price has fallen from over 40 cents to under 30 cents since the listing.
Funds are also flowing back into the healthcare sector, including one of Australia’s largest full-line pharmacy wholesalers Sigma Healthcare (ASX:SIG). The S&P/ASX 200 (ASX:XHJ) healthcare index is up more than 5% over the past month.
Sigma’s stock price is up around 26% year-to-date to 63 cents, with Morningstar suggesting it’s still good value.
salesperson
| code | company | market capitalization | modification date | holder |
|---|---|---|---|---|
| LNK | Link management stocks | $2.27 billion | 15.7.2022 | UBS Group AG and its affiliates |
| LER | sheet resources | $27.60 million | 20.7.2022 | Kenneth Richards |
| EML | EML payments | $346.87 million | 14.7.2022 | State Street Corporation and its subsidiaries |
| ÖZL | OZ minerals | $5.76 billion | 15.7.2022 | Trainee Investment Management |
| NETWORK | webjet | $1.91 billion | 19.7.2022 | L1 Capital Pty Ltd |
| EGG | January group | 263.75 million | 22.7.2022 | UBS Group AG and its affiliates |
| MFA | Matador mining | $27.19 million | 20.7.2022 | CI Investments Inc listed as a mutual fund manager |
| BOE | boss energy | $708.68 million | 22.7.2022 | First Sentier Investors Holdings & Affiliates |
| AGAINST ME | Volcanic Steel | $1.14 billion | 22.7.2022 | Regal Funds Management Pty Ltd and its affiliates |
suppliers of building materials CSR (ASX:CSR) has seen the Macquarie Group sell its sizeable holdings. The Australian construction sector has been under pressure over the past 12 months due to rising construction costs.
Despite falling more than 24% year-to-date, CSR’s stock price has enjoyed the July rally, up ~8% to $4.59.
First Sentier has sold its substantial interest in Uran Player Boss Energy (ASX:BOE) and oil and gas producer Karoon Energy (ASX:KAR).
Uranium production may soon become insufficient to meet demand, according to Stockhead’s Reuben Adams, with Boss being one of the companies expected to benefit from the shortfall. Boss recently announced it would restart the Honeymoon uranium mine in South Australia after nine years.
BOE stock price is up 50% to $2.50 since hitting its 2022 low on June 23.
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