Daily Brief Australia: Home Consortium Ltd, Iron Ore, Actinogen Medical, Kinatico and more

• The review period for the September rebalance ends on 30 August. We do not see any constituent changes for the index but there will be capping changes.
• Home Consortium Ltd (HMC AU) is just outside inclusion zone at the moment and outperformance over the rest of the week could result in inclusion.
• Home Consortium Ltd (HMC AU)‘s inclusion and capping changes will result in a one-way turnover of 5% and in a round-trip trade of A$62m. 

• Iron ore prices rebounded strongly last week and continued rising this week, reversing losses from the previous week’s 9% decline
• Chinese portside inventories of iron ore fell by 2.48 million tons in August, signaling strong demand despite slower drawdowns in the final weeks
• SGX Iron Ore options saw a 20.7% decline in volume last week, with a sharp increase in the put/call ratio from 1.56 to 2.35, indicating increased bearish sentiment

New data were revealed from Actinogen Medical’s ongoing analysis of the now-completed XanaCIDD study that support the view that the company’s lead drug candidate, Xanamem, may provide consistent and durable benefits in treating depression symptoms compared to placebo. The XanaCIDD study was designed to assess a 10mg daily dose of Xanamem versus placebo in patients with major depressive disorder (MDD) over a six-week treatment period. In line with the top-line results reported on 12 August, the new data confirm that maximal treatment effects on depression on all endpoints occurred at week 10, or four weeks after the end of the six-week treatment period. The results appear to be consistent with the molecule having a durable clinical effect in terms of controlling brain cortisol and potentially exerting anti-depressant activity.

• RaaS has published an update report on Know Your People’ regtech company, Kinatico (ASX:KYP) following its FY24 results in which the company reported FY24 adjusted NPAT of $1.0m, a 32% increase on FY23 and c.70% ahead of our forecast for $0.6m.
• Particularly pleasing in the result was the conversion of EBITDA to operating cashflow, with the metric rising to 92% in FY24, compared with 85% in FY23 and 60% two years ago.
• The results were ahead of our forecasts and reflect the continued migration of existing customers from one-off transactional revenue to ongoing subscription for its compliance monitoring platform.