Friday 15th October – Australian Market Wrap

The ASX 200 moved 50 points higher to 7362 (0.7%) today as banks rallied after US results, and miners did well on higher commodity prices. The Big Bank Basket moved up slightly to $184.19%. MQG up 3.7% hitting an all time high, insurers though flat on news that ASIC would be pursuing IAG. Fund managers took a beating as Judith Neilson sold down her holding of PTM as the stock fell 6.9% and PDL down 11.5% on FUM. Miners were in demand, BHP up 2.8%, FMG up 2.0% though RIO fell 0.9% on production downgrades due to personnel issues. OZL also had a great day up 5.2% with gold miners mixed, NCM down 0.2% but CHN up 2.2%. In the industrials, travel stocks advanced as NSW abandoned quarantine for fully vaccinated travellers, QAN up 2.0% on some excess land sales too. WEB rose 4.0% and FLT up 3.8%. Healthcare better with CSL up 0.2% and RHC riding the reopening wave up 0.8%. Tech stocks better as bond yields steady at 1.63%, APT up 1.7% and XRO doing well up 0.9%. The AllTech Index up 1.1%. In corporate news, TWE poured some sour grapes on the bulls at its AGM falling 5.4% and the Boom in a Room Conference produced some winners not least of which STM rose 22.9% on its show and tell. Nothing on the economic front. Goldman Sachs results tonight.

MAJOR MOVERS:

  • Winners: AVZ, BLX, SFR, AEF, HUB, ARB, RED, SGR.
  • Losers: CXO, BOE, PTM, PDN, PDL, TWE, ELD
  • Positive sectors: Banks. Resources. Travel. Tech.
  • Negative sectors: Insurers. Energy. Fund Managers.
  • Hi 7373 Lo 7325 For the week up
  • Big Bank Basket: Rises slightly to $184.19 (0.46%)
  • All-Tech index: Up 1.0% APT up 1.3% Z1P down 0.6%
  • Gold: Down to AUD2419.
  • Bitcoin: Drifts up to US$59315
  • Aussie Dollar: Higher at 74.19c 10-YEAR YIELD: Steady at 1.63%
  • Asian Markets: Japan up 1.5% Hong Kong up 0.8%. China up 0.3%
  • US Futures: Dow futures up 103 NASDAQ futures up 45. Goldman Sachs tonight.

STOCKS ON THE MOVE

  • SFR +6.93% commodity price rises.
  • HUB +5.79% broker upgrades.
  • RED +5.56% bullion price.
  • OZL +5.17% base metals.
  • SGR +5.43% no bad news is good news.
  • STM +22.92% Boom in a Room presentation.
  • BCI +7.23% Mardie project debt funding.
  • FMG +1.96% Plug Power press release.
  • HLS -0.43% VRT update.
  • RDT -6.83% profit taking.
  • ATC -6.32% turning south.
  • DW8 -7.58% Kaddy acquisition presentation.
  • PDL -11.51% FUM
  • ELD -4.79% broker downgrades.
  • TWE -5.37% AGM comments.
  • CXO -4.39% profit taking.
  • ERA -1.15% PDN -5.81% Book squaring.
  • PTM -6.85% Judith Neilson sells down to 6% holding. FUM now only $22.8bn.
  • Speculative Stock of the Day: Essential Metals (ESS) +35.48% good volume too on the Boom in a Room Conference presentation and high grade assay results from Cade deposit.

IN THE NEWS

  • Treasury Wine Estates (TWE) says channel conditions are slightly below expectations for recovery. Added there was momentum in key growth markets, including Asia ex-mainland China.
  • Rio Tinto (RIO) Q3 Pilbara iron ore shipments (100% basis) up 9% over the quarter to 83.4mt. Cuts the top end of its Pilbara iron ore shipment guidance to 325mt from 340mt. CEO Jakob Stausholm, said it was another difficult quarter operationally and despite improving versus the prior quarter, he added there was an opportunity to improve. Pilbara iron ore unit cost guidance unchanged at US$18.0-$18.5/t. Copper C1 unit cost guidance increased to 75-80 US cents/lb vs prior guidance of 60-75 US cents/lb as a result of reduced refined copper production at Kennecott.
  • Insurance Australia Group (IAG) acknowledges legal proceedings from ASIC. The filing relates to IAG’s failure to pass on the full amount of discounts to a significant number of NRMA Home, Motor, Caravan and Boat Insurance customers between March 2014 and September 2019.
  • QANTAS (QAN) – sells surplus land around Mascot for $802m.
  • Wesfarmers (WES) has sold €600 million of 12-year bonds linked to its sustainability programme to finance general corporate purposes and repay debt.
  • Pendall (PDL) – FUM rose to $139.2bn from $106.7bn as a result of the recent acquisition.

CV19 NEWS

  • NSW will no longer require quarantine from double vaccinated travellers.

ASIAN MARKETS

  • China is loosening restrictions on home loans as regulators have told major banks to accelerate mortgage approvals.
  • Alibaba earnings are being downgraded ahead of the November 5th results and Singles Day on the 11th. Consensus for 12-month earnings projection down by nearly 5% over the past three weeks.
  • The PBoC injected 500 billion yuan (US$77.6 billion) through its medium-term lending facility, matching the 500 billion yuan maturing Friday. China’s 10-year yields rose nearly two basis points to 2.97% while 10-year bond futures fell to the lowest since early July.
  • New Japanese PM Fumio Kishida has pledged to steer Japan away from Abenomics.

US AND EUROPEAN NEWS

  • Positive opening in store for European markets. Goldman Sachs in focus.
  • SEC will allow Bitcoin Futures ETF.
  • Virgin Galactic has issues with re-entry after delays to first commercial flight.
  • LinkedIn closes down Chinese site.
  • Brussels looking at a plan for an all-out trade war with UK. Britain braces for a grim Xmas.
  • Raheem Sterling wants to leave Man City and play in Europe.

Clarence

XXX