Friday 10th July – Australian Market Wrap

The ASX fell over as the day wore on ahead of CV19 numbers etc over the weekend. The Index fell 36 to 5919 (0.6%). It could have been worse .Dow futures fell 196 points. It was the best of times and the worse of times, tech and the BNPL sectors continue to drag in punters from everywhere while the ‘analogue’ economy continues to stumble. Banks were back in the naughty corner as doubts on the CBA dividend emerged on an APRA clampdown. The Big Bank Basket dropped slightly to $124.55 rescued by CBA up 0.3% though NAB down 1.1%. Other financial also lost ground led by MQG down 1.5% and MFG down 1.9%. Miners saw some end of week selling with BHP down 0.7% and RIO slipping 0.7% as FMG joined in the sell-off down %. Energy stocks too fell WPL down 2.4% and STO down 1.9%. BNPL continues to dominate as APT fell 1.6% after early gains evaporated though Z1P took up the running rising 8.1% and TYR rose 2.97%, not strictly BNPL but part of the solution. The All Tech Index fell 0.7%. Travel stocks were in quarantine today with CTD down 6.9% and WEB falling 4.4%. Healthcare improved as defensives showed some appeal. CSL up 0.6% and WOW up 0.8%. In corporate news, SZL completed their capital raise at 530c according to market reports, BGL returned to trade after a lazy $100m cap raise falling 4.0%, and AVH fell 7.5% after updating the market on how tricky it was to grow skin treatments in a CV19. Nothing on the economic front but Victoria reported another 288 CV cases and 60 infringement notices, the 10-year yield lower at 0.85% and the AUD steady. In Asia, markets saw some profit taking after a strong week, Japan down 0.7% and China down 1.2%.

Today’s Highlights

  • ASX 200 down 36 to 5919.
  • High 5956 Low 5899. Soft finish to a soft week. Could have been worse.
  • For the week the ASX 200 down 2.2% and the All Tech Index up 0.4%. Felt like more.
  • Big Bank Basket steady at $124.45.
  • All Tech Index down 0.7%.
  • 80 trading days until the US election.
  • Dow Futures down 196.
  • 10-year bond yield rose to 0.89%
  • AUD rallies to 69.33c
  • Aussie gold steady at $2595.
  • Bitcoin slips to US$9154
  • In Asia, markets saw some profit taking after a strong week, Japan down 0.7% and China down 1.2%.

STOCKS

  • TPW +12.09% cleansing notice.
  • TWE -3.93% broker downgrades.
  • CSL +0.58% UBS says buy.
  • Z1P +8.06% BNPL frenzy continues.
  • NWL +5.63% Change in substantial holding.
  • TYR +2.97% fintech rally.
  • JMS +3.64% port agreement.
  • AVH -7.51% business update.
  • OPY +4.29% June quarter investor briefing.
  • DEG -6.47% presentation
  • BGL -4.02% capital raising weighs.
  • MOE -4.11% voluntary escrow release.
  • WEB -4.43% settlement of convertible note.
  • KLL -5.88% change in substantial holding
  • FBR +23.61% response to ASX query.
  • EVN -3.01% Goldman calls time on some gold miners.
  • FLC +17.50% cashflow turns positive.
  • BET +10.98% wins fixed rate odds in US.
  • FLN +31.31% eBay partners with Escrow.com
  • CIM -2.92% contract win.
  • CKF -3.39% one group of Victorian fined $26k for takeout! Do you want fries with that?
  • Speculative Stock of the Day: RooLife Group (RLG) +22.73% partners with AFT Pharmaceuticals to deliver branded online products in China. Kiwi Health is an online marketplace for AFT pharma and RLG will provide digital marketing.
  • Biggest Rises: TPW, Z1P, VGI, NWL, PLS, SM1, JMS and UWL.
  • Biggest Falls: CNU, AVH, CTD, DEG, BUB, PNI, ALK, JHG and WHC.

TODAY

  • Westpac (WBC) –1.40% Mulling the sale of more than $4bn in non-core wealth assets, including dealer finance & auto loans portfolio valued ~$2bn. BT Panorama wealth management valued between $700-1bn, Pacific Bank, as well as its general insurance and life insurance operations valued ~$500-700m. Blackstone, The Carlyle Group, KKR, BGH Capital, Affinity Equity Partners and TPG Capital thought to be some of the interested parties.
  • Sezzle (SZL)Launches $79.1m placement, priced at 500c/share. Will offer a SPP to raise $7.2m. Funds will be used to accelerate the growth strategy and strengthen the balance sheet.
  • Nine Entertainment (NEC) -0.36% CFO Paul Koppelman resigns for personal reasons. Graeme Cassells, currently group financial controller, will take on the role of acting CFO. Expects EBITDA (ex-items) in the range of $390-410m for its continuing businesses.
  • Bell Financial Group (BFG) -8.50% Guides H1 profit up 5% to $23.5M vs year ago. The performance of two of subsidiaries, Bell Potter Capital and Third Party Platform is particularly pleasing with their six months’ unaudited profit up 120% to $2.4m and 140% to $3.3m respectively.
  • Polynovo (PNV) -0.41% Q4 sales up 33% vs quarter ago. Expects FY20 product sales to be at least double FY19. June was a record sales month in the US. Since April 7, PNV has opened seven new hospital accounts. From July 2019 to the end of June 2020 there has been a 67% increase in hospital accounts in the US. Achieved its first sale in the UK. There have been six operations in England and Scotland and for this reason, expects additional new term sales. There have been numerous applications of the BTM in Germany, Austria & Switzerland and sales are growing accordingly as traction improves across the region. Receives feedback from FDA on its Pivotal trial protocol. “The request for further information from the FDA is positive and will give the trial clarity and ensure robust outcome measurements.” – MD comments.
  • New Hope Corp. (NHC) -1.79% Appoints Reinhold Schmidt as CEO, effective September 1, 2020. Schmidt will succeed current CEO Shane Stephan who previously announced his retirement from the company in May.

ECONOMIC NEWS

  • The latest snapshot.

COVID-19 NEWS

  • Hong Kong’s government will announce the immediate suspension of all schools as local virus cases jump.
  • ScoMo has announced that Australia will cut by 50% the number of Australians who can return home at any one time to relieve pressure on its system. They also will have to pay for their own quarantine.
  • A U.S. Marine stationed in the Australian city of Darwin has tested positive for Covid-19.
  • Mexico reported a record daily rise of 7,280 confirmed Covid-19 cases, bringing the total to 282,283.
  • The U.K. has turned down the chance to join a European Union coronavirus program. The reason is costly delays. Not sure the UK has covered itself in glory, couldn’t even get the tracing app sorted.
  • Wells Fargo & Co., the largest employer among U.S. banks, is preparing to cut thousands of jobs starting later this year

BONDS

ASIAN NEWS

  • Singapore heads to the polls. Foregone conclusion really as it has been for five and a half decades.
  • Chinese state funds start selling after days and days of gains.
  • QuantumCTek had the strongest IPO debut ever on Shanghai’s star board with a 924% gain on its debut.
  • Sony has invested US$250m in Fortnite’s Epic Games.

EUROPEAN NEWS

  • Turkey says trade deal with UK very close.
  • European markets opening mixed.

And finally have a great weekend

Clarence

XXX

 

No jokes tonight as pushed for time…sorry send me some then…mt_tryforfree

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