Tuesday 27th July – Australian Market Wrap

ASX 200 up 37 to 7431 (0.5%). Shrugs off CV19 numbers again. Quarterlies dominate.

  • HIGH 7448 LOW 7410. Average volumes.

MAJOR MOVERS:  Winners: REG, EHE, SPL, TPW, OZL, BSL and LTR  Losers: FLN, AMI, EOS, WAF, A2M, DUB and CWN

  • POSITIVE SECTORS: Iron ore miners -Banks -Energy.
  • NEGATIVE SECTORS: Healthcare – Tech.
  • BIG BANK BASKET: Very strong at $179.39
  • ALL -TECH INDEX: Down 0.7%.
  • GOLD: Falls to AUD $2439.
    BITCOIN: US$36994. Squeezed and falls.
  • AUD: Better at 73.74c. 10-YEAR YIELD:  1.19%
  • ASIAN MARKETS: Japan up 0.5% China down 0.6% Hong Kong down 1.7%
  • US FUTURES: Down 76.

ASX 200 shrugs off another record beating day for NSW. Up 37 to 7431 (0.5%). More gold medals for ASX at highs. Quiet trade though as investors took a cue from Kayleigh McKeown winning gold in Tokyo. The Melbourne lockdown is showing us the way forward, but NSW will be under restrictions for some time. Yet the market romps higher. Banks leading the charge with the Big Bank Basket up to $179.39 and the Big Miners also firing up on iron ore pricing and copper highs. BHP rose 2.8%, FMG up 1.6% and S32up 1.0%. Healthcare in the casualty ward led by CSL down 0.2% and COH off 1.9%. Industrials were mixed, ALL down 0.9%, APT fell 1.7% and XRO off 1.9% on a broker report. In corporate news, JHC had a takeover recommended at 140c and TPW showed a clean set of cushions rising 7.4% on its quarterly. BSL also having a good day on its results up 6.4% with OZL romping ahead up 6.5% on its quarterly.  On the economic front, weekly consumer confidence has hit its lowest level since November last year, down 3.5%, follows a more than 5% fall in the week prior.


STOCKS ON THE MOVE

  • REG +12.57% EHE +8.64% JHC bid puts others on the menu.
  • SPL +7.94% VIRALEZE results.
  • AMI -15.62% investor presentation.
  • TPW +7.41% cocooning continues.
  • WAF -6.31% quarterly report.
  • WSA +4.17% good bounce on nickel prices.
  • EOS -7.31% Fred Bart retires.
  • DUB -5.94% insto placement.
  • CWN -5.47% “rien ne va plus”
  • NXL -4.48% sell off continues.
  • FLN -16.81% quarterly disappoints USD strength an issue.
  • AXE -9.08% falls on quarterly.
  • POS -unchanged- assay and drill results.
  • ALC +14.08% quarterly.
  • 88E +14.71% volatility continues on quarterly update.
  • BSL +6.40% EBIT of $1.72bn.
  • A2M -6.25% creamed on People and Culture appointment.
  • Speculative Stock of the Day: Elixir Energy (EXR) +20.00% recent operations update helping but volume still relatively light.

ANNOUNCEMENTS

  • IGO (IGO) +1.68% To acquire Silver Knight, a nickel-copper-cobalt sulphide deposit from Creasy Group for $45m. IGO will also form a joint venture with Creasy Group which will cover a portfolio of exploration tenements around Silver Knight.
  • Oz Minerals (OZL) +6.53% Q2 copper production 32,681t vs quarter-ago 26,842t. Gold production 57,875oz vs quarter-ago 55,150oz. All-in Sustaining Costs US$1.345/lb vs quarter-ago US$1.365/lb. C1 Cash Costs US$0.607/lb vs quarter-ago US$0.633/lb. FY Guidance: Gold production 205-228Koz vs prior 190-215Koz. C1 cash costs US$0.65-75/Ib vs prior US$0.70-0.80/lb.
  • Temple & Webster Group (TPW) +7.41% Preliminary full-year EBITDA $20.5m vs consensus $19.6m. Preliminary revenue $326.3m vs consensus $327.9m. Active customers 778K, +62% vs year ago. FY22 trading update: year to date (July 24) revenue growth of 39% vs last year.
  • Bluescope Steel (BSL) +6.40% Preliminary underlying full-year EBIT of $1.72bn. The record second-half contribution is expected to be approximately $1.19bn, compared to prior guidance of $1.0-1.08bn.
  • Oil Search (OSH) -0.51% Q2 production 6.59mmboe vs quarter-ago 6.87mmboe. Full-year guidance maintained, sees production of 25.5-28.5mmboe.
  • West African Resources (WAF) -6.31% Reports Q2 AISC US$928/oz; remains on track to meet FY guidance. Outlook: “Remains on track to meet 2021 guidance of 250,000 to 280,000 oz of gold production at AISC of $720 to $800 per ounce.”
  • Japara Healthcare (JHC) +18.45% Japara Healthcare has entered into a Scheme Implementation Deed (SID) with Little Company of Mary Health Care Ltd (Calvary) at $1.40/sh for the acquisition of all of the issued shares in Japara by way of scheme of arrangement (Scheme).

ECONOMIC NEWS/ BOND MARKETS

  • Consumer confidence fell 3.5% last week, as Sydney, Victoria and South Australia remained in lockdown.

IN THE NEWS

  • Bitcoin hits US$40,000 then collapses, back below US$37,000.

CV19 NEWS

  • 172 new cases in Sydney. Lockdowns lifted in Melbourne and elsewhere.
  • Australia has administered enough doses for just 22% of its population according to Bloomberg’s vaccine tracking app.
  • UK cases back below 25,000 a day.
  • Seven more CV19 cases at Olympics.
  • Chinese city Nanking has 31 new infections confirmed.

ASIAN MARKETS

  • Chinese Crackdown stocks hit for the third day.
  • Hang Seng Tech Index has lost about 13% in three days.
  • A Bloomberg Intelligence index of Chinese property developers slid as much as 2.4% on Tuesday after slumping almost 5% on Monday.
  • SK Hynix posts biggest quarterly profit in two years. Increased demand for computer storage and memory.
  • Naomi Osaka out of Tennis.

US AND EUROPEAN NEWS

  • European futures down slightly.
  • Logitech sales up 66% in Q1 as WFH takes hold.
  • French competition head says big fines can change big tech behaviour.
  • UK to consider relaxing travel restriction from EU and US.
  • US to keep travel restrictions in place.
  • Frances ratifies new ‘health pass’ law.
  • Aon’s US$30bn acquisition of Willis Rowers Watson falls over.

And finally….

May be an image of text that says 'Whenever my wife is upset I let her color in my tattoos... She just needs a shoulder to crayon.'
May be an image of text that says 'Plomt After the last child moved out, the old woman sold the shoe and moved into a flat.'

If anyone has a better fish pun, let minnow.

Clarence

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