Thursday 15th April – Australian Market Wrap

SX 200 turned on jobs data rising 36 points to 7059 (0.5%) heading towards the all-time high. Dow futures up 77 points. After a lacklustre start, the banking sector turned around on the 5.6% unemployment rate. The economy is bubbling along nicely, the Big Bank Basket up to $169.17. BOQ fell 0.8% after its results, first cab off the rank. MQG next up and gaining 1.6% today. Big Miners enjoyed gains from the start with BHP up 2.9% and FMG gaining 3.5%. Energy stocks also had a positive day out with STO up 2.3% on its AGM and WPL up 0.8% ahead of its AGM. Elsewhere industrials were solid, WOW gained 1.2% and WES up 0.2% with ALL continuing to push ahead by 1.2%. Healthcare once again seems to be in the naughty corner and buyers reluctant to play, CSL up modestly by 0.2%. The tech sector underwhelmed as Nasdaq pointed to an unenthusiastic audience last night. APT fell 0.4% and XRO fell 0.3% with the AllTech Index flat. In corporate news, Z1P down 6.9%, prices $400m convertible notes offer at 1239c. TCL down 0.1%, reports a 1.1% lift in March quarter traffic vs a year ago. BLD up 0.5% on speculation it is exploring options for its North American Fly Ash business (still). MHJ up 5.7%, third-quarter same-store sales up 16% over the year. EVN down 5.6% on a broker downgrade. WHC hit 15.4% on its quarterly production report, downgrades sales guidance. The only news on the economic front was good news. Unemployment at 5.6% beat expectations and set the market fair for a rally to highs. The 10-year yield stable at 1.75%. In Asia, Japan up 0.36% and China off 0.76%

Today’s Highlights

  • ASX 200 up 36 to 7059. SPI expiry and options today
  • High 7071 Low 6989 – Economic data drives rally
  • Big Bank Basket better at $169.17
  • All Tech Index flat
  • European futures pointing to modest falls
  • Dow futures up 77
  • Australian Gold down to $2258
  • 10-year yield steady at 1.75%
  • AUD rises to 77.18c
  • Bitcoin slips to US$63057
  • In Asia, Japan up 0.36% and China off 0.76%

STOCKS

  • VUL +8.60% sprinting ahead.
  • ART +10.55% solid bounce continues.
  • MIN +3.89% lithium and iron ore exposure.
  • WHC -15.45% quarterly report
  • BRN -9.45% profit taking.
  • BET -4.44% US vaccine issues perhaps weighing.
  • Z1P -6.87% convertible bond issue. Late sell off.
  • 88E -8.00% not a rocket in sight.
  • IOU -6.74% magic fades.
  • WPL +0.79% AGM chairman’s address.
  • JMS +3.17% large block trade mystery.
  • DUB +8.78% Zooming higher.
  • WES +0.16% JP Morgan upgrades to neutral.
  • MGT +13.33% conversion of equity options.
  • MNS +13.33% trading halt on funding arrangements.
  • ALC +8.82% acquisition, capital raise and contract win.
  • VXR +9.30% Sulphur Springs copper project.
  • IPO of the Day: 92 Energy (92E) +42.50% much better than 88E. Solid volume and great debut. Wait for 96E listing. Will be even better.
  • Speculative Stock of the Day: Not much to get excited about today. Volt Resources (VRC) +26.67% the best of the bunch on joining the Federation Battery Alliance.
  • Biggest Winners: ART, DUB, ADO, VUL, OMH, SFR and ALD.
  • Biggest Losers: WHC, RRL, BRN, Z1P, RSG, CTT and EVN.

TODAY

  • Boral (BLD) +0.50% Exploring options for North American Fly Ash business. The company intends to explore value creation opportunities through a potential joint venture, strategic alliance, divestment to a third-party or continued ownership. Boral has appointed advisors to support this value assessment and will provide an update to the market at its full year results announcement in August, or earlier if appropriate.
  • Transurban Group (TCL) -0.14% Reports March quarter traffic performance +1.1% vs year-ago. March quarter traffic performance (average daily traffic %) change: Sydney +21.8% to 936K trips. Melbourne (15.2%) to 675K trips. Brisbane +3.3% to 403K trips. North America (26.9%) to 101K trips.
  • Bank of Queensland (BOQ) -0.79% Reports H1 cash earnings after-tax $165.0m vs consensus $165.3m. Reports H1: EPS $0.34 vs consensus $0.34. Net Interest Margin 1.95% vs consensus 1.96%. Net Interest Income $512m vs year-ago $541m. Common Equity Tier 1 ratio 10.03% vs year-ago 9.91%. H1 dividend $0.17 fully franked.
  • Qantas Airways (QAN) -0.19% Provides update; Q4 domestic capacity to increase to 90% vs prior estimates of 80% of pre-COVID levels.
  • De Grey Mining (DEG) +0.40% Reports drilling update at the Hemi Prospect. Eagle – Mineralisation extended to approximately 600m strike, 300m depth and remains open to the north, west and at depth. Diucon – Mineralisation width extended to approximately 200m with new lodes intersected across strike from the previously reported 121m @ 1.1g/t Au in HERC452.
  • Praemium (PPS) +2.67% Reports Q3 Funds under administration (FUA) $37.93bn vs quarter-ago $34.32bn. Reports Q3: Australia FUA $16.87bn vs quarter-ago $16.45bn International FUA $4.37bn vs quarter-ago $3.91bn. VMAAS FUA $16.69bn vs quarter-ago $13.97bn.
  • Bellevue Gold (BGL) +1.14% Advises global resource increase to 2.7Moz at 9.9g/t.
  • Netwealth Group (NWL) +2.37% Provides Q3 update: Funds under administration (FUA) $41.84bn vs quarter-ago $38.79bn. Q3 update: FUA net inflows $2.27bn vs quarter-ago $2.56bn. FUM $10.49bn vs quarter-ago $9.32bn. FUM net inflows $921m vs quarter-ago $733m. Guidance: Full year FUA net inflows expected to be ~$9bn.
  • Pendal Group (PDL) -+4.34% Reports Q3 total group FUM at 31-Mar $101.7bn vs quarter-ago $97.4bn. Reports Q3: Total Pendal Australia Funds Under Management (FUM) $46.9bn vs quarter-ago $45.5bn. Net flows $0.9bn. Investment performance & higher markets contributed $2.5bn. There was a positive currency impact of $0.9bn during the quarter.
  • Whitehaven Coal (WHC) -15.45% Reports Q3 Managed ROM Coal Production 5,494kt vs year-ago 4,912kt; revises down FY21 production. Reports Q3: Managed Saleable Coal Production (Kt) 4,330vs year-ago 4,103. Total Managed Coal Sales (Kt) 4,798 vs year-ago 4,488. Managed coal stocks of 2,757t at period end. FY guidance: Managed ROM coal production 20.6 – 21.4Mt vs prior 21.4-22.0Mt. Managed coal sales 17.8-18.3Mt vs prior 18.5-19.0Mt. Unit cost $73-75/t vs prior $69-72/t.
  • Ampol (ALD) +5.41% Reports Q1 unaudited RCOP NPAT $86m ex-items vs year-ago $80m. Reports unaudited Q1: HCOP NPAT $175 vs year-ago -$29m. Australian F&I EBIT $59m vs year-ago $47m. International F&I EBIT $26m vs year-ago $24m. Lytton EBIT $0m vs year-ago -$18m. Convenience retail EBIT $78m vs year-ago $102m. FY Guidance (2021): Lytton production guidance ~6.0BL. Ampol Australian volume guidance 13.5-14.0BL. 5 Metro @ Ampol sites to be delivered to the network in Q2 with a further 15 sites in H2.

ECONOMIC NEWS

  • Jobs numbers better than expected. 5.6% at the headline rate is what counts.

CV19 NEWS

  • India’s second wave sees 200,000 new CV19 cases. Now 14m active infections. Total deaths 173k.
  • Japan says cancelling the Olympics is an option if things get worse. Polls show most of the Japanese public don’t want the Olympics to go ahead this summer.
  • Vaccine Tracker: 832m doses in 154 countries. 18.8m a day. In the US, 195m doses at 3.35m a day. At this pace, it will take another 3 months to cover 75% of the US population.
  • In Australia, the latest vaccination rate is 53,620 doses per day, on average. At this pace, it will take another 23 months to cover 75% of the population.

BOND MARKETS

ASIAN NEWS

  • Chinese tech giants are vowing to eradicate monopolistic practices as the likes of Tencent and Alibaba race to play nice with Beijing. 11 Chinese tech giants promised today to obey antitrust laws.
  • Bernie would be proud of Singaporean trader who is charged with fraud after raising US$1bn plus for non-existent commodity trades. Nice work. S$100m of assets seized from Ng Yu Zhi including a Pagani Huayra (US$2.6m)

US AND EUROPEAN HEADLINES

  • Coinbase valued at US$86bn. Crypto is now legitimate apparently.
  • Bernie has died. 82-year old and the father of the world’s largest Ponzi scheme.
  • German March CPI up 1.7% YoY v 1.3% in February.
  • Hedge funds post the best start to the year since GFC.
  • Mobile games company AppLovin valued at US$28.6bn in IPO.
  • Big LSE shareholder backs spending plans for Refinitiv.
  • John Kerry arrives in Shanghai to talk climate change. Anniversary of Titanic sinking. No icebergs now. Global warming sorted that.
  • Still no rabbit.

And finally…..

I was horrified when my wife told me that my six-year-old son wasn’t actually mine. Apparently I need to pay more attention during school pick-up.

Never criticize someone until you have walked a mile in their shoes. That way, when you criticize them, you’ll be a mile away, and you’ll have their shoes.

Got a PS5 for my little brother. Best trade I’ve ever done!

What do you call a woman who sets fire to all her bills? Bernadette.

Clarence

xxx