Friday 27th March – Australian Market Lotto

ASX 200 drops 271 to 4842 as profit taking hits as rescue package stutters. Dow Futures down 340 points. No one wanted to go to the weekend break too committed and selling increased from the outset. After the bump on the open, selling steadily increased  accelerating at the lunchtime break. Mondays can be brutal, so why take the chance? Banks bore the brunt as the Big Bank Basket fell to $103.44. CBA down 6.7% and WBC down 7.05%. Other financials joined in the pain with CGF down 8.2% and MQG down 6%. The ASX stood out with a gain of 1.7% on the good volumes we are seeing recently. Healthcare under pressure with CSL down 7.6% and COH seeing sellers taking the money off the table after the placement, down 8.6%. Miners too underpressure with BHP down 5.3% and FMG down 8.7%. S32 dropped 5.8% on South African shut downs and gold miners weaker as AUD rose with NCM down 4.9% and SAR slipping too by 1.7% despite guidance being unaffected. REITs saw selling especially in those exposed to tenants not paying the rent, GPT down 10.8% and SGP down 9.8%. Industrails tried to hold it together but failed as losses accelerated. WOW down 5.2%, WES down 7.2%, TLS down 3.8% and CIM down 10%. Tech stocks and credit stocks back in the short sellers sights, APT down 1.6%, Z1P down 10.2% and CCP down 14.33%. The All tech Index fell 2.9% and the new XTX ETF fell 3.17%. Corporate news was dominated by news of retail closing its doors, KMD rose 13% after throwing in the felece, ADH down 8.9% as it followed suit and ALQ rose 5.5% after comments on its balance sheet. Nothing good economically. 10-year bonds were steady at 0.89% yield and the AUD is picking up as the USD comes under pressure as haven money gets put to work. Meanwhile Asian markets held it together with Japan up 1.9% and China up 1.6%.

  • ASX 200 down 271 to 4842. Rally runs out of steam
  • High 5237 Low 4842. Another big range day. Good volumes again.
  • ASX 200 up 0.5% or 26 points for the week. The hard way.
  • Banks fall Basket to $103.44
  • Miners under pressure. Few green highlights.
  • Dow down 340 points
  • 10-year bond yields steady at 0.89%
  • AUD rises to 60.99c.
  • Aussie gold falls to $2665 as AUD rallies.
  • Bitcoin rallies to US$6802
  • Asian markets stronger with Japan up 1.9% and China up 1.6%.

STOCKS                                               

  • BRG +1.01% withdrawal of guidance.
  • WGX +5.88% production update.
  • WTC +5.07% bargain hunters.
  • ALQ +5.48% update on balance sheet.
  • CGF -8.16% more cash needed.
  • GPT -10.81% rents being stopped.
  • SGP -9.79% landlords not getting paid.
  • Z1P -10.19% credit issues re-emerge.
  • OML -11.68% raises money.
  • SGF -6.72% withdraws guidance.
  • APT -1.60% MS downgrades and slashes PT.
  • SXY +13.79% business update.
  • 360 +5.88% business update.
  • FLT -suspended MS says it needs $200m-$400m cash injection.
  • Speculative stock of the day: Nothing today.
  • Biggest Rise: SM1, WGX, ALQ, WTC, KKC, ARB and CUV.
  • Biggest Falls:CQR, CCP, FCL, VAH, SCG, AVN and GPT.

TODAY

  • iSentia Group (ISD) +20.83% withdraws FY20 revenue and EBITDA guidance. Currently experiencing high demand for its media monitoring products and services as existing customers try to understand the implications of the pandemic on their brand and corporate reputation. Notes strong balance sheet and significant headroom in its debt covenants.
  • Catapult Group International (CAT) +7.81% reiterates commitment to be positive free cash flow (FCF) by FY21. Expects Q4 FY20 new sales growth to be negatively impacted by COVID-19. Remains confident in long term sales trajectory.
  • Adairs (ADH) -8.86% to temporarily close all Australian stores from the close of trade on March 29.
  • Woodside Petroleum (WPL) -6.44% total expenditure in 2020 forecast to be cut by ~50% to ~$2.4bn. Production guidance remains unchanged at 98-103mmboe with unit production cost in 2020 targeted at ~$4.5/boe. Notes strong balance sheet and liquidity position.
  • Breville Group (BRG) +1.01% Withdraws earnings guidance given outbreak uncertainty. Year to date performance was consistent with guidance provided in February.
  • Chorus (CNU) -4.70% suspends non-essential field activity in New Zealand. Certain planned capital expenditure to be deferred for the duration of the month-long isolation period. Gross Capital Expenditure NZ$610-650m vs prior guidance NZ$660-700m. EBITDA guidance remains unchanged NZ$640-655m.
  • Beach Energy (BPT) -5.00% targeting up to a 30% deferral in FY21 capital investment relative to its prior planning. Following the oil price downturn, Beach is reviewing its 5 Year outlook. Underlying EBITDA now expected in the range of $1.175-1.25bn vs prior $1.25 -1.40bn. Production and capex guidance unchanged.
  • Saracen Minerals (SAR) -1.69% Gold production of 150-155koz is unlikely to be impacted by COVID-19 for March quarter but no certainty about June quarter impact. Production guidance maintained.

ECONOMIC and CV19 NEWS

  • Australian authorities will quarantine anyone arriving in the nation’s airports.
  • National Bank sees jobless rate at 12%, now expecting a deep recession.

BOND MARKET

ASIAN NEWS

  • Vietnam to stockpile 190,000 tonnes of rice.
  • The Indian central bank has cut rates to 4.4%. Those were the days.
  • Profits of Chinese industrial companies fell the most on record as the virus outbreak hurt business activities. Industrial profits dropped by 38.3% in the first two months of this year compared to the same period in 2019.
  • BTS, is canceling its North America tour over coronavirus concerns. They are the biggest K-Pop Band.

EUROPEAN AND US NEWS

  • Federal Reserve’s balance sheet tops US$5 trillion. Pretty soon that is a lot of money.
  • US cases now above China. Global cases 532,000; 24,000 dead, 122,000 recovered: Johns Hopkins.
  • Trump promises GOP convention will go ahead in August.
  • New Jersey will work with ethicists to work out how to ration ventilators. Who lives and who dies.
  • Stay safe. Stay at home. Wash your hands and bunker down.

And finally…

Why did the scarecrow win an award? Because he was outstanding in his field!

Why did the invisible man turn down the job offer? He couldn’t see himself doing it!

What’s the difference between a poorly dressed man on a tricycle and a well-dressed man on a bicycle? Attire!

My boss told me to have a good day. So I went home!

I told my girlfriend she drew her eyebrows too high. She seemed surprised!

Apologies its been a long week!!!!Send more jokes!!

Clarence

XXX

mt_tryforfree

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