ASX 200 closed up 23 points at 7123 (+0.3%). For the week it has fallen 23 points from 7145. A better day all around with Banks better led by ANZ up 0.8% and WBC rising 0.3%. The Big Bank Basket up $164.10 (+0.1%). Insurers firmed slightly and fund managers better. REITs were mixed after the drubbing yesterday with GMG bouncing 1.1% on the tech rally. Tech stocks back in favour with WTC up 2.6% and XRO up another 2.7% with the All–Tech Index up 0.8%. Even Old Skool tech, REA and CAR rallied up 0.8% and 2.6% respectively. Consumer stocks had an end-of-week bounce, ALL up 1.5% and TLC +1.4% in demand. DMP up 1.1% as some short covering held. Resources were firm, iron ore miners up again, BHP up 1.3% and RIO up 0.5% with lithium stocks making some headway, MIN up 0.9% and IGO up 2.5%. Gold miners better too, NST up 1.6% and EVN rising 1.5%. Oil and gas going nowhere and coal flat. In corporate news, NIC up 13.3% on a strategic placement, some board changes at FMG, banks have passed on the rate increase quickly. Just not to deposit holders. On the economic front, economists jumping over themselves to predict higher and higher rates and CBA downgraded GDP and increased odds of a recession. In Asia, Chinese PPI dropped substantially. Asian markets in the green, Japan up 1.5%, HK up 0.6% and China up 0.3%. Dow futures down 60 points and NASDAQ futures down 8 points.
- Winners: NIC. IMU, PMT, WAF, CIA, SFR, SIG
- Losers: MGH, LKE, QAL, ACL, IMD, JLG
- Positive sectors: Tech. Iron ore. Lithium. Gold. Insurers.
- Negative sectors: Utilities. REITs. Healthcare.
- High 7131 Low 7109. Narrow range ahead of King’s Birthday weekend.
- ASX 200 down 23 points for the week.
- Big Bank Basket: Slightly higher at $164.10 (+0.1%)
- All-Tech index: Up 0.8%
- Gold Unchanged at $2932
- Bitcoin: Falls to US$26479
- Aussie Dollar: Pushes to 66.95c.
- 10-Year Yield: Slips to 3.96%.
- Asian markets:All up, Japan up 1.5% and HK up 0.6% with China up 0.3%.
- US Futures: Dow down 60 Nasdaq down 8
- European markets heading for a slightly higher open.
- NIC +13.3% investor presentation. Strategic placement.
- IMU +7.5% advances VAXINA MAST trial.
- RED +6.5% gold rally.
- CIA +4.5% iron ore rally.
- GAL +25.2% gold rally helping sentiment.
- MNS +16.1% Nachu anode material performance exceptional.
- LRS +8.3% upgrade beckons.
- SPL +10.8% Jackie Fairley to retire.
- EGG -5.7% Hard boiled on broker downgrades.
- POS -4.8% profit taking.
- APX -6.9% underwhelming support for entitlement issue.
- AQZ -6.4% low volume sell-off.
- BUB -5.6% fading into nothing on board room issues.
- Speculative Stock of the Day: Limeade (LME) +305% takeover offer by WebMD for approximately $111.5m in cash being 42.5c in cash.
- MoneyMe (MME) – Secures $4.3m in funding through a share purchase plan, following a $32m repayment for their SocietyOne acquisition.
- Imugene (IMU) – Progresses to the next cohort of its Phase 1 MAST trial, evaluating cancer-killing virus CF33-hNIS, with plans to publish results and benefits to patients in need.
- Dexus Industria REIT (DXI) – Agreed to sell a property in Queensland for $66.9m, aligning with its strategy to generate better returns and reduce gearing.
- Appen Ltd (APX) – Completed retail entitlement offer raising $29.5m at 55% take-up.
- Anteris Technologies Ltd (AVR) – Reported preliminary 12-month and 30-day results from DurAVR THV trail. The study included 20 patients with successful implantation of the THV and no device-related complications. The one-year follow-up showed sustained haemodynamic performance.
- Aeris Resources Ltd (AIS) – Announces it has agreed to divest its 70% joint venture in the Torrens exploration project in SA in return for a 2.5% net smelter royalty.
- Nickel Industries Ltd (NIC) – Entered into a $943m conditional placement agreement with DTN at $1.10 a share. Interesting deal.
- Suncorp (SUN) – Supports ANZ merger, emphasising the importance of insurance in the Australian economy amid global reinsurance challenges.
ECONOMIC & OTHER HEADLINES
- Commonwealth Bank of Australia says it will pass on the Reserve Bank’s 0.25% cash rate increase to borrowers.
- Westpac forecasts that the Reserve Bank of Australia will increase the cash rate by 0.25% point in July to 4.35%.
- HSBC predicts that the Reserve Bank of Australia will raise the cash rate to 4.35% in August, with a terminal rate of 4.6%, and expects a rate cut to 3.5% by the end of 2024. The bank also revised its GDP growth forecast downwards.
- Commonwealth Bank downgrades GDP forecast, predicts 50% chance of recession in 2023 due to the impact of cash rate rises on household cash flow, expects one more rate increase to reach 4.35% in August and potentially a further increase in July to 4.6%, while delaying rate cuts to Q1 2024.
- Chinese PPI in May fell 4.6%, marking the steepest year-on-year drop in seven years, when producer prices saw a year-on-year drop of 7.2% in May 2016.
- China’s yearly inflation rate in May slightly increased to 0.2% from April’s 26-month low of 0.1%, falling below market expectation
- China launched a six-month campaign to boost car purchases and drive electric vehicle adoption in rural areas. Top officials in China have repeatedly said they see EV adoption and spurring sales of cars more generally as very important this year.
US AND EUROPEAN HEADLINES
- European markets looking to open slightly higher.
- Canadian wildfire smoke expected to blow away soon.
- Donald Trump indicted.
- Moody’s lowers outlook on Coinbase to ‘negative’. That was a surprise.
- Biden and Sunak unveil ‘Atlantic declaration’ to strengthen economic ties.
- SEC chair says it sees says ‘crypto frenzy is rife with ‘hucksters, fraudsters, scam artists’.