The ASX 200 follows a Paul Simon song, ‘slip, sliding away’ down 24 to 7008 as Barty out at semis. Dow futures down 177 points. Banks held a Barty party today and no one else came. CBA celebrated its move into BNPL with a 1% rise dragging WBC up 0.5% as the sector marked its one year since the Hayne Royal Commission gave its findings. ANZ rose 0.2% being the underperformer although insurers under a little pressure as SUN fessed up its natural havoc exposure and fell 0.3%. MQG held firm in line with the big four up 0.8%. Miners suffered with BHP dropping 0.9%, FMG had production numbers but despite records failed to inspire after record breaking run and fell 2.1%. NCM fell 2.8% as Aussie gold prices fell compounded with an update and issues with Cadia. CSL gave back some recent gains falling 1.8% and bond proxies SYD and TCL gave up 1.1% and 1.25% respectively. Travel stocks and Chinese facing stocks fell again, WEB down 6.9% and IEL down 6.2% In corporate news NEA was sent to the naughty corner down 30%, as yet another popular growth stock found the US market harder going than investors had forecast. ISX remains in suspense with court on February 7th. ORE fell 3.65% after revealing lithium price falls. The ACCC has closed its investigation into the Barro stake in ABC in the company’s favour. Nothing on the economic scorecard, 10-year bond yields back down to 0.96%. In Asian markets, Japan fell 1.8% and Hong Kong remains under pressure down 1.8%. Virus deaths continue to rise.
- ASX 200 down 24 to 7008.
- High 7038 Low 6993. Barty party takes interest in PM.
- Banks push higher. Miners struggle.
- NEA smashed. CSL sees profit taking.
- Consumer staples firm on defensive buying.
- 10-year bond yields ease to 1.16%
- AUD slips to 67.38c
- Dow futures up points.
- Aussie gold rallies close to record highs of $2344
- Bitcoin steady at US$9289
- Asian markets see losses Japan down 1.8% and Hong Kong down 1.7%
- TWE +5.26% bargain hunters search for cleanskins.
- GOR +11.15% great quarterly production report.
- MAQ +3.85% no volume at all.
- BPT +3.53% quarterly production report.
- PLS -11.94% quarterly.
- SYR -4.90% felling the pain as ORE -3.65% on production and prices.
- AVH -7.25% profit taking.
- WEB -6.90% travel stocks finding reasons to go down.
- AEF -5.65% huge run. Reality bites.
- KMD -4.68% good to see.
- PME -4.67% high growth facing question marks.
- PAN -33.93% production guidance.
- EXL -12.62% volatility to the max again.
- PCK -3.23% quarterly update.
- GSS +21.00% quarterly update.
- M7T +7.84% good bounce.
- CCP +2.30% broker upgrades.
- LVT -2.00% lifts ARR by 130% over last year.
- MND +2.83% upgraded SWM -3.64% downgraded.
- Speculative stock of the day: OEC +9.33% increased volume and a good move after this morning’s write up in newsletter.
- Biggest Risers: GOR, RMS, TWE, PRU, MAQ, BPT and SLR
- Biggest Falls: NEA, PLS, AVH, MAH, MVP, WEB and AEF.
- Fortescue Metals (FMG) -2.08% reports Q2 production; shipments of 46.4Mt and C1 costs of $12.54 per wet metric tonne (wmt). Revises FY20 guidance for shipments to upper end of range of 170-175Mt, with C1 costs in the range of $12.75-13.25/wmt vs previously guided $13.25-13.75/wmt. Total ore shipped for Q2 was 46.4Mt vs 49.2Mt last year. C1 costs $12.54/wmt vs $13.02/wmt a year ago.
- Newcrest Mining (NCM) -2.81% Q2 gold production 551koz vs quarter-ago 512koz. Copper production 37.7kt vs quarter-ago 24.8kt. Group AISC $859/oz vs quarter-ago $899/oz. Full-year guidance unchanged, though gold production is expected to be around the bottom end of the guidance range, between 2.375 -2.535Moz and Copper production 130 – 145Kt.
- Nearmap (NEA) -29.84% Lowers FY20 annual contract value (ACV) guidance to $102-110m vs prior guided $116-120m. Statutory revenue $46.4m vs year-ago $35.5m. Despite the revision to guidance, the company remains extremely positive on the medium and long-term outlook.
- Adelaide Brighton (ABC) +0.27% The ACCC has closed its investigation into Barro Group’s 43% stake in Adelaide Brighton. The regulator said Barro’s stake will not substantially lessen competition.
- Orocobre (ORE) -3.65% Q2 lithium production 3,586t vs quarter-ago 3,093t. Sales revenue $17.8m vs quarter-ago $22.1m. Gross cash margins (excluding export tax) of $1,310/t, down 41% Q/Q due to the lower average price received, offset by better cost performance. Cash costs $4,109/t vs quarter-ago $4,885/t.
- IOOF Holdings (IFL) -0.89% Funds under Management, Advice and Administration (FUMA) was $145.7 billion as at 31 December 2019, an increase of 5.2% or $7.2 billion compared to 30 June 2019.
- Suncorp Group (SUN)-0.31% Net costs associated with the three declared events in 2H20 (Bushfires, hailstorms and floods) are expected to be capped at $300m. Natural hazard costs for 1H20 confirmed at $519m. Suncorp expects the Group’s reserve releases for 1H20 will be between $50m-$70m (HY19 – $172m) or approximately 1.3% of Group Net Earned Premium (NEP).
- NAB pushes out rate cut until April or the twelfth of never. NAB estimates the impact of the bushfires will see average GDP slow to around 1.5% or less, while unemployment will start to rise to around 5.5% by the second half of the year. Rates traders are still pricing in a full 0.25% rate cut by June.
- Duerte has said No to Trump’s invite for a visit to US.
- Chinese are feeling very unwelcome around the world as fear grips countries. No Chinese signs start to appear in Korea. Nearly 500,000 Koreans signed petition calling for a ban on Chinese visitors. The economic ripples are spreading.
EUROPEAN AND US NEWS
- Soc Gen says Coronavirus could hit global equities by up to 10%.
- US pending home sales post worst fall since 2010.
- Facebook has slowest growth since IPO. Privacy concerns hit.
- The Boeing Max crisis could cost the company up to US$18.6bn.
- Microsoft floats on a cloud with revenues beating expectations.
- Impeachment trial continues.
- Mark Carney’s last BoE meeting at the helm. Brexit happens Friday. Auld Lang Syne sung at EU Parliament. Nigel happy to see the back of them.
I’m addicted to brake fluid, but I can stop whenever I want.
A Buddhist walks up to a hotdog stand and says, “Make me one with everything.”
I told my doctor that I broke my arm in two places. He told me to stop going to those places.
My granddad has the heart of a lion and a lifetime ban from the Taronga Zoo.