Thursday 26th March – Australian Market Wrap | Beeks Downunder-Because not all financial news is boring!

ASX 200 rose 115 points to 5113 (+2.3%). Once again we saw a big jump out of the box and then the enthusiasm waned again heading into lunch only to be boosted as news that the stimulus package (actually let us stop calling it stimulus, it’s a rescue package) looked more likely to pass the house. Dow Futures down slightly by points. A good bounce on the rescue news though with the banks leading the way in places, CBA down 1% out of sorts, though WBC up 1.1%. The Big Bank Basket unchanged $110.66. Elsewhere in financials, a little mixed with QBE down 2.9% and MFG easing 2.6%. Bond proxies did well, TCL up 2.6% and SYD up 10.5%, QUB rallied 14.5% and AIA up 5.4%. REITs were better despite Solly Lew no longer paying rent as PMV rose 1.5% after closing stores and cancelling the direct debits. Miners were a little mixed with BHP sinking 2%, FMG up 2.9% and RIO up 5.1% with gold miners all over the place, NCM up 0.4% and NST down 15.0% after an update. Energy stocks rallied but not far enough WPL up 3.9%, STO up 3.3% and KAR up 12.35%. Tech stocks and especially tech with credit issues rallied hard as the RBA is suspended its deep dive into credit providers, good for APT up 29.4%, good for EML up 32.9%, good for FXL up 32.9%. The All Tech Index rose 7.7% with XRO up 3.7% and WTC doing well up 10.3%. Plenty of corporate news out again as guidance being withdrawn is the new black, and interim dividends being delayed or cut is also a factor although investors are looking beyond. GMA was a surprising winner up 22.3% despite abandoning its everything. RHC too rose 15.3% after it updated the market on elective surgery. Nothing special in economic terms, the 10-year yield is settling down and trading around 0.91% whilst the AUD is slightly weaker at 56.90c. Asian market weaker, Indonesia up 9.6%, China down 0.3% and Japan down 3.8 %.

ASX 200 up 115 to 5113. Volumes dropping off again.
High 5174 Low 5009. Narrow range. Yes really.
Dow down 80 points.
Big Bank Basket unchanged. Miners mixed.
Tech goes boom. Credit exposed stocks explode higher.
10-year bond yields falls to 0.89%
AUD eases to 59.34c.
Aussie gold rises to $2700
Bitcoin rallies to US$6727
Asian markets weaker with China down 0.3% and Japan down 3.8%

STOCKS

APT +29.40% big short squeeze continues.
BAP +22.22% broker upgrades.
SGR +20.99% place your bets.
AVH +18.52% broker upgrades.
BRG 12.84% coffee at home?
MOE +35.32% oversold.
ADH +25.40% CBA buying.
PET +21.43% reaffirms guidance.
DEG -6.25% profit-taking
URW -8.91% adjustment to ORNANE 14
RMS -7.69% change in substantial holding.
ALL -2.11% looks oversold, digital games an attraction?
FLT – trading halt – stands down staff.
PMV -1.46% shuts Smiggle etc. Stops paying rent.
KAR +12.35% Fosters research piece.
IEL -Trading halt. Dividend interrupted.
GMA -22.33% mortgage default sloom. Guidance cancel.
Speculative stock of the day: Atrum Coal (ATU) +52.17% snapback Thursday. Big volume.
Biggest Rise: APT, GMA, BAP, SGR, CCP, AVH, RWC and VAH
Biggest Falls: NST, URW, RMS, FNP, EVN, ECX and VCX.

TODAY

JB Hi-Fi (JBH) +9.96% to temporarily close all New Zealand stores. The New Zealand business does not make a material financial contribution to the group, with FY19 sales of NZ$236m, representing approximately 3% of the group’s total annual sales, and an FY19 EBIT loss of (NZ$1.9M).
IDP Education (IEL) – to defer interim dividend payment until September.
Seven West Media (SWM) +11.59% welcomes ACCC approval of the sale of Pacific Magazines to Bauer Media. Completion of the sale is expected on 9-April.
oOh!media (OML) – locks in sufficient support to launch $167m equity raising at $0.53/share.
Northern Star Resources (NST) –15.04% Given outbreak uncertainty, NST has decided to withdraw its FY20 production and cost guidance and has decided to defer the payment of its interim dividend. The current intention is now to pay the interim dividend of 7.5¢ per share on 27-October.
AMP (AMP) +8.33% withdraws FY20 guidance due to impact from COVID-19. Notes capital position and liquidity remain strong. Remains committed to executing its three-year transformational strategy, including creating a simpler, leaner business. The sale of AMP Life remains on track and the divestment process for New Zealand wealth management continues, with a further update to be provided at or before H1 results.
A.P. Eagers (APE) +3.79% Anchorage Capital Partners expected to proceed with the acquisition of AHG Refrigerated Logistics division from A.P. Eagers.
Brickworks (BKW) -1.25% reports H1 underlying NPAT from continuing operations $100m vs year-ago $160m, in line with guidance. Revenue $449m vs consensus $451.5m. Underlying EBITDA $170m vs year-ago $227m. Interim dividend up 5% to 20c/share (fully-franked).
Cochlear (COH) +8.43% completes $880m institutional placement at $140/share. The Placement attracted such strong demand that it was able to be fully allocated to existing institutional shareholders. The size of the Placement was increased to $880m from the expected $800m announced to the market at launch.
Dexus (DXS) -0.97% withdraws earnings guidance for the 2020 financial year. Notes operations had been performing consistent with expectations.
Ramsay Health Care (RHC) +15.34% in discussions with Federal & State Governments regarding the capacity & support RHC is able to provide as part of the Government’s COVID-19 response.

ECONOMIC and CV19 NEWS

China’s National Health Commission on Thursday reported 67 new COVID-19 cases, all of which it says were imported infections in recent arrivals from abroad.
No new cases reported in Wuhan.
Japan will set up a panel as soon as Thursday to consider declaring an emergency over the coronavirus pandemic.
Governments should stop wasting precious time needed to fight the coronavirus after squandering an opportunity to prevent the Covid-19 pandemic, the World Health Organization’s General Tedros Adhanom Ghebreyesus. He said, ‘the world has a second chance, as 150 countries have fewer than 100 reported cases and still have time to prepare.’

BOND MARKET

ASIAN NEWS

Singapore’s GDP fell an annualised in the first quarter from the previous three months, far worse than the median forecast for an 8.2% contraction

EUROPEAN AND US NEWS

Donald Trump’s approval ratings have hit an all-time high during the coronavirus crisis, with a majority of Americans saying they approve of his handling of the pandemic.
Senate passes Bill. Rescue plan underway.
A virtual G7 and G20 meetings will take place. Beware of terrible backgrounds guys.
The U.S. death toll from the coronavirus topped 1,000, according to a Johns Hopkins tally.
Total world cases: 470,900; 21,276 dead, 114,012 recovered: Johns Hopkins
In Canada, the number of confirmed cases rose to 3,385, an increase of 72% over the course of the day.
The Barbarians are at the gates. European Union regulators warned about hostile foreign takeovers of EU-based companies as a result of the economic slump.
Not sure I like this guy. Dr Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, said at a White House briefing that it’s possible the coronavirus could become a seasonal affliction, with further waves of infections coming.
Jobs number today in US could be very interesting. It will be big.
According to some sources, the Patron Saint of Epidemics is Saint Corona. I’m a believer.