ASX finished the week up 180 points (+3.5%) to 5387 on its highs. The rally continues as Dow futures up 151 points. For the week the ASX 200 is up around 6.3%. The bull market is back. Bull to bear and back again in 6 weeks. FOMO seems to be driving it higher. The banks rallied hard today as book squaring and bargain hunting dominated. The Big Bank Basket rose to $110.34 with CBA up 3.3% and NAB up 4.8%. Other financials joined the fun as FOMO is driving stocks higher. MQG up 7.1% and MFG up 5.9%. Elsewhere the healthcare sector was dominated by CSL reaffirming its guidance and rose 5.5% with RHC up 4.2%. Industrials were doing well, TCL and SYD both finding friends up 11.1% and 5.7% respectively. Consumer stocks remain firm on bounce-back hopes, WES up 3.7% and ALL up 4.7%. In the miners, BHP continues to be slightly unloved, up 0.6% and RIO up 0.1%, though S32 built on the gains from Wednesday and rose 4.6%. Energy stocks firmed on hopes for production cuts at OPEC plus tonight. WPL up 3.8% and STO up 3.8%. In the tech sector, XRO piled on the points up 6.9%, APT up 10.7% and PBH up 23.8%. The All Tech Index rose 4.59%. In corporate news, GEM has launched a deeply discounted rescue raise, CSL reaffirmed guidance, AMA warned that because no one is driving no one is crashing, perversely the stock rallied 35.2%. MSB was a spectacular gainer up 36.2% after trials began on its RESTEMCELL treatment for lung disease on CV19 patients. ALU withdrew guidance too and rose 2.3%. In the 10 year bonds, yields slipped to 0.89%. AUD steady above 62c and Asian markets mixed ahead of G20, OPEC and jobs number. China up 0.55% and Japan down 0.03%.
- ASX 200 up 180 to 5387.
- High 5387 Low 5229 Book squaring and FOMO.
- Dow futures up 151. Jobs number beckon.
- Big Bank Basket up to $110.34.
- Oil futures up 3.5%
- 10-year bond yields slipped to 0.91%
- AUD firms to 62.22c.
- Aussie gold slips to $2649
- Bitcoin drifts to US$7289
- Asian markets mixed with China down 0.3%, Japan up 2.1%.
- ALU +2.32% guidance withdrawn.
- MSB +36.24% CV19 trials.
- LOV +18.70% nail parlour theory.
- BLD +12.66% bargain hunters.
- TCL +11.13% financial close on Eurobond.
- WHC -2.43% broker downgrades.
- ORE -3.12% production recommences.
- PET -2.56% placement and SPP.
- NGI -23.53% fall out from the update continues.
- SUN +1.34% Citi says risks have risen.
- CTD +8.11% Bell Potter cuts price target.
- AMA +35.21% market update.
- PRN +27.64% good rally.
- PBH +23.83% US back to sports sooner?
- WEB +5.00% broker upgrades.
- Speculative stock of the day: Prospa Group (PGL ) +42.45% signs of life. Volume not convincing though.
- Biggest Rises: MSB, LOV, BLD, CCP, SKU, SVW and TCL.
- Biggest Falls: UMG, EBO, HMC, RWC, FPH, and CNU.
- Viva Energy (VEA ) +5.08% to delay its $680m share buy-back programme ‘to allow it to monitor the longer-term impacts of COVID-19. Capex guidance reduced to ~$60-$80m vs previous $140-$160m.
- Pengana Capital Group (PCG) – reports FUM $2.80bn on March 31 vs $3.36bn at February 29.
- oOh!media (OML) +19.69% reports that HT&E has acquired at least 11m shares or 1.8%. oOh!media notes it has not had any correspondence with HT&E in relation to its shareholding and regards the purchase as totally opportunistic.
- G8 Education (GEM) – launches $301m capital raising at $0.80/share. Notes wage costs incurred by G8 will be reduced through the JobKeeper program, with an estimated $23m average monthly reduction over the course of the COVID-19 disruption period. G8 will also defer all non-essential capex and pursue reductions in various overhead costs. It is expected that annual Capex will reduce from $40m to $25m.
- Netwealth Group (NWL) +4.37% reports FUA $27.88bn vs $28.51bn at the end of December 2019. Recorded FUA net inflows of $3.20bn. Retains FY20 profit and FUA net inflow guidance, revenue expected between $116-120M, Underlying EBITDA in the range of $58-62m and expects FUA net inflows of $8.5bn.
- AMP (AMP) –0.38% reports this morning suggest that AMP might not be able to complete the $3bn sale of its life insurance business to Resolution Life. Market conditions are likely to have made the sale less attractive and considering the deal hasn’t yet received regulatory approval from the Australian or New Zealand governments, it wouldn’t be difficult for Resolution to walk away. There is also speculation AMP could consider selling AMP Capital if it is unable to finalise the sale of its life insurance business.
- GWA Group (GWA) +5.06% Australian market continues to perform to expectations which accounts for 79% of revenue. Lockdowns in the UK and NZ have weighted on the business. The group has secured an additional $33m debt facility, brings the total Group facilities to $283m.
- CSL (CSL) +5.47% reaffirms FY profit guidance of $2.11-2.17bn. Notes the outbreak has impacted Plasma collections. Supply chain remains undamaged. Modest delays expected in capital projects and clinical trials, although adds there is potential to accelerate activity post-crisis to ensure no material change.
- FlexiGroup (FXL) +6.25% defers payment of 3.85cps interim dividend to October 14 vs prior April 14. The company has taken action to accelerate its previously stated intention to reduce its operational cost base.
- AMA Group (AMA) +35.21% The business has traded strongly through Q3. The normalisation of weather conditions and increased focus on key drivers has seen both repair volumes and operating margins improve from H1.
RBA Stability Review – Click here to view the RBA’s report.
- Coronavirus may be ‘reactivating’ in people who have been cured of the illness, according to Korea’s Centers for Disease Control and Prevention.
- Taiwan has rejected racism accusations against WHO chief.
- Uranium has hit a bull market as the wolds biggest producer Kazatomprom has cut production dramatically.
EUROPEAN AND US NEWS
- Big night. Jobs, OPEC plus and G20
- UK Prime Minister Boris Johnson has spent a third night in the critical care unit where his condition is improving.
- JP Morgan says World could lose US$5.5 trillion about the size of the Japanese economy.
- Morgan Stanley says that despite an aggressive policy response, it’ll be the third quarter of 2021 before GDP in developed markets returns to pre-virus levels.
- Deutsche Bank says the “lingering cost and scarring effect” will leave the U.S. and European Union economies alone US$1 trillion below pre-virus expectations by the end of 2021.
- The Bank for International Settlements has warned that uncoordinated national responses could lead to a second wave of cases, a worst-case scenario that would leave U.S. GDP close to 12% below its pre-virus level by the end of 2020.
- JP Morgan has temporarily halted the small business loans outside of Federal scheme.
- Democrats looking for more stimulus.
- Latest odds for the November election.
- Anyone else think this is strange? Saudi Arabia’s sovereign wealth fund has been quietly buying stakes in some of the EU’s biggest oil companies. This is due to the falling oil price. Wasn’t it Saudi that caused the falling oil price? Couldn’t be part of some grand plan? Surely not.
What kind of jewellery is the best Easter gift? A 14-carrot gold necklace.
What happens if you get married on Easter? You live hoppily ever after.
What do you call a rabbit with fleas? Bugs Bunny.
How does an Easter Bunny keep his fur looking so good? Hare spray.
Why did the Easter Bunny cross the road? To prove he wasn’t chicken!