ASX 200 up 129 points to 5522 as month end buying and FOMO grips buyers. April saw a rise of 8.7%. Dow futures little changed, up 76 points. Following a positive lead from overseas on a potential treatment and economies opening up, it was game on, banks especially rallying hard as ANZ ‘deferred’ its interim until a decision in August, but importantly did not raise fresh capital. Buyers were dragged screaming back in to cover shorts. The Big Bank Basket is up to $112.83 with NAB up 4.1% and CBA up 2.6%. ANZ showed a 60% drop in cash profits and rose 1.4% after a weaker open. Elsewhere in financials, MQG rose 2.6%, MFG up 2.0% and AMP up 6.7%. Insurers were firm with QBE up 2.5% and SUN up 3.3%. Miners joined in the fun with FMG up 1.9% after production numbers and PMI numbers from China. BHP rose 3.9% and the energy stocks had a great day with STO up 9.3% and WPL up 7.0% as WTI put in another volatile session. Gold miners saw sellers as bullion slipped and the AUD rose. NCM raised $1bn too not helping the sector as it digests the issue. Healthcare was one sector to fail to fire as CSL dropped 1.9% on some profit taking and question marks on its US collection centres. Industrials was strong, bond proxy asset stocks showing good gains, TCL up 4.9% and even SYD up 7.7%. REITs too found friends with DXS up 4.0% and GPT up 7.6% on a quarterly report. Tech stocks raced away following their US cousins, NEA up 18.2%, WTC up 5.75% and APT up 10.83%. Travel stocks too rallied from massively oversold positions, WEB up 14.18% and HLO up 12.58%. Even FLT joined in the fun up 6.7%. The All Tech Index rose 4.2% Nothing on the economic front except predictions of dire consequences which are being conveniently ignored for now. 10 -year yields relatively stable at 0.89% and the AUD firming still to 65.57c. Asian market good too with China up 1.31% and Japan up 1.03%.
- ASX 200 up 129 to 5522
- High 5549 Low 5411. Month end FOMO.
- Big Bank Basket rises to $112.83
- Banks, energy and miners lead the way.
- Defensives slip as rotation into alpha stocks continues.
- WTI futures rally hard in Asian trade.
- Dow Futures up
- 10-year bond yields steady at 0.89%
- AUD higher at 65.57c
- Aussie gold slips to $2611
- Bitcoin rallies hard ahead of ‘halving’ to US$9248.
- Asian market good too with China up 1.31% and Japan up 1.03%.
- APE +25.67% business update and job cuts.
- CCP +17.04% returns from halt.
- WOR +17.34% rallying on oil price.
- NEA +18.22% no idea, just because.
- WEB +14.18% newsletter write up.
- WGX -6.36% bullion price.
- WAF -2.03% profit taking.
- HLO +12.58% travel stocks rallying as economy opens slightly.
- ALG +12.31% QLD open soon.
- FDV +11.11% quarterly update.
- AD8 +16.44% tech rally.
- VAH – administrator says it has many interested parties including Twiggy.
- ORG +8.81% quarterly report
- BIN +8.80% secures increased production.
- IFL +14.59% stems the FUM bleed.
- Speculative stock of the day: Decmil (DCG) +66.67% two new contracts valued at $36m, one in WA and one in QLD.
- Biggest Rises: APE, NEA, WOIR, CCP, OML, CTD and IFL.
- Biggest Falls: WGX, PRU, NWL, MEZ, SAR, RMD and SPK..
- Mirvac (MGR) +6.67% Q3 update; recorded Office occupancy of 98.5% with of WALE 6.6 years. Industrial occupancy of 100% with WALE of 7.3 years. As a result of the restrictions in place since mid-March, the retail portfolio saw a sharp change in sales performance although supermarket, liquor, and pharmacy tenants reported strong sales growth. Defaults remain below 2%. Mirvac withdrew prior distribution guidance in March 2020.
- IOOF Holdings (IFL) +14.59% Funds under Management, Advice and Administration (FUMA) grew 34.2% to $195.6bn vs quarter ago. FUMA includes $77.1bn added via the acquisition of P&I business. Total net outflows in Q3 were $704m. Excluding the recently acquired P&I business, net outflows were $63m, or 0.04% of opening FUMA. Has received over $200m in early access superannuation requests.
- TPG Telecom (TPM) -2.13% will not be allocated spectrum in the 3.5 GHz band in Singapore, this means it will have to rely on other participants to deliver 5G to customers.
- Qube Holdings (QUB)- To raise $500m at $1.95/share via a 1 for 6.35 fully underwritten entitlement offer. Funds will be used to support continued investment in Qube’s core business, including growth capital expenditure on recent contract wins and strategic acquisitions.
- Fortescue Metals (FMG) +1.87% Q3 iron ore shipments were up 10% to 42.3mt vs year ago. C1 costs of US$13.27/wmt were 2% lower vs Q3 FY19. Robust demand delivered average revenue of US$73/dmt. Major growth projects achieved key milestones in Q3 with capital expenditure guidance for FY20 revised to US$2.0-US$2.2 billion vs prior US$2.4bn. Based on the strong operating performance year-to-date, guidance for FY20 shipments is upgraded to 175-177mt vs prior 170-175mt range. Notes it is “a core supplier of iron ore to China and sees strong ongoing demand for its products. Anticipates a steady recovery in economic activity in that market.” Dividend policy remains to pay-out a ratio of 50 to 80% of full-year NPAT.
- ANZ (ANZ) +1.44% H1 statutory profit attributable to shareholders $1.55bn vs year-ago $3.17bn. Decline driven by credit impairment charges of ($1.67bn) that included increased credit reserves for COVID-19 impacts of ($1.03bn). The banks will also defer a decision on the 2020 interim dividend until there is greater clarity regarding the economic impact of COVID-19. NIM 1.69% vs year-ago 1.80%. Common Equity Tier 1 (APRA level 2) 10.8% vs year-ago 11.5%.
- Janus Henderson Group (JHG) –0.33% Warns of greater business impacts if conditions persist. Reports a fall in revenue from a decline in AUM. Higher expenses on the back of volatility in foreign exchange rates also weighing. Points to impairment charges and possible constraints on liquidity and capital.
- Woolworths Group (WOW) –0.78% Sales growth across the Group has continued in April although growth rates have moderated relative to March. Group sales were up 10.7% to $16.5bn in Q3. Australian Food sales recorded growth of 11.3% to $11.17bn in Q3. Endeavour Drinks sales up 9.5% to $2.25bn in Q3. BIG W’s sales growth accelerated in March, although the sales mix shifted towards lower-margin everyday needs and leisure. In Q4, incremental costs on the back of COVID-19 are expected to be in the range of $220-$275m, excluding Hotels. Hotels will make a loss before interest and tax of $30-$35m per month (including March) while the business remains closed. Notes a strong financial position, with access to funding and liquidity.
- Newcrest Mining (NCM) – Announces $1bn fully underwritten institutional placement and SPP for up to $100M priced at $25.60/share. The raising will be used to purchase the Fruta del Norte Financing Facilities and to fund future growth options such as the construction of declines at Havieron and Red Chris. Reports Q3 gold production 519koz vs quarter-ago 551koz. Copper production 35kt vs quarter-ago 38kt. Group AISC US$827/oz vs quarter-ago US$864/oz. Guidance for FY20 remains unchanged. Gold production in the June 2020 quarter is expected to be higher than that achieved in the March quarter.
- Nothing significant.
- Japan considers pushing CV19 response into June. 2021 Olympics now being questioned.
- Thailand will begin to ease on May 3rd.
- Chinese daily average air passenger volume may decline to about 580,000 in the upcoming Labor Day holiday during May 1-5,
The official Chinese manufacturing purchasing managers’ index slipped to 50.8 from 52 a month earlier, according to data released by the National Bureau of Statistics on Thursday. New export orders plunged to 33.5 and a separate indicator more focused on smaller export-orientated firms returned to contraction.
By contrast, services and construction both rose further into expansion, taking the non-manufacturing PMI to 53.2.
EUROPEAN AND US NEWS
- Trump now believes that China is trying to stop him getting re-elected.
- French GDP Q1 down 5.8% v forecasts of 3.5%.
- European futures opening up firm.
- Societe Generale announced a first-quarter loss as the bank set aside EUR820m (US$890 million) for bad loans and its stock traders were wiped out by the market volatility in the wake of the coronavirus outbreak
- Elon Musk says its ‘fascist’ not to allow people out of their homes. God bless America.
- LA will be the first major US city to offer wide scale CV tests. Trump to visit Arizona next week. Will tour a Honeywell Plant. Bet he won’t wear a mask.
And finally…Happy anniversary to Mrs Beeks.
Congratulations to Captain Tom being made a Colonel…why not a Major?
Who said these words of wisdom?
ON TURNING 70 – “I still chase women, but only downhill.”
ON TURNING 80 – “That’s the time of your life when even your birthday suit needs pressing.”
ON TURNING 90 – “You know you are getting old when the candles cost more than the cake.”
ON TURNING 100 – ” I don’t feel old. In fact, I don’t feel anything until noon. Then it’s time for my nap.”
ON GIVING UP HIS EARLY CAREER (BOXING) – “I ruined my hands in the ring. The referee kept stepping on them.”
ON GOLF – “Golf is my profession. Show business is just to pay the green fees.”
ON PRESIDENTS – “I have performed for 12 presidents but entertained only six.”
ON WHY HE CHOOSE SHOWBIZ FOR HIS CAREER – “When I was born, the doctor said to my mother, congratulations, you have an eight pound ham.”
ON RECEIVING THE CONGRESSIONAL GOLD MEDAL – “I feel very humble, but I think I have the strength of character to fight it.”
ON HIS FAMILY’S EARLY POVERTY – “Four of us slept in the one bed. When it got cold, mother threw on another brother.”
ON HIS SIX BROTHERS – “That’s how I learned to dance. Waiting for the bathroom.”
ON HIS EARLY FAILURES – “I would not have had anything to eat if it wasn’t for the stuff the audience threw at me.”
ON GOING TO HEAVEN – “I have done benefits for ALL religions. I would hate to blow the hereafter on a technicality.”