ASX 200 closes down 22 points (-0.4%) to 5550, as the bulls gave up the ghost early and couldn’t muster the energy to recover. Bit of a late sell off knocks 10 off at the close. Dow Futures are down 85 points. The sector splits didn’t change much from lunchtime; energy led the way with STO up 3.3% and ORG up 0.9% the standouts. Industrials were next best with QAN flying 2.8% and ALX up 2.6%. Tech names held up in the afternoon, with APT the best in show following their update this morning. It added 2.6%, whilst WTC wasn’t far behind up 1.2%. It was slim pickings thereafter, with every other sector closing underwater. Utilities took the biggest dive, with APA down 2.7% and AST down 1.4%. The miners had a day to forget after iron ore retreated overnight, although they have been strong of late. BHP down 0.6%, RIO down 1.0%, and FMG down 2.2% to take the biggest hit. The banks were also lacklustre, with all four closing weaker. CBA was the worst of the lot, down 1.7%. ALL never got going, ending down 5.0% – perhaps the brokers will have some positive things to say tomorrow, whilst NWH got stronger at the day went on, ending up a 32.7%. SDF was a late bolter, adding 6,3% on a strong trading update. At the other end of the spectrum, SSM was amongst the day’s biggest losers on their COVID-19 update and subsequent downgrade to guidance,falling 5.9%. In economic news, Governor Lowe was out and about as were Treasury officials warning on downside risks. The 10-year yield slips to 0.91%. Asian markets mildly mixed with Japan up 0.2% and China down 0.2%.

Today’s Highlights

  • ASX 200 down 23 to 5550. Wilted from enthusiastic open.
  • High 5611 Low 5545 Average volume. SPI expiry distorts volume.
  • Big Bank Basket down to $105.13
  • All Tech up 0.4%
  • Dow Futures down 85
  • 10-year bond yields down to 0.91%
  • AUD steady at 65.56c.
  • Aussie gold eases to $2655.
  • Bitcoin slips to US$9478
  • In Asian markets mixed as Japan firmed by 0.12% and China down 0.2%.


  • PDL -5.53% ex dividend and some.
  • MGX -4.83% iron ore rise fades.
  • MMS -2.78% appointment of new Non Exec.
  • URW -4.34% enthusiasm fades.
  • MP1 –5.43% Bevan Slattery sells down.
  • NWH +32.73% solid business update.
  • LYC +6.10% rare earths back in the frame on US China tensions.
  • KGN +6.76% technical break out again.
  • PRN +9.17% MAH +10.42% following NWH higher.
  • SVY +38.04% investor presentation.
  • SDF +6.27% trading update.
  • UMG +6.25% becoming a substantial shareholder.
  • SSM -5.91% business update.
  • ALL -5.01% comes up lemons on results.
  • URW -4.34% profit taking after recent bounce.
  • Speculative Stock of the Day: Droneshield (DRO) +61.90% tactial product chosen by European Police. No minimum numbers specified but the company expects material sales from the deal.
  • Biggest Rises: NWH, MAH, PRN, KGN, SDF, UMG and LYC.
  • Biggest Falls: PAR, SSM, PDL, MP1, ALL, OML, MGX and AQG.


  • Aristocrat (ALL) -5.01% H1 Normalised NPATA down 12.8% to $368.1m vs consensus $411.7m. Normalised Operating Revenue up 7% to $2.25bn vs consensus $2.25bn driven by growth in digital. Normalised EBITDA down 7.7% to $707.6m vs consensus $750.1m. No interim dividend. Increased bad debt provisioning by $31m. Digital business post-March 31 has been strong, with an uplift in total portfolio bookings of around 20% in April compared to March (Bookings refer to the amount of virtual currency, virtual goods and premium games the consumer has purchased). Digital revenue made up 46.4% of total revenue in the half. Management comments: ”Our strong balance sheet, ample liquidity and excellent financial fundamentals position us to emerge from this period strongly, while allowing us full optionality to continue to invest for long term growth.”
  • Afterpay (APT) +2.59% Surpasses 5m active customers in the US (active customer is someone who has transacted with APT within the last 12-months). Nearly nine million US consumers have joined the platform, including more than one million new customers during the COVID-19 period of the last ten weeks. The milestone represents a 30-40% increase in the weekly run rate from January and February. APT’s previously stated objective was to reach 9.5m customers by 30 June. In October 2019 the company only had 2.6m active customers in the US.
  • Adelaide Brighton (ABC) –1.98% Formally changes its name to ADBRI Limited. On Monday ABC held its AGM and noted trading in March and April was largely in line with expectations.
  • Megaport (MP1) –5.43% Founder Bevan Slattery is selling down 5m shares at $13.00/share through UBS. The $65m sale represents 3.3% of the securities on issue. Earlier this month there was speculation MP1 would be moving into the ASX 200 benchmark at the June rebalance.
  • Resolute Mining (RSG) -0.87% Reaffirms guidance of 430,000oz at an AISC of $980/oz in AGM presentation.


The CBA flash services PMI lifted to 25.5 in May, with the rate of contraction only slightly softer than that seen in April. The decline in the CBA flash manufacturing PMI intensified during May, with output falling to the greatest extent since the survey began in May 2016. CBA economist, Gareth Aird had this to say, ” May should mark the low point in the PMIs and we would expect activity to lift from here on a monthly basis. Company views on the economic outlook have improved and the lift in confidence is welcome.

  • Economist Ross Garnaut warns Australia is among the countries most exposed to a trade war and what he predicts will be a deep recession.
  • Wayne Byres  (APRA Chair) said we should expect bank capital ratios to fall below 10% over the course of the year but it was important to keep things in perspective after all that was the whole point of having capital buffers. It is for these rainy CV days.
  • Treasury secretary Steven Kennedy has told Parliament’s COVID-19 committee he expects the peak of unemployment will show up in the months of April and May, and is likely to peak beyond 6.2%.


  • Bangladesh’s Beximco Pharmaceuticals said it has become the world’s first company to start selling the generic version of Gilead Sciences’ drug remdesivir. Beximco, which counts Norges Bank as one of its investors, will sell remdesivir for about 6,000 taka (US$71) a vial to private clinics but will give it free to state-run hospitals treating Covid-19 patients.

  • Japan is looking to lift its state of emergency for the Osaka region as early as Thursday, but keep the order in place for Tokyo.
  • Brazil reported 19,951 new confirmed cases over the past 24 hours, a fresh record. The country has 291,579 infections, trailing only the U.S. and Russia.
  • The PR director for Turkish President Erdogan said the country’s outbreak has been contained. Turkey had 152,587 confirmed coronavirus cases, ninth-highest in the world, as of Wednesday. ‘Mission Accomplished’.
  • Coronavirus cases in the U.S. increased 1.3% as compared to the same time yesterday to 1.54m. Florida reported 47,471 cases, up 1.1% from a day earlier, California added 2,262 cases, a 2.8% jump, for a total of 84,057. There were 102 daily deaths, the most in four weeks.



  • The best performing stock in HK is CanSino Biologics, a vaccine maker stock. Up 380% this year. Until an unexplined 23% slump this afternoon.

  • Chinese Party Conference gets under way soon.


  • European market opening around 1% lower.
  • US CDC head is warning of more lockdowns in the colder months in the US.
  • US 20-year bonds draw bids worth $50bn for a $20bn offering at 1.22%.
  • VW aplogies for racist ad showing a white hand pushing a dark skinned man as part of its new Golf ad campaign.
  • Companies controlled by foreign government would be banned from US listings as tensions increase.
  • Delinquencies on U.S. home loans surged by 1.6m in April, the biggest one-month gain ever. Mortgages at least 30 days in arrears almost doubled to 6.45%, the highest rate since January 2015.
  • Bank of England governor opens the door to negative interest rates. First negatively yielding bond issued by Treasury.

And finally…






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