The ASX drops 128 to 5720 (2.2%) after a morning spent deciding which way to jump. Chinese production data missed expectations. Dow Futures weakened 850 points and down we went. Usual suspects were under pressure, Banks back in the spotlight with the Big Bank Basket down to $120.19. CBA fell 1.5% and WBC down 2.8% whilst MQG down 2% as US grapples with a second wave. Not sure the first wave has passed. In healthcare stocks, CSL continued to fall, down 1.9% and RHC down 3.8%. Miners too under pressure with BHP down 2.1% and RIO down 1.0% and even gold miners struggled for positive momentum with NCM down 0.9% and NST falling 2.9%. Energy dropped led by WPL down 3.3% and OSH down 4.3%. Industrials went all soggy led by SYD down 5.0%, WES down 3.4% and WOW down 2.2%. In corporate news, HLS rose 19.0%, after selling its large-scale medical centres & dental practices to BGH Capital for $500m. ALG down 7.1 % after RedBird Capital bought a 24.2% stake for US$80m. SUL is in a trading halt as it looks to raise $203m at 719c, a 7.9% discount to Friday’s close. Nothing on the economic front with the 10-year yield at 0.85% and the AUD 68.12c. In Asian markets, Japan fell 2.7%, China now 0.7% and Hong Kong down 1.7%
- ASX 200 fell 128 points to 5720 (2.2%).
- High 5858 Low 5720. Closes on lows. Good volume.
- Big Bank Basket bashed badly to $120.19.
- Travel stocks dive. Healthcare on the nose.
- 98 trading days until the US election.
- Dow Futures down 850; European futures point to weak opening.
- 10-year bond yields slip slightly to 0.85%
- AUD steady falls to 68.44c.
- Aussie gold rallies to $2536 as AUD falls.
- Bitcoin falls to US$9146
- APX +0.92% Macbank goes to ‘outperform’.
- BLD +1.72% new CEO.
- AVH -4.65% last day as an Australian 23rd June.
- BET – trading halt to raise $30m at 37c.
- AXE -2.50%% more Quantum success.
- CCX +5.86% closes 14% of stores after rent renegotiations.
- HLS +18.97% sells medical centres.
- NSR +1.62% change in director’s interest.
- AEF +12.86% bargain hunters abound.
- TYR -12.63% CV19 Trading update.
- CTD -10.31% travel under pressure still.
- Z1P -8.41% profit taking continues.
- FLT -8.53% WEB -6.84% profit taking on high PE stocks.
- SWM -17.24% under pressure.
- ZNO +10.76% Chinese outbreak has some winners.
- BYE +3.70% bargain hunters.
- OPC +% acquisition by UWL.
- LSF -6.81% NTA backing. Irrational.
- DEG -10.45% some profit taking hits.
- PBH -9.18% ran too hard perhaps.
- Speculative Stock of the Day: Meteoric Resources (MEI) +31.58% great name. Issue of securities and acquisition of a high-grade WA gold project, Palm Springs Gold. Production on the Project in the late 1990s came from the Butchers Creek Open Pit gold mine – 52,000oz @ 2.1 g/t Au. Historic drilling beneath the shallow Butchers Creek Open Pit indicates substantial ore zones beneath the pit floor
- Biggest Rises: HLS, AEF, OPC, CIP, MND and CUV.
- Biggest Falls: PLS, TYR, DEG, CTD, PBH, ORE and FLT.
- Healius (HLS) +18.97% Confirms the sale of its medical centres business to BGH Capital for $500m. Healius will retain Day Hospitals and IVF which currently sit within its Medical Centres division. Since April 14, HLS has experienced good growth in activity in its diagnostics businesses. Day Hospitals, Dental and IVF are also moving back towards pre-COVID levels. Medical Centres has experienced strong revenues throughout the COVID period, underpinned by telehealth services. Debt facility increased by $70m to $570m and its maturity extended to January 24.
- Propel Funeral Partners (PFP) +1.39% The easing of funeral attendee limits in Australia and NZ contributed to a ~+8% increase in the Average Revenue Per Funeral in May vs April. Expects FY20 revenue of $110.0m vs consensus $110.9m and operating EBITDA of $32m. Total funeral volumes expected to exceed 13,0000 vs year-ago 11,304.
- Boral (BLD) +1.72% Appoints Zlatko Todorcevski as CEO, effective July 1. The company previously announced that Mike Kane will retire in September.
- Telstra (TLS) –1.27% Has reportedly called in estate agent, Knight Frank to sell its $300m Pitt Telephone Exchange Building in Sydney. The transaction will likely be offered with a 10-year leaseback term.
- Lovisa (LOV) –1.93 Is speculated to be next in line to raise capital. Newswires note the company will likely suspend its US expansion plans.
- Super Retail Group (SUL) – Launches a 1 for 7 entitlement offer to raise $203m at 719c per share. The raising will comprise of an institutional offer and a retail offer. Following a 26.2% decline in Group like for like (LFL) sales in April vs pcp, trading has rebounded strongly in May with LFL sales increasing 26.5% vs pcp. Group sales growth has continued to benefit from the strong consumer environment in June.
- City Chic Collective (CCX) +5.86% The finalised negotiations with landlords includes an agreement to reduced rents during store closures and market appropriate rents going forward. As part of this process, the company has decided to close 14 stores in which the company was unable to reach an agreement on rental reductions. The impact of store closures Is expected to be minimal with customers redirected to nearby stores or online portal. The 92 store portfolio in Australia and New Zealand are all now fully reopened.
- Ardent Leisure (ALG) -7.14% RedBird Capital Partners invests $80m into Ardent Leisure Group’s Main Event Entertainment business for a 24.2% stake. The deal values Main Event at $424m and an EV/EBITDA multiple of 8.0x based on CY19 Adjusted EBITDA. As of today, 28 of Main Event’s 44 centres have reopened, including all of the company’s Texas locations, with the ability to operate with few limitations on offerings.
- Overseas visitor arrival numbers plunging 99.7%, the largest fall on record. The number of people arriving with international student visas in April dropped by 44,470, or close to 100% compared with the same month last year. March also saw the number of Australian residents returning from overseas decrease 23.3% compared with February, to 706,200 trips. No wonder SYD fell today.
- UBS lifted its 2020 Brent oil forecast to $US42.30 a barrel from $US35.30 a barrel and raised its 2021 forecast to $US50 a barrel from $US47.50 a barrel.
Beijing locked down 10 residential compounds in northwestern Haidian district on Monday, after finding coronavirus cases at nearby Yuquandong market. Vice Premier Sun Chunlan said at a meeting Sunday that the risks are high for Beijing’s coronavirus resurgence to spread.
Hong Kong Disneyland will reopen June 18.
The global economy is in a new expansion cycle and output will return to pre-coronavirus crisis levels by the fourth quarter, according to Morgan Stanley economists.
A ban on travel from the U.K. to the U.S. will likely remain for months.
Brazil registered 17,110 new cases, a 2% increase, raising its total to 867,624, according to States Health Secretaries Council. Deaths rose by 612, or 1.4%, to 43,332.
- China’s retail trade fell 2.8% year-on-year in May vs market consensus of a 2.3% drop.
- China’s industrial production lifted 4.4% year-on-year in May vs market expectations of 5% growth.
- Average prices of new homes in 70 Chinese cities rose 4.9% year-on-year in April, the slowest pace since May 2018. Follows a 5.1% lift in March. New-home prices in 70 major cities, excluding state-subsidized housing, increased 0.49% last month.
- Values in the secondary market, which is largely free from government intervention, gained 0.24%, the fastest pace in seven months.
- European futures trading around 1% down.
- Europe opens. UK closes. UK quarantine starts today. Bit late.
- UK Non-essential shops will reopen today. Strict distancing and hygiene in place.
- Easyjet kicks off flying to Europe. 310 flights this week. 12 weeks since industry shutdown.
- Boris is hoping for an EU agreement on trade by the Autumn.
- The Trump administration says jobless benefits are a disincentive for work.
The elderly tailor eyed him briefly and said, ‘Let’s see… size 44 long.’
“Sir,” says the doctor, “you complain you have so many things. What don’t you have?”
The man answers, “Teeth.”