The ASX 200 limped across the line up 35 points to 5957 in a volatile session. Dow futures eased 40 points. The action was in the gold stocks and the ‘mad’ BNPL sector which is looking more dotcom boom by the day. APT is now nearly bigger than WPL after a 11.4% rise, SZL rose 41.8% before a trading halt and a capital raise. OPY joined in the fun up 20.0% and anything vaguely BNPL was on the shopping lists. Gold too was doing very well despite AUD gold price only modestly higher, EVN up 4.3% and NCM up 1.7% and SAR up 2.1%. Iron ore miners did well too with BHP up 2.0% and FMG up 1.5% CIA also had a volatile day finishing down 1.0%. Big Bank Basket steady at $124.88. Tech stocks though were all the go with seeming immunity from any economic slowdown, CPU up 1.8% as volumes continue to do well, APX hits highs up 0.9% and NXT did well too up 0.2%. TLS had another strong day up 2.6%. The All Tech Index rose 2.6%. RCE signed a good deal today that saw the stock roar ahead as its sepsis treatment gains traction. The stock soared 54.4%. In other corporate news, SZL in a trading halt to raise fresh funds, PPS in acquisition mode buying PWL up 65.71%. RIO is pulling the plug on its NZ smelter, TWE disappointed the market with a suboptimal business update falling 2.9%. In economic news, housing loan commitments fell 11.6% and the 10-year yield rose to 0.89%. Asian market again showing good strength with Japan up 0.7% and China up 1.3%.

Today’s Highlights

• ASX 200 up 35 points to 5955.
• High 5999 Low 5937. Narrow range.
• Gold and ‘BNPL’ bonanza continues.
• Big Bank Basket steady at $124.88.
• All Tech Index up 2.6% really just APT and XRO now.
• 81 trading days until the US election.
• Dow Futures down 41.
• 10-year bond yield rose to 0.89%
• AUD rallies to 69.85c
• Aussie gold up to $2594.
• Bitcoin firms to US$9386
• In Asia, the rally continues with Japan up 0.7% and China pushing ever higher like Icarus up 1.3%

STOCKS

• APT +11.36% hits all time high, no w 14^th most valuable company on ASX. Bigger than WPL.
• WTC -2.32% Bell Potter says sell.
• TWE -2.93% premium wines on the nose.
• SZL +41.84% capital raise.
• EVN +4.29% new all-time high.
• APX +0.89% NXT +0.18% new highs.
• CEN -13.13% RIO pulls smelter pin.
• EOS -5.17% chief of strategy appointment.
• PBH +11.27% BET +7.89% NJ deal sees buyers.
• NWL +9.16% quarterly business update.
• JIN -2.69% $80m tonight. Feeling lucky.
• PPS +22.97% acquisition.
• ADT +17.63% resignation of SFR director. Bid speculation.
• WZR +9.30% another leg up.
• Speculative Stock of the Day: Secos (SES) +87.50% after Woollies has selected its compostable bag range. Roll out begins in July.
• Biggest Rises: APT, PBH, Z1P, NWLK, AQG, PRN, CCX and PRN.
• Biggest Falls: CEN, MEZ, DEG, GNE, EOS, RBL and SHV.

TODAY

• Bellevue Gold (BGL) – Launches $100m placement and $20m SPP at 100c/share. Funds will be used for an aggressive exploration campaign to upgrade and increase resources while advancing underground development on the pathway to resource growth and development.
• Treasury Wine Estates (TWE) -2.93% Guides FY20 EBITS between $530-540m. Notes F20 EBITS has declined against the prior year by ~21%, with regional declines of ~14% in Asia, 37% in the Americas, 16% in ANZ and 18% in EMEA. Prior to COVID-19 FY EBITS guidance was for 5-10% growth (withdrawn). Liquidity position supports the maintenance of its long-term dividend policy, which targets a pay-out ratio between 55-70% of NPAT. Positive signs of improvement in China. Americas wine market remains challenging. In Australia, strong retail channel performance continues. Expects global cost of goods sold (COGS) per case to increase by ~3% in F21 vs FY20.
• iCar Asia (ICQ) -1.72% Delivered growth in sales in H1 2020, with unaudited revenue expected to be $6.3m, +4% vs year-ago. Given Thailand was open throughout Q2 and Malaysia relaxed restrictions in May, both Countries were EBITDA and cashflow positive for Q2 2020 with business slowly getting back to normal coupled with strong cash management. The outlook for H2 2020 is looking significantly more positive.
• Infigen Energy (IFN) – June production generated from owned assets 133 GWh vs year-ago 134 GWh. Renewable Energy Generation sold (GWh) 140 vs year-ago 137.
• Praemium (PPS) +22.97% Announces off-market takeover bid for Powerwrap (PWL) at 26.44c/share, valuing PWL at $55.6m. Praemium intends to fund the cash component of the through a $15m term loan facility.
• Netwealth Group (NWL) +9.16% Funds under administration (FUA) up 35% to $31.50bn vs $27.88bn at the end of March. Fourth-quarter FUA net inflows of $1.53bn. Funds under management (FUM) $7.28bn vs $6.31bn at the end of March. Net FUM inflows of $1.4bn. Expects FY20 performance to slightly exceed prior guidance of Revenue between $116-120m and Underlying EBITDA between $58-62m.
• Rio Tinto (RIO) +3.28% To wind-down of operations and eventually close New Zealand Aluminium Smelters (NZAS). The smelter, which made RIO an underlying loss of NZ$46m in 2019, was found to be uneconomical due to energy costs that are some of the highest in the industry globally, coupled with a challenging aluminum outlook.
• Worley (WOR) +3.29% Increases stake in TW Power Services to 100% after acquiring Ferrovial’s 50% share for $20m cash.
• PointsBet Holdings (PBH) +11.27% Signs agreement with BetMakers Technology Group to offer fixed odds betting on horseracing in New Jersey.

ECONOMIC NEWS

• The value of new loan commitments for housing fell a record 11.6% in May.
• The value of new loan commitments for owner occupier housing fell 10.2%, while investor housing fell 15.6%. The number of owner occupier first home buyer loan commitments fell 9.3%.
• New loan commitments, total housing (seasonally adjusted), values, Australia.

COVID-19 NEWS

• Global coronavirus cases topped 12m. Death exceed 548,000.

• Mexico reported a record daily rise of 6,995 confirmed Covid-19 cases, bringing the total to 275,003.
• Texas had its second straight day of record virus deaths, at 98, bringing total fatalities in the state to 2,813. Virus cases rose 4.7% to 220,564, exceeding the seven-day average of 4%.
• Los Angeles County reported 2,496 new coronavirus cases, bringing its total to more than 123,000, along with 65 additional deaths.
• Walt Disney World Resort theme parks are preparing for a phased reopening with reduction in capacity starting July 11.

BONDS

ASIAN NEWS

• China’s factory deflation eased back in June as the economic recovery continued.

• The consumer price index rose 2.5% on year following a 2.4% gain the previous month. Pork prices rose almost 82% due to slower hog production, strict epidemic prevention requirements and falling imports.

• Australia has suspended its extradition deal with China over moves in HK.

EUROPEAN NEWS

• Brook Brothers has gone bust, a casualty of CV19 as no one needs suits anymore. At least not the trousers.
• The Dutch are pushing back on a deal for a EU recovery fund.
• Harvard and MIT are suing to stop the new immigration policy for foreign students.
• Warren Buffet is dropping down the rich list as tech titans take top table spot. He has given away around $37bn in Berkshire Hathaway stock since 2006. Six of the seven richest people in the world owe their wealth to the tech sector, including No. 1 Jeff Bezos, who has added US$68bn to his net worth this year, and Steve Ballmer (Ex CEO of Microsoft), who’s gained US$18bn. Tech fortunes are the best performing on the index, up 25% in 2020.

And finally….come on people more material…henry@marcustoday.com.au

 

 

The current US policy…

Clarence

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