The ASX 200 rose 58 points to 5977, off highs but hanging in despite CV19 fears. Dow futures up 150. Banks held firm with the Big Bank Basket at $126.90. Other financials were mixed with MQG up 2.0% and ASX down 0.6%. Miners better led by BHP up 2.2% and FMG up 3.43% whilst gold miners took the day off from recent rises, DEG collapsed 13.8% and BGL put on another 2.8% though. Healthcare suffering as CSL continue to be out of favour and industrials mixed with COL up 1.0% and TCL up 0.7%, even SYD up 1.9% despite lockdowns and quarantines. Once again, the BNPL sector grabbed the punters hearts, OPY rose 38.0% ahead of a virtual conference Wednesday, APT though slipped 0.8% as Z1P pushed ahead even more by another 5.4% and SZL fresh back from its gift horse raising at 530c ran 22.0% rewarding anyone lucky enough to get stock. The All Tech Index fell 0.6%, XRO fell too by 0.3%. In corporate news, AVH revealed a US government order falling 9.4%, TNE dropped 6.4% after a short seller report from GMT in Asia disputing the company accounting, DCN fell 19.0% after an operations update and FBR announced it had built a wall using Hadrian and fell 14.6%. OSH announced an expected non-cash impairment charge dropping 2.0% and VGI fell 1.3% after an FUM update. Nothing on the economic front but the 10-year yield steady at 0.89%. In Asia, markets saw buyers back in again, Japan up 2% and China up 2.6%.

Today’s Highlights

• ASX 200 up 58 to 5977. Average volume.
• High 6007 Low 5943. Muted bounce.
• Big Bank Basket firms to $126.90
• Asian iron ore futures pushing higher as Brazil has more problems.
• All Tech Index down 0.6%.
• 79 trading days until the US election.
• Dow Futures up 153.
• 10-year bond yield steady at 0.89%
• AUD rallies to 69.77c
• Aussie gold steady at $2589.
• Bitcoin steady at US$9274
• In Asia, markets saw buyers back in again, Japan up 2% and China up 2.6%.

STOCKS

• BLD +0.82% looks like SVW buying some more.
• SZL +22.30% big scale backs force traders back in higher up.
• PTM +6.76% FUM news.
• HM1 +3.37% weekly NTA.
• DEG -13.84% profit taking and stops triggered.
• AVH -9.39% BARDA bing Barda boom. US order fails to excite.
• TNE -6.41% short sellers attack.
• CUV -4.13% second afamelanotide formulation.
• BGL +2.79% good bounce continues.
• Z1P +5.39% plenty of chat room pumping.
• OPY +38.01% company update and briefing Wednesday. Chat room special.
• NTO +9.48% Appendix 3G.
• WZR +6.67% bit of volatility.
• CBA +2.11% MS tips 130c for div.
• FMG +3.43% all-time high.
• SGR -0.37% CV19 hits casino.
• EHE –3.33% aged care residents test positive for virus.
• SAR +0.49% suspended on safety concerns at Dervish.
• Speculative Stock of the Day: Pureprofile (PPL) +387.50% appoints Martin Fliz as CEO. Reasonable volume.
• Biggest Rises: SZL, PTM, VUK, Z1PO, NWL, IGO and TWE.
• Biggest Falls: DEG, AVH, TNE, MOE, JMS, MSB and MYX.

TODAY

• Praemium (PPS) -7.37% Q4 Funds under administration (FUA) $20.29bn vs quarter-ago $19.35bn.
• Estia Health (EHE) –3.33% Expects to recognise a non-cash impairment between $124-148m in FY20. Occupancy in mature homes was 92.7% at the end of June. The new homes at Southport and Maroochydore ended the financial year with occupancy rates of 100% and 70.6% respectively.
• Cochlear (COH) -0.77% CFO Brent Cubis resigns to pursue other opportunities. Will depart at the end of 2020.
• Credit Corp (CCP) +0.07% Expects FY20 NPAT ex-items between $75-80m and a 13.5% reduction in the carrying value of its debt ledger assets. Observes customers have been less prepared to agree and maintain longer-term repayment plans. Loan loss provisions are expected to increase to 24% of the gross loan book from 19%.
• Sezzle (SZL) +22.30% Completes $79.1m institutional placement at 530c/share.
• Avita (AVH) –9.39% US government to purchase US$7.6m worth of RECELL Systems.
• Oil Search (OSH) -2.00% Expects to recognise a non-cash impairment between US$360m-US$400m in its H1 results (pre-tax) relating to its PNG exploration licences.
• VGI Partners (VGI) –1.27% Funds under management (FUM) at the end of June $2.9bn vs $3.2bn at the end of March. The reduction in FUM was almost entirely due to performance. Does not expect to report any material performance fees for H1 (six months to 30 June 2020).
• Technology One (TNE) –6.41% Has responded to the claims made in the AFR by GMT Research, saying they are false and misleading. “GMT Research spent only 30 minutes with us, so we are very surprised with their limited knowledge that they would have published a report in the first place, and more importantly without verifying the accuracy of the report with us,” the company said.

ECONOMIC NEWS

• Australia’s effective unemployment rate is almost double the official jobless level, Josh Frydenberg said. That is around 13.3% right now,” Frydenberg said of the effective rate.

COVID-19 NEWS

• India added more than 50,000 new cases over the weekend, with deaths topping 1,000.
• South Africa introduced a curfew and an alcohol ban after virus rules fell on deaf ears.
• South Korea reported 62 more Covid-19 cases in the past 24 hours.
• Brazil recorded 24,831 new cases of Covid-19, pushing the total to 1,864,681, Deaths increased by 631 to 72,100.
• NY reported no virus deaths.

BONDS

ASIAN NEWS

• Hong Kong brokerage firm now offers zero commission trading. Huatai International, the Hong Kong arm of China’s third largest broker, is no longer charging commissions and platform fees for stock trades, but just a HK$8 ($1) monthly fee.

• Morgan Stanley and Goldman Sachs Group Inc. lifted their targets for the CSI 300 Index in the past week.
• Japan has vowed to cut financing coal power in developing world.
• Chinese biotech Beigene plans to raise US$2.1bn in a direct offering of shares in the US and China. The Beijing-based company’s blood cancer therapy became the first Chinese cancer drug to receive approval from the U.S. Food and Drug Administration last November.

EUROPEAN NEWS

• European markets heading higher by around 1% at the open.
• US banks told not to use CV19 as a cover to close branches to cut costs.
• Analog Devices is close to finalising a US$20bn chip deal with Maxim, taking out one of its rivals.

And finally….

Blonde: “What does IDK stand for?”
Brunette: “I don’t know.”
Blonde: “OMG, nobody does!”

 

A guy was driving in a car with a blonde. He told her to stick her head out the window and see if the blinker worked. She stuck her head out and said, “Yes, No, Yes, No, Yes…”

 

Why does the Norwegian Navy have bar codes on their ships?

So when they come back to port they can Scandinavian.

 

After a particularly poor round, a golfer spotted a lake as he walked despondently up the 18th. He looked at his caddie and said, “I’ve played so badly all day, I think I’m going to drown myself in that lake.” The caddie, quick as a flash, replied, “I’m not sure you could keep your head down that long.”

 

Thanks laugh of the day and my daughter Georgia.

Clarence

XXX