Happy Bastille Day

The ASX dropped 36 points to 5941 as you could feel hot air escaping from the star stocks in BNPL especially. Dow futures up 26 points. A day of modest losses at the top line but underneath some serious profit taking in high flying BNPL stars. APT dropped 7.2%, Z1P down 7.7% and SZL falling 12.0%. OPY had a great day again though ahead of a briefing tomorrow, up 9.2%. Meanwhile in the real world, banks suffered slightly ahead of US bank reporting kicking off, the Big Bank Basket fell to $126.08. Other financials fell slightly with MQG down 0.5% and MFG down 1.5%.  Healthcare dominated by CSL a little weaker with our largest company down 0.9%. Miners were mixed, BHP up 0.3% and FMG up to new highs, up 1%. Gold miners came in for profit taking after big runs, NCM down 2.5%, NST down 2.3% and EVN down 2.1%. Industrials eased with TCL down 1.7% and TPG down 2.7%. Tech saw heavy losses with the All Tech Index down 3.4%, XRO dropped 4.4% and APX down 3.1%. ALU fell 3.6% after a business update, and PBH dropped 9.7% on a broker downgrade. In corporate news, WHC rose 4.1% after a positive quarterly, TNE firmed as buyers returned after the short seller attack yesterday, BDC rose 8.7% on very encouraging gold hits. The 10-year yield was 0.90% again with the AUD steady too. Asian markets were weaker today with Japan down 0.9% and China down 1.8%.

Today’s Highlights

• ASX 200 down 36to 5941. Average volume.
• High 5970 Low 5919. Narrow range.
• Big Bank Basket firms to $126.08
• All Tech Index down 3.4%
• 78 trading days until the US election.
• Dow Futures up 26
• 10-year bond yield steady at 0.90%
• AUD drifts to 69.46c
• Aussie gold steady at $2588.
• Bitcoin eases to US$9180
• In Asia, markets saw sellers return with Japan down 0.9% and China down 1.8%

STOCKS

• SZL -12.00% profit taking.
• PPH -10.79% shareholder sell down.
• APT -7.23% jam oozing out of the doughnut.
• Z1P -7.73% Buy now sell later.
• PNV -1.71% BARDA announcement.
• CCP +6.68% broker upgrades despite write down.
• WHC +4.11% quarterly.
• TNE +2.69% bargain hunters.
• RCE +16.13% adds biotech veteran to its board.
• OPY +9.18% kicks again ahead of briefing.
• CAT +7.76% update brings buyers back.
• NGI +2.82% FUM falls in June.
• BRG +5.53% Morgan Stanley upgrades.
• BDC +8.70% intercepts of 37m at 6.21g/t Au.
• MMM +5.29% lockdown proves boom for business model.
• SDV -9.27% trading halt and capital raise.
• PBH -9.72% broker downgrade on cost of acquiring customers.
• WZR -8.33% profit taking.
• NSB +15.00% EmtinB positive results in MS.
• DEG +5.11% good bounce.
• BKL -0.40% below recent placement price.
• ATX +8.00% Alan Moss invests with 7.5m shares at 10c.
• QAN -0.57% extends SPP by two weeks at 365c.
• Speculative Stock of the Day: Pointerra (3DP) +72.22% Bevan Slattery invests at 5c in strategic placement.
• Biggest Rises: GNE, CCP, BRG, RWC, DEG, SIQ and CNU.
• Biggest Falls: SZL, PPH, PBH, Z1P, MSB, APT, MP1, NEA and PAR..

TODAY

• Whitehaven Coal (WHC) +4.11% FY coal production of 20.6mt vs guidance 20-22mt. Coal sales 19.9mt vs guidance 19-20mt. June quarter coal production 8.2mt vs year-ago 7.0mt. Coal sales 5.7mt vs year-ago 5.0mt. Guidance to be provided on August 26.
• Westpac (WBC) -0.78% Appoints Michael Rowland as new Group CFO. Rowland replaces Gary Thursby who has been acting CFO since December 2019.
• Altium (ALU) – FY revenue US$189.0m vs consensus US$181.3m. Worldwide sales US$194m vs year-ago US$177m. Increase of 14% in new Altium Designer seats sold. Cash balance over US$90.0m. Record growth of 17% in the subscription base to well over 50K subscribers.
• Strike Energy (STX) – Announce non-cash impairment of $91m to fully impair its assets in the Cooper Basin.
• Bank of Queensland (BOQ) +0.48% 80% of loan freeze requests still unchanged. BOQ CEO George Frazis, reportedly told the AFR, that it’s too early to say how many loan-freeze requests will require extensions into next year. Frazis added that the true damage will not be known until the end of June next year.

ECONOMIC NEWS

• JP Morgan upgrades iron ore forecasts to US$93 for 2020.
• ANZ-Roy Morgan consumer confidence fell 0.5% to 91.6 points last week.
• NAB business confidence improved to 1 in June from -20 in May as restrictions eased. Below the long-run average of 6.

• NZ Opposition leader resigns suddenly on health grounds.

COVID-19 NEWS

• Face coverings will be compulsory in all shops in England from July 24.
• Japan could declare a state of emergency again if coronavirus infections increase further.
• Asian casino stocks rallied as the easing of some Chinese travel restrictions for Macau.
• Coronavirus cases in the U.S. rose by 64,605 from a day earlier to 3.34m. California reported 109,910 new cases in the last 14 days, and 1,104 new deaths, out of a total of 329,162 cases and 7,040 deaths.

BONDS

ASIAN NEWS

• China exports up 4.3% in June; imports up 6.2%
• China trade balance was $US59.6bn in June compared to $US62.3bn in May.
• First half trade with the US was down 6.6% year-on-year.
• Singapore’s economy appears to have shrunk by 41.2% on an annualised basis in the second quarter, after construction came to a screeching halt and manufacturing and services were decimated.
• Softbank shares at 20-year high.

EUROPEAN NEWS

• European markets expected to open weaker across the board by around 1%-1.5%
• UK May GDP fell 24% v 20% forecast YoY. 24.5% in April. So slight improvement.
• US Budget deficit rises US$864bn in July. A new record.
• Californian shutdowns are more significant as its the home of tech in Silicon Valley.
• Dr Fauci says US public healthcare is in tatters.
• Parsley Energy chief says USA has passed peak of shale oil.
• US/ China relations continue to sour.
• Oil jitters ahead of OPEC meeting. Results kick off tonight.

And finally…

Why couldn’t the bicycle stand up by itself?

It was two tired.”

 

“What concert costs just 45 cents?

50 Cent featuring Nickelback!”

 

“Why did the scarecrow win an award? Because he was outstanding in his field.”

 

“What’s brown and sticky? A stick.”

 

“I ordered a chicken and an egg online. I’ll let you know.”

Clarence

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