The ASX puts on 20 points (+0.34%) to 6044 in a quiet start to the week. Dow futures up 87 points. Mixed day today with miners and gold doing well as gold hit a record. BHP up 0.9% and FMG back on track up 0.5%. Gold miners were celebrating a record price with NST up 4.1%, NCM up 4.9% and EVN up 3.1%. Silver going nuts too. Oil stocks going nowhere in a hurry WPL down 0.8% and STO down 1.1%. Industrials were firm with WES up 1.1%, ALL up 1.7% and TLS up 0.9%. Healthcare dominated by CSL falling 0.6%. Banks were sloppy with the Big Bank Basket down to $126.39. CBA down 0.5% and WBC down 0.2%. The All Tech Index was modestly higher. No standouts. In corporate news, PPT in a trading halt, launched $265m raising at 3030c to acquire a 75% in Barrow Hanley for $465m. EHL down 4.8%, softness in coal markets expected to limit short term growth. HLS up 2.5%, unaudited FY underlying NPAT of $54m-56m. SZL down 1.6% on its quarterly update. In a hotly anticipated IPO of Laybuy (LBY) a NZ BNPL provider, the issue closed in just 10minutes raising broker commitments for a cool $80m. No frenzy here then. IPO will list in September. In economic news, nothing much as we await Fed news later this week. The 10-year yield up slightly to 0.89%, In Asia nothing much shaking the trees. Japan is up 0.24% and China up 0.14%.

Today’s Highlights

• ASX 200 up 20 to 6044.
• High 6044 Low 6013 Below average volume. Narrow trading range.
• Big Bank Basket $126.39.
• Gold price hits a record hit on US/China tensions.
• All Tech Index up 1%
• 69 trading days until the US election.
• Dow Futures up 87 points.
• 10-year bond yield firms to 0.89%
• AUD rallies to 71.26c
• Aussie gold better at $2709 gold stocks rally.
• Bitcoin rallies to US$10252
• In Asia, Japan is up 0.24% and China up 0.14%.

STOCKS

• BUB -4.41% Jennifer Hawkins onboard.
• LYC +11.98% Pentagon funding breakthrough.
• EHE -7.59% CV19 implications.
• CCX +9.38% capital raise.
• ALK +6.97% demerger looms.
• CTD -4.07% travel stocks under pressure.
• GEM -3.47% childcare under pressure.
• IMC -12.12% profit-taking.
• 3DP +22.86% rally continues.
• 5GN +18.04% Motley Fool pushing hard.
• IFN unchanged UAC Energy drops out.
• KAR +11.28% revised terms for Bauna acquisition.
• M7T +13.22% Fourth quarter company update.
• IAG -5.26% broker downgrades.
• JMS -3.33% Brian Gilbertson purchases.
• Speculative Stock of the Day: Lion One Metals (LLO) +60.11% additional information in market update. The discovery at Banana Creek is attracting attention.
• Biggest Rises: LYC, FCL, CCX, AGG, ZIM, ALK and AQG
• Biggest Falls: IAG, CEN, BUB, PGH, CTD, SHV, CUV and OPT.

TODAY

• Sezzle (SZL) –1.65% 326k new active customers and 3.4k new merchants in Q2. Net transaction margin improved. By the end of 2020, expects annualized run rate for underlying merchant sales to exceed US$1.0bn/annum.
• St. Barbara (SBM) +1.86% Subsidiary Atlantic Mining acquires Moose River Resources for $60m. Following the transaction, SBM will own 100% of the Touquoy Mine and surrounding exploration tenements. “A low-cost operation, generating impressive margins and is located in a very favourable and prospective jurisdiction,“ according to CEO, Craig Jetson.
• Emeco Holdings (EHL) –4.81% Full-year operating NPAT $87.5m vs consensus $74.9m. Revenue $540.4m vs consensus $531.1m. Operating EBITDA $246.1m vs guidance of $244-247m. Softness in coal markets is expected to limit short term growth although, current conditions do not indicate significant growth (or decline) in earnings in FY21. Off-hire notices received in the Eastern Region expected to impact FY21 earnings between 10-20%. Western Region operating EBITDA margins to increase significantly in FY21 as the proportion of double-shift projects increases.
• Metcash (MTS) – To acquire 70% of Total Tools for $57m. Subject to approval by the ACCC.
• Perpetual (PPT) – To acquire a 75% stake in Barrow Hanley for $465m. Expected to generate underlying EPS of more than 20% on an annualised basis from the date of completion. Launches $225m placement and $40m SPP at 3030c/share. Expects underlying NPAT of $93.5m in FY20. The board will consider the payment of an FY20 final dividend.
• Ramelius Resources (RMS) +3.14% Q4 revenue $198.6m. Gold production of 86,517oz in line with the prior report. AISC of $1,041/oz at the lower end of guidance. Quarterly gold sales of 89,345oz. Expects FY21 production between 260,000-280,000oz at an AISC of $1,230-$1,330/oz.
• Kalium Lakes (KLL) -6.25% CEO Brett Hazelden resigns. Rudolph van Niekerk named interim CEO.
• Healius (HLS) +2.52% Unaudited FY underlying NPAT of $54-56m. Underlying EBIT $102-104m. Overheads to be right-sized in FY21 and FY22 along with ongoing margin expansion through the sustainable improvement program. At the end of June, net debt of ~$670m, bank gearing ratio 2.7x. Expects $110-120m after-tax negative impact from discontinued operations in FY20 primarily due to a non-cash goodwill impairment.
• Lynas Corp (LYC) +11.98% Signs a contract with the US Department of Defense for Phase I work on a US-based Heavy Rare Earth separation facility.

ECONOMIC NEWS

• Goldman Sachs sees risk of a second wave of capital raisings.
• Around one in five Australians (18%) expected it would take over a year before life returns to normal. One in eleven people (9%) thought life would never return to normal.
• One in six Victorians (16%) were unsure how long it would take for life to return to normal compared to one in thirteen (8%) for the rest of Australia.
• Three in five Australians (60%) considered their mental health to be excellent or very good, while one in seven (14%) reported their mental health as fair or poor. This compares to results from a 2007 ABS survey where two thirds (67%) considered their mental health to be excellent or very good, and 9% reported their mental health as fair or poor.
• One in five women (19%) used a mental health or support service since March 2020 compared with one in ten men (10%).
• Women were twice as likely as men to report they performed most of the unpaid domestic work (80% compared to 39%) and more than three times as likely to report they performed most of the unpaid caring responsibilities (38% compared to 11%) in their household.

COVID-19 NEWS

• China reported the largest number of domestic infections in more than four months. 61 infections reported Monday, 57 local cases.

• Victoria has 532 new cases and 6 deaths.
• Brazil, which has the world’s worst virus outbreak after the U.S., registered 24,578 new cases and 555 deaths. That’s half of the 51,147 cases and 1,211 deaths reported the previous day. Total cases now 2.4m with 87,000 deaths.

BONDS

ASIAN NEWS

• Hong Kong to ban all restaurant dining and require masks outside.

EUROPEAN NEWS

• Euro futures mixed with CAC in the Red, rest in the green.
• Ryanair posts a smaller than expected loss.
• UK now quarantining tourists returning from Spain. No guarantee other countries will not be put on the list of danger countries. Stopped the travel industry dead.
• UK and EU lenders are expected to take at least EUR23bn in provisions.
• Stimulus stalemate in US threatens as money runs out. Crucial week this week.
• Italy says EUR750bn will not be enough and will not come soon enough to avert a autumn liquidity crisis.

And finally……………

Catch Henry with his latest podcast with Andrew Weilandt

http://www.buzzsprout.com/967801/4705316-on-the-couch-with-henry-jennings-and-andrew-weilandt-july-25th-2020

The first rule of the Condescending Club is really complex and I don’t think you would even understand it if I explained it to you.

Karl Marx is a famous philosopher but no one ever mentions his little sister Onya. She invented the starting pistol.

Clarence

XXX