The ASX 200 kicked 61 points higher to 5956 (1%) as banks, miners and tech rallied. Fed tonight but could be a non-event. BHP rose 1.4% and RIO managed another 0.6% gain. FMG though seems a little on the nose currently and fell 2.0%. Gold miners eased back as bullion went nowhere. NCM up a measly 0.1% and NST up slightly by 0.6%. Banks were finding some buyers although not much in the way of conviction, the Big Bank Basket rose slightly to $116.91 and MQG bounced slightly up 0.8%. Insurers better as SUN rose 1.3% (it does that every day), and MPL rallied 2.8% as elective surgery continues to be well behind, but private sector is picking up the slack. Tech was the word today with the All Tech Index up 3.0% led by APT up 4.0% and the whole BNPL sector in demand. SZL rose 9.0% and Z1P up 6.1%. In other techs, REA jumped 2.7% and SEK rallied hard on Chinese business rumours, up 9.4%. PBH had another interesting day as Black and Scholes models were dusted off to value the newly listed options which started life at 166c and closed at close to 290c. CSL up 1.4% also added to the rally with COH up 1.7% and RHC joining in up 1.7%. In corporate news, AIA rose 0.5% on monthly traffic numbers, KGN hit new record customer numbers and rose 6.1%, and AXE fell 5.0% after an IBM JV webinar update. On the economic front, all eyes on the Fed tonight but the Westpac-MI leading index’s six-month annualised growth lifted to -2.56% in August from –4.42% in July. 10-year yields steady at 0.85% and the AUD around 73.09c. In Asian markets, Japan got a Suga hit rising modestly +0.21% and China slipped 0.4%. Dow Futures up 21.
- ASX 200 up 62 to 5956.
- High 5958 Low 5905. Tight range trade again.
- Big Bank Basket rose slightly to $116.91
- All Tech Index up 3.02% as tech rallies on Nasdaq/BNPL moves.
- 32 trading days until the US election.
- Dow Futures up 21.
- Gold steady at AUD$2680
- 10-year bond yield steady at 0.86%
- AUD steady at 73.09c
- Bitcoin firms to $10,801
- In Asian markets, Japan got a Suga hit rising modestly +0.21% and China slipped 0.4%.
- SEK +9.42% media speculation on Chinese business.
- RED +9.09% KOTH seen positively.
- SZL +9.01% BNPL bouncing back.
- CRN +8.29% showing positive momentum again.
- WHC -5.18% gas project in Hunter shows future.
- BRN -4.08% profit taking continues. Reality bites.
- CYC +23.03% building on yesterday’s gains.
- TNY +24.73% Waislitz buying attracts newsletter attention.
- MYQ +20.86% Apple watch shows potential of wearable health.
- BUD +14.93% LIFX achieves 30-day sales record.
- LBY +13.46% BNPL back.
- WSP +10.15% buyers back for fintech.
- BLD +2.91% plenty of smoke and everyone has an opinion on maximising value.
- CGF +4.41% upgraded to outperform.
- NXS – capital raise and Lang Walker commits another $2m.
- KGN +6.14% active customers at record.
- Speculative Stock of the Day: iCandy (ICI) +76.67% response to ASX query points out the growing interest in gaming stocks. Good volume too.
- Biggest Winners: SEK, RED, SZL, CRN, TPW, APE, RBL and PLS.
- Biggest Losers: WHC, BRN, OML, AGG, NHC, SLK and FMG.
- QBE Insurance (QBE) –0.86% The High Court of England and Wales handed down its decision on a case relating to customers’ efforts to recoup COVID related losses. The court ruled in favour of QBE with respect to two out of three policy wordings examined. QBE believes that catastrophe reinsurance will limit the net cost of business interruption claims in its UK insurance business to $70m. QBE said it was considering its options to appeal the decision.
- Ramsay Health Care (RHC) +1.66%Among shortlisted bidders for Quadrant PE’s ~$700m Qscan radiology business. RHC, Queensland Investment Corp, and Morrison & Co Permira have been named as potential bidders.
- Boral (BLD) +2.91% Multiple mid-sized PE groups reportedly showing interest in Boral’s North American assets. Loan Start Funds previously showed interest in BLD.
- Bell Financial Group (BFG) +7.93%Projected revenue for the 9 months to September 30 is $202m, 12% ahead of the previous corresponding period (PCP). Profit before tax forecast to be $39m, 32% ahead of the PCP. Observes all business units are profitable. Points to a solid pipeline of equity capital market (ECM) work in hand through to the end of this year and beyond.
- Tabcorp (TAH) -0.29% Completed the retail shortfall bookbuild component of its entitlement offer. ~39.7m retail entitlements were offered for sale under the retail shortfall bookbuild, which cleared at a price of 331c/share. Eligible retail shareholders who elected not to take up their entitlements and certain ineligible retail shareholders will receive 6c/share net of any applicable expenses.
- Kogan.com (KGN) +6.14% August active customers grew 152k to 2.5m, marking the largest monthly increase in the history of the business. Gross sales grew more than 117% vs year ago. Gross profit grew more than 165% and Adjusted EBITDA grew by more than 466% over the same period. Marketing costs reflected the largest monthly marketing investment in the history of the company.
- Centuria Industrial REIT (CIP) +1.92% Declares Q4 DPS 4.25c/share. Payment 30-October, record 30-September.
- SEEK (SEK) +9.42% Responds to Zhaopin media speculation. Zhaopin and its shareholders are holding discussions with a number of parties to assess whether the introduction of new investors could better support its’s long term growth aspirations. These discussions may or may not lead to changes with respect to Zhaopin.
- The Westpac-MI leading index’s six-month annualised growth lifted to -2.56% in August from –4.42% in July.
COVID – 19 NEWS
- Trump says a vaccine could be ready in four weeks.
- India’s virus cases reached the 5-million mark with the addition of more than 90,000 new cases
- Japan has a new PM in Suga. So many sub editors are salivating with the new appointment. New Suga daddy, Suga hit, the list goes on.
- Japan’s exports fell in August at the slowest pace in five months as the virus receded in key markets and demand continued to pick up. The value of Japan’s overseas shipments declined 14.8% from a year earlier, easing from a 19.2% drop in July.
- Singapore will pay its citizens for staying healthy using an Apple watch. Singapore residents will be able to earn as much as S$380 (US$280) in rewards and vouchers by completing goals and tasks set within the app.
EUROPEAN AND US HEADLINES
- All about the Fed. Rates on hold for foreseeable future.
- Jamie Dimon says Fed doing the right thing.
- European futures pointing to a slightly negative start.
- Apple launches new watch and ipads and subscription bundles.
- TikTok set to become a standalone US company to ensure White House support.
- The US Justice Department is making inquiries into claims of fraud at Nikola.
- Kodak chief cleared of inside trading.
- Bill Gates’ dad has died. RIP William H.
- UK inflation CPI up 0.2% in August YoY. No inflation to be seen anywhere.
I was in the supermarket and managed to get in just as a truck had dropped goods off. I managed to get a lot of good stuff, bread, sanitizers, soap, pasta and rice. Very lucky to get all these things, and had my trolley filled to the brim. As I waited at the checkout, an older woman came up behind me, she only had a couple of herbs and spices and a jam jar in her trolley. She looked at me and said it was all she could get to in time.
I looked down at all the items in my trolley, and naturally felt terrible. There was only one thing I could do, and that was the RIGHT thing.
You go in front love, you’ve only got a couple of items.
We ordered a Chinese takeaway from a local place (we won’t name them) we went to pick it up and as we were driving home, we heard the bags rustling and moving!!!
We thought what in the world is that? Has something got in the bag? We thought we could see a little pair of eyes peering out
I was driving so I leaned forward, picked up the bag, put it on the passenger seat and there it was again, more rustling and little eyes looking out behind the prawn crackers,
I thought its got to be a rat or a mouse or something, so I carefully pulled the bag down …
And there it was …
…a peeking duck ..,,,,,