The ASX closes up 57 points to 5873 as enthusiasm wanes slightly. Dow futures up 230 points. A positive start to the month following a positive lead from overseas. Volume light onthough with Japan closed due to a glitch. The Big Bank Basket closed at $116.18 with iron ore producers doing better, BHP up 1.9% and FMG up 2.3%. Gold miners went nowhere and energy stocks saw modest gains in STO up 1.2% and ORG up 2.3%. Healthcare did well led by CSL up 0.3% and FPH up 1.3%. In industrials TLS rose 0.7%, REA up 2.3% and TCL up 0.7%. REITs rose led by GMG up 0.7% and URW rallied hard by 3.7%. In tech stocks APT up 0.6%, XRO hit an all-time high up 1.6% and CPU up 2.2%. The All Tech Index rose 0.57%. In corporate news, MSB in a trading halt ahead of an FDA report. RWC rose 10.5% on an investor day presentation, PAR rose 7.9% on a positive Zilosul announcement. RMS up 1.0% exceeded production guidance. In economic news, total job vacancies in August were 206,000, an increase of 59.4% from May. Six of the eight capital cities recorded a rise in home values over the month in September, according to CoreLogic. Property values fell 0.9% in Melbourne, and 0.3% in Sydney. 10-year bond yields rise to 0.89% with the AUD up to 71.79c. Asian markets flat lined as Japan closed for the day due to a technical glitch. Not a great look. China National day keeps things quiet across the region.

Today’s Highlights

  • ASX 200 celebrates a brand new quarter with a 57 point rise to 5873
  • High 5916 Low 5832. Low volume.
  • Big Bank Basket sees buyers return up to $116.18
  • All Tech Index up by 0.57%
  • 21 trading days until the US election.
  • Dow Futures up 230
  • Gold slips to AUD$2637
  • 10-year bond yield rise to 0.89%
  • AUD better at 71.79c
  • Bitcoin steady around $10809
  • Asian markets China flatlines with Japan unexpectedly closed due to a glitch.

STOCKS

  • XRO +1.65% hits record.
  • MSB – trading halt pending FDA result.
  • LYC +5.17% US backs critical minerals.
  • OGC –9.32% raising $157m
  • AMP +3.07% Moody’s lowers credit rating to A3.
  • BRN +12.50% buyers return.
  • RWC +10.47% Investor day.
  • OVH -8.22% Thorney talks tough.
  • DEG +5.76% good drill results.
  • PAR +7.92% Zilosul reduce pain in patients.
  • FXL -2.35% sellers are back.
  • 3DP +10.10% back on track.
  • JIN -2.00% change of director’s interest.
  • PLL +22.95% buyers step back in on US moves on critical minerals.
  • EVS +25.81% first quarter sales.
  • Speculative Stock of the Day: Hydrix (HYD) +37.04% huge volume and good move on implantation of next generation of AngelMed Guardian in US.
  • Biggest Winners: BRN, RWC, PAR, NTO, Z1P, SZL and SLK.
  • Biggest Losers: MYX, CHN, PBL, TYR, NEA, IFM, FXL and PME.

TODAY

  • OneVue Holdings (OVH) -8.22% Thorney Group calls on fellow investors to vote against Iress bid. Calling the offer ‘opportunistic’ and urges shareholders in joining them in voting against the bid. Thorney Group has an 18.35% stake in OneVue. Iress recently increased offer for OneVue Holdings to 43c/share from 40c/share, declared offer best and final.
  • Sealink Travel Group (SLK) +5.77% Awarded contracts for bus services in Singapore worth more than $1bn over the first five years. The contracts are for five-years with two-year extensions, with services commencing from May 30, 2021 for Bulim and September 5, 2021 for Sembawang-Yishun.
  • SRG Global (SRG) +6.90% Secures long-term refractory & access contracts with South32 (S32) valued at $125m. Eight-year $100m contract for specialist refractory services. Two-year $25m extension on an existing six-year engineered access services contract. Adds the business is continuing to deliver on its strategy of transitioning business mix towards annuity/recurring earnings.
  • Ramelius Resources (RMS) +0.97% Q1 gold production of 71,344oz vs guidance of 65 – 70,000oz. Cash & gold balance $221.9m. Continues to deliver gold into its forward sales book as the current schedule requires, with a quarter-end position of 238,750 oz at an average price of $2,223/oz.
  • APRA publishes August statistics for temporary loan repayment deferrals due to COVID-19 (total $bn, followed by % share of total loans).
    • CBA – $58.84bn, 8.9%
    • NAB – $50.49bn, 10.2%
    • WBC – $41.66bn, 7.0%
    • ANZ – $41.17bn, 9.9%
    • MQG – $6.45bn, 9.7%
    • BEN – $6.05bn, 9.3%
    • BOQ – $5.16bn, 12.4%
    • SUN – $3.67bn, 6.4%
    • AMP – $2.25bn, 10.9%
  • Reliance Worldwide (RWC) +10.47% Notes Q1 has been particularly strong from a sales perspective. Americas net sales for September up 29%. Asia pacific net sales up 4%. “Looking ahead, we remain cautious. The US has been boosted by the surge in DIY activity and the return of construction activity to pre-COVID levels, but without further government stimulus measures this growth is likely to slow. We expect some softening in the Australian market as the reduction in new housing construction approvals leads to lower building activity. In the UK we are uncertain as to where underlying demand levels will settle once the pent-up demand for products and plumbing services has been satisfied. We are also watchful as to the impact the recent rise in COVID-19 case numbers may have on demand and plumbing activities there.”
  • Flight Centre (FLT) +2.83% To close a further 90 stores across Australia. Closures were prompted by the ongoing domestic and international border closures, which have “led to billions of dollars in future travel bookings being cancelled”. The company added that it was already shifting its leisure business towards call-centres and online, and noted that including the company’s other brands such as Travel Partners, Student Universe and Travel Money, the group will have about 400 Australian stores, compared to 944 at the beginning of 2020.
  • Freedom Foods Group (FNP) – Appoints Josée Lemoine as CFO effective November 16. Lemoine joins Freedom Foods Group from her most recent role as CFO of InvoCare. One dead end job to another.

ECONOMIC NEWS

  • House values in major cities dropped 0.2% last month, CoreLogic Inc. data showed. In Sydney, prices fell 0.3% in September. Prices in Melbourne, which is in its third month of lockdown after a resurgence in coronavirus cases, declined 0.9% last month, to be down 5.5% since the pandemic started.
  • Total job vacancies in August 2020 were 206,000, an increase of 59.4 per cent from May 2020
  • Private sector vacancies were 184,100 in August 2020, an increase of 65.4 per cent from May 2020.
  • Public sector vacancies were 21,900 in August 2020, an increase of 22 per cent from May 2020.

COVID – 19 NEWS

  • India reported another 86,821 coronavirus cases on Thursday. Now 6.31m infected.
  • Germany will unveil a draft law that would give employees the legal right to work from home.
  • Japan’s ruling party will consider additional economic stimulus to prop up the economy amid the pandemic, and will compile another extra budget if needed.
  • Singapore is planning to allow so-called cruises to nowhere. The cruises will have a maximum occupancy of 50%.
  • Madrid heads to lock down.

BONDS

ASIAN NEWS

  • The Tokyo Stock Exchange halted trading for the entire day on Thursday on hardware breakdown, causing the worst-ever breakdown for the world’s third-largest bourse. There were no indications that the outage was related to hacking, the exchange said.
  • The US is about to announce Vietnam currency probe. The probe comes after the Department of Commerce and the Treasury named Vietnam as a currency manipulator. Vietnam has the fourth largest trade surplus with the US.

EUROPEAN AND US HEADLINES

  • Modestly firmer start expected for European markets.
  • Bayer announces EUR1.5bn of write downs.
  • American and United airlines to cut 32,000 jobs as aid talks fail. Both have agreed to reverse the job cuts if aid is forthcoming.
  • Moderna says vaccine will not be ready by election.
  • The Fed has extended its curbs on bank dividends and buybacks until the end of the year.

And finally…

FOR SALE
Large parachute, used once, never opened, small stain.

An elderly man in Florida had owned a large farm for several years. He had a large pond in the back, it was properly shaped for swimming, so he fixed it up nicely with picnic tables, horseshoe courts, and some orange and lime trees.
One evening the old farmer decided to go down to the pond, as he hadn’t been there for a while, and look it over. He grabbed a five-gallon bucket to bring back some fruit. As he neared the pond, he heard voices shouting and laughing with glee. As he came closer, he saw it was a bunch of young women skinny-dipping in his pond. He made the women aware of his presence and they all went to the deep end.

One of the women shouted to him, ‘We are not coming out until you leave!’ The old man frowned, ‘I didn’t come down here to watch you ladies swim naked or make you get out of the pond naked’. Holding the bucket up he said, ‘I’m here to feed the alligator

Clarence

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