ASX 200 up another 109 points to 6450 as the vaccine rally continues. Dow futures more muted at 73 points up. Another straight out of the blocks move higher with a mid-morning wobble shrugged back off again. Banks were back in demand following CBA results, the Big Bank Basket rose to $135.78 with the insurers doing very well as 10-year bond yields going through 1%. Higher bond prices feed in to lower growth stock valuations in the models and we saw some selling in JBH on a broker downgrade falling 4.4% but no wholesale flogging of the retail sector unlike yesterday, neither did we see a huge rush into travel stocks, a far more muted day with FLT up 1.5% and WEB up 4.1%. Good to see a bounce back in some REITs like GMG that suffered yesterday up 4.6%, Industrials firmed with WOW up 1.6% and TCL up 4.1% for obvious reasons. The big miners were mixed with FMG softer though, falling 1.6%, BHP rose 2.3% on higher commodity prices and gold miners under pressure again, NCM down 1.0% and NST down 3.9%. Energy stocks continue to have a tiger put in their tank with WPL up 6.3% after an investor day and STO up 6.4%. Tech stocks firmed, XRO had a huge surge up 6.7% and APT rallied 3.1% with the All Tech Index up 2.2% on XRO’s move. In corporate news, AST rose 5.1% on its first-half results, profit coming in well ahead of consensus. CPU up 3.3%, notes performance in FY21 has tracked ahead of expectations. Guidance reaffirmed. ECX up 5.6% on its full-year results. Z1P up 1.7%, Quadpay acquires Sydney-based technology company Urge Holdings for US$6.1m. Westpac-Melbourne Institute Consumer Confidence Index lifted 2.5% to 107.7 in November. The 10-year bond yield knocking loudly in the door of 1% and the AUD steady at 73.10c. Asian markets mixed with Japan up 1.7% and China slipping 0.12% on tech slips.
- ASX 200 up 109 to 6450. Big volume day again.
- High 6457 Low 6355. Big range again.
- Big Bank Basket see huge rise to $135.78
- All Tech up 2.2%
- Dow Futures up 73.
- Gold slips to AUD$2578
- Huge day for 10-year bond yields up to a one month high at 0.98%
- AUD rallies to 73.10c
- Bitcoin consolidates at $15,314
- Asian markets mixed with Japan up 1.7% and China slipping 0.12% on tech slips.
- MAQ +2.41% investor update.
- APT +3.07% BNPL regulations delayed for another two months.
- SM1 -7.94% placement
- JBH -4.39% post CV sell off. Macquarie downgrades.
- AGG -4.70% WGX -4.17% gold slips again.
- DMP +0.19% WES +0.34% Macquarie downgrades.
- VUK +14.29% really? As the UK gets worse.
- OSH +7.55% oil bounce.
- XRO +6.66% squeezed higher. Having a devil of a time.
- CGC +6.50% berries in demand.
- AFG +6.38% record low rates driving housing.
- 3DP +30.56% big run on a newsletter write up.
- VUL +18.21% back in favour.
- PLL +1.56% sampling program begins.
- HVN -2.67% Shonky Award win.
- WBT +10.75% winner, winner chicken dinner.
- PTM +5.88% market gearing.
- MSB +4.79% CV19 trials continue.
- LSF +4.50% NTA gap closing.
- Speculative Stock of the Day: Straker Translators (STG)+75.69% Strategic agreement with IBM. Extends one language to 55. Translation services now available in 55 languages.
- Biggest Winners: VUK, TLX, WHC, OSH, BPT and XRO.
- Biggest Losers: NTO, SM1, RMS, RED, AGG, AD8 and JBH.
- CBA (CBA) +2.76% Q1 cash NPAT $1.8bn, down 18% vs year ago.Loan impairment expense (LIE) $550m, or 28bps of average Gross Loans and Acceptances (GLAA). Consumer arrears continued to be insulated by loan repayment deferrals and government support initiatives through the quarter. At the end of October, ~46,000 home loans remained in deferral (balances $19bn) down from 125,000 loans (balances $49bn ) in June. Credit Card’s arrears improved in the quarter. Personal loans arrears were broadly flat over the quarter. Troublesome and Impaired Assets (TIA) were lower at $8.4bn, the movement mainly reflects lower home loan impairments due to ongoing COVID-19 support. Total credit provisions increased to $6.7bn, representing a coverage ratio of 1.81% to total credit risk-weighted assets (+11bpts).
- AVITA Therapeutics (AVH) -2.13% Q1 revenue US$5.1m vs year-ago US$3.3m and consensus US$5.1m. Net profit –$10.2m vs year-ago -$3.6m. EPS US48c vs year-ago US19c. Cash US$65.8m at the end of September.
- Zip Co (Z1P)+1.69%Quadpay has acquired Sydney-based technology company Urge Holdings, known for its fashion search engine The Urge as well as a “Shazam for fashion” app known as Shnap, for a purchase price of ~$6.1m.
- Evans Dixon (ED1) – unchanged – Near term performance will be hit by structural changes in Funds Management, increased insurance costs and higher legal costs. Wealth – strong medium-term prospects, FY21 expected to be impacted by cost of ASIC proceedings. Funds – continue to expect softer core performance in FY21 as business model transitions, however strong unrealised gains on equity investments may benefit performance – this remains subject to change as revalued on a mark-to-market basis. E&P – deal pipeline strengthening into 2H FY21 as origination efforts gain traction in targeted sectors and COVID-19 impacts on market activity levels ease.
- AusNet Services (AST) +5.08% H1 profit $225.7m vs year-ago $171.8m and consensus $164m. Revenue $1.04bn vs year-ago $1.02bn and consensus $1.08bn. Interim dividend declared 475c/share. On track to reach $1.5bn of contracted energy infrastructure assets by FY24. Reiterates guidance: Sees FY21 dividend of 9.0 – 9.5cps, 40% franked. Expects regulated asset base growth around 2-2.5% p.a. to FY24.
- Computershare (CPU) +3.32% Financial year to date performance slightly ahead of expectations. Reaffirms FY guidance: Management EPS to be down by around 11% vs year ago. Sees EBIT ex margin income growth of ~10% vs year ago. Expects seasonality split of H1/H2 around 42%/58% vs prior 40%/60%.
- Eclipx Group (ECX) +5.62% Full-year core profit $47.5m vs year-ago $46.5m.Revenue $674.2m vs year-ago $709m. Group EBITDA $77.4m vs year-ago $59.5m.
- Woodside Petroleum (WPL) +6.31% Expects full-year production between 99-101MMboe. Sees FY21 investment expenditure in the range of US$2,100 -2,300m. Total expenditure guidance ~US$2,900m, increase primarily resulting from additional Sangomar interest. Unit production cost increase of ~US40c/boe, attributable to COVID-19 and related events.
- Westpac-Melbourne Institute Consumer Confidence Index lifted 2.5% to 107.7 in November.
- The “time to buy a dwelling” index surged 8% from 122.2 to 132 – the highest reading since November 2013. The index is 11% above its level from a year ago.
- NSW recorded a 9.4% jump in buying intentions to 131.6 points. Queensland was up 11.7% to 132.4 points, while even Victoria saw a solid recovery, up 5.2% to 124.2 points.
- Westpac’s house Price Expectations survey also strengthened. It jumped 12% to be only 7.3% below its level in March and 5.5% above its long-term average.
- RBNZ kept rates on hold.
- Tasmania will open its borders to Victoria from November 27th.
COVID – 19 NEWS
- Hong Kong will exempt some of its residents arriving from Guangdong from a 14-day quarantine beginning Nov. 23.
- Japan recorded a total of 1,287 cases on Tuesday, according to a tally by local broadcaster NHK, the second-highest day of infections.
- The U.S. had a record 61,964 patients currently in hospital. Current hospitalisations have climbed at an average of 1,661 patients per day in the past week.
- Chinese technology shares tumbled for a second day after Beijing clamped down on the internet industry. Hang Seng Tech index has slumped almost 10% in two days.
- The new regulations for the internet industry signal a “further tightening” of the online economy.
- Singles Day in Asia. China retail sales sank 7% this year as GDP growth rebounded. Sales totaled 372.3 billion yuan ($56.3 billion) after just the first 30 minutes on Nov. 11.
EUROPEAN AND US HEADLINES
- Mike Pompeo says Trump administration is not finished yet with China.
- Apple changes its Macs now powered with own processor.
- The dash for cash begins as American Airlines, Carnival and Lufthansa kicks things off with capital raises.
- EU accuses Amazon of breeching antitrust rules.
Lest We Forget