The ASX rose 41 points to 6675 easing back from earlier highs as banks and industrials tempered gains. Dow futures off 50 points after records tumble. Big Miners were in demand with BHP up % and FMG up %. Oil too better again as WTI prices march higher, STO up 3.3% and WPL up 0.6%. The Big Bank Basket rose to $147.60. CSL back in front on some vaccine hopes up 0.4% whilst other healthcare stocks ignored. Consumer stocks higher following MTS results,WOW up 1.9% and COL up 1.6%. MTS rising 10.2% on its results. Tech stocks better, XRO up 4.2% on a broker upgrade. The All Tech Index rose 0.8% In corporate news, HMC up 1.5% completes placement, raising $125m at 380c/security. DOW up 3.5% confirms it is in discussions with MACA in relation to the sale of its Open Cut Mining West business. KGN up 3.8%, despite $350K Federal Court penalty for a breach of Australian Consumer Law in regards to June-18 promotion. ABARE published its December quarter report. 2020-21 gross value of agricultural production is forecast to rise by 6.9% to $65.09bn. Revised upward from September quarter. Value of exports expected to fall by 7.2% to $44.76bn. ELD down 1.3%. In economic news, Victoria and NSW has been downgraded to AA from AAA by S&P Ratings. RBA’s Lowe said the “board would only regulate BNPL “when it is clear that doing so is in the public interest.” Adding it was unlikely BNPL operators would have to remove their no-surcharge rules. APT up 2.2%. Job advertisements in newspapers and on the internet surged 13.9% in November. 10-year yields at 1.02% and AUD at 74.30c. Asian markets drop slightly with Japan down 0.5% and China off 0.6%.
- ASX 200 up 41 to 6675. Average volume.
- High 6715 Low 6652. Well off highs.
- Big Bank Basket up to $147.60
- All Tech up 0.8%
- Dow Futures down slightly by 50 points.
- Gold stable at AUD$2475
- 10-year yields rose again to 1.03%
- AUD steady at 74.31c
- Bitcoin steady at $19,243
- Asian markets drop slightly with Japan down 0.5% and China off 0.6%.
- TLT +16.49% company responds to bid approaches.
- NXL +13.11% buyers continue to pile in.
- MSB +3.94% more good news on Remestemcell-L.
- WHC +4.98% YAL +7.83% coal back in the black.
- ERA +6.45% PDN +27.27% uranium moving higher.
- GEM +6.17% good push higher.
- IEL -4.94% thin but selling dominates.
- TYR -4.86% business update.
- EVT -3.67% Cinestar update.
- VUL +7.51% rally continues.
- TEK -1.41% on 7% increase in NRA.
- REX +17.53% response to price query.
- KSL +13.33% buys WBC Pacific business.
- OGC +31.58% Didipio mine FTAA comments.
- Speculative Stock of the Day: Cirralto (CRO) +26.67% Business Payments Service Provider agreement with Fiserv (Nasdaq listed)
- Biggest Winners: TLT, NXL, MTS, YAL, CIA, SGM, ERA and GEM
- Biggest Losers: PAR, RED, IEL, TYR, OPT, OPT, VGI and IPH.
- Viva Energy Group (VEA) +2.37% Enters into a memorandum of understanding (MOU) with two partners in relation to the development of Geelong Energy Hub Project. On the current scheduled timeframe, a final investment decision could be taken by mid-2022, with gas supply in 2024, in order to service the expected gas supply shortfall in the Victorian market.
- Metcash (MTS) +10.25% first-half underlying profit $129.6m vs consensus $98.0m. Revenue $7.06bn vs $7.01bn. Underlying EBIT $203.0m vs year-ago $155.7m. Interim dividend 8.0c/share, fully franked. Notes a strong start to H2 with sales momentum continuing in all pillars in the first five weeks of 2H21. Subject to an adverse change in government restrictions, it is expected that trading will benefit from more people travelling domestically over Christmas and New Year period.
- Home Consortium (HMC) +1.54% Completes placement, raising $125m at 380c/security.
- Link Group (LNK) -1.00% Carlyle /PEP consortium expecting to conclude due diligence on Link within the next fortnight. The firms are likely to emerge with an offer of at least 540c a share. Link’s board rejected the private equity firms’ previous bid of 540c.
- Downer (DOW) +3.54% MACA thought to be in talks to acquire Downer’s Western Australia mining services operation. The business is speculated to be worth around $200m. MACA confirms it is currently considering the mining operation.
- Money3 Corp. (MNY) -0.34% Receives commitments for $45m placement at 270c/share and launches $5m share purchase plan (SPP).Depending on the level of demand for the SPP, MNY may decide to scale back applications, or raise an amount up to $7m.
- (AAC, ELD, GNC, NUF) – Australian Bureau of Agricultural and Resource Economics publishes its December quarter agricultural commodities report. 2020-21 gross value of agricultural production is forecast to rise by 6.9% to $65.09bn. Revised upward from September quarter. Value of exports expected to fall by 7.2% to $44.76bn. Exports are expected to fall by less than forecast in September. A lack of access to the Chinese market will likely reduce wine production value and sales in 2020-21. The report includes an analysis of agricultural commodities’ exposure to China, noting wool and cotton as the most concentrated. Observes Australia’s agricultural markets have been largely unaffected by the COVID-19 pandemic.
- Westpac (WBC) – Announced the sale of its Pacific businesses – Westpac Fiji and Westpac’s 89.91% stake in Westpac Bank PNG Limited – to Kina Securities Limited for up to $420m. The sale price includes earn-out payments of up to $45m which are scheduled to occur annually over 24 months following completion and are subject to the business performance of Westpac Fiji. For Westpac, it is expected there will be an accounting loss on the sale of approximately $230m including a foreign currency translation reserve (FCTR) loss which will be based on exchange rates on completion. The AFR reported in September that the Australian government has concerns over Westpac’s potential sale of its Fiji and PNG businesses.
- Crown Resorts (CWN) -0.31% Announces revised Crown Melbourne operating conditions to commence from December 9.The number of members of the public permitted at any one time is limited to 50% of the maximum capacity for the facility stated in the occupancy permit. The number of members of the public permitted in each indoor space at any one time is limited by the density quotient of one person per four square metres. Crown expects to commence operating under the revised directions from Wednesday, and will continue to engage with the Victorian Government on the implementation of these revised directions.
- Job advertisements in newspapers and on the internet surged 13.9% in November, after an upwardly revised 11.9% rise a month earlier. Ads are still down 3.3% from a year ago.
COVID – 19 NEWS
- South Korea reported 615 new coronavirus cases in 24 hours.
- The U.S. is hospitalising almost 2,000 coronavirus patients a day, data released by the Department of Health and Human Services show.
- Los Angeles County, which has the most number of cases and deaths in the U.S., added a record 10,528 new cases.
- Rudy Giuliani tests positive. CV19 are expected to get worse over the next four to six weeks. By the end of January there may be as many as 400,000 deaths.
- France reported 11,022 new cases, as the seven-day average increased for a second day to 10,573.
- U.K. infections rose by 17,272 on Sunday, the highest since Nov. 26 and 20% above the seven-day average of 14,400.
- In India, vaccines will be available to buy privately for around US$8.
- Chinese exports rose 21.1% in dollar terms in November from a year earlier, the most since February 2018, while imports gained 4.5%.
- China’s trade balance with the U.S. reached a new record of US$37.4bn. The trade surplus of $75.4bn for the month, which was the largest on record in data going back to at least 1990.
- Imports of iron ore in the first 11 months of this year rose almost 10.9% from the same period in 2019.
EUROPEAN AND US HEADLINES
- US preparing to issue further sanctions on Chinese officials on HK issues.
- Brexit talks continue. Are we there yet? Trade talks on a knife edge says Ireland.
- JP Morgan says these are the crowded trades currently, crowded trades include: short the U.S. dollar versus cyclical developed-market currencies, long copper and long Bitcoin. On the other hand, bullish positions on oil and gold are less crowded.
- Californians told to stay home.
- The Deadline has passed for ByteDance to restructure TikTok.
- Airbnb pricing to be set Weddnesdfay with trade to begin on Thursday at between US$56-$60 and a valuation around US$42bn.
The dumb things that some people say:
Question: If you could live forever, would you and why?
Answer: “I would not live forever, because we should not live forever, because if we were supposed to live forever, then we would live forever, but we cannot live forever, which is why I would not live forever,”
–Miss Alabama in the 1994 Miss USA contest.
“Whenever I watch TV and see those poor starving children all over the world, I can’t help but cry. I mean I’d love to be skinny like that, but not with all those flies and death and stuff.”
“Smoking kills. If you’re killed, you’ve lost a very important part of your life,”
— Brooke Shields, during an interview to become spokesperson for federal anti-smoking campaign
“Half this game is ninety percent mental.”
–Philadelphia Phillies manager, Danny Ozark
“Your food stamps will be stopped effective March 2020 because we received notice that you passed away. May God bless you. You may reapply if there is a change in your circumstances.”
– Department of Social Services, Greenville , South Carolina
“If somebody has a bad heart, they can plug this jack in at night as they go to bed and it will monitor their heart throughout the night. And the next morning, when they wake up dead, there’ll be a record.”
— Mark S. Fowler, FCC Chairman
“The word “genius” isn’t applicable in football. A genius is a guy like Norman Einstein.”
–Joe Theisman, NFL football quarterback & sports analyst.