The ASX 200 up 18 to 6660 in a tale of two cities. Late sell off takes it well off highs. Banks driving index higher with miners seeing selling pressure. Dow futures ahead 160 points on vaccine roll out. The Big Four were back in demand today as the economy bounced back and the prospect of a return to the dividend stage in 2021 grows. Housing hitting frothy highs. The Big Bank Basket hit $150.68, led by CBA up 1.9%, whilst miners sagged led by BHP down 0.2% and FMG off 3.4%. Gold miners slipped lead by NCM down 0.9% and Energy stocks were becalmed with STO down 1.6% and WPL off 0.5%. Consumer stocks did well with WES up 2.7% to new records, TCL rose 0.8% on a financing deal and WOW and COL surged ahead up 0.7% and 1.1% respectively. In tech stocks, APT rose 8.8% to new records on ASX20 inclusion and XRO showing a clean pair of heels up 1.8%. In corporate news, CIM down 0.6%, approves further buyback of up to 10% of the Group’s shares over the next 12 months. Sovereign Cloud (SOV) jumps 46.7% to 114c after its listing this morning. Not much on the economic front, the ABS has released some analysis on the early recovery and second wave impacts. The 10-year yield slipping to 0.95%, AUD steady at high levels. Asian markets firm with Japan up 0.5% and China up 0.6%.
- ASX 200 up 18 to 6660. Narrow range and low volume.
- High 6694 Low 6646. Soft close.
- Big Bank Basket up to $150.68
- All Tech up 1.01%
- Dow Futures up 160points.
- Gold steady at AUD$2435
- 10-year yields slip to 0.98%
- AUD slips to 75.39c
- Bitcoin kicks higher to $19176
- Asian markets firm with Japan up 0.5% and China up 0.6%.
- APT +8.8% hits record on ASX 20 inclusion.
- APE +5.1% sells truck business.
- FMS -14.13% receives restructuring opportunity.
- FDV -0.70%% All Tech Index inclusion.
- SHV +1.13% Bell Potter downgrades forecasts.
- BCI +7.14%% secures $450m NAIF loan.
- CWN +0.72% class action
- PDN +19.05% uranium run continues.
- PAN +12.00% nickel boost.
- EMV +8.42% tax rebate.
- GPR -4.30% completes $140m raising.
- MIN -1.56% GS lifts PT 30%.
- IFL +2.75% ACCC says yes to MLC.
- RDH +7.19% bid from UCW.
- PSQ +12.74% beams from ear to ear on FY21 earning upgrade.
- MLD – launches capital raise for Dow business.
- PBH -6.23% tests support.
- TYR -4.35% business update.
- WSA -3.10% shorts winning.
- LYC -2.86% profit taking continues.
- IPO of the Day Sovereign Cloud (SOV) +46.67% a public sector cloud computing company using only data centres in Sydney and Canberra.
- Speculative Stock of the Day: Shree Minerals (SHH) +76.92% on a corporate presentation. NBR Iron ore project update. Care and maintenance since June 2014 not going through permitting process.
- Biggest Winners: ERA, LTR, ASM, APT, GWA and ZIM.
- Biggest Losers: CHN, TLX, PBH, CDA, HMC and ALK.
- Asaleo Care (AHY) -0.78% Multiple Asaleo Care shareholders see Essity’s bid of 126c as undervaluing company.Merlon Capital Partners, owners of ~1.6%, are reportedly calling for 167c/share. Spheria Asset Management, which holds ~7%, believe the company is worth north of 200c/share.
- Kina Securities (KSL) +1.69% CEO says that the acquisition of Westpac’s pacific businesses is part of a three to five year plan to scale up.Kina Securities CEO Greg Pawson says that the group has ambitions to become the Macquarie Bank of PNG, and over the medium to long term, he is eyeing a banking licence in Australia.
- Regis Resources (RRL) +0.54% Board approves development of a new underground mine under the current Garden Well open pit. Underground mineral resource estimate of 2.4Mt at 3.6g/t Au for 270koz Au. Total material mined in the feasibility study 1.85Mt at 3.2 g/t Au for 190koz Au. Development to commence in the March 2021 quarter. Pre-production capital is estimated at $38m. Project AISC $950-1,050/oz with growth capital $15-20m.
- CIMIC Group (CIM) -0.62%To conduct a further on-market share buy-back of up to 10% for a period of 12 months from December 29. CIMIC’s current on-market share buy-back will end on December 28. The new buy-back will continue to meet CIMIC’s previously stated aims of enhancing shareholder returns and capital efficiency, and maintaining balance sheet flexibility to pursue future growth and investment opportunities. The timing and number of shares purchased will depend on the CIMIC share price and market conditions.
- Eagers Automotive (APE) +5.10% To sell Daimler truck operations and Milperra property to Velocity Vehicle Group for $108m.Will deliver an estimated pre-tax gain of $32-36m. Transaction completion is anticipated in Q1 2021.
- Viva Energy Group (VEA) -0.97% Welcomes Federal Government announcement to provide interim refinery production payment for six months from January 1 2021. Under the grant, the company will receive a minimum payment of 1 cent per litre for production of primary transport fuels (gasoline, diesel and jet) refined from crude oil at the Geelong Refinery. Estimates that the payment will contribute ~$30m to underlying refining EBITDA for the six months from January to June. The company will provide unaudited FY financial guidance on Friday.
- IOOF Holdings (IFL) +2.75% Acquisition of MLC Wealth Management not opposed by ACCC.
- Altium (ALU) -0.36% To sell the assets of its TASKING business to FSN Capital for US$110m. ALU to focus on transformation & building/acquiring complementary assets.
- Crown Resorts (CWN) +0.72% Is the subject of a class action law suit from Maurice Blackburn. The claim alleges that from 11-Dec-14 to 18-Oct-20, Crown had inadequate systems and processes for ensuring compliance with its obligations under anti-money laundering laws and that Crown engaged in misleading and deceptive conduct, breached its continuous disclosure obligations and conducted its affairs contrary to the interests of members as a whole.
Measuring the early recovery and second wave impacts. Click here for the full release.
Statistician, Dr David Gruen, said: “The September quarter showed signs of recovery from the major economic shocks of the June quarter.
- Gross domestic product recovered by $15.3 billion (3.3%) but remained $19.5 billion (3.9%) below the March quarter.
- Employment increased by 242,000 people (2.0%) over the quarter and hours worked recovered by 1.9%. By September, employment remained around 3.1% below March, and hours down by 5.0%, with both recovering further into October.
- The level of support from governments continued to be unparalleled in Australian history, with around $35.8 billion on JobKeeper and around $13.5 billion on Boosting Cash Flow for Employers in the quarter.
- The article also highlights the impacts from Victoria’s second wave of COVID-19 infections and the restrictions imposed to limit the spread of the virus.
- Key national accounts and labour market measures showed further falls for Victoria in the September quarter, but early recovery in the other states and territories.
- Westpac’s Bill Evans tips more QE from RBA. He is also forecasting the Australian dollar to hit US82¢ in the first half of 2022 before flattening off in the second half of 2022.
COVID – 19 NEWS
- NZ Prime Minister Jacinda Ardern said a travel bubble with Australia could begin in the first quarter of 2021.
- South Korea reported a drop in new cases — to 718 — after posting a record of more than 1,000 infections on Sunday.
- London will probably slip into England’s most restrictive Tier 3 coronavirus category because infection rates are rising so fast.
- Covid-19 patients in intensive-care units in France increased for the first time in almost four weeks, rising by 10 to 2,871.
- Nothing exciting. China’s new home prices up only 0.1% M/M in November.
EUROPEAN AND US HEADLINES
- US government agencies hit by a hacker attack during a software update.
- A ship was hit by an explosion near the Saudi Arabian port city of Jeddah on Sunday, according to the United Kingdom Marine Trade Operations.
- New split stimulus bill expected to be unveiled Monday in US.
- Trump still refuses to concede, continues to claim fraud.
- The Electoral College due to gather today.
- Brexit looms as UK and EU continue to argue.
- John Le Carre dies.
- Amazon looking to get into Cricket streaming in India.
- Eurozone banks could kick off dividends under strict controls.
Yesterday I was at my local Tesco’s store buying a large bag of My Dog dog food for my loyal pet and was in the checkout queue when a woman behind me asked if I had a dog.
What did she think I had an elephant?
So, since I’m retired and have little to do, on impulse I told her that no, I didn’t have a dog, I was starting the Dog Diet again. I added that I probably shouldn’t, because I ended up in hospital last time, but I’d lost 10 kilograms before I woke up in intensive care with tubes coming out of most of my orifices and IVs in both arms.
I told her that it was essentially a perfect diet and that the way that it works is to load your pockets with My Dog nuggets and simply eat one or two every time you feel hungry. The food is nutritionally complete so it works well and I was going to try it again. (I have to mention here that practically everyone in queue was now enthralled with my story.)Horrified, she asked me if I ended up in intensive care because the dog food poisoned me. I told her no, I stepped off the kerb to sniff an Irish Setter’s bottom and a car hit me.
I thought the guy behind her was going to have a heart attack he was laughing so hard. I’m now banned from Tesco’