The ASX 200 rose 7 points to 6687 (0.11%) in another lacklustre day of trade. Dow futures up 61 points. Banks firmed with the Big Bank Basket up to $154.21. Other financials fared less well with MQG slipping 1.3%. WBC rose 0.5% and ANZ up 0.5%. Miners mixed with BHP up 0.5% and NCM up 3.2%,as the rest of the sector rose despite bullion unchanged. Industrials slipped slightly again with WOW down 1.5% and COL off 2.4% together with CSL off 0.7%. Oil and gas stocks were back in favour as LNG prices continue to get squeezed higher on Asian cold snap. WPL rose 5.4%, STO up 3.9% and ORG up 3.0%. Telco were back in favour as TLS showed a clean pair of heels rising 2.7% and VOC up 1.2%. Tech slipped again APT down 1.4% and XRO down 1.4%. In corporate news, PMV up 12.7%, expects first-half earnings +75-85% on the year. MYR up 8.5% and RBL up 4.6%. SPT up 0.7% after clarifying its Google Japan partnership details. PPS rose 15.6%, Q2 funds under administration (FUA) $34.32bn vs quarter-ago $31.24bn. ALU slipped 6.2%, brokers retain NEUTRAL ratings after its H1 update. On the economic front we had some job vacancy news showing a 23.4% increase from August and the 10-year yield hovering around 1.11%. In Asian markets, Japan rose 0.98% and China up not much at all.

Today’s Highlights

  • ASX 200 up 7 points to 6686. Wishy washy again.
  • High 6692 Low 6657. Narrow range.
  • Big Bank Basket rises to $154.21
  • All Tech down 0.8%
  • Dow Futures up 61.
  • Gold steady at AUD$2395
  • 10-year yield steady at 1.11%
  • AUD down to 77.66c
  • Bitcoin back to $33,790
  • In Asian markets, Japan rose 0.98% and China up not much at all.

STOCKS

  • MSB -6.15% reality bites.
  • TYR -2.08% around 19% of terminals are terminal.
  • PPS +15.57% positive update.
  • WHC +9.38% King Coal. A merry soul today.
  • PBH +7.74% one of most tipped in Livewire.
  • Z1P +1.30% last day of SPP.
  • SOR -10.99% profit taking.
  • POS +8.70% nickel is back.
  • OSH +6.22% gas price rises.
  • PMV +12.72% positive trading update.
  • FDV +8.54% off highs but still firm.
  • PNV -9.15% shorts sticking the boot in.
  • PPH -3.58% lacklustre response to update
  • NVX -4.14% profit taking.
  • Speculative Stock of the Day: Sayona Mining (SYA) +71.43% mentioned a day or so ago after a strategic investment by PLL. Still going well.
  • Biggest Winners: PMV, PLS, LTR, WHC, OMH, FDV and PBH.
  • Biggest Losers: PNV, JIN, ALU, TLT, MSB, ERA and IMU.

TODAY

  • Audinate Group (AD8) +0.64% First half unaudited revenue US$11.1m vs year-ago US$9.3m.The strengthening AUD / USD exchange rate has adversely impacted unaudited revenue in AUD which amounts to ~$15.4m.
  • Newcrest (NCM) +3.18% Has received the necessary regulatory approvals to commence key early works at the Havieron Project. The board has approved funding of $146m for the remainder of the early works program.
  • Clean TeQ Holdings (CLQ) +12.28% completes SPP at 25c/share to raise gross proceeds of $12.9m. Update on water business demerger: any demerger is likely to be optimised by undertaking a spin out of the Water Business into a new entity by way of a capital return comprising a pro-rata in-specie distribution of shares in Newco to Clean TeQ shareholders. The company is progressing the review which is expected to conclude in Q1 of CY21.
  • Praemium (PPS) +15.57% Q2 funds under administration (FUA) $34.32bn vs quarter-ago $31.24bn. Australia FUA $16.45bn vs quarter-ago $15bn. International FUA $3.91bn vs quarter-ago $3.47bn. Virtual Managed Accounts admin service FUA $13.97bn vs quarter-ago $12.77bn.
  • Premier Investments (PMV) +12.72% Expects first-half EBIT (pre-AASB 16) between $221-$233m, +75-85% vs year ago. Online sales were $146.2m, +60% vs year ago. Online contributed 20.4% of total Group Sales vs year-ago 13.4% and delivered significantly higher EBIT margin than the EBIT margin of the retail store network. Premier’s full H1 results will consist of 27 weeks ending 30-January.
  • Splitit Payments (SPT) +0.72% Partnership with Google Japanis for an initial 12-month term which will be automatically renewed unless either party gives notice to terminate. The economic materiality is unknown due to the variable nature of revenues which are dependent on customer uptake of specific products. Splitit, however, expects that partnering with Google in Japan may have a material impact on Splitit’s brand and business development prospects.
  • Universal Store (UNI) +14.37% Expects to report H1 underlying EBIT (pre AASB16) between $30-31m.H1 sales approximately $118m, +24% vs pcp. Like-for-like sales growth (including online) +26.5%. Due to the ongoing uncertainty relating to COVID-19 the company is not providing guidance for FY21.

ECONOMIC NEWS

  • The number of job vacancies in Australia increased by 23% over the November 2020 quarter, according to new seasonally adjusted figures from the Australian Bureau of Statistics (ABS). On an annual basis, job vacancies were 12%higher than November 2019.

Key statistics

The seasonally adjusted estimates for the November 2020 quarter are as follows :

  • Total job vacancies were 254,400, an increase of 23.4% from August 2020.
  • Private sector vacancies were 228,800, an increase of 24.2% from August 2020.
  • Public sector vacancies were 25,600, an increase of 16.9% from August 2020.

BONDS

COVID – 19 NEWS

  • CoronaVac efficacy rates in Brazil at around 50%.
  • World Bank Chief Economist Carmen Reinhart is worried that the protracted nature of the Covid-19 pandemic may overwhelm household and business balance sheets.
  • China reported 107 local coronavirus cases on Jan. 12, including 90 in the northern province of Hebei and 16 in the north eastern Heilongjiang province.
  • Pfizer Inc. and federal health officials are looking into the death of a health-care worker 16 days after the person received the first dose of the company’s Covid-19 vaccine. The worker developed severe thrombocytopenia and stops blood clotting.
  • In the UK, there are now 3,363 people on ventilation, compared with a previous peak of 3,301 set on April 12 last year, the latest data shows.
  • A shadow hangs over the 20201 Japanese Olympics as Covid continues to cause problems in Japan.
  • Indonesia has started the regions’ biggest ever inoculation program with President  Widodo first in line.

ASIAN NEWS

  • South Korea’s jobless rate hit a 10-year high in December as the country’s worst coronavirus outbreak forced businesses to slash hiring.
  • Betcoin loses another 7% for worst week since March. JP Morgan still has a US$146,000 price target. Tell him, he’s dreaming.
  • Chinese freight company IPO has been run over by a truck load of demand with US$3bn of bids for a US$400m debutante.

EUROPEAN AND US HEADLINES

  • Pence rules out the 25th Amendment. The House voted to demand that Vice President Mike Pence use the Constitution’s 25th Amendment to remove Donald Trump from office. The vote passed 223-205 in a largely symbolic gesture given Pence’s stance.
  • Canadian company Couche-Tard in discussions with Carrefour of France for a merger.
  • Oxford researchers find contractors employed to manipulate opinion in 48 countries.
  • Hot IPOs continue with Affirm pricing at top of range for consumer lender led by Paypal founder.
  • Saudi Arabia slashed crude oil supplies to at least nine refiners in Asia and Europe following cuts to production of around 1m barrels.
  • Biden is set to seek a deal with Republicans for the next round of stimulus though it could lead to a lower number due to consensus. Cooperation is the name of the game.

And finally…..

Truths + Rules Of Life

There are three things that cannot be easily hidden, the Sun, the Moon, and the Truth. Here are Two Truths and 5 Rules of Life:

SIMPLE TRUTH 1:

Lovers help each other undress before sex.

However, after sex, they always dress on their own.

Moral of the story — In life, no one helps you once you’re screwed.

SIMPLE TRUTH 2:

When a lady is pregnant, all her friends touch the stomach and say, “Congrats.”

But, none of them comes up to the man – touch his penis and say, “Good Job.”

Moral of the story – Hard work is rarely appreciated.

FIVE RULES TO REMEMBER IN LIFE:

1. Money cannot buy happiness – but it’s far more comfortable to cry in a Porsche than on a bicycle.

2. Forgive your enemy – but remember the asshole’s name.

3. If you help someone when they’re in trouble – they will remember you when they’re in trouble again.

4. Alcohol does not solve any problems – but then, neither does milk.

5. Many people are alive only because it’s illegal to shoot them.

Clarence

XXX