The ASX 200 jumped another 53 points to 6824 as MS upped its year end forecast to 7200 and the markets celebrated the Biden ascendency. Dow futures up 55 points. Banks led the charge with the Big Bank Basket up $156.18 and MQG rising 0.7%. QBE also had a rare day out up 1.7% as insurers firmed.  Big miners firmed as BHP rose 1.6% on broker calls, FMG flatlined after iron ore fell slightly, NCM rose 0.6% together with RRL up 1.9%. CSL continues to stumble around down 0.8% where others in the healthcare space rose as SHL up 1.7% and RHC up 1.2%. Industrials firmed with WOW up 2.0% and in tech the goliath that is APT, rose 5.7%. Tech stocks rose with the index up 2.2%. Energy stocks slipped after production reports, STO unchanged and WPL down 1.6%. In corporate news, Z1P up 23.1% on its Q2 update, customers up 97% on the year. SZL up 7.3% in sympathy. Production reports are coming in thick and fast with NST +1.6%, BPT -0.5%, PRU +3.2%, and SAR +2.0% all dropping numbers. In other financials, NWL is up 11.7%, FY2021 net inflows are expected to be in the range of $8.5-9.0bn vs previously guided $8.0bn. VCX down 2.5%, reported a 4.0% decline in retail portfolio valuations for the six-month period to December. CWY down 8.5%, Managing Director Vik Bansal to step down. In economic news, jobs numbers came in better than expected with 50,000 added and a headline of 6.6%. 10-year bond yields steady at 1.06%. AUD higher at 77.26c. Asian markets firm with China up 1.8% and Japan up 0.8%

Today’s Highlights

• ASX 200 romps 53 points higher to 6824
• High 6829 Low 6786. Narrow range. Average volume.
• Big Bank Basket up to $156.18
• All Tech higher by 2.19%.
• Dow Futures up 55 points.
• Gold firms to AUD$2407
• 10-year yield slips to 1.06%
• AUD higher at 77.26c
• Bitcoin slips to US$34604 breaks technical support.
• Asian markets firm with China up 1.8% and Japan up 0.8%

STOCKS

• NVX +21.63% US grant.
• Z1P +23.08% Strong US business update.
• VUL -16.99% taking a breather after ASX query.
• RED -7.84% disappointing production guidance
• PLL -4.76% short term profit taking.
• EOS -4.92% losing favour again
• PME -3.45% profit taking continues.
• 4DS +29.41% playing catch up with WBT and BRN.
• AVZ +13.16% news on Manono project
• INR +11.67% produces battery grade lithium hydroxide.
• SYR +7.92% quarterly report price moving higher.
• CWY -8.46% CEO succession.
• SOR -21.62% profit taking as volatility continues.
• MDR +19.12% quarterly report
• AXE +16.56% first patent granted for 12CQ quantum computing chip.
• Speculative Stock of the Day:  Los Cerros (LCL) +70.83% after announcing 320m @1.5g/t drilled from surface at Tesorito. Good volume.
• Biggest Winners: Z1P, NVX, AVZ, NWL, INR, PLS, PDN, SYR and SZL.
• Biggest Losers: VUL, CWY, RED, AFP, BCK, EOS, PLL, BRN and ECX.

TODAY

• Downer EDI (DOW) +0.55% Underground mining services at OZ Minerals’ Carrapateena mine will transition from Downer to Byrnecut Australia. The CEO of Downer, Grant Fenn, said the transition was another step in Downer’s strategy to exit its capital-intensive Mining businesses and focus on its Urban Services strategy. Management Comments: “We remain in active discussions with a number of interested parties in relation to Open Cut Mining East and the Otraco tyre management business.”

• AMP Capital (AMP) +0.64% Advisers for AMP Capital’s Diversified Property Fund are seeking feedback from investors on proposal from Dexus.Newswires speculate that a Dexus proposal which involves merging ADPF with the Dexus Wholesale Property Fund is picking up steam and could have multiple ripple effects. The article notes that a potential takeover bid by Ares seems to rely on finding a buyer for AMP’s bank and wealth management arm but that potential buyers including Bank of Queensland and Bendigo Bank would only be interested at a considerable discount.
• Regis Healthcare (REG) +2.64% Founder Ian Roberts said to be in opposition to the sale of the business. SOL withdrew its bid on Wednesday.
• Bingo Industries (BIN) -0.30% Industry experts doubtful of any competing interest in Bingo Industries. Newswires sceptical any rival interest will emerge.
• Vocus Group (VOC) +0.47% Is understood to have hopes to list its New Zealand operations business at a market value of ~$700m. Sources close to the matter label the valuation as ambitious.
• Saracen Mineral Holdings (SAR) +1.98% Q2 gold production 155.1Koz vs quarter-ago 154.4Koz. Unaudited interim profit of $115m-$125m. AISC $1,224/oz. Gold sales of 150.2Koz at an average price of $2,322/oz, for sales receipts of $349m. On track to meet FY21 guidance of 600-640koz at AISC of $1,300-$1,400/oz.
• PointsBet Holdings (PBH) +5.57% Receives Michigan Gaming Control Board approval to commence online sport betting.
• Link Administration Holdings (LNK) +1.48% Preliminary operating profit $65m vs prior guided $57m. Revenue $597m vs prior guided $594m and consensus $600m. Operating EBIT $79m vs prior guided $77m. Management comments: “PEXA continues to build on its strong business model benefiting from increased transaction volumes on the PEXA Exchange and increased penetration of the national electronic conveyancing market. Importantly, operating EBITDA for 1H FY2021 was $51m compared to the FY2020 full-year Operating EBITDA of $58m.
• Perseus Mining (PRU) +3.24% Q2 gold production 68,614oz at AISC $915/oz. December quarter: Gold sales 66,644oz at average sale price of $US1,687/oz. Sees full-year gold production 175-190Koz at an AISC of US$950-1,150/oz.
• Cleanaway Waste Management (CWY) -8.46% Managing Director Vik Bansal to step down.
• Netwealth Group (NWL) +11.72% Q2 funds under administration (FUA) $38.80bn vs $34.02bn at the end of September. FUA net inflows $2.56bn. FY2021 FUA net inflows are expected to be in the range of $8.5-9.0bn vs previously guided $8.0bn.
• Vicinity Centres (VCX) -2.52% Reports (4.0%) decline in retail portfolio valuationsfor the six-month period to 31-Dec-20.
• Northern Star Resources (NST) +1.57% Q2 gold sold 252.9koz vs guidance of 226-254koz at AIC of $1,825/oz. Unaudited profit of $75-85m. Combined group following merger with Saracen on track to achieve annual production guidance of 1.6Moz with a pathway to 2Moz while unlocking synergies of $1.5-2bn.
• Zip Co. (Z1P) +23.08% Q2 customer numbers 5.7M, +97% vs year ago. Revenue of $102.0m, +88%, transaction numbers 10.7M +149%, merchants on the platform increased to 38.5k +73% vs year ago.
• Santos (STO) – Q4 production (mmboe) 25.4 vs quarter-ago 25.1. FY production (mmboe) 89 vs prior guidance of 87-89. FY21 guidance maintained, assumes sell-down of 25% interests in Bayu-Undan and Darwin LNG to SK E&S in H1 of 2021.
• SEEK (SEK) +3.78% CFO Geoff Roberts to retire, effective June 30.
• Woodside Petroleum (WPL) -1.64% Q4 production 24.9MMboe vs consensus 25.5MMboe. Revenue US$920.0m vs consensus US$879.0m. Sales volume of 29.1 MMboe, +9% q/q. Capital expenditure US$896m vs year-ago US$327m. FY21 Guidance: Production guidance is 90-95MMboe vs consensus 97.4MMboe. Investment expenditure guidance is US$2.9-3.2bn.
• South32 (S32) -0.37% Enter into binding agreement to sell portfolio of non-core minerals royalties to Elemental Royalties Corp for US$55m in cash and shares.

ECONOMIC NEWS

• Australia labour force December: Employment change: +50,000 vs consensus: +50,000, participation rate: 66.2% vs consensus: 66.2%. unemployment rate: 6.6% vs consensus: 6.7%.

BONDS

COVID – 19 NEWS

• Vaccine News: 54.3 doses in 51 countries. 2.76, doses again. 17.2m shots in US. Average of 912,497 a day.
• China limits travel plans over Lunar New Year as CV19 cases rise.

ASIAN NEWS

• Bank of Japan leaves rates unchanged as gloomy outlook continues.

• Hong Kong markets surging as mainland traders have net purchased about US$27bn worth of Hong Kong shares in January alone. The Hang Seng Index rose past 30,000 points on Thursday, the first time it breached that level since May 2019. Tencent Holdings Ltd. rallying 2.6% to a record high.

• Indian Sensex hits 50,000 for first time ever.
• Japanese exports gained in December with shipments rising 2%. Gains were led by exports of plastic, non-ferrous metals and equipment for making semiconductors, while car shipments declined.

• Exports to China rose 10.2% from a year earlier, while shipments to the U.S. fell 0.7% and those to the EU dropped 1.6%. Exports of semiconductor equipment increased about 10%, accounting for a fifth of the overall advance. Vehicle shipments dropped 4.2%..

EUROPEAN AND US HEADLINES

• German retailer Mytheresa valued at US$2.2bn in US IPO.
• Procter and Gamble raises annual forecast on CV19 cleaning bump.
• Normal business seems to have returned in the White House with the first press briefing going well.
• Biden signs 15 executive orders in first hours.

And finally…

Paraprosdokians

First time I heard about paraprosdokians, I liked them. Paraprosdokians are figures of speech in which the latter part of a sentence or phrase is surprising or unexpected and is frequently humorous. (Sir Winston Churchill loved them)

1. Where there’s a will, I want to be in it.

2. The last thing I want to do is hurt you …but it’s still on my list.

3. Since light travels faster than sound, some people appear bright until you hear them speak

4. If I agreed with you, we’d both be wrong.

5. We never really grow up — we only learn how to act in public.

6. War does not determine who is right, only who is left.

7. Knowledge, is knowing a tomato is a fruit. Wisdom is not putting it in a fruit salad.

8. To steal ideas from one person is plagiarism. To steal from many is research.

9. I didn’t say it was your fault, I said I was blaming you.

10. In filling out an application, where it says, “In case of an emergency, notify…” I answered “a doctor.

11. Women will never be equal to men until they can walk down the street with a bald head and a beer gut, and still think they are sexy.

12. You do not need a parachute to skydive. You only need a parachute to skydive twice

13. I used to be indecisive, but now I’m not so sure

14. To be sure of hitting the target, shoot first and call whatever you hit the target.

15. Going to church doesn’t make you a Christian, any more than standing in a garage makes you a car.

16. You’re never too old to learn something stupid

17. I’m supposed to respect my elders, but it’s getting harder and harder for me to find someone older than me

Clarence

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