The ASX 200 wobbled then recovered almost an inverse rerun of Friday’s action. The Index closed up 56 points at 6663, having lost 90 at its nadir. Miners led the revival but a turnaround in Dow Futures up 100 points also helped having been off 300 at one stage early. BHP rose 1.3% as FMG also rallied off the lows up 2.2% and NCM pushed ahead by 2.1% as gold miners joined in the fun. Oil stocks remained quiet but well off lows with WPL up 0.3% and STO up 0.6%. Banks found fans at lower levels, with CBA up 1.4% and the Big Bank Basket at $153.76 In the industrials, good to see CSL in the positive for a change up 2.3% and ALL and WES rose 2.0% and 1.1% respectively. Tech stocks recovered led by APT up 0.60% and XRO up 1.2% and battery/lithium related stocks recovered some of the lost ground form last week, SYR up 15.8%, PLS up 11.8% and GXY up 5.6%. Silver was ‘Hi Hoing’ as the Reddit mob moved on the commodity and wannabe silver producers. SVL up 49.0%, IVR up 47.4% and ADT up 19.8% with its Bosnian project. In corporate news, WOR fell 10.9% taking the CV19 effects hard in latest update and Z1P rose 5.2% after securing a new chair. AMA fell 1.5% and a new CEO. Results season beckons. 10-year yields rally hard to 1.15%. AUD 76.50c. Asian markets push higher with Japan up 1.4% and China up 0.5%.

Today’s Highlights

  • ASX 200 up 56 to 6663. Average volume.
  • High 6675 Low 6517. Big range big reversal.
  • Big Bank Basket rallied hard to $153.76
  • All Tech slightly weaker down 0.1%.
  • Dow Futures up 100 after 300-point loss.
  • Gold rises to AUD$2433 on safe haven buying
  • 10-year yield firm to 1.15%
  • AUD rises to 76.50c
  • Bitcoin rises to US$33,672
  • Asian markets push higher with Japan up 1.4% and China up 0.5%.

STOCKS

  • SVL +48.98% silvers turn in the Reddit spotlight.
  • SYR +15.84% PLS +11.83% NVX +3.46% battery recharged.
  • Z1P +5.23% new chair.
  • ELD +4.61% agri boom.
  • MSB +5.88% shorts cover.
  • WSA +4.27% bargain hunters.
  • WOR -10.86% battered after CV19 effects back.
  • SSM -4.72% profit taking.
  • S32 +3.94% good turn around.
  • ABY -6.96% selling resumes on thin volume.
  • CPH +10.26% CBD to be sold OTC.
  • SSM -4.72% profit taking after Friday’s run.
  • TLG +10.43% quarterly report.
  • FCT -11.76% Morgans moves to hold.
  • 4DS -12.24% some progress but never fast enough for the market.
  • 5GG +10.17% back in the winner’s circle. Listed Friday.
  • Speculative Stock of the Day: Oneview (ONE) +121.43% good volume as the company has inked an agreement with Samsung over distribution.
  • Biggest Winners: SYR, PLS, NXL, CEN, MSB, GXY and PPH.
  • Biggest Losers: WOR, INR, ABY, PGH, SSM, BRN and ERA.

TODAY

  • Crown Resorts (CWN) -0.21% To stop gaming and other activities at Crown Perth due to WA lockdown. Hotel accommodation will continue to be provided in a reduced capacity.
  • Northern Star Resources (NST) +0.93% Doesn’t expect production and exploration at its West Australian operations to be impacted by the state government’s lockdown measures.
  • Link Administration Holdings (LNK) +1.67% Terminates Pepper European Servicing acquisition. To prioritise the trade sale process for PEXA. Management comments: “As a result of the termination of the PES transaction, we will preserve the capital for future growth opportunities. The Board is committed to maximising the value of its interest in PEXA for Link Group’s shareholders. PEXA’s cash balance continues to strengthen month-on-month highlighting the strong cash-flow conversion of this investment.”
  • Coca-Cola Amatil (CCL) +0.23% Coca-Cola European Partners receives FIRB approval for the proposed acquisition of Coca-Cola Amatil.Zip Co (Z1P) – Chair Philip Crutchfield to step down, Diane Smith-Gander appointed replacement. Crutchfield will remain on the board until the end of March to support an orderly transition.
  • Freelancer (FLN) -3.88% Q4 cash receipts $14.3m, down 0.9% vs pcp. Gross payment volume (GPV) came in at $261.8m, +37.7% vs pcp. The group had positive net operating cash flow of US$0.1m. Ended FY20 with cash and cash equivalents of US$34.4m, +7% on pcp.
  • Phoslock Environmental Technologies (PET) – Audited results for HY ended June 2020: NPAT -$21.6m vs previously reported -$5.1m. Revenue $2.1m vs previously reported $1.2m. Underlying EBIT -$4.3m vs previously reported -$5.1m.
  • Lovisa Holdings (LOV) -1.79% United Kingdom: Stores trading 0, stores temporarily closed 42. Malaysia: Stores trading 2, stores temporarily closed 26. France: Stores trading 3, stores temporarily Closed 22. All other stores globally as well as the online business remain open and trading.
  • Nickel Mines (NIC) +1.59% Completes first stage of investment in Angel Nickel Project, acquiring an initial 30% stake for US$180m.In addition to the payment, the company also repaid to Shanghai Decent the remaining US$22.5m owing under the Ranger Debt Facility and is now debt-free. The Second Stage Acquisition payment is due at the end of December however, if NIC pays on or before June 30, the payment will reduce to US$344m.
  • Worley (WOR) -10.86% Expects H1 underlying EBITA between $200-210m vs consensus $239m, sees improved H2 EBITA. Expects first half aggregated revenue $4.4-4.5bn vs consensus $5.22bn, operating cash flow $250-255m and a reduction in net debt to $1.2bn excluding lease liabilities. Management comments, “the acceleration of COVID-19 infection rates since October 2020 has impacted demand in our end markets. The shift in the political environment in the US, ongoing policy rollout and anticipated increases in investment in the UK, Europe and Canada provide near-term opportunities in hydrogen, electrification, carbon capture, offshore wind and nuclear, while North America remains buoyant in renewable fuels and circular economy projects.”

ECONOMIC NEWS

  • The value of home loans rose 8.6% to a record high in December, extending a 5.6% rise in November and ahead of estimates of a 4% rise.
  • Melbourne Institute inflation gauge for January: Headline +0.2% to be up 1.5% from a year ago. The trimmed mean reading was also up 0.2% on the month but just +0.2% from a year ago.
  • ANZ job ads for January: +2.3% after an 8.6% lift in December.
  • Housing values continued to rise through the first month of 2021 with CoreLogic’s national home value index up 0.9% over the month. The January movement takes Australian home values to a fresh record high. Housing values have surpassed pre-COVID levels by 1.0%, and the index is 0.7% higher than the previous September 2017 peak.
  • Every capital city and broad rest-of-state region recorded a rise in housing values over the month, ranging from a 2.3% surge across Darwin to a relatively mild 0.4% rise in Sydney and Melbourne.

BONDS

COVID – 19 NEWS

Vaccine tracker: 94.4m. The U.K. gave almost 600,000 people the first dose of a vaccine in a day, the highest number so far.

  • ScoMo says every Australia will be vaccinated by October.
  • Brazil reported 27,756 new cases, fewer than the previous day as the nation’s second-wave outbreak slows.
  • Captain Tom in hospital.
  • South Africa receives first vaccines.
  • Canada’s death toll exceeded 20,000.

ASIAN NEWS

  • Chinese Jan Caixin manufacturing numbers slow.
  • Military coup on Myanmar. Suu Kyi in detention.
  • Hi Ho Silver and away as Reddit surge hits silver.
  • An anti-short selling bus will tour South Korea for a month. The war on short sellers is called K-Streeters. The bus has slogans such as “I hate short-selling” and “short-selling should be abolished”.
  • Japan set to extend emergency measures.

EUROPEAN AND US HEADLINES

  • Hedge fund Melvin sees a 53% loss and a US$4.5bn fall in assets.
  • Is US$600bn the new US$1.9trillion. Is that what the stimulus has now become in the US.
  • Supply chain issues hitting Europe as shipping costs soar.
  • Europe stuffed up big time trying to limit vaccination exports to the UK and backs down.
  • UK hoping to join transpacific trade group. Long way from home.
  • Chinese war planes stimulate a US aircraft carrier attack near Taiwan.

And finally….

I recently joined a dating group for pyromaniacs,
I got a match straightaway.

Q: Have you heard about McDonald’s new Biden Value Meal?
A: Order anything you like and the guy behind you has to pay for it.

When asked if they would have sex with Bill Clinton, 86% of women in Washington said, “Not again.”

What happens to a frog’s car when it breaks down?
It gets toad away.

Late one night a burglar broke into a house and while he was sneaking around he heard a voice say, “Jesús is watching you.” He looked around and saw nothing. He kept on creeping and again heard, “Jesús is watching you.” In a dark corner, he saw a cage with a parrot inside. The burglar asked the parrot, “Was it you who said Jesús is watching me” The parrot replied, “Yes.” Relieved, the burglar asked, “What is your name?” The parrot said, “Clarence.” The burglar said, “That’s a stupid name for a parrot. What idiot named you Clarence?” The parrot answered, “The same idiot that named the Rottweiler Jesús.”

Clarence

XXXX