ASX 200 up 116 to 6789as RBA steps in and US futures rally. Dow futures up 201 points. Some confidence returned today and the stocks that were bashed hardest on Friday rallied hard today. BNPL stocks back in favour with SZL up 0.5%, Z1P up 5.5% and APT up 5.1%. NXL rallied 4.0% after its horror Friday. The All-Tech Index rose 2.45%. Banks led the market higher with the Big Bank Basket up to $159.57 with MQG up 1.8%. Industrials rose across the board, TLS up 2.3%, WOW up 2.3% and TCL up 1.2%. Healthcare better with CSL up 2.7%. Big miners were mixed, FMG dropped 5.8% going ex-dividend, RIO flat and BHP up 1.7%. In corporate news, GMA had its parent sell down a 52% holding falling 6.2%. ASB up 8.4% on a new US contract. YAL down 7.0% as its swings to a full-year loss of $1.04bn. No dividend. CGF up 0.3% appoints Rachel Grimes as CFO. CWN up 1.5%, director and chairman of Crown Perth John Poynton steps down. In economic news, we saw a huge jump in house prices and home loans although Chinese PMI was slightly weaker than expected. ANZ job ads for February rose 7.2%. The 10-year bond yield dropped to 1.64% with the AUD 77.50c. Asian markets rose with Japan up 2.1% and China up 0.8%. South Korea on holiday today.

Today’s Highlights

  • ASX 200 up 116 to 6789. Late surge.
  • High 6790 Low 6672. Below average volume.
  • Big Bank Basket rockets to $159.57
  • All Tech Index up 2.45%
  • Dow Futures up 201
  • Gold steady at AUD$2259
  • 10-year yield booming to 1.72%
  • AUD falls to 77.51c
  • Bitcoin bounces off lows to US$46434.
  • Asian markets rose with Japan up 2.1% and China up 0.8%. South Korea on holiday today.

MARCUS TODAY TEAM INSIGHTS

STRATEGY: THE WEEK AHEAD – A much quieter week ahead, with results season now done and dusted. The focus this week will likely remain on the fear of inflation and interest rate rises after dominating the market action last week. The big question we are discussing on the desk is whether this is a tradeable pullback or the start of something bigger. At the moment it seems like it will likely be the former. Meanwhile, there are plenty of big names “going ex” this week, making it a busy time for the income investor. Plus, the housing market is running hot again, with property values rising at their fastest pace in almost 17 years through February. READ MORE


HENRY’S TAKE – Could have been worse Friday. TNT results a Shania Twain and ‘don’t impress me much’. Some promising announcements out this morning from MNS and CXL and a good bounce in the market. Friday looks overdone but its a long week. A look at a Nano Cap that has been asked in ‘Ask the Analyst’ in CM8. Plus an update on where the US indicators are. Also, Bitcoin mining uses more energy than the Netherlands! Well according to one study. No Ask the Analyst Friday. READ MORE

STOCKS

  • NXL +3.96% MS says sell off too severe.
  • EOS +18.61% solid bounce – change of director’s interest.
  • GRR +12.50% gets out of property development.
  • ASB +8.44% new US order.
  • Z1P +5.48% solid bounce.
  • GMA -6.20% parent sells down 52%.
  • ORE -4.51% broker downgrades.
  • CRO -13.64% Appendix 2A.
  • TNT -12.70% results disappoint.
  • VMT +8.89% good bounce.
  • MNS +10.34% fast charging battery news.
  • CXL +8.29% Swedish deal.
  • SXY unchanged – competes sale of Cooper Basin assets to BPT for $87.5m
  • WPL +2.40% Myanmar operations on hold.
  • GWA +0.33% MD resigns unexpectedly.
  • Speculative stock of the day: Vital Metals (VML) +38.00% on track to commence rare earth production at Nechalacho project in Canada.
  • Biggest Winners: EOS, GRR, ASB, REH, CUV, BET and PBH.
  • Biggest Losers: RMC, DEG, YAL, GMA, JMS, CRN and VGI.

TODAY

  • Austal (ASB) +8.44% Awarded US$235m US Navy contractfor the detail design and construction of EPF 15. The EPF class provides a high speed, shallow draft transportation capability to support the intra-theatre maneuver of personnel, supplies and equipment for the Navy, Marine Corps, and Army. Work is expected to complete by March 2024.
  • Yancoal Australia (YAL) -6.98% Full-year profit -$1.04bn vs year-ago $719m. Revenue $3.47bn vs year-ago $4.46bn. Operating EBITDA $748m vs year-ago $1.65bn. No dividend declared vs year-ago 21.2c/share. Outlookfor 2021: Saleable coal production of around 39M tonnes. Cash operating costs (ex govt royalties) of $60-62/tonne. Capital expenditure is expected to be $360-380m. Expects regional trade settings and supply and demand fluctuations could create coal index volatility during the first half of 2021.
  • Woodside (WPL) +2.40% To reduce presence in Myanmar. Expects full de-mobilisation of our offshore exploration drilling team over the coming weeks given the political instability. WPL has interests in nine offshore blocks in the country.
  • Genworth Financial (GMA) -6.20% Confirms the sale of 214.3m shares at 228c. As previously announced, Genworth will continue to prepare for a potential partial IPO of Genworth’s U.S. Mortgage Insurance.
  • Nine Entertainment Co (NEC) +2.44% Declines offer to renew affiliate deal with Southern Cross Media Group. There is speculation NEC will now do a deal with its largest shareholder WIN Corp.
  • Challenger (CGF) +-0.31% Appoints Rachel Grimes as CFO, effective 3-May. Grimes is currently GM, Finance, Westpac Banking Corporation.
  • Crown Resorts (CWN) +1.51% Director and chairman of Crown Perth John Poynton steps down. Chairman comments, “The ILGA has advised Crown that it considers it appropriate that John step down as a director of all companies within the Crown group, due to a perceived lack of independence arising out of his past relationship with Mr James Packer and CPH, notwithstanding the recent termination of John’s consultancy arrangement with CPH.”

ECONOMIC NEWS

  • Nationwide house values surged 2.1% in February, the largest increase since August 2003. In another sign of strength in the housing market, home-loan approvals rose 10.5% in January, according to the ABS.
  • Home prices could rise about 20% over this year and next, according to Westpac Banking Corp. Same guys that predicted the end of days for housing not that long ago.
  • Company gross operating profits fell 6.6% seasonally adjusted for Q4 vs estimates of a 4% drop.
  • Wages and salaries rose 1.4% seasonally adjusted.
  • Inventories remained relatively unchanged this quarter missing estimates of 0.2% growth.

CV19 NEWS

  • Vaccine Tracker: 241m doses in 103 countries. 6.73m a day. In US 75.2m doses at 1.74m a day.
  • France reported on Sunday 19,952 new cases in 24 hours, a low number compared to previous days.
  • Italy will tighten curbs in Milan, Turin and other areas starting Monday to counter an acceleration of the virus caused by new variants.

BOND MARKETS

ASIAN NEWS

  • Hang Seng looks set to see its biggest index changes since it began life 51 years ago.
  • Chinese Caixin Manufacturing down to 50.9.

US AND EUROPEAN HEADLINES

  • Trump looks like a 2024 runner.
  • Iran rejects offer of direct US talks on nukes.
  • The Crown wins best TV drama at Golden Globes.

And finally

Clarence

XXXX