ASX 200 closed down 50 points down at 6711. Dow futures down 90 points. For the week, the ASX 200 rose 38 points. The hard way. Well off its lows but still skittish. Big miners under pressure as copper and base metals tumble. BHP lost 2.2% with RIO down 3.3%. Gold miners continue to struggle with NCM down 0.8% and NST off 0.2%. Energy stocks a bright spot on OPEC plus supply moves, STO up 4.7% and WPL up 3.1%. Banks held up relatively well although mixed, the basket rose to $166.55 with ANZ up 1.6% a winner. Industrials weak, but not catastrophic, WES down 0.8% and TCL off 1.6%. CSL continued to trend lower down another 2.8%. Tech once again under pressure as APT slipped 2.5% and XRO saw sellers off 2.4% following its Danish acquisition. The All–Tech Index fell 1.6%. Not much in the news for corporates, CGC down 1.1%, to acquire the farming operations of KW Orchards (terms undisclosed). MFG down 0.4%, FUM at end of February $100.61bn vs month-ago $100.41bn. China kicked off its Investor Week with a promise of 6% plus GDP and more investment in technology and 5G. 10-year bond yields continue to rise hitting 1.82%. The AUD at 77.09c. Asian markets weaker with Japan down 0.47%and China down 0.5%. Communist Party meeting the focus.
Today’s Highlights
- ASX 200 down 50 to 6711. Great closing rally.
- High 6752 Low 6660. Good volume.
- ASX 200 up 38 points for the week.
- Big Bank Basket pushes to $166.55
- All Tech Index down 1.6%
- Dow Futures down 90 points.
- Gold drifts to AUD$2195
- 10-year yield pushing higher to 1.82%.
- AUD slips to 77.09c
- Bitcoin falls to US$46995.
- Asian markets weaker with Japan down 0.47%and China down 0.5%.
STOCKS
- PLL -15.59% change in substantial holdings.
- BGL -8.33% BMO Conference presentation.
- LYC -6.35% profit taking on fears on more competition.
- INR -13.64% capital raising.
- GRR +5.77% iron ore rises.
- STO +4.72% oil price rises.
- MNS +17.31% battery experts being hired.
- CDM +12.43% unlisted asset price booms.
- VML +4.55% buyers back.
- CWN +0.10% WA joins in with a Royal Commission.
- APT -2.47% change of director’s interest.
- Z1P – 5.25% BNPL gloss wearing off. Macquarie negative.
- CSL -2.83% vaccine production kicks off.
- REA -1.83% thin selling.
- Speculative stock of the day: Nothing on any volume today.
- Biggest Winners: URW, GRR, PSI, OSH, STO, BET and OBL.
- Biggest Losers: PLL, INR, GXY, BGL, SPT, ORE and SWM.
TODAY
- NextDC (NXT) –1.22% Thought to be interested in Global Switch’s Australian data centres. There are reportsa stake of 49% in Global Switch is to be put out for sale. Valuation speculated to be ~$1bn for its Australian assets.
- Costa Group Holdings (CGC) -1.09% To acquire the farming operations of KW Orchards (terms undisclosed). Will also acquire an associated packing operation, EJT citrus packing facility. Forecast to be marginally earnings accretive in 2021, with the year-on-year yield growth providing forecast growth in earnings contribution in subsequent years. Completion expected in late March.
- Magellan Financial Group (MFG) –0.37% Funds under management at the end of February $100.61bn vs month-ago $100.41bn.In February, Magellan experienced net inflows of $691m, which included net retail inflows of $703m and net institutional outflows of $12m.
ECONOMIC NEWS
- Australian house prices will advance 10% according to Goldman Sachs. Further out, Goldman sees house prices rising 5% in 2022 and 3% in 2023.
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- Sydney is now the world’s third-least affordable market, and Melbourne the sixth according to a recent report.
CV19 NEWS
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- US on track to meet Biden’s target of 100m in 100 days, a month early.
- U.S. hospitals were treating 49,519 patients as of Thursday, data from the Department of Health and Human Services show.
- Japan is planning to extend its virus state of emergency for another two weeks.
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- France is tightening restrictions and will accelerate vaccinations.
BOND MARKETS
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ASIAN NEWS
- China sets economic growth target above 6%.
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- Government aims to add more than 11m urban jobs.
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- Budget deficit of GDP set at 3.2% of GDP from 3.6% last year.
- Beijing will also aim to get 56% of the country on faster fifth-generation or 5G networks.
- Nationwide R&D spending will increase by more than 7% annually.
- It also pledged to develop its own advanced chip manufacturing technologies and key materials that comprise third-generation chips.
- In the Philippines, CPI rose 4.7% in February from a year earlier, Higher prices of food and beverages, particularly meat, drove the increase.
US AND EUROPEAN HEADLINES
- US NFP number tonight. 182,000 added expected.
- Senate debate on US$1.9 trillion package kicks off after Harris breaks deadlock. The clerk has to read 628 pages of the proposal aloud.
- The US has suspended tariffs on UK exports in Airbus dispute.
- Texas power watchdog recommends unwinding US$16bn of trades.
- Birkin bags are a new asset class outperforming the equity market. Up 17% and Grace Kelly’s bag sold for US$437,000.
- US Mortgage rates are above 3% for the first time since last US summer.
- The Pope is off to Baghdad. Weekend mini-break.
- Scary thought, we waste 17% of global food supplies every year. 23m big trucks worth.
And finally….
Anyone else???Worrying you’ve accidentally packed 3 kilos of cocaine and a dead goat as you stroll through “Nothing to declare”
• Being unable to stand and leave without first saying “right”
• Not hearing someone for the third time, so just laughing and hoping for the best• Saying “anywhere here’s fine” when the taxi’s directly outside your front door
• Being sure to start touching your bag 15 minutes before your station, so the person in the aisle seat is fully prepared for your exit• Repeatedly pressing the door button on the train before it’s illuminated, to assure your fellow commuters you have the situation in hand• Having someone sit next to you on the train, meaning you’ll have to eat your crisps at home
• The huge sense of relief after your perfectly valid train ticket is accepted by the inspector
• The horror of someone you only half know saying: “Oh I’m getting that train too”
• “Sorry, is anyone sitting here?” – Translation: Unless this is a person who looks remarkably like a bag, I suggest you move it
• Loudly tapping your fingers at the cashpoint, to assure the queue that you’ve asked for money and the wait is out of your hands
• Looking away so violently as someone nearby enters their PIN that you accidentally dislocate your neck
• Waiting for permission to leave after paying for something with the exact change
• Saying hello to a friend in the supermarket, then creeping around like a burglar to avoid seeing them again
• Watching with quiet sorrow as you receive a different haircut to the one you requested
• Being unable to pay for something with the exact change without saying “I think that’s right”
• Overtaking someone on foot and having to keep up the uncomfortably fast pace until safely over the horizon
• Being unable to turn and walk in the opposite direction without first taking out your phone and frowning at it
• Deeming it necessary to do a little jog over zebra crossings, while throwing in an apologetic mini wave
• Punishing people who don’t say thank you by saying “you’re welcome” as quietly as possible
• The overwhelming sorrow of finding a cup of tea you forgot about• Turning down a cup of tea for no reason and instantly knowing you’ve made a terrible, terrible mistake
• Suddenly remembering your tea and necking it like a massive, lukewarm shot
And finally….
Clarence
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Beeks Downunder-Because not all financial news is boring! 