ASX 200 runs hard up 46 points to 7023 (0.66%) as the psychological 7000 level is breached. Dow futures down 8 points. US bank results kick off tonight. Resources and industrials winners today. Iron ore miners firm led by BHP up 0.7% and RIO up 0.7%, perversely as iron ore weakens in Asia. Gold miners back in the winners’ enclosure, NCM up 4.1% and NST rallying 4.5% with RSG having a much better day, up 14.9% after the mining lease in Ghana was handed back. Lithium and iron ore producer MIN up 6.5% as Macquarie released bullish sector research. Industrials and healthcare in the green, CSL up 1.2% hasn’t looked back since the AstraZeneca issue, SHL rose 1.9% and REA up 2.0% Tech stocks back in focus, XRO up 2.0% and APT up 2.3%. Z1P rallied hard at the open but faded and now in a trading halt as the company has announced it is conducting a capital raising. Hardly a surprise. Marketing and growth costs money. WES up 1.4% as a lithium play perhaps, ALL continues 1.1% higher. Banks were mixed today, the Big Bank Basket solid around $168.74 with CBA up 0.7%. MQG had a nice day out up 0.7%. In corporate news, CAA saw a 20.5% gain after a private equity bid, BRN rose 19.8% as the company announced TSMC will kick off production with first chips due August. Everything is coming up roses on the economic front which begs a question to the RBA, but that can wait. The number of dwelling units started rose 18.6% in the December quarter according to the ABS. Westpac-Melbourne Institute Consumer Confidence index (April): +6.2% to 118.8. Labelled an ‘extraordinary result’, the index is now at its highest level since August 2010 when Australia’s post-GFC rebound, and mining boom were in full swing. 10 year yields steady at 1.75%. Asian markets mixed, Japan down 0.33% and China up 0.61%.

Today’s Highlights

  • ASX 200 up 46 to 7023. Below average volume.
  • High 7027 Low 6980 – Economic data drives rally.
  • Big Bank Basket better at $168.74.
  • All Tech Index up 1.76%.
  • Dow futures down 8 points.
  • Australian Gold down to $2273.
  • 10-year yield steady at 1.75%.
  • AUD rises to 76.76c.
  • Bitcoin rises to US$64121. Coinbase lists tonight.
  • Asian markets mixed, Japan down 0.33% and China up 0.61%.

STOCKS

  • RSG +14.89% gets mine lease back.
  • CCV+4.44% quarterly loan book growth hits 8%.
  • BRN +19.81% production kicks off.
  • WZR +8.89% loan originations up 151%.
  • CIM +2.13% no impact from Greensills. Giving Jobkeeper money back too.
  • Z1P -1.23% trading halt- capital raising.
  • WAF +8.33% letter to shareholders.
  • GXY +8.28% presentation.
  • PNV +6.10% technical break out.
  • VUL +9.06% good bounce.
  • WEB -2.64% ceasing to be substantial shareholder.
  • MGT -11.76% profit taking.
  • DW8 -2.78% easing back.
  • CAA +20.52% private equity bid.
  • IOU +18.67% newsletter write up.
  • SGQ +25.68% promising drill results.
  • RED +9.38% solid bounce.
  • Speculative Stock of the Day: DigitalX (DCC) +37.88% Coinbase listing helps sentiment. Crypto investments and asset managers.
  • Biggest Winners: BRN, RSG, CMM, VUL, WAF, GXY and INR.
  • Biggest Losers: SIG, ASM, CCP, ADO, IFM and PSI.

TODAY

  • Ramsay (RHC) +0.47% RHC and Pacific Equity Partners understood to have submitted a joint indicative bid for Australia’s third-largest private hospital operator, Health Care last week.
  • Woodside Petroleum (WPL) -0.41% CEO Peter Coleman to retire on June 3. Meg O’Neill appointed Acting CEO from April 20. WPL announced on December 20 that Coleman was intending to retire in H2 2021.
  • Costa Group Holdings (CGC) -0.63% Provides outlook update in annual report. Update for CY21: “The early months of 2021 has seen demand and pricing across our produce categories generally remaining strong. To ensure we maximise the benefits of such market conditions, the company maintains a continued focus on our competitive advantages in yield, geographical spread, quality and cost of production. Activity in our International segment occurs primarily in H1 of the year and the early season performance has been positive, including strong pricing in China. Not unexpectedly there is still uncertainty as to the extent of COVID-19 impacts, particularly given conditions in the UK and Europe.”
  • Brainchip (BRN) +19.81% Begins volume manufacturing of Akida AKD1000 neuromorphic processor chip.
  • PWR Holdings (PWH) +0.54%CFO Stuart Smith to leave company effective 23-Apr, Martin McIver appointed replacement.
  • Galaxy Resources (GXY) +8.28% Reports revised Sal de Vida Resource estimate of 6.2Mt of Lithium Carbonate Equivalent (LCE), +27% from prior estimate.
  • CIMIC (CIM) +2.13% Reaffirmed guidance for FY21 at its AGM. Net profit expected between $400-$430m, dividend payout ratio of 60-65% of NPAT.
  • Resolute Mining (RSG) +14.89% The Ghanaian Government has restored its mining lease at its Bibiani Gold Mine under certain conditions.

ECONOMIC NEWS

  • According to the ABS the total number of Australian dwelling units commenced rose 18.6% in the December quarter, 2020 to be up 19.4% on a year ago.
  • Westpac-Melbourne Institute Consumer Confidence index (April): +6.2% to 118.8. Labelled an ‘extraordinary result’, The Index is now at its highest level since August 2010 when Australia’s post-GFC rebound and mining boom were in full swing.
  • The Index of House Price Expectations increased by 2.7% in April to 8% above its pre-pandemic level. Victoria recorded a 10.2% increase in home price expectations and South Australia shifted up 8.9%.
  • Buyers appear a little discouraged though with Westpac’s “time to buy a dwelling” sub-index fell by 7.9% from 116.4 to 107.2.
  • RBNZ keeps cash rate on hold.

CV19 NEWS

  • J&J pauses vaccines in US and Europe as six women get blood clots. An abundance of caution.
  • Vaccine Tracker: 814m doses in 152 countries. 18.3m a day. In US 192m doses given at 3.38m a day.
  • EU will not renew AstraZeneca and J&J vaccine at end of 2021 according to media reports in French newspapers.

BOND MARKETS

ASIAN NEWS

  • Chairman of Toshiba resigns.
  • The founder of TikTok is now one of the world’s richest worth around US$60bn. IPO on the cards.
  • 100 days to go to the Tokyo Olympics. 

US AND EUROPEAN HEADLINES

  • Apple to hold new product unveiling on April 20th. upgraded iPad Pro with new screen and AirTags so you can find your stuff.
  • European futures pointing to modest gains.
  • Grab has done the SPAC deal of the year with a $52bn valuation for the Singaporean based ride share app.
  • Last year, the value of SPAC-enabled IPOs hit $US83.4 billion. It took less than three months to pass that total this year, according to industry tracker SPAC Research.
  • Coinbase lists tonight. Expects fireworks and plenty of rockets.
  • Egypt has seized the Ever Given over small matter of US$900m over blockage. The world’s most expensive three point turn fail.
  • US is pushing Japan to back it in the Taiwan issue pre the summit between Biden and Suga.
  • Biden will announce all troops out of Afghanistan by Sept 11th.
  • Results season beckons. JP Morgan and Goldman Sachs tonight.
  • No sign of that rabbit.

And finally….

A lady comes home from her doctor’s appointment grinning from ear to ear. Her husband asks, “Why are you so happy?”

The wife says, “The doctor told me that for a forty-five year old woman, I have the breasts of a eighteen year old.” “Oh yeah?” quipped her husband, “What did he say about your forty-five year old ass?”

She said, “Your name never came up in the conversation.”

There was an elderly couple who in their old age noticed that they were getting a lot more forgetful, so they decided to go to the doctor. The doctor told them that they should start writing things down so they don’t forget.

They went home and the old lady told her husband to get her a bowl of ice cream. “You might want to write it down,” she said.

The husband said, “No, I can remember that you want a bowl of ice cream.”

She then told her husband she wanted a bowl of ice cream with whipped cream.

“Write it down,” she told him, and again he said, “No, no, I can remember: you want a bowl of ice cream with whipped cream.”

Then the old lady said she wants a bowl of ice cream with whipped cream and a cherry on top. “Write it down,” she told her husband and again he said, “No, I got it. You want a bowl of ice cream with whipped cream and a cherry on top.”

So he goes to get the ice cream and spends an unusually long time in the kitchen, over 30 minutes.

He comes out to his wife and hands her a plate of eggs and bacon.

The old wife stares at the plate for a moment, then looks at her husband and asks, “Where’s the toast?”

Clarence

XXX