ASX 200 puts on 58 to 7055 (0.8%) as bounce builds back better. Dow Futures down 26. Positive start and build despite a brief wobble, the index pushing higher making back losses from yesterday. And some. Gold miners having a day in the sun with NCM up 2.2% and NST up 5.2%. Iron ore miners mixed, BHP getting broker upgrades up 0.9% and FMG down slightly by 1.4%. Energy stocks becalmed despite production reports from STO and WPL. Big Bank Basket rose again to $169.22 with CBA, the fortunate son up 1.1%. Consumer stocks firmed with COL up 1.7% and WOW up 1.5%. Healthcare in the pink with CSL up 1.8% and FPH rising 3.8%. Tech stocks had a fillip today with APT up 2.6% despite a US broker sticking a $40 PT on the stock. MP1 had a great day following a positive quarterly and Bevan will be popping corks in another 3DP on its quarterly and business update flying 27.9%. The AllTech Index rose 1%. In corporate news, AMP fell 3.4% (will the last one out turn out the light), AGL suffered a 2.9% fall on the resignation of its CEO & Managing Director, Brett Redman. CHN up 8.1% on more great drill results. China’s aim to lift the supply of EV materials adding to the risk-off sentiment for lithium and rare-earth miners. ORE down 4.2%, GXY down 4.8% and LYC down 4.1%. RBL down 23.0% as it points to short-term margin weakness to achieve its billion-dollar-plus revenue goals. Nothing on the economic front, Asian markets mixed as Japan rallies 2% taking back losses from yesterday and China down 0.2%.

Today’s Highlights

  • ASX 200 up 58 to 7055. Closes on highs.
  • High 7055 Low 6994. Rally builds.
  • Down 8 points since last Friday.
  • Big Bank Basket higher at $169.22.
  • All Tech Index up 1%
  • European futures pointing to strong start.
  • Dow futures down 26.
  • Australian Gold higher at $2317.
  • 10-year yield falls to 1.69%
  • AUD higher at 77.42c
  • Bitcoin steady at US$54240.
  • Asia mixed, Japan up 2% on the bounce and China down 0.2%

STOCKS

  • MND +5.76% iron ore beneficiary.
  • DUB +3.57% recording higher prices.
  • CHN +8.13% story keeps getting better.
  • MP1 +9.74% quarterly cheers.
  • REX -0.67% Alan Joyce on front foot.
  • BHP +0.93% Steel Rebar in Shanghai is at the highest since futures began trading in 2009.
  • RRL +4.01% Club Tropicana here we come.
  • APT +2.64% US broker has $40 target price.
  • DRR +4.31% Macquarie upbeat on royalty stream.
  • A2M -0.91% Morgans says trading isn’t improving.
  • BID -9.76% quarterly.
  • WES +0.47% a jab and a snag ?
  • RBL -23.05% bubble bursts- short term pain for long term gain perhaps.
  • MMM -7.22% profit takers.
  • LRT +5.96% good exposure to gold.
  • RVS +5.26% better volume. Stirred the pot a little.
  • PLS -10.80% broker downgrades?
  • BKL -4.32% shareholder briefing . Very illiquid.
  • NST +5.21% WGX +5.73% DEG +1.91% gold miners rally.
  • 3DP +27.88% very good quarterly.
  • VOR +25.01% Ex capital return. Board battle bring buyers.
  • Speculative Stock of the Day: Aston Minerals (ASO) +39.13% recent presentation brings fans.
  • Biggest Winners: MP1, CHN, ABR, MND, WGX, NST, HUB and OPH.
  • Biggest Losers: RBL, ADN, PLS, MMM, IMU and GXY.

TODAY

  • AMP (AMP) – 3.43% AMP capital total assets under management (AUM) $186.5bn vs quarter-ago $189.8bn.Wealth management (Australia): AUM increased $1.6bn to $125.7bn, net cash outflows of $1.5bn. AMP bank total loan book increased $0.2bn to $20.8bn. Total deposits increased $52m to $17.0bn.
  • Crown Resorts (CWN) -0.25% BGH Capital running the numbers on a potential bid for CWN. BlackStone and Oaktree already there.
  • Redbubble (RBL) –23.05% Marketplace revenue $456m, +85% vs year ago. Gross profit up 100% to $184m with EBITDA of $51m vs year-ago -$2m. Operating cash inflow of $54m vs year-ago $6m. Targeting gross transaction value of more than $1.5bn in the medium term with marketplace revenue of $1.25bn.
  • Megaport (MP1) +9.74% Reports Q3 revenue $19.6m, +5% vs quarter-ago. Reports Q3: Total MRR for June $6.8m,+8% vs quarter-ago. Total Installed Data Centres 390, a net increase of 4 from previous quarter. Total Enabled Data Centres 741,+3% vs quarter-ago. Customers 2,117, +4% vs quarter-ago. Total Ports 7,037, +5% vs quarter-ago. Average Revenue per Port (March) $959, +3%. Cash position $141.5m as at 31-Mar-21. Outlook: Growth in ports and underlying revenue in H2 of Q3 was strong, and expect to see this trend continue. Remain on track to achieving EBITDA breakeven, on a run rate basis, by June 2021.
  • Oz Minerals (OZL) -1.10% Reports Q1 copper production 26,842t vs quarter-ago 28,939t; reaffirms FY production guidance. Reports Q1: Gold production 55,150oz vs quarter-ago 66,895oz. C1 Cash Costs $0.633/lb vs quarter-ago $0.064/lb. All-in Sustaining Costs $1.365/lb vs quarter-ago $0.627/lb. FY Guidance: Copper production 120-145Kt , unchanged. Gold production 190-215Koz, unchanged. C1 cash costs $0.70-0.80/lb vs previous guidance $0.55-0.65/lb. AISC $1.30-1.45/lb vs previous guidance $1.10-1.25/lb.
  • Evolution Mining (EVN) +2.11% Reports Q3 gold production 161.3Koz vs quarter-ago 180.3Koz; improves FY21 cost guidance. Reports Q3: AISC of A$1,268/oz ($980/oz). All-in Cost of $1,760/oz at an AIC margin of $468 per ounce. FY21 Guidance: Production guidance narrowed to 695,000 – 710,000 oz, vs original guidance 670,000 – 730,000 oz. AISC guidance improved to A$1,190 – 1,220 per ounce, vs original guidance A$1,240 – 1,300 per ounce. Sustaining capital guidance improved to $100.0 – 110.0m, vs original guidance $112.5 – 137.5m. Major capital guidance unchanged at $260.0 – 290.0m.
  • Brambles (BXB) +2.40% Reports nine-month (9M) sales from continuing operations 3,794.1m, +8% vs year-ago; on track to deliver on FY21 guidance. 9M trading update: Sales: CHEP Americas US$1,909.7m vs year-ago US$1,807.5m. CHEP EMEA US$1,501.1m vs year-ago US$1,379.9m. CHEP Asia-Pacific US$383.3m vs year-ago US$324.4m. Reconfirms FY Guidance: Sales revenue growth between 4-6% at constant FX rates, with improved Underlying Profit margins including an increase in US margins of ~1 percentage point; Underlying Profit growth between 5-7% at constant FX rates; Free Cash Flow is expected to fund dividends and core business capex; Dividend payout ratio between 45% to 60%. Share buy-back programme to continue for the balance of FY21.
  • AGL Energy (AGL) -2.87% Managing Director & CEO, Brett Redman, has resigned after almost 15 years with the company, chairman Graeme Hunt to assume the role.
  • Centuria Industrial REIT (CIP) -0.57% Provides Q3 operating update; reaffirms FY21 FFO guidance of no less than 17.6cpu and distribution of 17.0 cpu..Q3 fund update: 56,173sqm (5.3% of portfolio GLA) of lease terms agreed3 increasing occupancy to 98.8% and a 9.7-year WALE. US$196m portfolio valuation uplift or 8.3% on a like for like basis from prior book values.
  • Santos (STO) -0.29% Reports Q1 production million barrels of oil equivalent (mmboe) 24.8 vs quarter-ago 25.4; FY guidance maintained. Reports Q1: Sales volume (mmboe) 27.4 vs quarter-ago 31.1. Sales revenue US$964m vs quarter-ago US$922m. Capex US$210m. Free cash flow generation of US$302m. Net debt at the end of Q1 (including leases) US$3.6bn and gearing 33.6%. FY Guidance Maintained: Production (mmboe) 84-91. Sales (mmboe) 98-105. Capital expenditure – base ~$90m. Capital expenditure – major growth ~US$700m. Upstream production costs ($/boe) 8.00-8.50.
  • Woodside Petroleum (WPL) -0.61% Q1 production 23.7 million barrels of oil equivalent (MMboe) vs quarter-ago 24.9MMboe. Reports Q1: Sales revenue of US$1.12bn vs quarter-ago US$920m. Sales volume 25.7MMboe vs quarter-ago 29.1MMboe. Capital expenditure US$385m vs quarter-ago US$896m
  • Australian Pharmaceutical Industries (API) -1.47% Reports H1 underlying NPAT $17.7m vs year-ago $25.4m. Reports H1: Underlying NPAT consensus is $14.0m. Revenue $1.98bn vs year-ago $2.03bn. EBITDA $74.1m vs year-ago $82.6m. EBIT $29.4m vs year-ago $39.3m. H1 Dividend 1.50cps fully franked vs year-ago 0.00cps.

ECONOMIC NEWS

  • Nothing of note. China blasts federal government BRI policy.
  • Ray Attrill of the NAB (top AUD guesser) now says AUD will hit 85c within a year. He sees the main risk is if the renewed spike in virus cases “extends to a new infection wave in Europe.
  • ASIC is meeting with the moderators of FB sharemarket forums. Wants to discuss how content is managed and how many ricket emojis are legal.

CV19 NEWS

  • Singapore and HK call off Travel Bubble announcement.
  • In India, 314,835 new cases Thursday were more than the previous one-day gain of 314,312 cases.
  • Tokyo asks for a State of Emergency declaration.
  • France will give 100,000 vaccine doses to poorer countries in April.
  • Vaccine Tracker: 944m doses in 170 countries. 15.9m a day. In US 216m doses at 3.02m a day.

BOND MARKETS

ASIAN NEWS

  • Tokyo Motor Show cancelled.

US AND EUROPEAN HEADLINES

  • ECB meeting tonight. No change to headline rate expected. Bond purchase program should remain unchanged.
  • Credit Suisse set to take a CHF4.4bn charge against Archegos debacle. Net loss CHF252m. Lower than guidance. Serious stuff up. And Greensill too. CS it had no knowledge it had a client like Archegos. Doh!
  • US has rejected ScoMo’s cunning climate strategy before the virtual climate summit.
  • Super Mario plans a EUR220bn overhaul of the Italian economy. High speed rail and digitalisation the focus. Plenty of drivers do the digit in Rome.
  • European Soccer League DOA. Everyone says sorry for wasting our time.
  • US to propose emissions cuts of up to 50% by decade end.
  • UK companies in financial distress rise at fastest pace in 7 years.
  • US Satellite company Dish will run the first public cloud-based 5G network on Amazon platform.
  • SAP has blowout Q1. Shares rise.

And finally….

Married 25 years, I took a look at my wife one day and said, “Honey, 25 years ago, we had a cheap apartment, a cheap car, slept on a sofa bed and watched a 10 inch black and white TV, but I got to sleep every night with a hot 25 year old blond.

Now, we have a nice house, nice car, big bed and plasma screen TV, but I’m sleeping with a 50 year old woman. It seems to me that you are not holding up your side of things.”

My wife is a very reasonable woman. She told me to go out and find a hot 25 year old blonde, and she would make sure that I would once again be living in a cheap apartment, driving a cheap car, sleeping on a sofa bed.

Clarence

XXX