ASX 200 rises 5 points to 7061 (+0.08%). Unchanged for the week. Dow futures up 14 points. A nothing day really at the headline level but plenty going on underneath. Banks flat with the Big Bank Basket higher at $169.67 on the close, MQG doing well up 1.3%, insurers going nowhere, some winners, some losers, QBE a 0.4% winner. Healthcare better with CSL up 0.2% and FPH up 1.2%. Industrials eased led by TCL down 0.8% and WES down 0.8%. Tech under some pressure with APT easing 1.2% and the All–Tech Index flat. Miners were mixed, BHP fell 0.2% and FMG went 1.7% to the good, gold miners slipped on bullion falls, NCM down 0.9%. Energy stocks showed no enthusiasm. Plenty going on in corporate news, KGN dropped like a rock after announcing lower EBITDA and higher costs. Finished down 14.3%. AMP announced a cunning plan to split into two and the market cheered, up 0.9%. VTH has become a battle ground with a new 124c bid from MacBank. Increased tension with China hurt Chinese facing stocks like A2M down 3.4% and BKL off 6.3%. AX1 rose 11.1% on its Glue deal. ILU up 0.1% on production down on the quarter. PPT up 0.3%, assets under management $95.3bn at the end of March vs $89.2bn at the end of December. Nothing on the economic front, 10-year yields back to 1.72%. Asia weaker, Japan down 0.39% and China down 0.09%. 

Today’s Highlights

• ASX 200 up 5 to 7061. Drifting
• High 7061 Low 7037. Index down 2 points for the week
• Steel futures in China reached new highs
• Big Bank Basket higher at $169.67
• All Tech Index unchanged
• Dow futures up 14
• Australian Gold falls to $2307
• 10-year yield pops back to 1.72%
• AUD steady at 77.31c
• Bitcoin crumbles to US$49484
• Asia weaker, Japan down 0.39% and China down 0.09%

---

STOCKS

• DEG +20.22% more great drill results.
• AX1 +11.15% sniffs Glue and soars.
• NXL +7.46% good bounce.
• MP1 +5.22% good times continue for Bev.
• MND +4.02% iron ore leverage.
• KGN -14.27% oops. Inventory and costs increasing.
• BKL -6.33% thin volume.
• A2M -3.40% sours again.
• JBH -5.04% catches KGN negativity.
• ONE +4.05% quarterly.
• 3DP +10.53% Slattery celebrates.
• GGG -7.79% still under pressure.
• 88E -10.00% where have all the rockets gone.
• MYD -7.56% TPW look a-like.
• RHY -8.07% rocket crash.
• WTC -0.45%% Bell sees upside risk.
• Speculative Stock of the Day: Brockman Mining (BCK) +161.54% Farm-In and HV agreement on Ophthalmia project.
• Biggest Winners: ADO, DEG, AX1, IMD, PPK, NXL, NVX, MP1 and NUF.
• Biggest Losers: KGN, BKL, HT1, JBH, MSB, TTL, ALG and REG.

TODAY

• AMP (AMP) +0.89% To pursue demerger of AMP Capital’s private markets investment management business; to restart $200m buyback.
• Silver Lake Resources (SLR) +0.83% Reports Q3 gold production 60,502oz and 411 tonnes copper at AISC of $1,452. Q3 production: Sales of 60,740oz gold and 278 tonnes copper at a gold sales price of A$2,180/oz. Production was 60,502 ounces gold and 411 tonnes copper. Capital expenditure $3.4m. Maintains FY production guidance: Gold sales 240-250Koz, Copper sales 1,600t and AISC maintained A$1,400-1,500/oz.
• Mineral Resources (MIN) +1.82% Amended and restated FJV agreement with Brockman Mining.
• Accent Group (AX1) +11.15% To acquire Glue Store retail business and wholesale and distribution brands business of Next Athleisure for $13m. The acquisition is expected to have no material impact on Accent’s FY21 financial performance.
• Iluka Resources (ILU) +0.14% Q1 Zircon / Rutile / Synthetic Rutile production 125.3Kt vs quarter-ago 162.1Kt. Sales 215.5Kt vs quarter-ago 166.9Kt. Total Mineral Sands revenue $344.5m vs quarter-ago $280.2m. Guides FY synthetic rutile production 190Kt vs prior 115-175K.
• Prospa Group (PGL) -1.18% Q3 originations $121m vs year-ago $122.2m.Revenue $28.5m vs year-ago $37.4m. Loan impairment $6.7 vs year-ago $8.8m. Credit loss provisions remain unchanged at 10.4%. Cash and equivalents $93.2m.
• Oil Search (OSH) – Q1 production 6.87Mmboe vs quarter-ago 7.06Mmboe. Total sales (mmboe) 6.69 vs quarter-ago 7.18. Total revenue US$301.5m vs quarter-ago US$259.5m. FY21 guidance:Maintains total production (mmboe) 25.5 – 28.5. Unit production costs (US$/boe) 10.50 – 11.50. Investment expenditure US$250-350m vs prior guidance of US$325-445m. Revised down due to cost savings and the effects of travel restrictions in PNG.
• Perpetual (PPT) –0.33% Assets under management $95.3bn at the end of March vs $89.2bn at the end of December.
• Kogan.com (KGN) -14.27% Q3 gross sales grew by more than +47%. Revenue grew by more than +65%. Gross Profit grew by more than +54%. Adjusted EBITDA declined by more than 24%. Active Customers grew by more than +77% to 3,215,000 for Kogan.com and 742,000 for Mighty Ape.

ECONOMIC NEWS

• The latest CoreLogic home value index shows Sydney dwelling prices have risen by 2.3% on a rolling four-week basis to April 18. Melbourne values were up by 1.5%, Brisbane by 1.8%, and Perth by 0.9%.
• Useful knowledge for the weekend BBQ.

CV19 NEWS

• Vaccine Tracker: 966m doses in 172 countries. 16.4m a day. In US 219m doses at 2.95m a day.
• India breaks record with 320,000 people positive in a day. 2200 deaths.
• Japan is set to declare a new state of emergency from Sunday to May 11 in Tokyo, Osaka and two other prefectures.
• Thailand on Friday reported 2,070 infections, the highest one-day case count since the pandemic began.
• All travelers arriving in the U.K. from India will be required to isolate in managed quarantine facilities for 10 days

BOND MARKETS

ASIAN NEWS

• In Singapore, private property values increased 3.3% in the three months through March, the Urban Redevelopment Authority said.

• China’s central bank wants state control over data from fintechs.

US AND EUROPEAN HEADLINES

• Whispers that Yellen is looking at high taxes for crypto profits.
• Turkish crypto exchange goes bust and owner skips town. Millions missing.
• Happy St George’s Day: UK Retail sales bounce back hard 7.2% y/y v -3.7% in February.
• Tesla has released data logs of car crash in China which drew car show protests. Tesla is trying hard not to appear as arrogant as it has been in the past.
• Russia has spacewalked out of the International Space Station.
• Two-day Climate Summit finishes today.
• ECB dismisses tapering talk as recovery ‘has a long way to go’.
• Apple boosting ads business in assault on Facebook.
• EU to sue AstraZeneca on failure to deliver vaccines as promised.

Lest We Forget

Clarence

XXX