ASX 200 drifts higher as sellers drop back. ASX 200 up 18 points to 7082 as summit beckons. Despite a bad lead in, some of the CPI inspired buying continued to buoy the markets. Quartyerliesd and business updates keeping traders busy. Biden’s speech, Apple and Facebook results plus FOMC comments also helping positive sentiment. Volumes remain lower than usual. Today was the turn of the miners with Goldman upgrading the commodity outlook. BHP rose 0.9% but FMG fell 0.2% despite record production numbers as higher costs may be in the works. Gold miners also recovered with EVN up 2.6% and NST up 2.3% on a broker upgrade. Oil stocks were positive as crude moved higher STO up 0.4% and WPL up 0.6%. Banks slipped today with the Big Bank Basket down to $170.90  led by NAB down 0.5%.  Industrials were mixed, WOW slipped 3.9% as punters piled into the COL/WOW switch COL up 3.3%. Healthcare stocks up again with a nice move form CSL higher by 0.9%. Tech also doing OK, APT back on the podium up 3.5% and XRO pushing 2.2% ahead. The All –Tech Index rose 1.68%.  In corporate news, MCP rose 8.5% after a business update and a second bidder emerged. GPT down 0.6% as rent collections improve. NCM up 2.1%, on track to meet production guidance. IFL unchanged as it lifted FUMA 0.74% to $203.9bn. URW down 4.5% as Q1 turnover falls 43%. In economic news, Export price index rose 11.2% this quarter and 8.6% through the year. Import price index rose 0.2% this quarter and fell 6.2% through the year. 10-year yields fell slightly to 1.69%. Dow Futures up 89 points. Asian markets better Japan up 0.2% and China up 0.5%.

Today’s Highlights

• ASX 200 up 18 to 7082.
• High 7097 Low 7069. Narrow range. Volatility? Not today.
• Big Bank Basket drops to $170.90.
• Solid start for European markets. US GDP a focus.
• All Tech Index up 1.68%
• Dow futures up 89.
• Australian Gold rises to $2290.
• 10-year yield falls to 1.69%
• AUD rises to 77.91c
• Bitcoin slips to US$53891
• Asian markets better Japan up 0.2% and China up 0.5%.

STOCKS

• NXL -5.62% hitting lows again.
• LEX -23.58% latest results disappoint.
• AKP +6.03% 6,000 shares traded.
• NIC +7.91% change of directors’ interest.
• KAR +7.63% quarterly.
• APH +11.49% good day today. See HT.
• TPW +6.26% bounce continues.
• BET +6.64% positive broker comments.
• LFS +1.21% pushing higher again.
• MGH +16.05% acquisition of AMC business and Willow Tree Gravel.
• NTO +9.83% quarterly update.
• ART -4.71% some profit taking.
• WOW -3.86% switching to COL.
• COL +3.34% the switch is on.
• VUL +5.33% quarterly report.
• RTR -13.24% lord giveth and taketh away.
• 88E -7.41% stumbles again.
• NCZ -10.53% costs up/production down.
• EM2 +12.34% copper exposure.
• WZR +11.36% sure it won’t last.
• Speculative Stock of the Day: Rewardle (RXH) +166.67% SpllitPay Growth services agreement
• Biggest Winners: MGH, ABR, NTO, NVX, NIC, INR and KAR.
• Biggest Losers: CTT, NXL, ART, URW, WOW, CMM, and NUF.

TODAY

• Credit Corp. Group (CCP) -0.47% Provides trading update; remains on track for strong result. FY21 guidance: Net Lending $10-20m vs prior guided$5-10m.
• IOOF Holdings (IFL) -unchanged- Reports Q3 Funds under management and administration of $203.85bn. Q3 Business Update: Financial Advice: -$1.4bn net outflows. Portfolio & Estate Administration: $267m net inflows. Investment Management: -$507m net outflows, including -$469m outflows due to AET cash product simplification. Pensions & Investments: -$782m net outflows. Integration Update: IOOF remains on track to deliver $43m of annualised synergies by 30-Jun-21 from P&I integration. On track for the completion of the MLC transaction by 30-Jun-21, subject to APRA approval.
• Cedar Woods Properties (CWP) +5.52% Provides Q3 trading update; guides FY21 profit of $32m vs prior guidance of $29m. Trading update: Presales contracts are at record $426M, +17% vs year-ago. Approximately 10% of presales are expected to settle in FY21 with the balance contributing to earnings in FY22 and FY23. Pipeline of more than 8,400 lots/units across four states. Balance sheet remains strong with low gearing and sufficient capacity to fund the requirements of the business. FY Dividend payout ratio of 60-75%, subject to market conditions.
• Newcrest Mining (NCM) +2.15% Q3 gold production 512Koz vs quarter-ago 535Koz; on track to deliver FY21 guidance. March quarter: Copper production 35,034t vs quarter-ago 34,557t. Group AISC of US$891/oz vs quarter-ago US$963/oz. Cadia records lowest ever quarterly AISC at negative $160/oz.
• Regis Resources (RRL) +2.32% Reports Q3 gold production 85,478oz vs quarter-ago 91,411oz. March quarter: Sales of 67,383oz. AISC $1,388/oz, -6% on the quarter. C1 cash cost $1,074/oz. Cash flow from operations of $67.2m. Cash and bullion $202.3m. FY Guidance Maintained: Gold Production 355-380Koz, C1 Cash Costs including royalties $1,030 – 1,090/oz, All in Sustaining Cost $1,230 – 1,300/oz.
• Coronado Global Resources (CRN) -trading halt -Announced US$100m non-renounceable entitlement offering; intend to enter into US$100m senior secured asset-based revolving credit agreement. On or prior to the issuance of the Notes, Coronado Finance and subsidiary, Coronado Coal Corporation, intend to enter into a senior secured asset-based revolving credit agreement providing for an multi-currency asset-based-loan credit facility in an initial aggregate principal amount of $100.0m. The company also intends to undertake an accelerated non-renounceable entitlement offering to its securityholders through an issue of CDIs for aggregate gross proceeds of at least US$100m, which is expected to be launched prior to entry into the purchase agreement in connection with the Notes offering. The proceeds of the Notes, together with the proceeds of the Entitlement Offer, are intended to be used to (i) repay all outstanding obligations under the company’s existing secured multi-currency revolving syndicated facility agreement, (ii) cash collateralize a $70.0M credit support facility, (iii) pay transaction costs and (iv) fund working capital and other general corporate needs.
• Woolworths Group (WOW) -3.86% Q3 sales $16.57bn vs year-ago $16.50bn, 2-year average growth +5.6% vs year-ago. Provides trading update and outlook; will not proceed with Darwin Dan Murphy’s development. Current trading and outlook: Sales growth for the first three weeks of April remained volatile and impacted by prior year growth rates and the timing of public holidays. The Endeavour Group demerger remains on target for late June. On PFD, due to an extended ACCC review process, the condition precedent relating to regulatory approval has been extended to February 2022. Darwin Dan Murphy’s development: Following completion of the review this week, on 28 April the Panel’s Chair, Danny Gilbert AM, briefed the Woolworths Group Board and Management on its findings and recommendations, including that the development should not go ahead.
• Ampol (ALD) +1.54% Appoints Greg Barnes as CFO effective 1-Jul.
• Fortescue Metals Group (FMG) -0.18% Q3 total ore shipped 42.3 Mwmt vs year-ago 42.3 Mwmt; increases FY Capital Expenditure guidance. Q3 update: Year-to-date shipments of 132.9Mt, +2% on the year. Ore mined 53.6M wmt vs year-ago 41.9M wmt. Average revenue of $143/dry metric tonne (dmt) +17vs quarter-ago. C1 cost $14.90/wmt +16% q/q due to seasonally lower volumes and the strength of the Australian dollar. FY Guidance: Guidance for FY21 shipments and C1 cost remains unchanged. Capital expenditure guidance revised to a range of US$3.5-3.7bn vs prior US$3.0 – $3.4bn.
• Growthpoint Properties Australia (GOZ) +0.54% Provides Q3 update; increases FY FFO guidance to 25.4-25.7cps vs prior 25.2 – 25.5cps. Q3 update: Occupancy to 96%, Proforma gearing of 29.8%. Reaffirms distribution guidance of 20.0 cps.
• Sezzle (SZL) +3.26% Enters partnership with Market America Worldwide. Market America Worldwide is the owner of global e-commerce site SHOP.COM, which forged this partnership with Sezzle to provide its global independent distributors, their customers and all online shoppers worldwide a flexible and convenient payment option, allowing greater control over when and how they pay.
• GPT Group (GPT) -0.64% Provides Q3 update; repeats FY guidance. Trading update: Rent collection rates 105% of net billings. Office portfolio occupancy 91.9% vs 94.9% as at 31-Dec-20 following practical completion of 32 Smith, Parramatta. Logistics portfolio occupancy of 96.8% vs 99.8% as at 31-Dec-20. Full year 2021 guidance. Funds from operations (FFO) per security growth of 8% and Distribution per security (DPS) growth of 12% on 2020.
• Afterpay (APT) +3.50% Partners with Novatti for delivery of payment cards in New Zealand. Novatti will leverage its licence with Visa to enable Afterpay to issue Visa card solutions. This includes enabling Afterpay’s users to access Afterpay-branded payment cards in their digital wallet for use at participating merchants across New Zealand

ECONOMIC NEWS

• Future Fund returns 4.5% in quarter through end of March. Almost 19% of its portfolio in cash and maintained its equities holdings flat at about one-third of the fund last quarter.

• Wine Shipments in the three months ended March 31 plummeted to just $12m from $325m in the same period a year earlier. The value of Australia’s total wine exports fell 4% to $2.77bn in the year ended March. Below are the good old days.

• House prices on the move again. The median Sydney house price now above $1.3m, on the latest Domain House Price Report figures, a 20% deposit would be north of $260,000.

• International Trade Price Indices

CV19 NEWS

• Biden urges all Americans to get vaccinated. New virus cases rose globally for the ninth consecutive week, by a record 5.7m.
• Moves to restart pan European travel are gathering pace with a digital vaccine passport one of the answers.
• Vaccine Tracker: 1.08bn doses at 20.3m a day. In US, 235m doses at 2.67m a day. Enough doses have now been administered to fully vaccinate 7.1% of the global population.

BOND MARKETS

ASIAN NEWS

• Chinese travel on Labour Day looks set to break records. 200m overall trips expected. Shanghai Disney has sold out. Bookings for seats on planes, hotels and car rentals were up 23%, 43% and 126% respectively on same period in 2019.

US AND EUROPEAN HEADLINES

• President Biden has given his 100-day address to a rousing reception in Congress. Tax hike for the rich and a US$1.8 trillion Family Package. Not sure we can call him sleepy Joe now given his first 100 days.
• US GDP tonight. 6%?
• Biden urges all Americans to get vaccinated. New virus cases rose globally for the ninth consecutive week, by a record 5.7m. Biden says US ready for take-off.
• US tells its citizens to get out of India.
• Apple sales of 5G phones soaring.
• A message to you Rudi, as Feds search Giuliani’s office and home.
• Newly appointed SEC Enforcement chief resigns unexpectedly after only 5 days.
• Standard Chartered Q1 profit up 18% beating estimates.
• Vale Michael Collins once dubbed the ‘loneliest man in history’.

And finally…

The local news station was interviewing an 80-year-old lady because she had just gotten married for the fourth time. The interviewer asked her questions about her life, about what it felt like to be marrying again at 80, and then about her new husband’s occupation. “He’s a funeral director,” she answered.

“Interesting,” the newsman thought.

He then asked her if she wouldn’t mind telling him a little about her first three husbands and what they did for a living. She paused for a few moments, needing time to reflect on all those years. After a short time, a smile came to her face and she answered proudly, explaining that she had first married a banker when she was in her 20’s, then a circus ringmaster when in her 40’s, and a preacher when in her 60’s, and now – in her 80’s – a funeral director.

The interviewer looked at her, quite astonished, and asked why she had married four men with such diverse careers.

(Wait for it)

She smiled and explained,

“I married one for the money, two for the show, three to get ready, and four to go.”

Clarence

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