ASX 200 finished the month in a miserable fashion closing down 56 points to 7026 (0.8%), not sure why we saw so much selling, but a combination of disappointing quarterly’s, a reserve downgrade from BPT and write downs from ANZ conspired to see a negative day on the ASX. The Big Bank Basket closed down at $169.42 with a ANZ falling 0.7% and CBA slipping 1.1%. AMP held its AGM today which was always going to be a feisty affair with the stock closing down 1.8%.  Big miners too saw selling across the board with BHP down 2.0%, RIO down 1.7% and gold miners slipping away, down 2.1% for NCM and NST falling 3.5%. Energy stocks also failed to fire despite crude prices pushing higher and we saw WPL down 1.7% and BPT fell a massive 24.1% after business update and more importantly a reserve downgrade. The health care sector also sold off today following the RMD results which saw the shares down 4.2%, CSL also finding sellers down 0.8% and RHC down 1.4%. Industrials flopped lower, WOW continued to slide down, down prices are down 1.3%, with COL down 0.4% too. Tech stocks on the nose, APT off 2.4% and WTC down 2.3% with the All-Tech Index falling 1.2%. In corporate news, quarterlies dropped thick and fast, DUB kicked the lights out with a 18.6% rise post numbers, SZL rose 8.4% after announcing a listing in the US and PBH did well up 7.4%. Even MSB rose today 6.8% on better trial results on its CV19 treatment. In the losers’ circle, EOS fell 8.7% on its quarterly, RMD fell 4.2% as tax issues clouded the quarterly and ANZ wrote off another $817m equivalent to 5bps on its CET1 ratios. No one seemed concerned. 10-year yields pushed a little higher at 1.74% and the AUD at 77.75c. Asian markets slid ahead of some holidays, Japan down 0.8% and China off 1.0%. Japan and China shut until Wednesday next week. UK closed Monday.

Today’s Highlights

• ASX 200 dips 56 points to 7026. Hillary step proves too much.
• High 7075 Low 7013. Low volume day.
• ASX 200 down 34 points for the week. 3.5% for April.
• Big Bank Basket drops to $169.42
• All Tech Index down 1.18%
• Dow futures down 30.
• Australian Gold falls to $2275.
• 10-year yield rallies to 1.74%
• AUD eases to 77.75c.
• Bitcoin steady at US$54080.
• Asian markets slid ahead of some holidays, Japan down 0.8% and China off 1.0%. Japan and China shut until Wednesday next week.

STOCKS

• DEG -1.35% quarterly report.
• NTO -4.-01% 10% holding sold at 315c.
• AMP -1.76% AGM – Remuneration report passes. Just. Sorry seems to be the hardest word.
• DUB +18.60% quarterly report.
• SZL +8.45% heading for US listing.
• PBH +7.42% Investor presentation.
• MSB +6.83% positive CV19 results.
• 3DP -19.21% acquisition and ACV update.
• EOS -8.07% things back on track. Maybe not.
• VTH +1.18% Macquarie lifts offer again to 126c.
• RMD -4.21% tax dispute hurts quarterly.
• TPW -4.46% profit taking.
• IME -9.5% quarterly report. Low volume.
• JHC +26.25% non-binding proposal at 104c.
• SFR -5.72% broker downgrade.
• LEX +13.83% strong bounce.
• LCK +8.16% in the zone.
• TNT -4.08% appoints new CFO and completes acquisition.
• BTH -12.56% quarterly fails to inspire.
• Speculative Stock of the Day: Nothing on volume.
• Biggest Winners: DUB, PPK, ADO, SZL, PBH, MSB and REG.
• Biggest Losers: BPT, 3DP, EOS, PLL, MYX, SYR and GRR.

TODAY

• Beach Energy (BPT) -24.11% Q3 production 5.89 MMboe vs quarter-ago 6.20 MMboe. Sales volumes 6.21 MMboe vs quarter-ago 6.44MMboe. Sales revenue $393m vs quarter-ago $344m. At the end of March Beach had liquidity of $430m, comprising $190m of cash reserves and $240m in undrawn facilities.
• PointsBet Holdings (PBH) +7.42% Q3 turnover of $905.2m vs year-ago $269.1m.Net Win Margin 7.2% vs year-ago 7.0%. Active clients 285.5K vs year-ago 106K. Net cash from operating activities -$27.4m. Receipts from customers $64.9m. Cash and cash equivalents at end of quarter $356.6m. Full-year guidance downgraded. Sees production between 25.2 – 25.7 MMboe, vs prior 26.5 – 27.5 MMboe. FY22 Western Flank oil production expected to be 4-5 MMbbls below previous estimates. FY capex expected in the range of $700-740m vs prior $720-760m. Underlying EBITDA expected between $850-900m vs prior $900-950m. Unit operating costs A$10.00-10.50/boe vs prior A$9.00-9.40.
• Genworth Mortgage Insurance Australia (GMA) =0.74% Q1 underlying profit $30.3m vs year-ago -$103.2m.Gross Written Premium $142.7m vs year-ago $114.1m. Underwriting result $34.8m vs year-ago -$167.9m. New insurance written $7.5bn vs year-ago $6.4bn. Net earned premium $85.9m vs year-ago $75.4m. Loss ratio (%) 41.8 vs year-ago 47.1. Further to the GFI selldown, the company advises that it intends to adjust its market reporting cycle from quarterly to semi-annual reporting, commencing with the financial results for the half year ending 30-Jun-21.
• ResMed (RMD) -4.21% Q3 Earnings per share US$1.30 ex-items vs consensus US$1.28. Revenue US$768.8m vs consensus US$797.0m. Non-GAAP gross margin contracted 40 bps to 59.6%. Management Comments: Our March 2021 quarter results reflect the ongoing recovery of core patient flow across our business, while we anniversary the US$35m of incremental COVID-19 revenue in the same quarter last year. Excluding the COVID-19 revenue from the March 2020 quarter, we achieved positive revenue growth on both a headline and constant currency basis. Our global team is supporting patients and all of our customers as the most recent waves of COVID-19 cases impact parts of Europe, Asia, and South America. I am extremely proud of our ResMed team as they innovate with new digital pathways for patients to be diagnosed and treated for their sleep apnea, COPD, asthma, and out-of-hospital needs.
• Omni Bridgeway (OBL) -1.83% Advises that an arbitral award has been handed down in favour of Omni Bridgeway’s funded client. Arbitral award handed down in favour of Omni Bridgeway’s funded client in an international arbitration investment funded by Fund 5. Award includes an order that the Respondent must pay Omni Bridgeway’s funded client’s legal costs as well as its ‘litigation funding costs’. Fund 5 expects to generate, in aggregate, total income from this investment of approximately $5.8m.
• Zimplats Holdings (ZIM) +2.64% Q3 6E production (oz) 137,093 vs quarter-ago 146,287. Reports Q3: Ore mined (Mt) 1.75m vs quarter-ago 1.81m. Head grade (g/t) 3.39 vs quarter-ago 3.48. Total operating cash cost US$95.1m vs quarter-ago US$96.5m. Cash cost of metal produced US$97.4m vs quarter-ago US$94.8m. Operating cash cost per 6E ounce US$710 vs quarter-ago US$648.
• Australia and New Zealand Banking Group (ANZ) -0.69% Issues update on H1 notable items; cash profit impacted by an after tax charge -$817m, equates to -5bps impact to Common Equity Tier 1.
• Japara Healthcare (JHC) +26.25%Receive unsolicited, indicative, conditional and non-binding acquisition proposal from Little Company of Mary Health Care at $1.04/share.
• Mesoblast (MSB) +6.83% Reports topline results from trial of remestemcel-L in patients on mechanical ventilation due to COVID-19. Trial results: 60 day results from the randomized controlled trial of remestemcel-L in 222 ventilator-dependent COVID-19 patients with moderate/severe acute respiratory distress syndrome (ARDS) which had been halted after the third interim analysis, as previously announced. Remestemcel-L reduced mortality through day 60 by 46% in the pre-specified group below age 65, but not in patients 65 or older. Remestemcel-L reduced mortality by 75% and increased days alive off mechanical ventilation in patients under age 65 when combined with dexamethasone, in comparison with controls on dexamethasone.

ECONOMIC NEWS

Producer prices rose just 0.4% in the March quarter to be up 0.2% on the year

• Three in ten (30%) businesses are experiencing supply chain disruptions.
• 30% of businesses currently have staff teleworking, with 45% experiencing improved staff wellbeing as a benefit.
• Nearly two thirds (64%) of businesses are being adversely impacted by COVID safe controls.
• Less than one in five (18%) businesses reported decreased revenue in April. This is the lowest proportion of businesses reporting decreased revenue since this data was first collected.

• Private sector credit rose 0.4% in March after rising 0.2% in February
• China’s top diplomat, Cheng Jingye in Canberra blamed Australia for deteriorating ties. He went on to say about Five Eyes security “teaming up in small group against China will not work.”

CV19 NEWS

• Vaccine Tracker: 1.1bn in 174 countries. 19.7m a day. In US, 237m at 2.63m a day.
• The U.K. regulator received 209 reports of major blood clot cases following a dose of the AstraZeneca vaccine, almost a fifth of whom died.
• France will ease its coronavirus restrictions in four stages starting on May 3 and ending on June 30. Germany reported record jabs of 1.1m a day on Wednesday.
• A surge in CV19 cases in Oregon show the US cannot relax just yet.
• Ireland will reopen swathes of its economy next month, Prime Minister Micheal Martin said

BOND MARKETS

ASIAN NEWS

• Chinese regulators tell 13 fintech companies to fix problems on their platforms. ANT Group not one targeted.
• Chinese official PMI falls to 51.1 in April from 51.9. The non-manufacturing gauge, which measures activity in the construction and services sectors, dropped to 54.9, compared to 56.1 projected by economists.

US AND EUROPEAN HEADLINES

• CS Risk head to step down.
• BNP Q1 Revenue up 8.6%.
• Some of the CV19 pandemic winners are coming back to earth.
• French GDP beats expectations. German GDP later today.

• Nestle buy Bountiful for US$5.7bn from KKR. 3.1 times net sales.
• Dozens crushed to death in Jewish Festival in Israel.
• Barclays Bank doubles profit for the quarter. CET1 14.6% EPS Q1 9.9p.
• Indian IPL not winning the PR war as health service about to implode.
• The biotech company behind the AstraZeneca vaccine raises US$111m to value Vaccitech at US$579m in US IPO.
• US attempting to ban menthol cigarettes. 30% of sales in US are minty flavoured.
• AstraZeneca results out. Guidance does not incorporate any sales or profit from CV19 vaccine.

           

And finally…

Father Murphy walks into a pub in Donegal, and asks the first man he meets, ‘Do you want to go to heaven?

            The man said, ‘I do, Father.’

            The priest said, ‘Then stand over there against the wall.’

            Then the priest asked the second man, ‘Do you want to go to heaven?’

            ‘Certainly, Father,’ the man replied.

            ‘Then stand over there against the wall,’ said the priest.

            Then Father Murphy walked up to O’Toole and asked, ‘Do you want to go to heaven?’

            O’Toole said, ‘No, I don’t Father.’

            The priest said, ‘I don’t believe this. You mean to tell me that when you die you don’t want to go to heaven?’

            O’Toole said, ‘Oh, when I die , yes. I thought you were getting a group together to go right now.

            Paddy was in New York .

            He was patiently waiting and watching the traffic cop on a busy street crossing. The cop stopped the flow of traffic and shouted,

‘Okay, pedestrians.’ Then he’d allow the traffic to pass.

            He’d done this several times, and Paddy still stood on the sidewalk.

            After the cop had shouted, ‘Pedestrians!’ for the tenth time, Paddy went over to him and said, ‘Is it not about time ye let the

Catholics cross?’

Clarence

XXXX