ASX 200 crashes 34 points (-0.48%) to 7062. Could have been worse. Masks are back. Once again Hillary Step proves a step too far. Dow futures up 37. No good news today, except in iron ore stocks with BHP up 2.1% and RIO up 1.0% as ore rises. The rest of miners sell off with IGO down 0.8% and MIN off 1.4%. Gold miners too back in the doghouse led by NCM down 0.3% and NST off 1.1%. Banks ended mixed ANZ down 0.9% and CBA up 0.2%, but could have been worse with the Big Bank Basket down to $173.17. NAB disappointed slightly with its conservatism, familiar theme here, the stock fell 3.0% with MQG easing 1.3% ahead of the numbers tomorrow. Better be good. In the industrials, TLS reaffirmed and got poleaxed by 2.0%, TPG saw another casualty from the Vodafail merger with the CFO leaving, he was there at the start, stock down 5.6%. Consumer stocks lost ground with WES down 0.6% and COL down 1.4%. IEL fell 4.9% as the Indian situation worsened, healthcare was in trouble as CSL fell 0.3% and RHC off 1.3%. Travel stocks were hit too as Sydney imposed new restrictions after another case of CV19. WEB down 6.3% and FLT off 5.3% Tech though was a horror show for some, APT continued to be tested to the downside as $100 seemed to be magnetic, the stock fell 7.0% dragging Z1P with it down 5.9%. The All-Tech Index fell 2.8%. BNPL really on the nose. In corporate news, plenty coming out of the Macquarie Conference with APX being smashed on its presentation, bet they won’t be going next year. Down 21.1% and an ASX query to boot. Good updates from ECX and SXL; up 10.6%, and 6.1% respectively. NEA saw a huge 23.3% collapse after a huge ride yesterday before a halt, now being sued by its rival over IP patents. Nothing on the economic front but China has piled on more pressure on Canberra after pulling out of a symbolic strategic economic alliance. Only meets once in a blue moon but the rhetoric was not what you would expect from a customer of our iron ore. AUD under pressure on the news and 10-year bonds down to 1.69%. Asian markets higher with China up 0.07% and Japan up 1.54% after the holiday break. 

Today’s Highlights

  • ASX 200 down 34 to 7062. Tech turns turtle
  • High 7112 Low 7043. Iron ore the only bright spot
  • NAB falls 3% on results. Travel stocks hurt. Bubbles burst.
  • Big Bank Basket weaker at $173.17. NAB results disappoint.
  • All Tech Index down 2.85%
  • Dow futures up 37 points
  • Australian Gold rises to $2315
  • 10-year yield falls to 1.69%
  • AUD falls to 77.39c on Chinese announcement.
  • Bitcoin US$57112.
  • Asian markets higher with China up 0.07% and Japan up 1.54% after the holiday break

STOCKS

  • APX -21.10% wishes they had never presented at the conference.
  • NEA -23.31% litigation for key IP patent on roof technology.
  • CRN -7.85% returns after placement.
  • DUB -9.49% profit-taking.
  • KGN -7.50% sellers back.
  • CTT +11.22% broker upgrades following guidance.
  • APT -6.97% short volatility players testing $100 mark.
  • WEB -6.32% Sydney restrictions.
  • JMS -9.09% ex dividend and ex-bonus.
  • ECX +10.61% 1H21 H results.
  • PDN +7.22% Uranium trade back on again.
  • RHY +12.14% positive ColoSTAT results.
  • PEN +13.79% BMN +9.09% uranium glowing.
  • ABY -19.21% lipstick on pig rubbed off.
  • RTR +10.14% another good day.
  • CSL -0.28% update on agreement with uniQure.
  • MFG -3.50% change of directors interest.
  • RIO +0.98% AGM address.
  • Speculative Stock of the Day: HGO +48.15% Hillgrove hits 170m of Cu at Kanmantoo.
  • Biggest Winners: CTT, ECX, PPK, PDN, INR, BCK and EHL.
  • Biggest Losers: NEA, APX, DUB, JMS, CRN, KGN and HUB..

TODAY

  • Regis Resources Limited (RRL) – 1.50%Acquisition of 30% stake in Tropicana from IGO Limited now unconditional; completion expected around 31-May.
  • National Australia Bank (NAB) -2.96% Reports H1 cash Profit (after tax) $3.34bn vs consensus $3.31bn. Statutory Net Profit After tax $3.21bn vs consensus $3.40bn. DPS $0.60 vs year-ago $0.30.
  • Telstra (TLS) -1.97 CFO confirms guidance and that T22 cost-cutting program is on track – The Australian.
  • TPG Telecom (TPG) -5.59% CFO Stephen Banfield to step down Nov-21 to pursue other opportunities.
  • Catapult Group International (CAT) +2.97% Provides Q4 update: ACV US$48.4m vs quarter-ago US$44.5m. March quarter: Annual Contract Value churn 5.5% vs quarter-ago 5.4%, lifetime duration 5.8 vs quarter-ago 6.1. Multi-solution customers 252 vs quarter-ago 241. Cash balance at 31-Mar US$22.2m.
  • ADBRI Limited (ABC) +1.27% Trading largely in line with expectations despite impact of various state lockdowns.HomeBuilder supporting demand in Q121, expected to continue through to Q321. Increased competition may place downward pressure on pricing, although pricing was stable in 2020 and has improved slightly in Q121 assisted by mix. 2H21 earnings expected to be lower following cessation of Alcoa lime contract as well as the loss of cement sales from NSW competitor – after-tax impact ~ $16m. Cost-out program, targeting $20m in savings, offset by $10m in cost headwinds. COVID impacts expected to be lower in 2021 due to one-off items in 2020. Capex for 2021 expected to be $200m, including ~ $75m for Kwinana Upgrade and ~$40m in development capital. Kwinana Upgrade Project expected to deliver ~$19.0m in EBITDA savings in the first year of operation post-commissioning.
  • Southern Cross Media (SXL) +6.11% Expects FY21 EBITDA $118-125m vs estimates of $114.6m. Revenues continue to improve with Q3 advertising revenues down 4.3%, ahead of guidance of -6% to -8%. Cost control remains a key focus with FY21 non-Revenue related costs forecast $250m-$255m (ahead of guidance of $255m – $260m). TV Affiliation negotiations ongoing – multiple workstreams progressing to ensure a seamless transition.
  • Star Entertainment Group (SGR) -2.99% Trading update (1-Jan-21 to 3-May-21): Domestic gaming revenue up 37% vs year ago. Compared to the same period in 2H FY2019, group domestic gaming revenue is down 10% and group domestic revenue down 12%.
  • Eclipx Group (ECX) +10.61% H1 profit $39.3m vs year-ago $22.3m. Announce $20m share buyback. Revenue (continuing operations) $333.2m vs year-ago $335.5m. EBITDA $66.5m vs year-ago $46.6m. Kerry Roxburgh has stepped down as the group’s Chairman. Non-Executive Director, Gail Pemberton, as his successor as chair. Outlook:Global supply chain disruption expected to continue for some time. While this situation remains, new vehicle deliveries are likely to be constrained beyond initial June 2021 expectations.

ECONOMIC NEWS

  • Australia’s budget position will be around 25% better off than Treasury forecasts according to economists. We find out Tuesday. Guy Debelle talks tonight.
  • The V-Shaped local economic recovery. In its December mid-year budget update, Treasury forecast iron ore would retreat to US$55 a ton in the third quarter of this year.
  • The National Development and Reform Commission (NDRC) of the People’s Republic of China has halted activities under the China-Australia economic dialogue. It is alargely symbolic suspension to meeting last held in 2017.
  • China and Australia haven’t held ministerial level meetings since the foreign ministers met in Beijing in January 2019.

CV19 NEWS

  • Vaccine Tracker: 1.21bn does in 174 countries. 19.7m a day. In US 250m jabs at 2.13m doses a day.
  • Enough doses have now been administered to fully vaccinate 7.9% of the global population.
  • Globally, the latest vaccination rate is 19,673,556 doses per day, on average. At this pace, it will take another 17 months to cover 75% of the population.

BOND MARKETS

ASIAN NEWS

  • Welcome back China. The US is expected to support a proposal to waive IP for CV19 vaccines during the pandemic, sends the drug companies lower.
  • Tokyo calls for an extension of virus emergency.

US AND EUROPEAN HEADLINES

  • Cathie Woods ARK Innovation funds are getting a battering. Seven straight days of falls. Now down 10% for the year.
  • Italian Bank UniCredit beats forecasts. Societe General also beats forecasts.
  • Air France sees more losses.
  • VW sees come back in deliveries but warns on Chip shortages in second half.
  • BOE decision today. No change expected. Quarterly policy report will see GDP forecast revised up.
  • Scotland votes. Big moment.
  • Tesla to lose hundreds of millions in emission sale credits. Fiat no longer needs them to offset emissions.
  • Jeff Bezos sold US$2bn of stock in last two days. Must be buying Ethereum or Dogecoin.

And finally….

 Mick, from Dublin , appeared on ‘Who Wants To Be A

Millionaire’ and towards the end of the program had already won five

hundred thousand pounds.

 “You’ve done very well so far,” said Chris Tarrant the

show’s presenter, “but for a million pounds you’ve only got one

life-line left: phone a friend. Everything is riding on this question

… will you go for it?”

    “Sure,” said Mick, “I’ll have a go!”

     ”Which of the following birds does not build its own nest?”

                            a) Sparrow

                            b) Thrush

                            c) Magpie

                            d) Cuckoo

“I haven’t got a clue,” said Mick, “so I’ll use me last

lifeline and phone me friend Paddy back home in Dublin .”

 Mick called up his mate, and told him the circumstances and

repeated the question to him.

“Fookin hell, Mick!” cried Paddy, “Dat’s simple … it’s a

cuckoo.”

            “Are you sure?”

            “I’m fookin sure.”

 Mick hung up the phone and told Chris, “I’ll go wit Cuckoo

as me answer.”

            “Is that your final answer?” asked Chris

            “Dat it is, Sir.”

            There was a long – long pause, and then the presenter screamed,

            “Cuckoo is the correct answer!

            Mick, you’ve won 1 million pounds!”

The next night, Mick invited Paddy to their local pub to

buy him a drink.

“Tell me, Paddy?  How in Heaven’s name did you know it was

da Cuckoo that doesn’t build its own nest?”

]“Because he lives in a fookin clock!”

Clarence

XXXX