ASX 200 rallies 88 points to 7020 (1.3%) It was the best of times, it was the worst of times. Best if you were long industrials and banks, worst if you are in big miners and some resource stocks. BHP fell % along with RIO down 0.5% on iron ore falls. Gold miners put in another strong day as Crypto Collapso happened overnight, NCM up 1.0% and EVN up 0.4%. Base metal stocks under pressure following falls on the LME, OZL down 0.9% and IGO off 2.3%. Oils were mixed with STO down 1.3% and WPL up 0.2%. All the action in the banks as CBA pushed ever higher up 3.2% and the Big Bank Basket recovering from the falls yesterday and more, closing at $178.22. Other financial did well, MQG up 0.3% and GMG leading REITS higher. Industrials in demand, WOW up 0.7%, CSL up 1.3%, ALL bouncing back and EML bounced strongly after the rout yesterday up 3.9%. Tech was mixed, NXL back in the papers for all the wrong reason, APT gained 7.7% on news of SME lending and XRO added 4.1%. In corporate news, QAN gave us a business update and confirmed international flights not until December but is turning the corner it says. It closed up 3.5%. SYD up 3.0%, April traffic down 58.1% vs April 19. ALD up 0.5%, targeting net zero emissions by 2040. NUF up 3.3%, swings to a half-year profit of $58.9m. AAC down 0.8%, lower meat sales expected to continue into FY22. In economic news, job numbers came in better than expected at least at the headline rate of 5.4% although participation fell but no ‘Jobkeeper cliff’ in sight. Good for banks. The 10-year yield steady at 1.76%. Modest gains in Asia. Japan up 0.3% and China up 0.1%. Dow futrures down 10.

Today’s Highlights

• ASX 200 up 88 points to 7020. Futures and ETO expiry.
• High 7025 Low 6919. Similar range as yesterday.
• Jobs number 5.5% unemployed.
• Big Bank Basket rallies hard from $173.83 to $178.22.
• All Tech Index up 3.20%
• Dow futures down 10.
• Australian Gold rallies to $2422.
• 10-year yield steady at 1.76%
• AUD firms to 77.48c
• Bitcoin volatility continues. US$39519.
• Modest gains in Asia. Japan up 0.3% and China up 0.1%

STOCKS

• MNY +6.85% broker upgrades following business update.
• APT +7.67% moving into SME lending.
• IMU +8.22% Investor webinar draws positive reports.
• ALU +6.63% becoming a substantial shareholder.
• EML +3.93% Irish issue may not be the end of the world.
• APE +5.91% buoyant car sales continue.
• ADO +7.94% capital raise well supported.
• VGI -6.48% trouble at mill.
• NXL -6.83% back on the front page with former CEO court case.
• POD -18.99% profit taking continues.
• RHY -6.64% profit taking.
• ILU -4.41% withdraws production guidance.
• MDX +18.46% back in the winner’s circle.
• DEG +6.12% another good day. TP reached.
• BLX +0.51% sees bright year ahead.
• APT +7.67% TP $120. Upgrades to outperform.
• Speculative Stock of the Day: NuEnergy (NGY) +68.97% Big volume on announcement of ceremonial invitation to the Indonesian approval grant for coal bed methane project.
• Biggest Winners: IMU, ADO, APT, MNY, ALU, SIG, RBL and DEG.
• Biggest Losers: NXL, TLX, VGI, INR, ABR, MGX, ILU and MGX.

TODAY

• Nuix (NXL) -6.83% Banton Group planning investor class action against Nuix. Newswires commenting on how the business committed the cardinal sin of IPO’s, missing the prospectus forecast in the first year.
• South32 (S32) –2.74% understood to be interested in acquiring Spanish mines, Matsa and Sierra Groda,worth at least US$2bn. There is also speculation S32 may bid for a stake in the Sierra Gorda copper mine in Chile.
• Afterpay (APT) +7.67% Contemplating entry into small business lending market – The Sydney Morning Herald.
• Nufarm (NUF) +3.27% H1 adjusted EBITDA $233.6m vs consensus $162.6m. Reports H1: Revenue $1.65bn vs consensus $1.51bn, Underlying Net Profit $60.4m and operating profit $128.8m vs proforma year-ago -$28.3m. No interim dividend declared. Outlook: FY capex likely below previous guidance A$180M and will be closer to year-ago. Expected to consolidate market share gains. Average NWC/Sales expected to remain within targeted range.
• Sydney Airport (SYD)+3.04% Reports April traffic (58.1%) vs Apr-19. Domestic -34.8% vs Apr-19 to 1,489,000 passengers. International -96.2% vs Apr-19 to 53,000 passengers.
• Australian Agricultural Co. (AAC) -0.82% Reports FY statutory NPAT $45.5m vs year-ago $31.3m. Reports FY: Revenue $265.5m vs year-ago $334.1m. Statutory EBITDA $99.3m vs year-ago $80.1m and adjusted gross profit $39.6m vs year-ago $49.5m. Outlook: Lower calving in 2018-2020 due to drought continues to impact meat production in FY21 due to average F1 Wagyu lifecycle length of 3.5 years. Herd is currently in rebuild phase.
• Iluka Resources (ILU) -4.41% Provides Sierra Rutile update; intends to suspend Sierra Rutile operations, effective 19-Nov-21.
• Sezzle (SZL) +4.23% Launches long term financing with Ally Bank.
• Qantas Airways (QAN) +3.54% Expects FY21 underlying EBITDA of $400-450m. Observes sustained domestic recovery driving strong cash generation. Statutory free cash flow positive for H2 FY21; Jetstar Underlying EBIT positive in April. Strong total liquidity position of $4.0bn. Forecast statutory loss before tax of more than $2bn in FY21. Recovery program on track to deliver $600m ongoing cost reduction in FY21.
• Ampol (ALD) +0.50% By 2030, aims for operations to use 50% equivalent net renewables, with a 50% reduction in operational emissions on an absolute basis from 2021 levels for Convenience Retail, and a 10% reduction in operational emissions intensity from 2021 levels for Fuels and Infrastructure.

ECONOMIC NEWS

• Employment change: -30,600 vs consensus +20,000. Unemployment rate: 5.5% vs consensus 5.6%. Bjorn Jarvis, head of labour statistics at the ABS, said this was the sixth consecutive fall in the unemployment rate, down from 6.9% in October 2020.
• The economy shed 30,600 positions, led by a 64,400 drop in part-time roles, while full-time employment advanced. ABS says not likely to see full impact of JobKeeper rolling off until May numbers.

CV19 NEWS

• Vaccine Tracker: 1.54bn doses 25.6m a day. In US 277m doses and 1.8m a day. Slowing rapidly. In Australia, 66,624 doses a day and will take another 17 months to cover 75% of the country.

BOND MARKETS

ASIAN NEWS

• ByteDance founder steps down ahead of IPO.

US AND EUROPEAN HEADLINES

• Cathie Wood still a believer in Bitcoin sees it going to $500,000.
• Crypto collapse wipes US$600bn off tokens in a week.
• Fed official talking about talking about tapering.
• Israel and Hamas close to cease fire.
• Easyjet HY loss of GBP 701m. Passenger numbers down 89.4% to March.

And finally….

• “I’m afraid for the calendar. Its days are numbered.”
• “My wife said I should do lunges to stay in shape. That would be a big step forward.”
• “Why do fathers take an extra pair of socks when they go golfing?” “In case they get a hole in one!”
• “Singing in the shower is fun until you get soap in your mouth. Then it’s a soap opera.”
• “What do a tick and the Eiffel Tower have in common?” “They’re both Paris sites.”
• “What do you call a fish wearing a bowtie?” “Sofishticated.”
• “How do you follow Will Smith in the snow?” “You follow the fresh prints.”

Clarence

XXX