ASX 200 slips 18 to 7162 after a high above 7200 fails to stick. US markets closed tonight. A positive start gave way to apathy and some profit taking in banks. The Big Bank Basket fell to $181.80 with other financials under some pressure, MQG down 0.3% and AEF off 10.00%. Insurers mainly weaker as QBE fell 0.6% and SUN down 0.4% with AMP off 4.3%. In the big miners, BHP slipped 0.6% whilst RIO and FMG up 0.6% and 1.4% respectively. Gold miners too were in demand with good results auguring well for PDI up %. NST rose 2.3% and NCM up 0.7% with CHN up 1.0%. Oil stocks eased with WPL down 1.4% and STO off 1.6%. Industrials were generally soggy although buyers rang in for TLS up 0.9% after Optus numbers showed positives for TLS mobile market. Tech stocks mixed, APT down 1.2%, Z1P down 2.1% and XRO up 1.7% after news of management changes. In corporate news, AX1 up 2.2%, completes its Glue store acquisition. It is Monday so must be time for another NXL downgrade, stock losing another 17.8%. BET sees more sellers after TAH bid fails to win hearts and minds, falls 13.1%. LNK down 6.8% after announcing it will now IPO its’ PEXA business. On the economic front, Melbourne Institute inflation for May fell 0.2% for the month to be up 3.3% on a year ago. Private sector credit rose 0.2% in April to be up 1.3% over the year according to the RBA. 10 year yields steady at 1.70%. Asian markets eased with Tokyo down 1.1% and China off 0.4%.

Today’s Highlights

• ASX 200 drops 18 to 7162.
• High 7203 Low 7157.  
• Big Bank Basket falls to $181.80
• All Tech Index down 0.8%.
• US Markets closed for Memorial Day.
• Australian Gold rises to $2467.00
• 10-year yield at 1.70%
• AUD rises to 77.30c.
• Bitcoin around US$34461.
• Asian markets eased with Tokyo down 1.1% and China off 0.4%.

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STOCKS

• EOS +6.49% nice bounce.
• PDI +9.89% great drilling results. Only augur but it’s a start.
• NXL -17.80% another day another downgrade.
• BET -13.06% market hates TAH deal.
• AEF -10.00% profit taking,
• ABB -8.15% broker downgrades following market update last week.
• TLS +0.86% Optus numbers show TLS doing well.
• INR -2.78% death of director.
• IMU -12.09% punters exiting.
• POD -15.50% more profit taking.
• LNK -6.79% PEXA heading for IPO.
• PWR +2.86% MS goes overweight.
• DXS +0.48% upgrades guidance
• REA -0.50% unloads Malaysia and Thailand business.
• CBR +14.22% ceasing to be a substantial shareholder.
• FAR -conditions satisfied for WPL sale.
• IFL +0.77% completes MLC acquisition.
• NOX +22.50% positive independent trial data.
• Speculative Stock of the Day: Prominence Energy (PRM) +45.45% capital raised for Bowsprit drilling and hydrogen project.
• Biggest Winners: LTR, EMR, EOS, ALK, CMM, BVS, RSG and WAF
• Biggest Losers: NXL, BET, IMU, OMH, AEF, ABB, LNK and BRN.

TODAY

• Link (LNK) -6.79% Confirms that PEXA has signed an underwriting agreement for an IPO. The underwritten price implies an enterprise value of $3.3bn.
• HomeCo Daily Needs REIT (HDN) +1.1% Preliminary June (pro forma) valuation $1.38bn vs December $1.30bn. Continues to achieve over 99% rent collection. Guidance: FY22 funds from operations of at least 8.3c/unit. Q4-21 distribution of 1.8c/unit. Major developments of Richlands (QLD) and Ellenbrook (WA) are now largely completed in line with the previously disclosed budget.
• a2 Milk Co. (A2M) -0.36% Responds to media reports of a potential class action against the company being investigated. The claim alleges that a2 Milk may have engaged in misleading or deceptive conduct in breach of the Corporations Act. A2M is not aware of any legal proceeding having been filed at this time, believes that it has complied with all applicable disclosure obligations and denies any claim to the contrary.
• Dexus Property Group (DXS) +0.48% Upgrades guidance; expects to deliver distribution per security growth of +3% vs year ago. Previous guidance was to deliver an FY21 distribution that was consistent with FY20 (50.3 cents). Darren Steinberg, Dexus CEO said: “Today’s upgrade is a result of better-than-expected outcomes across the underlying property portfolio, as well as delayed settlements for asset sales and other initiatives across the business.
• Domain Holdings Australia (DHG) -2.57% Confirms it is no longer participating in the process to potentially acquire shares in Torrens Group that owns PEXA.
• Nuix (NXL) -17.80% Downgrades guidance, expects full-year (pro-forma) revenue of $173-182m vs prior $180-185m. Pro-forma EBITDA of $64.6-66.6m, unchanged. Adds, several key factors have affected the revised forecasts including the expected timing of closure of some upsell opportunities and new potential customers.
• McPherson’s (MCP) -1.04% Chemist Warehouse understood to be interested in establishing a strategic alliance with McPherson’s.

ECONOMIC NEWS

• Melbourne Institute inflation for May fell 0.2% for the month to be up 3.3% on a year ago.
• Private sector credit rose 0.2% in April to be up 1.3% over the year according to the RBA.

BOND MARKETS

CV19 NEWS

• Vaccine Tracker: 1.86bn doses in 176 countries. 32.2m a day. In US, 295m doses at 1.32m a day.
• In Australia, the latest vaccination rate is 87,562 doses per day, on average. At this pace, it will take another 13 months to cover 75% of the population.
• US Infections hit lows. 135,000 at Indi500. Jabs available too.
• Japan is reportedly considering mandating testing or vaccinations for spectators at the Tokyo Olympics.
• U.K. government officials are set to ditch potential plans to force Britons to show a Covid passport to be able to attend mass events.
• Italy reported the fewest deaths since October.

ASIAN NEWS

• China’s May PMI data came in near expectations.
• Manufacturing PMI fell to 51.0 vs 51.1 expected.
• Non-manufacturing PMI rose to 55.2 vs 55.1 expected.

US AND EUROPEAN HEADLINES

• UK and US closed. European markets expected to open slightly weaker.
• Nestle internal document admits 60% of its food products are unhealthy.
• Games producer says 5G will end console domination.
• US retailers rushing to secure stock for holiday season later this year.
• Chelsea win Champions League.

And finally….

1. I was horrified when my wife told me that my six-year-old son wasn’t actually mine. Apparently I need to pay more attention during school pick-up.
2. If April showers bring May flowers, what do May flowers bring? Pilgrims.
3. Which branch of the military accepts toddlers? The infantry.
4. Did you know you can actually listen to the blood in your veins? You just have to listen varicosely.
5. Though I enjoy the sport, I could never date a tennis player. Love means nothing to them.
6. I have a joke about time travel, but I’m not gonna share it. You guys didn’t like it.

Clarence

XXXX