ASX 200 fell 19 points to 7143 (0.27%) as the RBA did nothing but pointed to a more dramatic July meeting. Well off its lows as banks recovered and industrials found some friends. Miners did well as iron ore moved higher, BHP up 0.1% and FMG up 1.7%, Oil stocks better ahead of OPEC plus with WPL up 1.4% and STO up 2.1%. Gold miners were mixed with DEG doing well up 2.9%, EVN fell 1.5% and CHN continued to motor higher by another 2.5%. Industrials were off the bottom, REH up 3.2% PPK up another 7.5% as directors continue to buy the BNNT story. WOW rose 0.3% and GMG up 0.3% with APT showing small gains. The All-Tech Index flat. The banking sector fought back from lows before a late sell down, with CBA down 0.3%, NAB down 0.8% and AEF seeing sellers break out down 5.6%. Insurers slipped led by IAG down 1.2% and SUN off 1.8%. In corporate news, NEC did a deal finally with Google and Facebook rising 0.7%, LEG rose 13.0% after reporting ‘massive sulphides’ in the Fraser Range. WZR still in a halt as it raises $50m at 25c, a big 22% discount to the previous price. In economic news, the RBA kept rates as expected at 0.1%. The big four banks’ economists raised GDP forecasts and house prices remain on a burst. 10-year yields around 1.70% with the AUD at 77.42c. Asian markets slightly firmer with Japan up 0.17% and China up 0.06%.
- ASX 200 drops 19 to 7143.
- High 7163 Low 7117. Low volume.
- Big Bank Basket falls to $180.70
- All Tech Index flat.
- Australian Gold steady at $2468.00
- 10-year yield at 1.70%
- AUD rises to 77.42c.
- Bitcoin rises to US$36892.
- Asian markets slightly firmer with Japan up 0.17% and China up 0.06%
- A2M +2.54% BUB +22.39% three child policy bump.
- IFM +12.92% business update and acquisition completion.
- PPK +7.55% more director buying.
- AEF -5.56% sell off continues.
- IMU -6.25% profit taking.
- NEC +0.67% finalises deal with Google and FB.
- BET -5.15% concerns and stop losses.
- NEA -3.90% tech weak.
- SM1 +8.54% Dunsandel update.
- KLL +7.50% Beyondie update.
- OZL +1.74% copper demand still strong.
- GGG +11.24% public consultation extended.
- SWP -10.91% more swoon than swoop.
- FPH +0.79% presentations.
- TCL -0.58% retirement of non-executive director.
- Speculative Stock of the Day: Metalstech (MTC) +23.68% good volume and drill results from Strurec gold with 70m @9.23g/t.
- Biggest Winners: IFM, SM1, PPK, WHC, ASM, PGH, STX and KMD.
- Biggest Losers: IMU, AEF, BET, BKL, BGL, LYC and AMI.
- Infomedia (IFM) +12.92% Expects FY21 revenue of $95-$96m and Cash EBITDA of $19-$20m.Revenue $95-96m vs consensus $96.3m. As anticipated, organic growth in Infomedia’s core parts and service SaaS platform has picked up since December, particularly in the current quarter. Completes the acquisition of US-based e-commerce platform SimplePart, although it’s not expected to have a material influence on results.
- Woolworths Group (WOW) +0.34% Completes transaction with data science and advanced analytics business Quantium, increasing stake to 75% from 47% for $223m.
- Nine Entertainment (NEC) +0.67% Has signed agreements with Facebook and Google and expects publishing division EBITDA growth in FY22 of $30-40m.
- New Century Resources (NCZ) +5.13% Has achieved record EBITDA in the month of April. The company further anticipates a material improvement on April EBITDA for the month of May.Jameson cell commissioning update: “Solid progress with the Jameson Cell slurry commissioning program to date. Early achievement of saleable concentrate production direct from the Jameson Cell. Commissioning progress has aided plant performance, with operations recently achieving a 7-day average recovery of >50%, and peak daily recoveries up to 53%.”
RBA leaves rates and policy unchanged. For full announcement click here.
- The AiGroup Performance of Manufacturing Index moved +0.1pts higher to 61.8pts in May, with capacity utilisation at an all-time high of 85.1%.
- The CoreLogic Home Value Index of national home prices rose by 2.2% in May to be 10.6% higher over the year – the strongest annual growth rate in almost 11 years.
- Sydney house prices up in the last quarter the most in 33 years.
- Nationwide, values rose faster in May than the previous month, posting a 2.2% rise, capping off the quarter with a 7% rise. Over the past 12 months, Australian home values posted a 10.6% rise, with Melbourne the worst-performing of the capital cities.
Weekly Consumer confidence declined 2.5% last week, as a seven-day COVID lockdown was announced in Victoria. Interestingly, confidence was down by more in Sydney and Brisbane than it was in Melbourne. All of the confidence subindices have fallen. ANZ-Roy Morgan survey data show that short lockdowns don’t have a lasting impact on consumer sentiment.
- Vaccine Tracker: 1.91bn doses in 176 countries. 33.5m a day. In the US 295m doses at 1.32m a day.
- The World Health Organization announced a new naming scheme for coronavirus variants using the Greek alphabet.
- In HK, Total bookings for coronavirus vaccine appointments, which include first and second doses, surged to the highest in nearly two months.
- Some members of Japans government have warned it would be difficult to hold the Olympics if present restrictions continue. Meanwhile, the Australian Softball team has already arrived fully vaccinated in Japan ready to go.
- Brussels has proposed lifting all quarantine requirements starting July 1 for those who are fully vaccinated against Covid.
- Peru has updated its CV19 death number by a massive 110,000 to now 180,764.
- China Caixin Manufacturing Index rose to 52 from 51.9. Highest level since December.
- The baby bump as Chinese baby-related stocks extended gains for the second day.
- Japanese factory activity has slowed slightly amidst new CV19 lockdowns.
US AND EUROPEAN HEADLINES
- US and UK markets back online today. Positive opening in store.
- OPEC Plus meeting today. Oil hits US$70 for Brent.
- G7 closing in on global minimum tax rate. G7 meeting this weekend.
- US regulators have signalled a bigger role on crypto regulation.
I asked the corporate wellness officer, “Can you teach me yoga?” He said, “How flexible are you?” I said, “I can’t make Tuesdays.”
I always tell new hires, don’t think of me as your boss, think of me as a friend who can fire you.
To steal ideas from one person is plagiarism. To steal from many is research.
Some people are like Slinkies … not really good for anything, but you can’t help smiling when you see one tumble down the stairs.