Thursday 24th June – Australian Market Wrap | Beeks Downunder-Because not all financial news is boring!

ASX 200 slips another 23 points to 7275 (0.3%). NSW CV19 cases not helping sentiment. Dow futures up 73 points. A tale of two sectors today with banks seeing EOFY pressure and profit taking with the Big Bank Basket down to $178.61. CBA down 0.5%. Other financials also slipped, MQG down 0.6% and insurers weaker QBE down 1.4%. Industrials were also weaker across the board, TLS down %, TCL off 0.6%, ALL down 0.6% and GMG falling 0.4%. WOW fell 11.2% after going ex-bonus EDV shares. New liquor retailer EDV fell from the opening price of 650c to close at 602c . The tech sector was dominated by APT which is rallying hard on positive news and Amazon Prime Day, up 6.2%. The All–Tech Index rose 1.4%. Miners saw good gains today, BHP up 0.9%, FMG up 1.2% and RIO rising 1.2%. Base metal stocks also in favour. LTR up 17.8%, MIN up 3.1% and S32 rising 1.4%. Gold miners though failed to shine, NST down 3.7%. Energy stocks continue to be plagued by doubts on a carbon future, WPL down 1.2% and STO off 1.2%. In corporate news, WBC to hold onto its NZ operations. Travel names mixed as NSW Premier provided an update on the NSW COVID situation after the state recorded 18 locally acquired cases, QAN down 1.9% and FLT down 0.1%. APT up 6.2% as it allows select customers to shop via the Afterpay app at US stores including Amazon, Macy’s and Nike. Retailers bid higher with KGN up 5.9% and RBL up 7.1%. CIM improved 0.1% as it wins $4bn in contract works from the Victorian government. On the economic front, Total household wealth increased 4.3% ($518.0b) in the March quarter of 2021. 10-year yields steady at around 1.55%. Asian Markets were weaker with Japan flat and China down 0.6%.

Today’s Highlights

ASX 200 rallies from a late dump to close down 23 to 7275(0.3%)
High 7304 Low 7256
Dow futures up 73.
Politicians test positive. Barnaby negative.
Big Bank Basket slips to $178.61.
All Tech Index rises by 1.4%
Australian Gold slips to $2344
10-year yield steady at 1.55%
AUD up to 75.76c
Bitcoin steady at US$32653.
Asian markets steady with Japan flat and China down 0.6%

STOCKS

LTR +17.83% lithium stocks continue higher.
DEG +7.69% positive reaction to drill results.
PPK +% buyers are back.
INR +5.45% air quality permit for Rhyolite Ridge.
RBL +7.10% mask rally.
PME +6.90% downgraded to reduce from hold at Morgans.
WOW -11.20% ex-bonus EDV.
WES -0.72% Alison Watkins joins the board.
BLD -3.63% broker downgrades.
NXL -1.92% warrant executed by police for individual.
CAT -8.26% cap raise weighs.
CIM +0.10% new contract wins.
TCL -0.68% final dividend declared.
ACW -3.23% profit taking.
PEN +13.79% BOE +13.79% PDN +7.53% uranium in focus.
3DP +5.05% making a move higher.
BUB +7.87% no kidding, momentum building.
RXM +9.23% metal price rises.
Speculative Stock of the Day: Second day running for Vanadium Resources (VR8) +28.36%. Steelpoordrift PFS finding favour.
Biggest Winners: OMH, LTR, PPK, SHV, JIN, DEG, PDN and RBL.
Biggest Losers: PYC, CCX, LFG, NST, BLD, TYR and SM1.

TODAY

Westpac Banking (WBC) -0.96% Confirms it will retain 100% of Westpac New Zealand following review.
Accent Group (AX1) –1.10% Could be eyeing a stake in clothing retailer General Pants as owners from the Smorgon family look to offload their interest. The business operates 60 stores and has ~$130m of revenue. Other candidates include listed retailers Universal Store (UNI) and Premier Investments (PMV).
Wesfarmers (WES) –0.72% WES and Brookfield understood to be interested in acquiring Icon Group, the business is valued at ~$2bn. An auction is expected to start in July or August.
Charter Hall Group (CHC) –3.06% CHC is thought to have expressed interest in Hazeldene’s Chickens’ properties, newswires estimate the Bendigo-based operation could see bids of ~$350m.
CIMIC Group (CIM) +0.1% Spark consortium selected as preferred proponent for North East Link Primary Package PPP, which is the largest component of the North East Link project in Melbourne, Australia. Revenue to CIMIC Group is expected to be approximately $4bn across the construction and operations phase (operations running to 2051).
Capricorn Metals (CMM) +2.66% Commences Ore processing at Karlawinda gold project. Processing has commenced with low grade ore and will transition to run of mine grade ore over the next week as the operation moves to steady state. The project is now building gold in circuit and is expected to pour first gold in around one week.
Cromwell Property Group (CMW) -unchanged- Declares Final quarter dividend per share of $0.01625. Cromwell is also suspending their Dividend Reinvestment Plan, partly due to the fact that the stapled share price is currently below per stapled security Net Tangible Assets.
Catapult Group International (CAT) -8.26% Completes fully underwritten $35m institutional placement at $1.90/share. Two Catapult directors will subscribe for $1.35m of shares on the same terms as participants under the placement subject to shareholder approval.
Vocus Group (VOC) – Supreme Court of NSW approves scheme of arrangement for Voyage to acquire Vocus Group. If the scheme becomes effective, Vocus shareholders at the expected record date of 2-Jul will receive A$5.50/share on 22-Jul.

ECONOMIC NEWS

Total household wealth increased 4.3% ($518.0bn) in the March quarter 2021 to reach a record $12,664.5bn.
Wealth per capita also rose to a record high of $492,055. Through the year, household wealth grew 15.3%, which is strongest through the year growth since March 2010.

Business Conditions

In June, 27% of businesses reported having difficulty finding suitable staff to fill jobs.
Almost one in five (19%) businesses did not have enough staff based on current operations.
Nearly a quarter (23%) of businesses expect to increase staff numbers over the next three months.

BOND MARKETS

CV19 NEWS

Vaccine Tracker: 2.71bn doses in 180 countries. Locally, 112591 doses a day. 9 months to get 75% vaccinated.
A second member of the Uganda Olympics delegation that arrived in Japan last week for the summer games has tested positive for the coronavirus.
Women are more likely to develop persistent symptoms after a coronavirus infection, a condition known as Long Covid.
Japan’s health ministry is considering approving AstraZeneca’s Covid-19 vaccine for those aged 18 and older for public use

ASIAN NEWS