ASX 200 finished the week in style despite Sydney lockdown closing up 33 points to 7308 (0.45%) Dow Futures up 130 points. Banks and big miners led the market higher. The Big Bank Basket rose to $179.61. Other financials also doing well, MQG up 1.6% and insurers better with QBE up 0.8%. REITs rallied with GMG rising 0.5% and SGP up 2.3%. Miners better on iron ore and other commodity prices, BHP up 0.6%, FMG up 0.8% and NCM up 1.6% helping some golds recover. Once again energy stocks soggy, STO down 0.1% and BPT down 0.4%. Tech slipped, APT pausing for breath with a 1.1% fall, XRO down 0.9% and WTC down 2.8% with the All–Tech Index flatlining. CSL soggy too as brokers moved to downgrade after recent run, falling 0.5%, travel stocks shrugged off Sydney news, QAN up 2.2%, SYD +1.5% and CTD up 2.1%. In corporate news, BLD rose 6.4% after SVW raised its takeover offer to 730c. SXL up 6.5% after a deal with Network 10 and WBT rose 20.5% on news of progress with its Re Ram. All quiet on the economic front, 10-year yields unchanged at 1.55% and the AUD slightly highly just shy of 76c. Asian markets firm with Japan 1.1% and China up 0.8%.

Today’s Highlights

  • ASX 200 rallies 33 to 7308.
  • High 7326 Low 7289
  • ASX 200 down 0.8% for the week.
  • Dow futures up 130.
  • Sydney heads into lockdown.
  • Big Bank Basket rallies to $179.61.
  • All Tech Index flat.
  • Australian Gold steady at $2340
  • 10-year yield steady at 1.55%
  • AUD up to 75.91c
  • Bitcoin steady at US$34914.
  • Asian markets higher with Japan 1.1% and China up 0.8%

STOCKS

  • ASM +4.85% strengthens team.
  • WBT +20.50% integrates selector with ReRam.
  • AXE +12.00% one stock to rule them all.
  • KGN +6.1% lockdown trade.
  • OPH +6.97% low volume. NTA 369c.
  • LRT +0.60% NAV estimate and distribution.
  • NHC -7.61% prices $200m notes.
  • JIN -3.32% profit taking.
  • PLS -3.88% restarts Ngungaju plant.
  • DEG -3.01% bullion weighs.
  • NXL -3.91% confidence is shot.
  • SFG -25.58% capital raising.
  • BOE unchanged – late rally
  • CGS +15.42% change in substantial holding.
  • APT -1.15% Citi enters BNPL fray.
  • WOW -2.57% EDV +1.33% switching happening.
  • Speculative Stock of the Day: Ragnar Metals (RAG) +24.59% following report this week of massive mineralisation intersected at Tullsta.
  • Biggest Winners: INR, TLX, ADO, PPS, MGH, LTR, OPH and BGL.
  • Biggest Losers: NHC, Z1P, PPC, NXL, PLS, PLL, EOS and JIN.

TODAY

  • Tabcorp (TAH) +1.16%There is fresh speculation Entain may lift its bid for TAH’s wagering and media unit, sweetening the deal from $3.5bn to a possible $4bn.
  • New Hope Corp. (NHC) -7.61% Launches $150m of senior unsecured convertible notes due 2026.
  • Redbubble (RBL) -1.15% Jury awards Brandy Melville $520k from its intellectual property infringement case against Redbubble.RBL to vigorously pursue its defence of the claims.
  • Service Stream (SSM) +1.19%and CIMIC (CIM)+1.35%Understood to be the two final bidders for Lendlease’s services arm. Newswires add Service Stream was eyeing the services business when it was for sale in 2019, but now expects to obtain a price of ~$300m.
  • Charter Hall Group (CHC) +2.69% Update on property revaluations, funds under management (FUM) to increase by $3.3bn to ~$52bn. Group FUM has increased $12bn over the course of FY21, providing 28% growth in FUM.
  • Southern Cross Media Group (SXL) +6.53% Reaches agreement with Network 10 to broadcast channels 10, 10 Bold, 10 Peach and 10 Shake in the three aggregated markets of regional Queensland, Southern NSW and regional Victoria for two years starting July 1. Television revenue booked to date in Q1 FY22 is in line with SCA’s internal forecasts and is currently pacing ahead of the same time in the current financial year, which was affected by COVID-19.
  • Boral (BLD) +6.38% Seven Group (SVW) has raised its cash offer to 730c if it secures 29.5% by July 2nd. It will further increase to 740c if it gets to 34.5% by July 7th. The revised offers will cost Seven Group around $6.6 billion if all Boral shareholders accept.

ECONOMIC NEWS

  • Snap lock down of 4 LGA’s in Sydney. 22 new cases.

BOND MARKETS

CV19 NEWS

ASIAN NEWS

  • Chinese banks’ stockpile of foreign-currency deposits has surpassed $1 trillion for the first time.
  • The People’s Bank of China has already started curbing credit growth to tackle debt risks. The PBoC has also signalled it is keen to provide enough liquidity to avoid rising borrowing costs.
  • Carrie Lam has a new No2 with security minister getting promoted. Security Secretary John Lee will be promoted to chief secretary.
  • China’s DiDi Chuxing is looking at a US$4bn NYSE listing.

US AND EUROPEAN HEADLINES

  • Panasonic has sold its entire Tesla holding worth around US$3.6bn.
  • European market expected to open firmer.
  • US banks facing big buybacks following stress test tick.
  • EU cannot agree on terms of a summit with Russia.

And finally….

My friend thinks he is smart. He told me an onion is the only food that makes you cry, so I threw a coconut at his face.

A man is lying on the beach, wearing nothing but a cap over his crotch. A woman passing by remarks, “If you were any sort of a gentleman, you would lift your hat to a lady.” He replies, “If you were any sort of a sexy lady, the hat would lift by itself.”

Light travels faster than sound. This is why some people appear bright until you hear them speak.

An old teacher asked her student, “If I say, ‘I am beautiful,’ which tense is that?” The student replied, “It is obviously past.”

Clarence

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