ASX 200 scrabbled to a 1-point loss to 7307. Early losses were minor on lockdown news and after slightly better case numbers, we saw the market rally back to square. The past winners from lockdown were back in demand with TPW up 10.2%, KGN up 6.6% and CTT up 14.0% all doing well. On the other side of the coin, travel stocks slumped as holiday plans were canned, QAN down 4.0%, FLT off 3.4% and WEB down 4.7%. WOW up 2.9% and EDV up 3.8%, rallied on panic buying of toilet rolls and gin from Dan Murphy’s. Banks were mixed as CBA held firm up 0.6% with the other three down. The Big Bank Basket unchanged at $180.00. Tech stocks on the nose, mostly a sell-off in APT down 7.5%, after a strong run last week and fears of millennials taking a hit from hospitality closures. Z1P dropped in sympathy by 7.0% and ALU down 0.3% with WTC up 0.3%. Miners in the green and rescuing the market, BHP up 1.0% and FMG up 0.6%, with finally some gains in the energy sector ahead of the OPEC Plus meeting later this week. Gold miners though missed the memo with a slump continuing as GOR downgraded production dropping 7.4%, DEG off 7.7% and NCM down 1.1%. In corporate news, MTS added 0.8% on its full-year results. NEC down 0.7%, Stan secures UEFA Champions League rights. Camplify (CHL) fell 1.4% on its debut. No economic data. 10-year yields at 1.58% little changed. Asian markets mixed, Japan up 0.15% and China down 0.35% ahead of the centenary celebrations this week.

Today’s Highlights

• ASX 200 falls 1 to 7307.
• High 7311 Low 7274. Narrow range. Case numbers in focus.
• Dow futures up 21.
• Travel stocks fall, CV winners rally.
• Big Bank Basket firms to $180.00.
• All Tech Index down 2.1%. Blame APT and Z1P.
• Australian Gold steady at $2348
• 10-year yield steady at 1.58%
• AUD steady at 75.88c
• Bitcoin steady at US$34462.
• Asian markets mixed, Japan up 0.15% and China down 0.35% ahead of the centenary celebrations this week

STOCKS

• TPW +10.24% RBL +8.16% CTT +14.04% KGN +6.56% CV19 lockdown winners.
• EDV +3.77% still finding friends.
• KED +14.41% EdTech Conference presentation.
• GOR -7.39% production downgrade.
• Z1P -7.05% APT -7.52% profit taking after run.
• DEG -7.75% change of address.
• CYC -36.50% FDA update, unable to issue approval for Techegas.
• POD -13.16% progress report.
• WBT -9.42% interview.
• RED -5.13% change in substantial shareholding.
• TLG -5.96% LKAB and Mitsui LOI signed.
• YOJ +29.63% signs new 18 country deal.
• AXE +8.33% one stock shop rockets higher.
• ORN +6.06% SkyTem survey underway.
• WAR +1.20% first day of listing.
• SCG -2.49% lockdown bites.
• SGR -1.36% Sydney closes.
• FLN +7.14% wins NASA order.
• AT1 +40.74% FDA clearance, one to watch.
• Speculative Stock of the Day:  Hydrix (HYD) +35.48%. Good volume and a positive announcement for AngelMed getting FDA approval for Guardian upgraded battery.
• Biggest Winners: KED, CTT, RPW, RBL, FLN, KGN, JLG and SGF.
• Biggest Losers: DEG, APT, GOR, TLX, Z1P, OML and SZL.

TODAY

• Japara Healthcare (JHC) –0.78% Newswires pointing to further interest in JHC as third suitor said to be considering bid. Japara has received offers from Calvary and Bolton Clarke. Australian Unity, Aveo, and Washington H. Soul Pattinson named as potential candidates.
• Nine Entertainment’s (NEC) -0.67% Stan secures UEFA Champions League rights. Stan is understood to have won the rights with an offer of about $12m a year.
• Westpac (WBC) –0.27% WBC is set to conduct separate sale processes for Australian and New Zealand life insurance units in the coming weeks. The NZ auction is understood to be in its final stages and could see Westpac get as much as $NZ500m. Westpac’s $1.78bn Australian life insurance division received final bids last week, with Resolution Life and TAL submitting binding offers. To sell its motor vehicle dealer finance and novated leasing businesses to Angle Finance, a portfolio company of Cerberus Capital Management.
• Splitit Payments (SPT) -2.61% Signs new partnership agreement with Middle East BNPL provider, tabby. The short-term financial impact is currently unknown.
• Nanosonics (NAN) -2.18% To launch a new infection prevention digital product platform. Nanosonics AuditPro was developed to provide a new digital workflow compliance management system with potential applicability across a range of medical instruments. The new revenue stream associated with mobile scanning device and subscription-based software that provides real-time access for customers to necessary infection prevention compliance data.
• National Storage REIT (NSR) -1.46% Completes retail portion of entitlement offer at $2 with a ~58% take-up rate.
• Gold Road Resources (GOR) –7.39% Q2ASIC anticipated in the range of $1,675-1,800/oz. The reduction in guidance is a consequence of lower than expected gold production and additional plant maintenance at Gruyere. Full-year gold production anticipated to be within the lower half of the 260-300Koz guidance range. AISC expected between $1,325-1,475/oz vs prior-guidance $1,225-1,350/oz.
• Costa Group Holdings (CGC) -1.35% Completes institutional portion of entitlement offer raising $114m.
• Autosports Group (ASG) -6.56% During the period from January to May 2021, the Australian new car market grew by 37.5% vs the same period in 2020, the market continues to benefit from better than expected demand. Vehicle servicing and parts sales have recovered as expected during the 2H of FY2021 driven by the easing of COVID-19 related restrictions in Victoria. These factors have led to stronger than expected operating margins over the period. Total revenue for the full year will fall between $1.92b-1.96bn an increase of 13-15% on FY2020. Normalised Net Profit Before Tax (NPBT) expected to fall between $68-$70m an increase of 199-203% on FY20. Click here for Tom’s recent BUY HOLD SELL
• Johns Lyng Group (JLG) +5.32% CEO Scott Didier sells 3m shares at $4.40.Didier beneficially owns 54.7m shares following the transaction.
• Metcash (MTS) +0.82% Full-year underlying profit $252.7m vs consensus $268.9m. To undertake an Off-Market Buy-Back of up to $175m. Revenue $14.32bn vs consensus $14.86bn. To pay a final dividend of 9.5cps, fully franked. This brings total dividends for the year to 17.5cps, +40%y/y. The group has continued to benefit from the shift in consumer behaviour with strong sales in the first eight weeks of FY22. To increase ownership in Total Tools to 85% from 70% for an acquisition cost of $59.4m.

ECONOMIC NEWS

BOND MARKETS

CV19 NEWS

• Vaccine Tracker: 2.92bn doses given in 180 countries. 44.2m a day. Australia 110,042 doses a day. 9 months to cover 75%.
• The seven-day moving average of new virus cases recorded in Tokyo rose to 477 on Sunday, compared with 388 the previous week. The government is on high alert 3 weeks out from Olympics.

ASIAN NEWS

• Hong Kong Exchanges and Clearing will open late after a black rainstorm warning.
• China’s economy showed signs of more balanced expansion in June, with solid underlying growth momentum.

• Confidence among small and medium-sized enterprises was unchanged at the second-highest level since the Covid-19 outbreak.
• Chinese state planners have said the coal supply crunch will ease in July.

US AND EUROPEAN HEADLINES

• European markets opening unchanged.
• Burberry CEO stepping down at the end of the year.
• Tesla recalls 300,000 cars in China over a safety issue. The cars can accelerate quickly without warning. Officer.
• US launches airstrikes against Iranian backed militia targets.
• French Far-right fails to win a region in weekend elections. Turnout was extremely poor.
• Euro 2020.: the Czech Republic into quarter-finals. Belgium beats Portugal. 
• Crypto exchange Binance banned in UK.
• Russia seeing a big jump in CV19 numbers.
• Biden does U-turn on infrastructure deal.
• Matt Hancock the UK Health Minster resigns over social distancing issues.

And finally….

I was digging in our garden when I found a chest full of gold coins. I was about to run straight home to tell my wife about it, but then I remembered why I was digging in our garden.

My grandfather says I’m too reliant on technology. I called him a hypocrite and unplugged his life support.

Two hunters are in the woods when one of them collapses. His hunting buddy immediately calls 911. “My friend isn’t breathing,” he shouts into the phone. “What should I do?” “Relax,” the operator tells him. “I can help. First, let’s make sure he’s dead.” There’s silence, and then a gunshot. The guy gets back on the phone and says, “OK, now what?”

My son, who’s into astronomy, asked me how stars die. “Usually an overdose, son,” I told him.

My girlfriend’s dog died, so I tried to cheer her up by getting her an identical one. It just made her more upset. She screamed at me, “What am I supposed to do with two dead dogs?”

What’s yellow and can’t swim? A bus full of children.

What’s the difference between me and cancer? My dad didn’t beat cancer.

My friend said that if he went off a cliff, it would be on his own accord. It’s a good thing he drives a Civic.

Clarence

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