ASX 200 closed up 6 points to 7315 (0.1%) as early gains evaporated across the board. Dow futures flat as US holiday tonight. Banks slipped across the board with the Big Bank Basket down $179.01. Other financials slipped with MFG down 2.4% and QBE off 1.4%. Industrials mixed on the SYD bid news, some long run assets in demand, TCL up 1.3%, AIA up 5.5% and BXB up 0.8%. Tech stocks eased with APT down 1.9%, XRO down 1.0% and the All–Tech Index off 1.1%. Consumer stocks eased as Sydney numbers held firm on CV19, WES fell 0.6%, WOW flat and REA down 1.2%. Healthcare eases as CSL fell 0.8%. Miners were a mixed bag of lollies, BHP lost 0.4% but FMG gained 0.4% and RIO up 0.3%. Gold miners slightly better and energy stocks on the podium with WPL up 2.7% and STO up 2.0%. The corporate world was rocked today by the bid from IFM for SYD at 825c. SYD rose 33.9% on the news, TAH down 4.4% now plans to demerge it’s lotto and Keno business, after putting Humpty together with Tatts deal some years ago, time to break it apart.  In economic news, ORE up 3.9% and GXY rose 1.6% after the scheme booklet was lodged with ASIC, AEF fell 8.8% despite a profit upgrade on performance fees. On the economic front, final retail trade for May revealed a 0.4% increase. Melbourne Institute Inflation gauge for June was 0.4% higher to be up 3% on a year ago. Building approvals for May fell 7.1% and ANZ Job advertisements for June rose 3%. Dow Futures down 64 points. In Asian markets, China slipped 0.5% as the hangover continues and Japan down 0.6%.

Today’s Highlights

  • ASX 200 up 6 points to 7315.
  • High 7344 Low 7307.
  • Dow futures down 50. Holiday tonight in US
  • Big Bank Basket falls to $179.01.
  • All Tech Index down 1.0%
  • Australian Gold steady at $2378
  • 10-year yield easier at 1.42%
  • AUD drifts to 75.13c
  • Bitcoin rises to US$34252
  • In Asian markets, China slipped 0.5% as the hangover continues and Japan down 0.6%.

STOCKS

  • LTR -5.62% potential drill targets.
  • AEF -8.81% profit upgrade.
  • TAH -4.42% strategic review leads to demerger.
  • 88E -18.60% profit taking.
  • SPL-8.36% fined for misleading advertising.
  • NXL -4.94% sell off resumes.
  • ASM -8.25% profit-taking
  • SYD +33.91% takes off on IFM bid at 825c.
  • INR +10.00% buyers back.
  • AIA +5.52% SYD bid shows value.
  • VUL +3.50% DFS team appointed.
  • KAR +6.02% oil price.
  • A2M +3.22% completes NZ acquisition.
  • ALX +3.50% infrastructure stocks in vogue.
  • SBM +0.27% new CFO.
  • DDR -0.96% profit forecast.
  • TOY +16.67% sale of Chill Factor business.
  • AVA +13.25% profit update.
  • FZO +11.40% significant growth.
  • ART +1.34% tops prospectus but lockdown will hurt.
  • LCK +10.34% finding friends.
  • Speculative Stock of the Day; Nothing to speak of.
  • Biggest Winners: SYD, CHN, INR, KAR, AIA, SYX and OMH.
  • Biggest Losers: 88E, AEF, SPL, ASM, MGH, ABR, LTR and CUV.

TODAY

  • a2 Milk Co. (A2M) +3.22% Received consent from the overseas investment office for the proposed acquisition of 75% interest in Mataura Valley Milk, which is based in NZ.
  • Metcash (MTS) +0.26% Harris Farm price tag understood to be too pricy for Coles (COL), Metcash (MET) and Woolworths (WOW) with estimates sitting around $1bn. There is fresh speculationKKR may consider providing an equity injection instead of a full takeover.
  • Healius (HLS) +0.22% Understood to have begun the sale process for its IVF division with Virtus Health named as one of the interested parties.
  • Australian Ethical Investment (AEF) –8.81% Expects full-year underlying profit of $10.7-11.2m vs prior guidance of $8.8-9.3m. Emerging Companies Fund will pay a performance fee of $2.89m with less tax and constitutional grant which has added to the increased guidance.
  • Sydney Airport (SYD) +33.91% Receives non-binding proposal from a consortium of infrastructure investors at $8.25, its closing price on Friday was $5.81.
  • Crown Resorts (CWN) -1.68% Expects FY21 theoretical EBITDA (before closing costs and significant items) of $240-250m.
  • Tabcorp Holdings (TAH) -4.42% Intends to undertake a demerger of its Lotteries & Keno business. In the case of BetMakers, Tabcorp will continue discussions in relation to potential commercial opportunities in international markets.

ECONOMIC NEWS

  • ANZ Job advertisements for June rose 3% to 211,854 available positions – up 129.1% on a year ago.
  • Building approvals for May fell 7.1% over the month vs estimates of a 5% fall. Approvals are up 52.7% on a year ago.
  • Final retail trade for May revealed a 0.4% increase vs consensus of a 0.1% rise, to be 7.7% higher on a year ago.
  • Melbourne Institute Inflation gauge for June was 0.4% higher to be up 3% on a year ago.

AustralianSuper, the country’s largest superfund returned 20.43% in the 12 months ended June 30, the 12th consecutive year of gains.

FUM rose to $225bn from $180bn a year ago.

BOND MARKETS

CV19 NEWS

  • Vaccine Tracker:  3.19bn doses in 180 countries. 39.4m doses a day.
  • In Australia, now 125,007 doses a day. 8months until 75% vaccinated.

ASIAN NEWS

  • Chinese June Services PMI fell top 50.3 in June.
  • China blocks Didi from App Store. The Cyberspace Administration of China announced the ban Sunday, citing serious violations on the collection and usage of personal information.
  • China has expanded its probe of tech companies to include two more US listed companies now including Fill Trucking Alliance and Kanzhun.

US AND EUROPEAN HEADLINES

  • European markets opening slightly easier.
  • No USA tonight. Joey Chestnut now has beaten his own record for hot dogs in 10 minutes. 76. 14th career title.
  • OPEC + issues now heading for a crisis as rift between UAE and Saudi Arabia deepens.
  • WM Morrison agrees to a GBP6.3bn takeover with a bidding war likely to kick off now.
  • Vatican has put a Cardinal on trials for financial crimes.
  • Russian cyberhackers hit Sweden and others.
  • Boris Johnson continues on track for July 19th reopening. England in Semi- finals.

And finally….

Clarence

XXXX