Wednesday 7th July – Australian Market Wrap | Beeks Downunder-Because not all financial news is boring!

ASX 200 rose 65 points to 7327 gaining back yesterday’s losses. Yields tumble. Tech stocks helping with banks also doing well. The Big Bank Basket rose to $179.76 with APT and XRO doing well up 4.5% and 3.9% respectively. The All-Tech Index gained 2.5%. Healthcare stocks firmed led by CSL up 1.4% and COH gaining 4.3%. Industrials were strong as TLS rebounded 1.1% and lockdown winners did ok. KGN rallied 3.6%, Z1P up 6.5% and MMM up 1.5%. Travel stocks barely budged on the news that Sydney would be spending another week in the CV19 doghouse. QAN dropped 0.6%, FLT down 0.4% and WEB up 1.75%. Miners were mixed, BHP lost 0.1% as an oil proxy, STO down 1.6% and WPL off 1.9% after completing its FAR deal. Gold miners were back in fashion, NCM up 2.0% and SBM up 3.0%. One big winner today was LRK up 31.2% on a broker upgrade following margin expansion on its whisky offering. In corporate news, MYD rose 8.6% after a business update and CGF rose 8.8% following Apollo Management taking an additional 15% stake in the company. CXL continued the push higher up another 10.1% after the Tarmac MOU. PNI 1.5% higher, cheers performance fees from seven Affiliates. MFG up 0.2% on its FUM update. In economic news, monthly spending in June slipped as lockdown bit, the 10-year yield dropped to 1.37%. In Asia, we saw mixed markets, Japan down 0.9% and China up 0.9%. Dow Futures down 33 points.

Today’s Highlights

ASX 200 up 65 points to 7327.
High 7332 Low 7255.
Fed Minutes tonight.
Dow futures down 33.
Big Bank Basket rises to $179.76.
All Tech Index up 2.5%
Gold breaks $1800. In AUD terms $2399.
10-year yield collapses to 1.37%
AUD drops 74.94c
Bitcoin drifts to US$34552
In Asian markets, mixed markets again as Japan down 0.9 % and China up 0.9%

STOCKS

NAN -4.83% downgraded by GS.
BLD +0.27% SVW now owns 34.5%.
MFG +0.20% FUM increases.
CGF +8.78% Apollo takes a slice.
KAR -5.52% oil price falls.
GRR +12.90% pellet prices.
KED +6.04% bouncing back.
WAF +5.71% broker upgrade and director’s buying.
APT +4.55% tech rally.
WPL -1.87% a buy too FAR.
SYD -1.3% taking the money and running.
LRK +31.17% broker upgrade on whisky margins.
MYD +8.59% business update
TOY +8.00% bouncing around.
PDI +11.11% bullion price and recent drill results.
CSX -10.82% results.
NMT -8.18% Mt Edwards review.
PRL -9.09% sell off continues.
IPO of the Day: Burley Minerals (BUR) +87.50% debut and presentation. Yerecoin project in Metamorphic belt.
Speculative Stock of the Day: Nothing on any volume.
Biggest Winners: GRR, ABR, CGF, UWL, Z1P, KED, A2M and WAF.
Biggest Losers: PLL, SKO, KAR, NAN, NHC, SWM, PDN, WHC and WOR.

TODAY

Premier Investments (PMV) +1.15% Acquires 41.1m shares in Myer at 40c, lifting its stake to 15.77%. Premier calls on the failed Myer board to resign immediately.
Boral (BLD) +0.27% Board rejects Seven Group Holdings increased offer of $7.40. Assessing it is materially below the independent expert’s assessment of $8.25 – $9.13.
MyDeal.com.au (MYD) +8.59% Reports unaudited FY21 gross sales of $218.1m, up 111.1% vs year ago.Active customers 894,225 at the end of June, +83.1% and private label gross sales of $8.8m vs year-ago $0.3m.
Splitit Payments (SPT) +1.71% To Launch ‘In-Store’ with Multiple New Merchants, integrating Apple Pay and Google Pay. SPT considers this launch to be of strategic significance due to the importance of the in-store channel, and associated widening of Splitit’s addressable market opportunity. Terms with each individual merchant mentioned in this announcement are not considered to be individually material.
Cooper Energy (COE) -3.92% CFO Virginia Suttell to step down on September 30.
Woodside (WPL) -1.87% Completes Sangomar acquisition in Senegal from FAR. Acting CEO Meg O’Neill said “Sangomar is a world-class resource which will deliver near-term production & revenue for Woodside. We are targeting first oil in 2023”.
Australian Unity Office Fund (AOF) +3.72% narrows FY21 funds from operations (FFO) guidance to 18.5-18.7c vs prior 18.3-18.7c. Independent valuations of all eight assets of $639m reflected a like for like reduction of $10.7m and a portfolio weighted average capitalisation rate of 5.85%. AOF approached DPF with a conditional, non-binding offer to explore a merger with reference to net tangible assets.
Magellan Financial Group (MFG) +0.20% Funds under management at the end of June $113.90bn vs month-ago $106.05bn.

ECONOMIC NEWS

Monthly spending growth in June was well below previous years, headlined by a 9% decline in eating out and 5% fall in grocery shopping.

RBA Chart Pack is out. Excited?

Guy Debelle reappointed as deputy governor. Looks a shoe in for next top job.

BOND MARKETS

CV19 NEWS

Sydney extends lockdown for another week.
Pacific Nations Vaccine Rollout

Global vaccine tracker: 3.26bn doses in 180 countries.36.3m a day. In Australia, 128,784 doses a day. 8 months to 75% coverage.
At the current pace of 36.3 million a day, it would take another year to achieve a high level of global immunity.

ASIAN NEWS

Chinese CPI will climb an estimated 80bps next year, the most in Asia, followed by Indonesia according to economists surveyed by Bloomberg. Consumer inflation is expected to tick up to 2.3% from 1.5% this year, while producer prices slow to 1.9%.

China’s tech stocks have wiped out a combined US$823bn since their February peaks. Hang Seng Tech Index has lost 31% from February high. Is it over? Authorities this week issued a sweeping warning to the nation’s biggest companies, vowing to tighten oversight of data security and overseas listings.

Tencent, Alibaba and Baidu now trade at an average 22x forecast earnings.

US AND EUROPEAN HEADLINES

England play Denmark tonight. 60,000 fans expected at Wembley.

Fed minutes out. Yellen to lobby for a higher global tax rate at G20 meeting.
China’s Premier Li Keqiang called for deeper cooperation and communication with the U.K
Spain out and CV19 rates now the highest in Europe. Tripled in last week.
The US is piling pressure on the EU to drop its digital tax plan.
Coffee prices are soaring as drought in Brazil bites.
Oil prices rising again. Iran back processing uranium.
Pentagon spreads the love after cancelling JEDI order. Jeff Bezos cleans up now worth US$211bn.
New Euro battery network to be set up by Volvo, Daimler and Traton. 1700 new charging points within five years.
German May Industrial output down 0.3% in May v -1% in April.
16 years ago 7/7.

And finally…..