ASX 200 finishes 1 point lower at 7332 (0.02%). Dow Futures off 25 points. After a strong start, Sydney case numbers sapped confidence and the market cooled gradually slipping to close well off its high and despite ScoMo’s latest rescue package in the red. Banks were the swing factor after a good start ahead of US counterpart’s results kicking off tonight but economic issues locally hurt gains. The Big Bank Basket fell to $177.78.Other financials were flat with a few stand outs, CGF slipped 2.2% and MFG rose 2.5% on FUM numbers whilst PTM sold off 8.3% on its FUM numbers. Industrials were flat with some gains surprisingly for TCL up 1.3% and WES up 0.2% on its lithium exposure, tech stocks were quiet with APT down 0.2% and XRO down 0.6%. The All–Tech Index up a modest 0.3%. In miners, RIO up 0.6% and FMG the standout up 2.1% with BHP sagging slightly, of 0.7%. Gold miners pushed slightly ahead with NCM up 0.4% and PNR up 4.9%. Energy stocks failed to fire again, STO down 0.4% and BPT off 0.4%. Healthcare better with CSL up 0.2% leading the pack. In corporate news, ICQ had a 55c cash bid from SE Asian car platform Carsome up 60% and YFZ also saw a bid from HelloFresh and rose 77.5%. On the economic front, ANZ consumer confidence rebounded 2.0% despite the Sydney lockdown being extended for the third week. NAB business survey: Confidence fell 9 points to +11 index points, still above average. Conditions declined 12 points to +24 index points, falling from last month’s record high. 10-year yield steady at 1.33%. Asian markets stronger with Japan up 0.5% and China flat on export numbers.

Today’s Highlights

  • ASX 200 down 1 to 7332. Assistance package fails to lift markets.
  • High 7382 Low 7332. Sydney cases sap strength.
  • Dow futures down 20.
  • Big Bank Basket slips to $177.78.
  • All Tech Index rose 0.33%
  • Gold steady at $2413.
  • 10-year yield steady at 1.33%
  • AUD firms to  74.96c
  • Bitcoin slips to US$32969
  • Asian markets stronger with Japan up 0.5% and China flat on export numbers.

STOCKS

  • YFZ +77.45% on HelloFresh bid.
  • ICQ +60.00% takeover at 55c from Carsome.
  • PNV +1.26% good update.
  • NVX +15.42% Hotcopper rumours.
  • SHV +16.02% almond market going nuts.
  • INR +1.25% awards engineering and equipment contracts.
  • POS +11.11% Marcus must be pushing them.
  • AGY +9.09% good to see it join the lithium crowd.
  • BKY -41.27% Spanish issues.
  • PTM -8.26% FUM underwhelms.
  • CGF -2.23% herd moving on.
  • GRR 1.27-% iron ore price eases.
  • UWL -2.07% rare down day.
  • 88E -2.86% profit taking.
  • IPO of the Day: Industrial metals (IND) +75.00% – Raised $5m at 20c.
  • Speculative Stock of the Day: Kula Gold (KGD) +32.56% – RC Drilling uncovers high quality kaolin clays near surface, 10m Halloysite from 40m depth downhole. All three RC holes intersected thick white kaolin clays.
  • Biggest Winners: SHV, NVX, NEA, SYR, PRN, IPL, 29M and VUL.
  • Biggest Losers: PTM, ALK, TLX, CTT, WHC, PWR and MAF.

TODAY

  • Nearmap (NEA) +14.36% Expects full-year annual contract value (ACV) of US$133.8m (constant currency basis) vs prior guidance US$128m-US$132m. Its HyperCamera3 commercial roll-out remains on track for FY22.
  • Plenti Group (PTL) +11.85% Q1 loans $216.4m vs year-ago $60.1m. Total loan portfolio $757m vs year-ago $385m. Financial priorities:
    • Growth – reaching a $1bn loan portfolio by March 2022.
    • Profitability – achieving positive monthly Cash profit prior to June 2022, while investing in and achieving strong growth.
    • Efficiency – driving towards a cost to income ratio of below 35% over the medium term.
  • iCar Asia (ICQ) +60.00% Receives a non-binding offer from Carsome Group Pte Ltd at $0.55.
  • Incitec Pivot (IPL) +5.76% All FY21 planned turnarounds completed. Waggaman ammonia plant in Louisiana restarted and reached full production by June 1, 2021 and has since produced at nameplate capacity of 800K metric tonnes of ammonia. The Moranbah ammonium nitrate plant in Queensland running reliably.
  • Youfoodz Holdings (YFZ) +77.45% HelloFresh to acquire Youfoodz Holdings for $0.93, values Youfoodz at $125.3m.
  • Select Harvests (SHV) +16.02% Estimates full-year crop volume of 28,250mt vs year-ago 23,250mt. Trading update:
    • 60% of the 2021 crop is committed (including internal sales) at prices in the range of $5.90/kg – $6.40/kg.
    • Both Australian and US processors are experiencing some shipping delays due to container shortages, however, only experiencing minor related cashflow delays.
    • The development of the 2022 crop is progressing well with good tree health and sufficient chill hours as we head towards pollination in August.
    • Volumes benefiting as our younger orchards reach maturity and water supply and pricing is much improved on recent years
  • Polynovo (PNV) +1.26% FY21 US NovoSorb BTM (dermal scaffold) revenue up 49% vs year ago.
    • Chairman David Williams said, “I expect FY22 to be very strong financial performance even without a full world-wide recovery from Covid given the current momentum within the business.”

ECONOMIC NEWS

  • NAB business survey: Confidence fell 9pts to +11 index points – but remains above average. Conditions declined 12pts to +24 index points – from last month’s record high. NAB had this to say, “the June survey was conducted through the period of rising cases in NSW and the early part of the subsequent lockdowns both there and in other states. Unsurprisingly, business confidence has taken a hit. Business conditions also saw a sharp fall in the month, driven by a weaker read for Victoria. This likely reflects the impact of the lockdown that started in late May which was eased in a series of steps over June.”
  • ANZ consumer confidence rebounded 2.0% despite the Sydney lockdown being extended for the third week. The easing of criteria for the federal government’s AUD500 assistance payment may have buoyed the reading according to economist David Plank.
  • Ian Silk to leave AusSuper after 15 years.

BOND MARKETS

CV19 NEWS

  • France close to making vaccines compulsory. For the time being though test results and vaccination proof will be needed for many venues.
  • Boris Johnson walking back his ‘Freedom Day’ advice as cases continue to blow out.
  • Australia -Singapore travel bubble has burst. Maybe year end now.
  • The U.S. recorded its biggest weekly increase in Covid infections since April 2020, with cases soaring 47% for the week ending Sunday.
  • Greece is mandating vaccinations for those who work in senior citizen homes.
  • Vaccine Tracker: 3.44bn doses in 180 countries. 30.9m a day. Australia 127,763 doses a day. 7 Months to cover 75% of population.

ASIAN NEWS

  • Chinese exports beat expectations. Exports up 32.2% Imports up 36.7%. Stronger than expected. Electronic exports growing 40.2% YoY.
  • Chinese Q2 GDP forecast 8.1%.

US AND EUROPEAN HEADLINES

  • European markets opening cautiously unchanged.
  • Janet goes to Brussels to push global tax deal.
  • ECB is bracing for a split from its members on when to wind back stimulus.
  • Greensill Capital paid UK Ex PM David Cameron US$1m a year.
  • Elon Musk back in front of lawmakers to please explain SolarCity takeover.
  • US earnings season kicks off tonight. Great Expectations.
  • Crypto volumes are down as much as 40% on some exchanges in June over May during the summer lull. Still higher than a year ago

And finally…

A man joins a soccer team and his new teammates inform him, “At your first team dinner as the new guy, you will have to give us a talk about sex.” The evening arrives and he gives a detailed, humorous account of his sex life. When he got home, his wife asked how the evening went and not wanting to lie, but also not wanting to explain exactly what happened, he said, “Oh, I had to make a talk about yachting,” his wife thought this a little peculiar but said nothing more and went to sleep. The next day she bumped into one of his new teammates at the supermarket and asked, “I heard my husband had to make a speech last night. How did it go?” His mate said smiling, ‘Oh, it was excellent! Your husband is clearly very experienced!.” The wife looked confused and replied to his mate, “Strange, he has only done it twice and the second time he was sick.”

Clarence

XXX