ASX 200 drops 19 to 7336 (0.26%). Sydney cases fall but lockdowns and outs spread. Banks and industrials slipped on CV19 news with the Big Bank Basket down to $176.81 and red spreading to MQG down 0.9% and MFG off 1.2%. Travel stocks eased with WEB down 2.8% and FLT off 2.6%. QAN only modestly easier by 0.6%. BNPL under assault again today with Z1P down 5.6% and APT off 2.3% with the All Tech Index down 1%. Healthcare slid led by CSL off 1.7% and RHC exposed to UK NHS down 1.3%. Consumer stocks saw some profit taking as WES dropped 0.4%, WOW off 0.5% and TCL down 1.0%. Miners though a bright spot with BHP up 1.1% and FMG better by 2.1%. Gold miners too enjoying a day in the sun with NST up 2.1% and NCM up 1.5%. In corporate news, SKI raced up 6.1% on an approach from KKR and the Canadians. SYD knocked back IFM bid playing the ‘Oliver’ strategy and asking for more. SZL rose 5.2% beating the BNPL downdraught after a deal with a US insto taking a stake. In economic news, the headline unemployment rate at 4.9% now 2.5% below its pandemic peak and lower than June pre pandemic. 10-year yields slip to 1.29% with the AUD steady around 74.61. Asian markets mixed with Japan down 1.2% and China up 0.4%. Dow futures down 58.
- ASX 200 down 19 to 7336.
- High 7366 Low 7323. Narrow range. Alert but not alarmed.
- Dow futures down 58.
- Big Bank Basket slips to $176.81
- All Tech Index down again by 1.0%
- Gold rises to $2448.
- 10-year yield down to 1.29%
- AUD steady at 74.82c
- Bitcoin slips to US$32606
- Asian markets mixed with Japan down 1.2% and China up 0.4%
- VUL -9.80% hits the skids.
- ARB +7.22% very positive business update.
- SZL+ 5.15% seals deal with US fund.
- SKI +6.05% Barbarians at the gate.
- BGL +9.22% Noosa Mining Conference presentation.
- NVX +4.92% rally continues.
- MAQ +6.13% up again on 6,000 shares.
- CIA +3.65% iron ore price hangs in.
- MCR +10.73% massive sulphides intercepted.
- AXE +10.39% due for a pullback.
- DW8 – Trading halt – acquisition of Parton Wine Distribution.
- CPH +3.85% completes acquisition.
- WNX -76.04% letter to shareholders. More a bombshell than a letter.
- 4DX -5.94% profit taking.
- PAN +6.90% Noosa presentation.
- AGY -11.54% consolidating.
- Z1P -5.60% APT -2.30% LBY -4.04% BNPL woes.
- Speculative Stock of the Day: Dateline Resources (DTR) +64.63% not huge volume but few were. Positive announcement on rare earth potential at Colosseum. Assume not the one in Rome.
- Biggest Winners: BGL, ARB, SBM, SKI, SZL, MGH, NVX and WHC.
- Biggest Losers: VUL, PNV, INR, Z1P, NXL, CCP, A2M and KED.
- Sydney Airport (SYD) +0.13% SYD board rejects Consortium’s cash takeover proposal at 825c per share. They label the offer as opportunistic given it is below SYD’s pre-pandemic price.
- Dacian Gold (DCN) –3.23% Full-year production 106,919oz at AISC of $1,552/oz vs missed guidance of 110,000-120,000oz at an AISC of $1,400-1,550/oz. In FY22, production guidance of 100,000-110,000oz at an AISC of $1,550- $1,700/oz (AISC includes all initial re-start capital for the Westralia mine area).
- Australian Ethical Investment (AEF) +0.75% Funds under management at the end of the June quarter rose 12% to $6.07bn vs quarter-ago $5.41bn. Reports record quarterly net flows of $0.31bn and strong investment performance.
- Pengana Capital Group (PCG) +3.51% June funds under management (FUM) $3.97bn vs month-ago $3.79bn.
- ARB Corp (ARB) +7.22% Expects full-year profit before tax of $145-150m vs consensus $128.9m. Reports full-year unaudited revenue of $623m vs consensus $574.5m. The company maintains a positive short-term outlook based on its consistently strong customer order book.
- Whitehaven Coal (WHC) +4.55% Full-year ‘run of mine’ coal production 20.6mt vs guidance of 20.4mt. Sales 19.8mt vs guidance 17.9mt.
- Woodside Petroleum (WPL) -0.99% Reports Q2 revenue US$1.29bn vs US$1.32bn. Production 22.7mmboe, down 4% vs quarter ago. Sales volume 28.1mmboe, up 9% vs quarter ago. CEO comments:
- “Following completion last week of our acquisition of FAR’s interest in the RSSD joint venture, we have commenced a formal process to sell down our equity in the project. “Solid progress has been made towards our targeted final investment decision on Scarborough and Pluto Train 2 in H2 of this year. “We have launched the formal sell-down process for up to 49% of our equity in Pluto Train 2. In parallel, we have commenced a process to test the market for value-accretive opportunities to reduce our equity in the Scarborough resource.”
- Spark Infrastructure (SKI) +6.05% Denies due diligence to consortium following 270c takeover proposal but said it is willing to provide limited information. Announces proposal to develop 2.5GW Renewable Energy Hub in South-West NSW.
- Seven Group (SVW) +1.53% Has lifted its stake in Boral to 52.65% but voting power is at 49.32%. SVW believes it is likely voting power will be above 50% before the end of the day which would extend the offer period for another two weeks. The group is attempting an off-market takeover.
- Employment change: +29,100 vs estimates of 20,000. Participation rate: 66.2% vs estimates 66.2%. Unemployment rate: 4.9% vs estimates 5.1%.
- Employment was 1.2% higher in June than at the start of the pandemic.
- Sign of the times that the Bloomberg site no longer has CV19 numbers prominent anymore.
- Vaccine Tracker: 3.51bn doses a day in 180 countries. 30.5m a day. In Australia, 128,783 a day. 7 months to 75%.
Chinese data drop
- GDP expanded 7.9% from a year earlier.
- Industrial output rose 8.3% in June from a year earlier, beating the median estimate of 7.9%.
- Retail sales expanded 12.1% in June; median forecast was 10.8%.
- Fixed-asset investment climbed 12.6% in the first half from a year ago.
- The jobless rate was unchanged at 5% at the end of June.
- Singapore home sales dropped for a third straight month. Purchases of new private units fell 2.6% to 872 in June from 895 in May
US AND EUROPEAN HEADLINES
- European markets expected to open slightly lower.
- EU lays out plan for carbon neutrality and climate change.
- Powell denies he is complacent on inflation.
- South African looting and riots escalating.
- ETF on track for a record year of inflows of US$659bn.
- Mark (Ladbrokes the world) Wahlberg’s F45 raises US$300m and values company at US$1.4bn.
- Larry Fink (BlackRock) warns of inflation and gives everyone an 8% pay rise.
- BoE says monetary policy could be tightened sooner rather than later.
“Welcome back to Plastic Surgery Anonymous. Nice to see so many new faces here today!”
“I have good and bad news,” the doctor said to his patient. “Give me the good news first,” the patient said. “Your test results are back,” the doctor said, “and you have only two days to live.” “That’s the good news?” the patient exclaimed. “What’s the bad news?” “I’ve been trying to reach you for two days.”
I hate double standards. Burn a body at a crematorium, you’re “being a respectful friend.” Do it at home and you’re “destroying evidence.”
My favourite novel is The Hunchback of Notre Dame. I love a protagonist with a twisted back story.
When ordering food at a restaurant, I asked the waiter how they prepare their chicken. “Nothing special,” he explained. “We just tell them they’re going to die.”
A guy walks with a young boy into the woods. The boy turns to him and says, “Hey mister, it’s getting really dark and I’m scared.” The man replies, “How do you think I feel? I have to walk back alone.”
I’d like to have kids one day. I don’t think I could stand them any longer than that, though.
Did you hear about the guy who got his left side chopped off? He’s all right now!
When does a joke become a dad joke? When it leaves and never comes back.