ASX 200 rose 12 points to 7348 (0.17%) in quiet range bound trade as case numbers remain the focus. Late close out surge helped. Once again shrugging off lockdowns and rising CV19 cases. Dow Futures down 15. Banks fell on lockdown news with the Big Bank Basket down to $176.49 with CBA off 0.1% and ANZ falling 0.2%. Other financials fared better with MQG up 1.2% and SUN doing better coming out to play with its hat on and up 1.0%. In healthcare, CSL pushed ahead with a 0.9% gain. Elsewhere the sector seemed quiet and lacking enthusiasm. Industrials were mixed, SYD rose 1.3% on more bid potential, TCL dropped 0.8% as traffic numbers will fall, TLS slipped 0.3%, SEK down 2.0% and BXB down 1.0%. Tech stocks were mixed, APT retreated another 1.2% but Z1P managed some gains up 2.8% with the All–Tech Index up 0.1%. Miners were mixed too. BHP rose 0.7% on ore prices, with RIO down 0.4% after its production report. Gold miners took their cue from EVN and fell 5.3%, NST down 1.1% and NCM off 0.4%. Oil stocks slipping again, STO down 0.6%. In corporate news, MHJup 11.7% on the back of a 10% rise in yearly sales. EVNdown 5.3% despite lifting production forecasts.Management expects full-year EBIT to be in line with or above analysts’ expectations. BETdown 6.7%, records $6.2m in revenue under its deal with the Waterhouse Group. Waterhouse exercising call options at 18c. NGIdown 4.8% on an update. WES gets approval for its lithium project rising 0.9%.  No economic data. 10-year yields steady at 1.28% and the AUD 74.37c. Asian markets weaker with China down 0.3% and Japan down 0.7% ahead of the Olympics.

Today’s Highlights

  • ASX 200 up 12 to 7348. Late surge.
  • High 7348  Low 7316. Tight range, Case watching.
  • ASX rises 1% for the week despite CV19 cases.
  • Dow futures down 15.
  • Big Bank Basket slips to $176.49
  • All Tech Index down again by 0.1%
  • Gold rises to $2457.
  • 10-year yield down to 1.28%
  • AUD weaker at 74.37c
  • Bitcoin slips to US$31966
  • Asian markets mixed with Japan down 1.2% and China up 0.4%
  • EGR +13.28% building on recent positive announcement.
  • BBT +9.47% US expansion plan.
  • APX +3.05% takeover rumours.
  • WHF -5.78% placement and SPP.
  • BGL -8.89% unwinds yesterday’s rally.
  • BET -6.67% Tom Waterhouse wins big.
  • MSB -4.03% more disappointing results.
  • EVN -5.25% unveils growth plans. Doh.
  • ALU -2.77% doubts in bid.
  • PPS +8.18% kicks again.
  • AMP -0.90% ASIC says move along, no charges.
  • UNI +5.08% quality merch.
  • GRR +4.97% iron ore price rise.
  • VUL +1.41% volatility continues despite Rhine floods.
  • 5GN +11.73% WCG +9.47% agree to merge.
  • EOS +1.23% contract win.
  • AWC -1.23% Alcoa result.
  • PIQ +8.54% diabetes study.
  • BUD -41.86% reconstruction, cap raise and return to trade.
  • POS -5.71% book squaring.
  • NGI -4.78% AUM update.
  • HSN +0.82% BGH takeover under way. Data room open for business.
  • RIO -0.41% downgrades on production report.
  • Speculative Stock of the Day: Jupiter Energy (JPR) +45.95% on relatively high volume after quarterly report on Kazakh market oil sales.
  • Biggest Winners: PPS, ABR, CEN, UNI, GRR, NVX, SGF and WHC.
  • Biggest Losers: BGL, BET, WHF, 88E, EVN, MSB and HUB.

TODAY

  • Spark Infrastructure (SKI) – Unlisted fund said to be preparing rival bid for Spark Infrastructure Group – The Australian.
    • “Following the recently rejected proposal from the consortium of the Ontario Teachers’ Pension Plan Board and Kohlberg Kravis Roberts & Co. L.P by Spark, the Australian reports Macquarie Capital investment bankers are understood to be working on a rival bid on behalf of an unlisted fund to acquire the company.
  • Rio Tinto (RIO) -0.41% FY21 production guidance is unchanged. Sees Pilbara iron ore (shipments, 100% basis) between 325 to 340Mt and mined copper production of 500-550kt. FY21 Copper C1 unit costs are expected to benefit from a gradual return to higher copper grades at Kennecott and a one-off benefit from higher gold grades at Oyu Tolgoi. Pilbara iron ore production of 75.9mt (100% basis) was 9% lower than the second quarter of 2020 and down 2% from a quarter ago. Pointed to challenges in the first half with its Pilbara operations, which were impacted by replacement mine tie-ins and materially higher rainfall. COVID-19 constraints added pressure limiting RIO’s ability to access labour, particularly in Western Australia and Mongolia.
  • Michael Hill International (MHJ) +11.66% Q4 same-store sales up 7.5% vs year ago. Q4 total store sales $116.0m vs year-ago $53.6m. One store was opened and four under-performing stores were permanently closed during the quarter with 285 stores across all markets. Full-year revenue $552m vs year-ago $486.3m. Management expects full-year EBIT to be in line with or above analysts expectations.
  • Evolution Mining (EVN) -5.25% Q4 gold production 169.1Koz vs quarter-ago 161.3Koz. Final dividend to be in the range of 4 to 6c. Full-year gold production of 680.8Koz missed guidance of 695-710Koz. AISC of $1,215 per ounce in line with guidance of $1,190-$1,220 per ounce.
  • Betmakers Technology Group (BET) -6.67% Records $6.2m in revenue under its deal with the Waterhouse Group. Tom Waterhouse, CEO of Waterhouse VC, said “BetMakers is an attractive investment proposition in global racing, with unique access to valuable race data and bespoke pricing through their Managed Trading Service platform. Waterhouse VC is delighted to convert its first tranche of Performance Rights to provide further funding to this exciting business. We look forward to our ongoing relationship with BetMakers over the years to come.”

ECONOMIC NEWS

  • Paul Bloxham form HSBC expects gross domestic product will drop 0.3% in the current quarter and rise 0.3% in the final three months.
  • New Zealand consumer price inflation rose 1.3% quarter-on-quarter, ahead of expectations for 0.8% growth.
  • NZ CPI rose 3.3%year-on-year, smashing the Reserve Bank of New Zealand’s inflation target, and expectations for a 2.8% increase.

BOND MARKETS

CV19 NEWS

  • Vaccine Tracker: 3.54bn doses in 180 countries. 31m doses a day. Australia 132,144 doses a day. 7 Months still to cover.
  • One month since the limo driver unleashed CV19 into Sydney.

ASIAN NEWS

  • China plans to exempt HK IPOs from cybersecurity reviews.
  • Xiaomi Corp has become the world’s second biggest smartphone maker over the past quarter following an 83% jump in shipments. Xiaomi had 17% and Apple was at 14%, according to the research.

US AND EUROPEAN HEADLINES

  • Merkel farewells White House.
  • Biden to warn US companies about business conditions in HK.
  • Lebanon crisis gets worse. European floods.
  • China has once again snubs a senior US official.
  • F45 debuts on Wall Street. Market value US$1.46bn. Ladbroked.
  • Credit ratings agencies are upgrading as the speed of recovery quickens.
  • Jack Dorset says Square will launch a bitcoin DeFi platform.
  • Chinese bitcoin electricity usage drops as Kazakhstan picks up the mantle.
  • Netflix is getting into the gaming game.
  • European car sales going gangbusters. Daimler’s Smart car sales up 126% from last year.
  • Burberry results good, sales growth of 26% for Q1.

And finally…

Sorry no jokes today…lacking time.

Clarence

XXX