ASX 200 fell 62 points to 7286 (0.9%). Dow futures down 150 points. The index rose from lows post the 11am CV19 case update. Banks and the general market remain under pressure but healthcare and BNPL enjoying some gains. The Big Bank Basket fell to $175.17 with insurers down too, QBE dropped 1.2% and SUN back behind the clouds down 1.1%. Industrials slipped in places but held in surprisingly well, TLS down 0.3% on acquisition news, TCL down 1.3% as traffic numbers will fall, ALL fell 1.3% after a broker update, REA down 2.3% on lockdowns, SCG too down 2.3% as retail will suffer. DMP rose 2.2% obviously a beneficiary of the lockdown. Healthcare stocks in the green as the AUD fell, CSL up 1.8% and RMD continuing its run, up 2.4% with SHL and FPH up 1.9% doing well, potentially a beneficiary of the hospitalisations. Big miners fell across the board. BHP down 2.6% RIO down 2.1% and FMG off 1.4%. Gold miners eased as bullion fell, EVN dropped another 8.7% on broker reactions to recent production downgrades and energy stocks slid with STO off 2.7% and OSH losing 5.2% after the CEO resigned. Tech stocks saw some gains with APT up 1.6% and Z1P down 1.0%. The All –Tech Index fell 0.6%. In corporate news, ALU suffered a loss of altitude following talk that Autodesk had walked from the bid process, down 3.8% but well off 10% plus loss lows. PDI rose 42.1% on Bonanza gold grades at Bankan, NCK rose 4.2% on its interest in acquiring Plush Sofas and HUM rose 8.2% on a business update as the only BNPL to make a profit. COE off 3.9% on its production numbers. Nothing on the economic front. 10-year yields down to 1.23%. Asian markets mixed with Japan down 1.4% and China up 0.15%.

Today’s Highlights

  • ASX 200 down 62 points to 7286. Modest volumes.
  • High 7325 Low 7249. Off lows but cautious.
  • Dow futures down 150.
  • Big Bank Basket slips to $175.17
  • All Tech Index down again by 0.65%
  • Gold steady at $2455.
  • 10-year yield down to 1.23%
  • AUD weaker at 73.86c
  • Bitcoin slips to US$31681.
  •  Asian markets mixed with Japan down 1.4% and China up 0.15%

STOCKS

  • EPD +59.15% takeover offer from Capgemini at 135c cash.
  • PDI +42.11% Bonanza grades at Bankan.
  • ALU -3.78% no further bids from Autodesk.
  • OSH -5.17% CEO resigns for health reasons.
  • BET -8.16% directors does funding deal.
  • RCE +5.49% outstanding results against flesh eating bacteria.
  • DW8 -8.79% acquisition and capital raising.
  • EVN -8.74% broker downgrades.
  • STX -4.76% broker research.
  • CHN -9.65% sell off continues.
  • DRR +3.41% iron ore price rise and broker upgrade.
  • HUM +8.16% profit update.
  • PRN +2.89% new contract.
  • DMP +2.16% pizza boost in lockdown.
  • RMD +2.43% AUD weakness helps.
  • NCK +4.17% interested in Plush Sofas.
  • Speculative Stock of the Day: Valmec (VMX) +25.00% Takeover bid from Altrad at 41.3c. Dreadnought Resources (DRE) +17.95% high grade REE Ironstones confirmed over 2.5kms at Mangaroon.
  • Biggest Winners: NCK, HDN, TPW, DRR, PNV, ACL and PRN.
  • Biggest Losers: NVX, CHN, BGL, EVN, BET, PDN and CEN.

TODAY

  • Telstra (TLS) -0.27% Confirms it is looking at acquiring Digicel Pacific, which is considered a commercially attractive asset. Newswires report Digicel Pacific generated EBITDA of US$235m in calendar 2020 with a strong margin. According to the AFR, if Telstra was to go ahead with the transaction, it would be helped with financial and strategic risk management support from the Government.
  • Vulcan Energy Resources (VUL) 2.79%- Has signed a lithium hydroxide offtake agreement with LG Energy Solution. The deal is for an initial five-year term where LGES has arranged to purchase 5Kt of battery-grade lithium hydroxide for the first year of the supply term, ramping up to 10Kt per year during the second and subsequent years of the supply term.
  • Data#3 (DTL) -5.50% Expects to report FY21 profit of $36.8m vs year-ago $34.1m. Notes supply constraints have coincided with the spike in demand for devices traditionally experienced during Q4, resulting in a larger than usual product backorder at year-end. The profit associated with this backorder is approximately $3m, which will be realised in FY22. Supply constraints for various product sets are expected to continue in FY22.
  • Cooper Energy (COE) -3.92% FY21 production (MMboe) 2.63 vs company guidance 2.7-2.9. Revenue $131.7m vs consensus $130.3m. Sales volume (MMboe) 3.01 vs company guidance 2.9-3.1. Cash and cash equivalents $90.9m.
  • Stockland (SGP) -0.68% Enters binding agreement to acquire Halcyon Group’s land lease comunities business for $620m + transaction costs.
  • humm group (HUM) +8.16% Expects to report FY21 cash profit of $68m vs year-ago $30.9m and consensus $75.8m.Q4 transaction volume $774.9m, +57.3% vs year ago.
  • Oil Search (OSH) -5.17% Managing Director Keiran Wulff steps down for health reasons. CFO Peter Fredricson named Acting CEO.

ECONOMIC NEWS

  • Nothing today.

BOND MARKETS

CV19 NEWS

  • Vaccine Tracker: 3.62bn doses in 180 countries. 32.4m doses a day.
  • Australian vaccination rates 138,497 doses a day. 7 months until 75%.
  • LA goes back to masks. 700% increase in positive cases in last month.
  • ‘Freedom Day’ in UK Boris Johnson in quarantine. 316,000 cases in last 7 days 4313 hospitalised. 160 minutes was all it took for the UK government to perform a U-Turn.
  • Thailand reported 11,784 new infections on Monday, the highest single-day increase since the pandemic began.
  • U.S. hospital admissions for Covid-19 rose 33.7% in the week ending July 16.
  • Three members of South Africa’s Under-23 soccer team tested positive for Covid-19 at the Olympics.

ASIAN NEWS

  • US warns of risks of doing business in Hong Kong.
  • Tokyo Olympics rocked by increasing CV19 cases.

US AND EUROPEAN HEADLINES

  • European markets expected to open around 0.5-1% weaker.
  • Zoom buying Five9 for US$14.7bn. Its largest acquisition.
  • Italian luxury company Zegna to go public via a US$3.2bn SPAC.
  • Norway holds election in September and the PM says committed to oil and gas.
  • Top US health official warns of the ‘pandemic of the unvaccinated’.
  • Pershing Square SPAC deal to buy UMG not to go ahead after issues with SEC.

And finally….

Dad started sending wife these photos every time she asked if the babies were ok

Clarence

XXX