ASX 200 rose again by 78 points to 7386 as CV19 cases were shrugged off and we followed international markets higher. A brief pause at 11am for Auntie Glad and then on with the rally. The Big Bank Basket up to $178.85, MQG doing well too up 1.5% with QBE better by 1.4%. Industrials were better but a little muted, TLS up 1.3%, TCL up 1.6% ALL rallying 0.9% and CPU up 4.3%. Tech stocks flat lined, APT down 0.4% and Z1P down 7.8% on quarterly numbers and increasing shorts. XRO fell 0.4% and the AllTech Index up 0.4%. Miners though and big ones were stocks today. BHP up 3.1% as it found its Mojo after a nickel deal with Tesla. RIO followed up 1.2% and FMG down 0.4% on iron ore price falls. Gold miners were flat as EVN tapped the market for an acquisition of some of NST’s assets with the Superpit owner up 5.4%. Lithium stocks were on fire, PLS up 10.1% ORE and GXY shadowing each other up around 10% and rare earths back in focus after LYC won a government grant, ASM up 10.4% and LYC rising 9.0%. Energy stocks back in green with STO up 2.6% and OSH up 1.0%. In corporate news, plenty of quarterlies around at the moment, PLL rose 13.1% after a Please Explain from the ASX, CIM improved 6.3% on a Credit Suisse upgrade. On the economic front, A record $13.3bn preliminary merchandise trade surplus was recorded in June. Exports of goods increased 8% to $41.3bn and imports of goods also increased 8% to $28bn. 10-year yields at 1.19% slightly higher.  Asian markets better with Hong Kong up 1.7% and China flat. Japan closed for Marine day. Dow futures up 33.

Today’s Highlights

  • ASX 200 up 78 to 7309. Narrow range.
  • High 7386 Low 7331. Record highs beckon.
  • Dow futures up 33.
  • NSW 124 VIC 26. More to come for Sydney.
  • Big Bank Basket shows solid rise to $178.85
  • All Tech Index up 0.4%
  • Gold down to $2446.
  • 10-year yield steady at 1.19%
  • AUD firms at 73.61c
  • Bitcoin rises to US$32084. No dump just pump.
  • Asian markets better with Hong Kong up 1.7% and China flat. Japan closed for Marine day.

STOCKS

  • Z1P -7.78% came undone on quarterly update.
  • ORE +9.91% GXY +9.50% quarterly reports.
  • PLS +10.10% lithium no longer depressed.
  • POS +11.11% BHP nickel deal helps sentiment.
  • LYC +9.01% government grant.
  • DEG +7.17% quarterly report.
  • CIM +6.30% broker upgrades following results.
  • ASM +10.43% Rare earths back in focus.
  • INR +6.67% finding friends despite Buckwheat issues.
  • PYG +9.18% flying on quarterly.
  • KGN -3.11% brokers cool following update.
  • HUM -1.97% no words. Follows BNPL stocks down.
  • LCK -7.14% seems too much hot air.
  • PDI +11.11% Bonanza results sucking in buyers.
  • PLL +13.14% ASX query and response to Gaston County.
  • PIQ +8.82% positive announcement on manufacturer.
  • DTC +22.01% quarterly activities report.
  • PEK +42.86% Special Mining Licence approved for Ngualla Rare Earth project.
  • NXL +3.52% set to drop out of ASX 200.
  • IPO of the Day: Open Negotiation (OPN) +12.90% second day another rally for home sale platform.
  • Speculative Stock of the Day: Emerge Gaming (EM1) +18.75% – quarterly report with 19% increase in cash receipts for the quarter.
  • Biggest Winners: ASM, PLS, SYR, ORE, GXY, CRN, LYC and ILU.
  • Biggest Losers: Z1P, IMD, SM1, JMS, FCL, DTL, KGN and CTT.

TODAY

  • Evolution Mining (EVN) – To acquire NST’s Kundana assets for $400m. The transaction will be funded by an institutional placement at 385c. EVN now expects FY22 production of 700-760koz vs prior 670-730koz.
  • Northern Star Resources (NST) +5.39% MD Raleigh Finlayson to move from MD to Executive Director for a transitionary period of ~ two months. CEO Stuart Tonkin has been appointed Managing Director, effective today.
  • Galaxy Resources (GXY) +9.50% Q2 unit cash operating costs of US$328/dmt vs quarter-ago US$384/dmt. 48,499 dmt of lithium concentrate was shipped vs quarter-ago 29,917 dmt. In line with full-year guidance, the unit cash cost is expected to increase to US$420-450/dmt as the first phase of prestripping activities at 2NW ramps up in the second half. Cost and schedule continue on track and in line with previous guidance for Sal de Vida.\
  • Newcrest Mining (NCM) +0.42% Full-year gold production 2,093koz vs company guidance 1,950-2,150koz. Copper 142.7kt vs company guidance 135-155kt. Group AISC (US$/oz) 905 vs year-ago 862.
  • Senex Energy (SXY)+3.49% Enters long-term gas sales agreement with ADBRI to supply up to 11PJ until 2030. Senex will supply up to 11 petajoules to ABDRI’s South Australian manufacturing operations under a 7-year agreement at the Moomba Gas Hub at a fixed price in line with current market levels.
  • Santos (STO) +2.59% Q2 production (mmboe) 22.5 vs quarter-ago 24.8. Sales volume (mmboe) 26.4 vs quarter-ago 27.4. Sales revenue US$1.08bn vs quarter-ago US$964bn. Free cash flow generation of $US270m. FY Guidance Updated: Production (mmboe) 87-91 vs prior 84-91. Sales (mmboe) 100-105 vs prior 98-105. Upstream production costs ($/boe) 7.90-8.30 vs prior 8.00-8.50.
  • Zip Co. (Z1P) -7.78% Reports final quarter revenue $126.7m, +107%y/y. Q4 trading update:
    • Transaction Volume A$1.76bn, +116% y/y
    • Quarterly transaction volume $857.1m, +12%y/y
    • Transaction numbers 14.2m +230%y/y
    • Customer numbers 7.3m, +87%y/y
    • Merchants 51.3k, +84%y/y
  • BHP (BHP) +3.13%Tesla enters into nickel supply agreement with BHP, however terms not disclosed. Tesla will buy nickel from BHP’s Nickel West plant in Western Australia, one of the most sustainable and lowest carbon emission nickel producers in the world. BHP will also work with Tesla to trace battery raw materials using blockchain and the companies will collaborate on how to use renewable energy and battery storage to lower the carbon footprint of its mining operations. BHP chief commercial officer Vandita Pant says: “Demand for nickel in batteries is estimated to grow by over 500% over the next decade, in large part to support the world’s rising demand for electric vehicles”

ECONOMIC NEWS

  • Exports of goods in June 2021 increased $2,889m (8%) to $41,287m
  • Imports of goods in June 2021 increased $2,122m (8%) to $28,015m
  • For June 2021 there is a goods trade surplus of $13,271m (original, current price, merchandise trade basis)
  • Payroll jobs decreased by 1.0% between the weeks ending 19 June and 3 July 2021.

BOND MARKETS

CV19 NEWS

  • Experts say India could have seen as many as 5m dead from CV19.
  • Marina Bay Casino closes due to Cv19 spread in Singapore.
  • Thailand reported 13,655 new infections on Thursday, the highest single-day increase ever.
  • In Texas, 99.5% of the 8,787 people who died due to Covid-19 from Feb. 8 to July 14 were unvaccinated.
  • Vaccine Tracker 3.71bn doses in 179 countries. 31m doses a day. In Australia, 142,984 doses a day. 6 months to reach 75%.

ASIAN NEWS

  • Japanese Marine Day today.
  • China and the U.S. are shipping goods to each other at the fastest rate in years.
  • Remember the trade wars?
  • Chinese floods set to continue. Industrial centre Zhengzhou the epicentre.

US AND EUROPEAN HEADLINES

  • ECB meeting today. Expect some tweaking from Lagarde. Or is it Twerking? Looser for longer?
  • European Bourses expected to open around 0.5% higher.
  • US and Germany agree on Nord Stream pipeline.
  • Musk says SpaceX holds Bitcoin.
  • EU rejects UK plan to tear up the Brexit deal over Northern Ireland.
  • Pfizer to produce vaccine in South Africa.
  • The French are protesting against a CV19 Passport system.

And finally….

My tolerance for idiots is extremely low today.  I used to have some immunity built up, but obviously, there is a new strain out there.

*As I watch this generation try and rewrite our history, one thing I’m sure of … it will be misspelled and have no punctuation.

 *Do you ever get up in the morning, look in the mirror and think “That can’t be accurate.”

*Teacher:  Give me a sentence that includes the words:  ‘defence’, ‘defeat’ and ‘detail’.

Student:  When a horse jumps over defence, defeat go first and then detail.

 *Felt uncomfortable driving into the cemetery.  The GPS blurted out “You have reached your final destination.”

Hard to believe I once had a phone attached to a wall, and when it rang, I picked it up without knowing who was calling, and I’m still alive.

Clarence

XXXX