ASX 200 down 52 to 7379 (0.7%). Sydney lockdown takes its toll. Inflation runs hot.
- HIGH 7432 LOW 7368. Average volumes.
MAJOR MOVERS: Winners: CMM, KED, PGH, SKI, ORA, VUK and SM1 Losers: NIC, CXL, AMI, MGX, RBL and NWL.
- POSITIVE SECTORS: Gold miners. REITs.
- NEGATIVE SECTORS: Banks. Healthcare. Base metal miners. BNPL. Tech.
- BIG BANK BASKET: Weak at $177.51
- ALL -TECH INDEX: Down 1.9%.
- GOLD: Rises to AUD $2455.
BITCOIN: US$40020. Good rally.
- AUD: Weaker at 73.59c. 10-YEAR YIELD: 1.15%
- ASIAN MARKETS: Japan down 0.95% HK unchanged China down 0.35%
- US FUTURES: Dow futures down 53 NASDAQ down 14.5
ASX 200 finally threw in the towel today down 52 points to 7379 as Sydney heads into another 4 weeks of ‘Groundhog Day’. No amount of Gold in the pool or from the rowers could rescue the market. The Banks were hit hard with the Big Bank Basket down to $177.51 with CBA off 1.4% and MQG falling 0.7%. MFG also took a tumble falling 3.4%. Healthcare was led lower by CSL dropping 0.9%. Industrials too on the nose with WES down 1.2%, WOW off 0.8% and tech under pressure in the BNPL space APT off 3.6%. The All Tech Index fell 1.9% as XRO slid 1.4%. Big miners also came under pressure ahead of RIO results. BHP down 1.7% and RIO off 0.2%. Gold miners were a semi bright spot NCM up 1.1%. Travel stocks down but only modestly. WEB down 0.6% and QAN off 1.1%. In economic news we saw inflation at annual rate of 3.8% the most since 2008 when interest rates were 7%. Corporate news included a raised bid for SKI at 295c, plenty of quarterlies and RIO results after hours. US561c the dividend.
STOCKS ON THE MOVE
- CMM +22.62% acquisition of Mt Gibson gold project.
- SKI +5.38% increased offer.
- BLD – last day to accept tomorrow.
- FDV +2.04% quarterly report
- VUK +3.02% directorate change.
- DEG +2.19% finding support.
- 360 +1.01% Jiobit acquisition.
- NIC -11.06% quarterly activities report.
- NTO -5.22% quarterly.
- CXL -7.48% tech profit taking.
- MGX -7.14% quarterly report.
- RMD +2.18% Phillips recalls 3.5m devices.
- PBH -4.48% tech sell down.
- DOC -8.57% house calls back. Quarterly disappoints.
- KLL -6.82% Macquarie research.
- CGS -11.11% profit taking. Tech rout didn’t help.
- BST +9.76% positive debut continues. Blundy factor helps.
- EMH +15.17% Czech Republic news on battery plant.
- RZI +7.69% good update.
- AXE +7.88% sprinting away again.
- PDI +7.14% finding friends post quarterly.
- OPY -6.25% quarterly fails to deliver.
- PLS – trading halt remains. Quarterly report.
- Speculative Stock of the Day: Nothing today on any volume.
- Gold Road Resources (GOR) +1.19% Reports Q2 production figures. Q2 Production: AISC $1,659/oz vs guidance $1,675-1,800/oz, Gold sales 28,425 oz at $2,145/oz, Free cash flow -$3.9m, Cash and cash equivalents $128.6m. Despite the impact to 2021 guidance, Gold Road remains confident in lifting throughput and grades to deliver increased production in 2022 and 2023 per the 3-year guidance issued in February 2021.
- AGL Energy (AGL) -3.37% Considering submitting bid for solar firm Autonomous Energy. AGL is among more than ten interested parties that have commenced due diligence on Autonomous Energy, which is part of the Forum Finance entities that were recently forced into administration.
- Woodside Petroleum (WPL) -1.96% Company-wide review at Woodside Petroleum is expected to result in significant job cut as it targets cost savings of ~30%.
- Rio Tinto (RIO) –0.19% Rio posts record results with an interim dividend of US$5.61, 75% of underlying earnings vs estimates of US$5.30c. US$13.7bn net cash was generated from operating activities, 143% higher than the 2020 first half, mainly due to higher pricing for iron ore, aluminium and copper. US$21bn underlying EBITDA was 118% higher than the 2020 first half. The miner earlier today also announced its entry into the battery minerals scene at scale with US$2.4bn in funding committed for Jadar lithium-borates project in Serbia.
- Spark Infrastructure Group (SKI) +5.38% There is speculation that KKR and Ontario Teachers’ Pension Plan may increase bid for SKI to 290c/share.
- BHP (BHP) –1.67% Has lobbed a $325m offer for Canada’s Noront Resources, trumping a bid from Andrew Forrest’s Wyloo Metals.
- St. Barbara (SBM) –1.69% Full-year gold production of 327.7koz at an AISC of $1,616/oz. In FY22 sees production of 305-355koz at an ASIC of $1,710-1,860/oz.
- Openpay Group (OPY) -6.25% Q4 total transaction value $92m, +46% vs pcp. Active Plans 2.0m, +141%, active customers 541k +69% vs pcp and active merchants 3.8k, +77% vs pcp. Management comments, “Openpay is well set up to scale the business and create the unit economics which provide clear pathway to profitability in the midter. FY22 will be the year when Openpay will record initial substantial volume growth in the largest global consumer market, the US, where all high-growth competitors have built a presence, creating a fundamental quantum leap in growth and scale.”
- Select Harvests (SHV) +1.73% 70% of the crop has been processed and estimate full-year volumes 28,250MT vs year-ago 23,250MT. The 2022 crop is progressing well with good tree health and all regions have had sufficient chill hours. Anticipate pollination to peak in mid-August and beekeepers have commenced delivering hives to our orchards.
- IGO Limited (IGO) –1.76% Full-year preliminary profit of $548.7m. Revenue $912.1m, underlying EBITDA $474.6m. In FY22 seesNova nickel concentrate production between 25-27k(t) and copper in concentrate between 11.5-12.5k(t).
- Eagers Automotive (APE) +1.85% Preliminary, first half, underlying operating profit of $218.6m.The new car market continues to rebound from the initial onset of COVID-19 with a 28.3% increase in the new car market compared to H1 of 2020. These market dynamics are further buoyed by demand continuing to materially outstrip supply. Underlying profit continues to be supported by the ongoing benefits of its material cost out program and the synergies resulting from the merger with AHG.
- Nickel Mines (NIC) -11.06% June quarterly nickel production of 10,143t vs quarter-ago 10,068t. Nickel sold (100% basis) 10,735.7t vs quarter-ago 10,257.1. Sales US$150.2m, +8.7% vs quarter ago. EBITDA US$50.8m, +0.2% vs quarter ago. Underlying free cash flow US$57.7m, +15.4% vs quarter ago.
ECONOMIC NEWS/ BOND MARKETS
- Inflation accelerated to 3.8% in the three months through June. Australian inflation spikes to its highest level since 2008. Cash rate then was 7%. Bothered? Seems not. It is transitory.
IN THE NEWS
- CBA has now pushed its rate rise forecast out until 2023.Economic news that higher disaster payment will now start from Day One and business to get another boost.
- The ‘Terminator’ Ariarne Titmus wins another Gold. Japanese skateboard stocks soar after win in new event.
- QANTAS exploring the idea of mandatory jabs for staff.
- Sydney numbers: 177 cases. Another month added on for bad behaviour.
- Vaccine Tracker: 3.93bn doses in 180 countries. Back to 180 countries. 35.4m a day.
- Australian average 157,334 doses a day. 6 months to 75% coverage.
- UK CV19 wave is waning. It recorded only 23,511 new COVID-19 infections, half the daily figure of a week earlier. But death have also jumped to 131 with hospital admissions rising to 900 a day.
- HK IPOs are the worst global performers. 4% on average above IPO price.
- Hang Seng Tech Index
- China now turning its sights on getting the housing market under control with rate rises in some cities. Vice Premier says China will not use real estate to boost the economy this time around.
US AND EUROPEAN NEWS
- Apple warns on slowing growth.
- Russia set to friend the Taliban as US leave Afghanistan.
- BASF -Sales outlook raised to between EUR 74-77bn Q2 Net Income EUR1.7bn.
- Deutsche bank back in the black. Strong revenue performance across all businesses.