ASX 200 up 29 points to 7503 (0.2%)

  • HIGH 7509 LOW 7478. Narrow range and lacklustre volumes.

MAJOR MOVERS: Winners: 88E, VUL, LKE, GMA, DUB, KAR, OBL  Losers: AIS, KED, CHN, OML, CRN, CTT

  • POSITIVE SECTORS: Iron ore miners. Energy. Lithium. Defensives. Banks.
  • NEGATIVE SECTORS: Healthcare. CSL downgraded.
  • BIG BANK BASKET:  Better at $181.46
  • ALL -TECH INDEX: Flat. Unchanged. APT slips.
  • GOLD: Steady at AUD $2448.
    BITCOIN: US$37959. Slipping slightly.
  • AUD:  Steady at 73.98c. 10-YEAR YIELD:  1.14%
  • ASIAN MARKETS: Japan down 0.25% HK up 1.6% China up 0.6%
  • US FUTURES: Dow futures down 25. NASDAQ up 3.

ASX 200 up 24 to 7499 as once again we shrug off a record CV19 case load in Sydney. Good lead in from US helping with miners doing well despite lower commodity prices. BHP up 2.1% and FMG up 0.4% as investors look to dividends and buybacks. Lithium miners continue to surge higher, PLS up 4.6% and ORE up 0.7% with VUL shooting the lights out with a 15.9% move higher. Tech and BNPL was once again where the action was with APT down 0.9% and SPT up 23.1%. The All–Tech Index unchanged. Banks moving modestly higher and industrials mixed. Healthcare being dragged lower by CSL on some negative broker reports. 10-year yields 1.14%. Narrow trading range and low volumes ahead of reporting season.

STOCKS ON THE MOVE

  • VUL +15.88% proof of zero carbon footprint.
  • 88E +15.91% drilling update.
  • LKE +10.09% lithium boom continues.
  • KAR +5.98% new management changes in Brazil.
  • DUB +6.19% records another record.
  • MMM +4.85% bounce time.
  • FDV +3.65% tech bounce helps.
  • PBH -1.34% sell off continues.
  • AIS -6.25% profit taking.
  • GUD -3.31% results not so good.
  • SPT +23.08% BNPL target?
  • CXO +14.29% lithium high.
  • MNS +14.29% binding sales increase.
  • RZI +9.44% key metrics.
  • EGR +11.95% lithium winner.
  • GMA +7.55% dividend is back.
  • Speculative Stock of the Day: ResApp (RAP) +22.50% – Alodokter to launch ResAppDx in Indonesia.

ANNOUNCEMENTS

  • Westpac (WBC) +0.16% Japanese firm, Dai-ichi Life is reportedly in exclusive talks to buy Westpac’s US$1bn Life Insurance business. A deal is likely to be announced this month.
  • Amcor (AMC) ).45% Partners with Michigan University on sustainable packaging innovation. Announced a US$10m investment into MSU’s School of Packaging.
  • AMA Group (AMA) -2.02% The board has reportedly discussed growth options including refinancing, capital management, raisings and M&A, with a number of bankers. Speculation that conveniently fits into the corporate deal bonanza in the market at the moment (APT $39bn, OSH and STO merger $21bn).
  • BWP Trust (BWP) –2.20% Reports Net Profit of $114.0m vs year-ago $117.1m, revenue of $152.2m vs year-ago $155.8m and a distribution of 9.27 cents per unit. Outlook: “Expect the distribution for the year ending 30-Jun-22 to be similar to the ordinary distribution paid for the year ended 30-Jun-21. Capital profits may be utilised to support the distribution.”
  • Genworth Mortgage Insurance Australia (GMA) +7.55% Reports first-half underlying profit of $76.5m vs year-ago -$85.5m. Gross written premiums $289.7m vs consensus $293.6m. Loss ratio 28.9 vs year-ago 67.0. Interim dividend 5.0c/share, unfranked. Outlook: Claims activity is expected to normalise after additional deferral periods. GMA is working with lender customers to improve the lender’s mortgage insurance value proposition for home buyers.
  • Woodside Petroleum (WPL) +1.01% Upgrades Scarborough project cost estimate to US$12bn, a 5% lift on the previous estimate.

ECONOMIC NEWS/ BOND MARKETS

ECONOMIC DATA

Retail trade June 2021 seasonally adjusted estimate:

  • Fell 1.8% month-on-month, in line with expectations.
  • This follows the 1.8% fall published in the Preliminary Retail Trade release.
  • Rose 2.9% compared with June 2020.
  • In volume terms, the seasonally adjusted estimate rose 0.8% in the June quarter 2021.

IN THE NEWS

  • Citi Bank has launched a BNPL product anywhere MasterCard is accepted in Australia as a test market.
  • New Zealand’s unemployment rate has fallen to 4%, from 4.6%, in the June quarter, its lowest level in 18 months. Interest rate hike expected at August 18th meeting. 2 more to come perhaps.

CV19 NEWS

  • Vaccine Tracker: 4.21bn doses in 180 countries. 41.9m a day.
  • Australia 171,095 a day. 5 months to get to 75%.
  • The delta variant has pushed the threshold for herd immunity to well over 80% and potentially approaching 90%, the Infectious Diseases Society of America said.
  • President Joe Biden criticized the pandemic response of the Florida and Texas governors, both Republicans.
  • Thailand had record deaths and cases, while Australia found a case in the far-north city of Cairns.
  • A record 29 additional cases were reported at the Tokyo Olympics, including four athletes.
  • China reported 86 infections on Wednesday, including 15 asymptomatic cases.

ASIAN MARKETS

  • Alibaba revenue missed estimates for the first time in more than two years.
  • Chinese sports makers have seen a surge following the clamp down on video gaming. A State Council plans to renovate parks, gyms and stadiums in its effort to build a 5 trillion yuan (US$774bn) sports industry by 2025.
  • At least 46 Chinese cities advised residents to refrain from traveling.
  • Nomura Holdings Inc. lowered its projection for third-quarter growth to 5.1% from 6.4% previously and sees 4.4% expansion in the final three months of the year, down from 5.3%.

US AND EUROPEAN NEWS

  • UK and European market expected to open mildly positive.
  • Nissan aims to maintain its lead over Tesla and others over recycling.
  • Siemens Q3 orders down 36.8%.Q3 sales up 8.8% to EUR 7.26bn.

And finally…Watch the Women’s Skateboarding final. Absolutely fantastic.

Nothing else to add really. Except these.

Two men broke into a drugstore and stole all the Viagra. The police put out an alert to be on the lookout for the two hardened criminals.

What’s the difference between kinky and perverted? Kinky is when you tickle your girlfriend with a feather, perverted is when you use the whole bird.

Clarence

XXX