ASX 200 down 41 to 7486.
- HIGH 7510 LOW 7437 Off lows. BHP div around 25 points.
ASX 200 dropped 41 points to 7486 rallying off its lows with half of the fall BHP going Ex- Dividend. This will be a feature of the market as company dividends drop creating a headline headwind. BHP fell 6.9% to be lower than its 2021 open though it has paid around $4 in dividends thus year. Other resource stocks were in the doghouse, NCM down 1.5%, RIO off 0.7% and BSL easing 1.4%. Healthcare slipped with CSL down 1.8% and RMD off 1.7%. Banks were mixed with the Big Bank Basket steady at $183.80. Industrials mixed too with tech better as APT rose 0.9% and TLS slipped 1.0%. Consumer staples lower as WES, WOW and COL all fell. Uranium stocks doing well with PDN, BMN and even ERA firming. On the economic front, a record trade surplus of $12.1bn was recorded in July, beating market estimates of $10bn. Exports +5% vs estimates of 3% with imports +3%, beating estimates of 2%. China’s manufacturing PMIs slips in August. The surprise fall in the Caixin PMI into contraction territory was driven by both weaker production and demand.
Winners: BET LIC ERA CRN FFX RED PDN FCL DDR
Losers: BHP UMG IAP DEG PWR MAH GRR CHN
- POSITIVE SECTORS: Tech. Banks.
- NEGATIVE SECTORS: Iron ore miners. Healthcare. Consumer staples.
- BIG BANK BASKET: Rises to $183.80
- ALL -TECH INDEX: up 1% APT up 0.9%.
- GOLD: Weaker at AUD2456.
- BITCOIN: Higher at US$49491.
- AUD: Firms to 73.69c. 10-YEAR YIELD: Eases to 1.20%
- ASIAN MARKETS: Tokyo up 0.17% Hong Kong flat. China up 0.5%.
- US FUTURES: Dow futures down 21 NASDAQ up 6. European Futures down 0.2%
STOCKS ON THE MOVE
- FLT +0.53% turning Japanese. I really think so.
- SXY +2.51% supply agreement with Opal.
- NIC +0.50% signs Papua project deal.
- BCB +12.50% becoming a substantial shareholder.
- SLX +15.35% quantum play.
- PDN +6.78% BMN +11.11% uranium glowing.
- FCL +5.10% rally continues.
- DDR +5.07% bargain hunters steam in.
- CRN +7.27% coal prices.
- WWI -13.64% DFS news.
- BHP -6.86% ex dividend.
- UMG -6.14% downgrade due to Delta.
- DEG -5.95% profit taking.
- CXO -1.41% SPP closes tonight.
- FFX +7.08% Investor presentation.
- VMT +11.84% E Bikes making a splash in Europe.
- 88E +9.37% investor presentation and capital raise.
- KNI -8.98% meme stock holders sell.
- IPO of the Day: Rubicon Water (RWL) +63.00%
- Speculative Stock of the Day: Greatbould Resources (GBR) +108.33% following drill results of 150 g/t Au intersection at Mulga Bill.
- Weebit Nano (WBT) – Requests voluntary suspension from trading. The request comes on the back of a confidentiality issue regarding an incomplete negotiation with a material customer.
- Zip Co. (Z1P) -0.43% Mercari, the online marketplace has announced its partnership with Zip Co., formerly operating in the US. as Quadpay.
- Mosaic Brands (MOZ) – Looks to raise $32m via an 8% convertible notes issue. Spotlight Group is understood to be investing $10m on a placement basis, and the balance of the three-year notes will be offered to holders on an entitlement basis.
- Senex Energy (SXY) -2.51% SXY and Opal sign a new gas sales agreement for up to six years and up to 12 PJ of natural gas. Under the initial four-year agreement Senex will provide ~8 PJ of natural gas to support the Opal Paper & Recycling division’s manufacturing operations at Botany, New South Wales, at a fixed price, in line with current market levels. There is a two-year contract extension option.
- Latitude Group Holdings (LFS) -0.87% Launches capital notes offer to raise $125m.The Margin will be determined under the Bookbuild and is expected to be in the range of 4.75% to 5.00% per annum. Initial redemption date 27-Oct-26.
- Flight Centre (FLT) +0.53% Enters joint venture with NSF Engagement Corporation to enter the Japanese corporate travel sector. Will launch its FCM travel management Japan from Jan-22.
- Santos (STO) +1.14% Provides operational update; EP 161 Tanumbirini 3H Well spudded and ahead of schedule.
ECONOMIC NEWS/ BOND MARKETS
- S&P Global Ratings said home financing has performed better than anticipated.
- ANZ says the current lockdowns will ensure the RBA holds off on reduction in the bond buying program.
- Record trade surplus of $12.117bn, beating market estimates of $10bn. Exports +5% vs estimates of 3% with imports +3%, beating estimates of 2%.
- The value of new housing loan commitments, excluding refinancing, rose 0.2% in July 2021 (seasonally adjusted). A rise in investor loan commitments (1.8%) was partially offset by a fall in owner-occupier loan commitments (0.4%). Investor loan commitments have seen an unbroken period of growth since October 2020 and almost doubled in value compared to a year ago.
- Vaccine Tracker: 278,530 doses a day on average here. 2 months to cover 75% of adult population.
- The manufacturing purchasing managers index – or PMI – in China fell from 50.4 in July to 50.1 in August, below forecasts.
- The Caixin PMI slipped into negative territory with a 49.2 reading, down from 50.3 in July.
- China now targeting ride sharing companies.
- Is it possible to have both? Economic prosperity and cutting emissions and focusing on climate change. Not easy to curb emissions and preserve the economic miracle. Cutting supply has been two edged with coal price surging and aluminium prices at ten-year highs whilst iron ore has tumbled.
- Nio cuts car delivery forecasts on chip shortages.
US AND EUROPEAN NEWS
- European market heading for a slightly weaker start.
- Ah Vienna. Turns 250 today. One of the world’s oldest stock exchanges. Beethoven was once a shareholder. He thought he was a silent partner.
- Bill Goss has said longer-term Treasury yields are so low that the funds that buy them belong in the “investment garbage can.”
- The US Justice department is preparing a second monopoly lawsuit against Google over claims it is abusing its dominance.
- Crypto platforms need regulation to survive, says SEC boss.
- Home prices in three US cities are up 25% this year. Not even trying compared to local prices. Phoenix, San Diego and Seattle leading the charge.
- YouTube now has 50m paying subscribers.
- Germans DAX index is putting on weight. Heading to 40 not 30 stocks. Too much strudel.
- US trucking companies looking at foreign drivers to fill vacancies.
- UK could move subs to France if Scotland goes it alone. Certain irony in that.
What do you call James Bond relaxing in the bath
Patient: Doctor I think I’m turning into a moth.
Doctor: it’s not me you want, it is the psychiatrist down the road you need.
Patient: That’s where I was heading but your light was on.