ASX 200 up 2 to 7530 RBA keeps rates unchanged. CV19 will delay not derail.
- HIGH 7537 LOW 7488.
ASX 200 closes up 2 to 7530after RBA leaves rates unchanged. Early weakness sees buyers return grinding out a positive day on better Chinese data and RBA comments on rate rises. Banks were slightly lower with the Big Bank Basket down slightly to $184.92, NAB being the worst, performer off 0.7%. Insurers and other financial held fast, healthcare better with CSL up 1.5% and COH up 2.0%. Industrials mixed, Tech stable with the All–Tech Index up 0.5% and APT off 0.1%. Iron ore miners eased again, FMG continued to slide down another 3.1%, RIO off 1.8% and BHP down 0.4%. Base metal stocks eased too and oil and gas plays barely changed. Not much corporate action today although MMM failed to deliver falling 10.3% as WOW sold down its holding and MCR raised $65m returning to trade 8.3% lower.
Winners: CTT KMD BOE 29M ASM CHN IMU
Losers: MMM MCR JLG ADI RRL GWA WAF APX
- POSITIVE SECTORS: Healthcare. Communications.
- NEGATIVE SECTORS: Iron ore miners. Consumer staples.
- BIG BANK BASKET: Steady at $184.92
- ALL -TECH INDEX: Up 0.6% APT up 1.7%.
- GOLD: Eases to AUD2453.
- BITCOIN: Higher at US$52582. El Salvador the buyer.
- AUD: Firms to 74.29c. 10-YEAR YIELD: Unchanged at 1.25%
- ASIAN MARKETS: Tokyo up 0.9% Hong Kong up 0.7%. China up 0.8%.
- US FUTURES: Dow futures up 39 NASDAQ up 32
STOCKS ON THE MOVE
- BBT +8.53% promising bounce.
- BET +6.18% index inclusion.
- FLT +6.23% reopening trade.
- BOE +6.82% uranium play.
- MCR -8.33% capital raising.
- MMM -10.34% WOW sells out.
- CXO -4.00% upsizes SPP on strong demand.
- MIN -3.61% iron ore pricing.
- SLX -10.26% profit taking.
- EOF +12.00% update on S3 CBD research.
- MYE +9.43% acquisition.
- RCE +24.70% on the move.
- LGP +6.54% expands into psychedelic medicines, man.
- PAN -2.33% profit taking.
- HT8 +12.50% investor presentation.
- SPL -3.86% slide continues.
- ASM +6.45% rally begins again.
- FMG -3.12% iron ore price falls.
- CWN +1.04% Ziggy steps down from RMIT.
- HSN +3.93% faces investors after bid fails.
- GDC +3.08% 360 sells entire 33% stake.
- Speculative Stock of the Day: Eastern Iron +13.79% Trading halt pending an ASX query. Reedy Lagoon (RLC) +40.00% stakes additional ground in Nevada for lithium project.
- Qantas Airways (QAN) +0.74% Calling for bids by September 17 for its property portfolio. The portfolio is valued at ~$550m+. Funds are expected to be used to pay down debt. Newswires name Goodman Group, Charter Hall, Logos and ESR as possible candidates.
- Aussie Broadband (ABB) – Trading halted in Aussie Broadband pending a potential capital raising.
- Sandfire Resources (SFR) +0.15% Reports high-grade copper-silver mineralisation intersected in step-out drilling at A4 dome.
- Openpay Group (OPY) +3.80% Partnership signed with Goodyear & Dunlop Tyres Australia. Agreement also signed with Nexus Hospitals in Australia and Henry Schein UK. Details not disclosed.
- Navigator Global Investments (NGI) +1.10% To acquire a 32% stake in Longreach Alternatives, terms undisclosed. The investment will be made from existing reserves and is expected to immediately contribute to earnings. There will be no near-term impact on the Company’s dividend.
- Peninsula Energy (PEN) – Operations yielding improving uranium grades. Management comments: “The current results of the field demonstration suggest that the targeted chemistry is effective in dissolving and recovering uranium from the Lance deposit.”
- Syrah Resources (SYR) +0.73% First-half profit -US$24.9m vs year-ago -US$28.9m.Revenue US$8.9m vs year-ago US$7.4m. Adjusted EBITDA -US$20.9m vs year-ago -US$26.4m
- Centuria Office REIT (COF) –3.41% Completes institutional component of its entitlement offer priced at 250c/unit.
ECONOMIC NEWS/ BOND MARKETS
- NZ 10-year government bond yields have risen to a 2-year high as traders now expecting a rate rise next month.
Recovery interrupted not derailed by Delta.
- Rates unchanged and likely to be that way until 2024.
- Maintain the target of 10 basis points for the April 2024 Australian Government bond
- Purchase government securities at the rate of $4bn a week and to continue the purchases at this rate until at least mid-February 2022.
- The economy will be growing again in the December quarter and is expected to be back around its pre-Delta path in the second half of next year.
ANZ WEEKLY CONSUMER CONFIDENCE
- Weekly consumer confidence dropped 1.8% last week as COVID numbers remained elevated in NSW and Victoria. Daily cases are expected to peak in the coming weeks as vaccination rates are rising steadily across Australia.
- Weekly inflation expectations surged 0.3ppt to 4.7%, its highest level since the Wentworth by-election in October 2018.
- Vaccine Tracker: 5.53bn doses in 183 countries. Here 271,464 doses giving another 2 months until 75% vaccinated.
- Auntie Gladys tells pubs to get ready for Octoberfest.
- Chilean government approved Sinovac Biotech’s vaccine for use on children as young as six. Thailand is reopening for tourism.
- Chinese exports rose 25.6% in dollar terms from a year earlier, while imports grew 33.1%.
- South Korea has launched its first ballistic missile from a submarine. China’s Foreign Minister Wang Yi is visiting Seoul next week for talks.
US AND EUROPEAN NEWS
- European futures pointing to a slightly weaker open.
- El Salvador buys US$20m worth of Bitcoin as it becomes legal tender. Businesses will be required to accept Bitcoin in exchange for goods and services and the government will accept it for tax payments. The government has installed 200 Bitcoin ATMs around the country that can be used to exchange the cryptocurrency for U.S. dollars.
- Goldman Sachs has cut its GDP Forecast for economic expansion in 2021 to 5.7% from 6%. The broker explained the US consumer is likely to spend less amid the Delta variant’s emergence, fading fiscal support and a switch from demand for goods to services.
- Nvidia is facing opposition from the EU for its takeover of ARM in its US$54bn tilt. Serious competition concerns in UK too.
- Asian superhero Shang-Chi smashes Labor Day box office with UIS$90m in tickets sold.
My wife and I went to a prize fancy dress party last night as Giraffes. We didn’t win anything, but we can hold are head’s up high.