ASX 200 down 18 to 7512
- HIGH 7522 LOW 7476.
ASX 200 down 18 points in lacklustre trade closing at 7512 (-0.24%). Once again resource stocks weighed with BHP down 1.0% and RIO down 0.5%. Gold miners under pressure as bullion fell, NCM down 2.9% and NST off 5.3%. Banks were firm with MQG updating the market and pushing 4.7% higher. Elsewhere insurers eased and other financials led down by a 2.1% fall in ASX. Healthcare stocks eased except CSL with RHC down 1.6%, COH deaf to the bulls down 1.8% and FPH falling 2.2%. Industrials a little soggy and Tech off slightly with the All-Tech Index down 0.8% as APT fell 1.6%. In corporate news, plenty of begging bowls out for more cash, ABB returned after a $120m raised in a canter, rising 3.7%. Plenty of mining minnows also mopping up surplus shareholder funds.
Winners: NVX DGL SPL CTT SOL MQG TNE
Losers: RED ADH BOE SBM APE SYR NST
- POSITIVE SECTORS: Banks. Telcos.
- NEGATIVE SECTORS: Iron ore miners. Gold. Healthcare. Tech.
- BIG BANK BASKET: Steady at $185.88
- ALL -TECH INDEX: Down 1.0% APT down 2%.
- GOLD: Eases to AUD2433.
- BITCOIN: El Salvador takes its toll down to US$46702.
- AUD: Eases to 73.88c. 10-YEAR YIELD: Pushing up to 1.29%
- ASIAN MARKETS: Tokyo up 0.4% Hong Kong down 0.4%. China unchanged
- US FUTURES: Dow futures up 6 NASDAQ up 1.
STOCKS ON THE MOVE
- IMR +25.60% successful completion of placement and SPP launch.
- APE -5.94% car yard woes.
- SM1 -0.99% restructure with 15% loss of jobs.
- VMS +7.23% positive drill results.
- NWH +0.28% $290m Mt Holland Contract.
- WGX -4.90% production on track.
- RED -8.89% KOTH construction update.
- PBH -4.81% slide continues.
- HSN -4.64% warmth cools after presentation.
- DGL +9.88% kicking on happily.
- CTT +6.12% change of director’s interest.
- MQG +4.69% earnings update – positive.
- TNE +4.65% broker research.
- LTR +2.68% the beat goes on.
- SOL +5.61% coal exposure.
- LSF +2.23% big leap in NTA to 304c.
- NST -5.28% RSG -4.26% PRU -4.25% bullion weakness and country risk.
- RTG -21.21% half yearly report.
- CLU -3.01% SPP details.
- S32 +2.32% bucks trend on alumina and coal exposure.
- APT -1.58% follows Square lower.
- CIM +1.11% new contract wins.
- IPH -0.43% Two firms merging.
- NCM -2.94% Beaver Creek Presentation.
- BHP -1.02% releases economic contribution data.
- Speculative Stock of the Day: Norwest Energy (NWE) +125.00% significant gas discovery at Lockyer-Deep 1. NWE owns 20% MIN owns 80%.
- Latitude Group Holdings (LFS) -0.88% Completes bookbuild for its capital notes offer and increases offer size to $150m vs $125m prior.The margin has been set at 4.75% at the bottom of the 4.75-5.00% range. The offer size was increased given investor demand.
- Macquarie Group (MQG) +4.69% Expects the first half of the new financial year to be slightly down vs the second half in FY21. MQG notes the first half of FY22 included the Macquarie Infrastructure Corporation (MIC) disposition fee in Macquarie Asset Management. On the positive side, MQG observes favourable market conditions contributing to a stronger 1H22 Commodities and Global Markets result than anticipated. The sale of the UK commercial and industrial smart meter portfolio another positive. Macquarie remains well-positioned to deliver superior performance in the medium term.
- NRW Holdings (NWH) +0.28% Subsidiary Primero wins new contract worth ~$290m, for the engineering, procurement and construction (EPC) of the Mt Holland Concentrator project for Covalent Lithium – a joint venture between Wesfarmers and SQM.
- Qube Holdings (QUB) +4.59% To acquire Newcastle Agri Terminal (NAT) for $90m. The NAT facility has 60Kt of silo storage and the ability to load out up to 2Kt per hour. The purchase will be funded through Qube’s existing undrawn debt facilities.
- Mineral Resources (MIN) -0.17% Update on drilling operations at Lockyer Deep-1 conventional gas exploration well. Drilling results identify a significant gas discovery at Lockyer Deep-1. Excellent reservoir quality encountered in the Kingia Sandstone.
- Ainsworth Game Technology (AGI) +9.68% CEO Lawrence Levy to resign on September 10, Harald Neumann appointed replacement.
- Aussie Broadband (ABB) +3.67% Completes $114m institutional placement priced at 400c. Expects to make at least one acquisition in 1H22. In preliminary discussions with a range of targets of various sizes, to acquire telecommunication businesses in the residential, business and enterprise segments, customer bases, and business which add key product or knowhow capability.
- IPH (IPH) -0.43% Announces integration of two of its member firms to deliver operational efficiencies. Two of its member firms, Shelston IP and Spruson & Ferguson Australia, will combine to create one firm operating under the Spruson & Ferguson brand. The financial impact of the integration on FY22 will be assessed through the project and an update will be provided at IPH’s AGM in November.
ECONOMIC NEWS/ BOND MARKETS
- BHP contributed a staggering $34.1bn to the Australian economy in the 2021 financial year, according to the company’s own figures. The number includes $11.1bn in payments to suppliers, $6bn in dividend and interest payments and $12.4bn in Australian tax, royalties and other payments to governments.
- The proportion of employed people working more than one job increased to 6.5% in the June quarter 2021.
- Hours worked increased by 1.8% in the June quarter 2021, to surpass pre-pandemic levels for the first time.
- The Philippines has backtracked on easing restrictions.
- The death toll topped 650,000 in the U.S.
- Korea considering a new living with CV19 stance at the end of October.
- Top Pfizer scientist has defended the push for booster shots saying the company went with low-dose jab to ensure no nasty side effects.
- Japanese investors were net sellers of foreign assets in July, said RBC in a note.
- PayPal will acquire a Japanese BNPL company called Paidy Inc. for US$2.7bn. Nearly three-quarters of all purchases in the country are still paid for in cash.
US AND EUROPEAN NEWS
- European futures pointing to a softer open.
- UK raises taxes to pay for CV19 effects. Boris breaks promise on pensions too. Will raise GBP36bn over three years. Hardly worth it.
- Bitcoin is now legal tender in El Salvador. Thought it always was for some reason.
- Ford takes a bite out of Apple signs Doug Field.
- Taliban announces new government. Surprisingly no females.
- Amazon’s key UK business paid just GBP3.8m more corporation tax last year than in 2019, even as sales increased by GBP1.89bn.
- Brazil on a knife edge with pro Bolsonaro rallies backing President.
- Mexico supreme Court votes to decriminalise abortions.
- Merkel urges Germans to vote Armin Laschet as her successor. CDU support hits record lows.
- Biden asks congress for US$30bn for disaster aid in US and Afghanistan.