ASX 200 up 19 to 7425 (0.25%)
- HIGH 7437 LOW 7389
ASX 200 rallies 19 points to close at 7425 a drifting day after gains early saw seller re -emerge before closing buys. Resources which had been the trailblazers gave up some gains in iron ore with BHP up 0.6% and RIO off 0.2% on US Oak Flat news, FMG managed a 0.8% gain. Uranium was the huge winner today, anything that glowed, was red hot, PDN, BOE, BNM, ERA and AGE leading the charge. Base metal stocks firmed with lithium in focus too, PLS up 7.3% and LYC rallied 5.4%. Banks were flat with the Big Bank Basket down to $182.74. Insurers slipped, MFG fell another 2.5% and MAF dropped 4.9%. Industrials mixed with ALL up 2.9% and TCL down 1.3%. Tech stocks were flat as the All–Tech Index fell 0.1%. APT off 2.0% following the Square Dance down. In corporate news, SYD got another bid at 875c from IFM and agreed to DD, CDM updated the market on the recent SPC listing and NTA falling 9.9%. Sell the fact again in play. Nothing on the economic front today.
Winners: ERA, LTR, ABR, PDN, BOE, FFX, INR
Losers: ASM, PPK, STX, ALG, MAF, HPG, OBL
- POSITIVE SECTORS: Uranium. Base metals. Energy.
- NEGATIVE SECTORS: Banks. Insurers.
- BIG BANK BASKET: Unchanged at $182.74
- ALL -TECH INDEX Down 0.14% APT down 2.03%
- GOLD: Modestly higher at AUD2442.
- BITCOIN: Slides to US$44679.
- AUD: Slips to 73.39c. 10-YEAR YIELD: Firms to 1.25%
- ASIAN MARKETS: Tokyo down 0.3% Hong Kong down 2.4%. China down 0.8%
- US FUTURES: Dow futures up 125 NASDAQ up 30.
STOCKS ON THE MOVE
- ERA +27.27% PDN +14.62% BOE +13.21%
- LTR +20.35% someone’s happy.
- PLS +7.32% lithium stocks back in favour.
- YAL +5.31% coal remains on a tear.
- PPK -% profit taking finally.
- AVZ -1.92% profit taking.
- GRR -4.42% iron ore pricing.
- ALG -5.08% CV19 cases.
- AGE +26.67% uranium on fire.
- SLX +22.01% going nuts.
- BMN +25.49% joins the party.
- CDM -9.92% SPAC lists.
- KNI -11.07% profit taking.
- HZR -8.84% capital raising.
- BHP/RIO US legislators looking at stopping the Oak Flat project in US.
- QAN -0.19%% Japan Airlines deal blocked.
- AMA +9.03%% smashed up but back after recap.
- Z1P +2.33% retail investor day tomorrow.
- Speculative Stock of the Day: 92 Energy (92E) +46.60% Uranium company in Saskatchewan Canada. Elevated radioactivity intersected at Gemini project 1st September.
- Sydney Airport (SYD) +4.62% IFM Investors consortium submits revised bid for Sydney Airport at ~A$8.75/sh; granted due diligence.
- Qantas (QAN) –0.19% The ACCC has determined that an alliance between Australia’s national carrier and Japan Airlines is not in the public interest. ACCC has denied authorisation for Qantas and Japan Airlines to coordinate flights between Australia and Japan under the terms of a joint business agreement, finding that the agreement would likely lead to reduced competition as international travel resumes, to the detriment of passengers travelling between Australia and Japan.
- AMA Group (AMA) +9.03% completes $53m institutional entitlement offer priced at 37.5 cps. Take-up of 99.6%. AMA also prices $50m offering of 4.00% convertible notes due 2027 at initial conversion price of 46.88cps.
- Energy company Far Limited (FAR) -1.38% has reported a 1H loss of $3.6m, down from the $15.9m loss recorded a year ago. Statutory NPAT came in at a $7.1m loss, better than last year’s $21.2m loss. Revenue $24K vs $198K a year ago, whilst the cash balance is now $3.3m, down from $25.9m on 31 December 2020.
- Tyro Payments (TYR) +0.49% FY22 YTD transaction value $5.06bn vs year-ago $4.14bn.
- Neometals (NMT) 5.66% JV partner enters MoU for potential 10-year Slag supply agreement with green steel developer H2GS AB. The MoU represents an opportunity to significantly increase the scale and scope of proposed 50:50 (Neometals /Critical) JV to produce high-purity vanadium products. This potential new source Slag could underpin a second, larger vanadium recovery plant capable of processing 400Ktpa of Slag.
- American Pacific Borates (ABR) +17.96%Exploring partner options for potential by-product lithium production from Fort Cady. Improving lithium economics and emerging Direct Lithium Extraction technologies providing positive back drop. Opportunity to utilise lithium in boron specialty applications targeting LiBor salts for lithium-ion batteries. Current Fort Cady JORC code compliant Mineral Resource Estimate contains 214k tonnes of lithium carbonate equivalent with substantial exploration upside.
- City Chic Collective (CCX) -2.65% CFO Munraj Dhaliwal to resign at the end of CY21.
- PointsBet (PBH) -0.40% Penn Interactive has lodged a substantial shareholder notice with 16.5m shares (6.27%)
- Incitec Pivot (IPL) +1.47% has provided an update on the impact of Hurricane Ida on its Waggaman plant, with the company expected to lose $28m of earnings before interest and tax, and NPAT of $21m. After running at nameplate capacity since the re-start at the end of May, the Waggaman plant was brought down on Saturday 28 August, in anticipation of the hurricane to ensure safety and protect the plant against damage. Inspections undertaken since the hurricane have not identified any material damage to the plant and the plant’s re-start has been awaiting restoration of high voltage industrial power and utilities from third party providers.
ECONOMIC NEWS/ BOND MARKETS
- Nothing today
- China is seeing yet another outbreak of the Delta Variant in the south eastern province of Fujian.
- Thailand reported 12,583 new Covid-19 cases on Monday.
- Auckland will remain at Alert Level 4, the strictest setting, for at least another week. 33 new cases were reported earlier Monday.
- NSW 1,257 new infections overnight. 473 in Victoria.
- Beijing looking to break up Alipay. Alibaba down 6%. Authorities are also looking at consolidating the EV Industry in China. More than 300 EV car makers now in China. Regulators are considering setting a minimum production capacity utilization rate for the industry.
- Soho China has fallen hard after Blackstone has walked away from its USA$3bn takeover.
- Evergrande looking at one of China’s biggest ever restructuring. The company has around US$300bn in liabilities and bond holders could face a return of only 25% of capital.
US AND EUROPEAN NEWS
- House Democrats look set to propose a corporate tax rate of 26.5%. Cryptocurrency, tobacco among areas targeted to raise revenue.
- 2 weeks until German elections. European futures pointing to a slightly positive open.
- Morgan Stanley has been warning of a rolling correction in US markets with 56% of the S&P 500 index dropping more than 10% since May.
- The Irish Regulator has not resolved 98% of the 164 significant data breach complaints.
- UK drops plans for CV19 Passport. US GOP threatens to block Biden’s vaccine mandate.
- Marks and Sparks may close all French stores on supply chain issues and Brexit red tape.