The ASX 200 closed up 43 points to 7460. A solid day with banks powering ahead on jobs data, the headline rate falling to 4.5% although weaker participation an issue. The Big Bank Basket rose to $184.92. MQG pushed 1.0% ahead with MFG rising 2.5% for a change. Healthcare was back in the green with CSL up 1.1% and RHC doing well. Industrials were firm with TLS holding an investor day rising 0.5%, TCL up 1.2% and REITS pushing ahead again. GMG up 1.0%. Consumer stocks were firm, WOW up 0.6% and WES pushing 0.6% better. In resources, uranium stocks once again in focus with AGE and BOE leading the charge in smaller players as big ones took a break. Lithium stocks were a little depressed today after some spectacular gains in recent days, ORE dropped 4.1% and PLS off 4.9%. Iron ore stocks mixed with BHP up 1.0% as one of the few actual uranium producers in Australia. RIO on the nose, down 0.9% and FMG down 3.2% as the sell-off in ore continues. Energy stocks got a boost from crude prices, STO up 2.2%. In corporate news, WES bid 155c in cash for API and was greeted with the keys to the boardroom and MYR reported better numbers sending the stock up 16.7%. On the economic front, unemployment dropped to 4.5% as many gave up looking for work during lockdowns. No impact on AUD or 10-year yield at 1.25%. Australian buying US subs put French and Chinese offside.
- Winners: API, BOE, CRN, CHN, LFS, KAR, AUB, REG.
- Losers: INR, LIC, VUL, RBL, SYR, SWM, SOL, EHL.
- Positive sectors: Banks. Healthcare. REITS. Consumer stocks. Energy.
- Negative sectors: Iron ore.
- Hi 7488 Lo 7428 SPI Expiry boosts volumes.
- Big Bank Basket: Rallies hard to $184.92.
- All-Tech index: Down 0.1% APT down 0.1%.
- Gold: Slips to AUD2446.
- Bitcoin: Rises to US$47967.
- Aussie Dollar: Becalmed at 73.21c despite jobs data. 10-YEAR YIELD: Firms to 1.25%.
- Asian Markets: Tokyo down 0.3%, Hong Kong down 1.81%. China down 1.2%. Macau gaming continues to struggle. Developers in trouble as Evergrande issues spread.
- US Futures: Dow futures up 4 NASDAQ down 3.
STOCKS ON THE MOVE
- API +16.14% agreed bid from WES at 155c.
- CHN +6.37% buyers back in.
- CBA +1.42% acknowledges proceedings in relation to CCI products.
- BOE +9.68% appoints contractor for Honeymoon uranium project.
- ASB +2.67% potential winner from sub deal with US.
- KAR +5.49% dispute settlement.
- MFG +2.48% research focus from rivals.
- INR -18.92% sell 50% of Rhyolite Ridge for US$490m investment to Sibanye- Stillwater.
- VUL -8.05% cap raising weighs.
- PLS -4.90% profit taking.
- AX1 -3.96% profit taking.
- WTC -1.77% peaking perhaps?
- ORE -4.09% SYR -5.60% lithium stocks see sellers.
- FMG -3.20% agreement with Eastern Guruma people.
- ABR -2.27% uranium play slipping.
- AT1 +29.82% winner from CV19 spot tests.
- MYR +16.67% better results.
- PDI +7.41% more promising hits in Bankan.
- NMT +9.83% recycling battery briefing.
- PSC -5.43% profit taking after solid day yesterday.
- SLX -9.09% losing momentum.
- GGG -13.79% unwinds run higher.
- Speculative Stock of the Day: Jupiter Energy (JPR) +82.86% modest volumes after company signs a framework agreement for oil trading and gas utilisation.
IN THE NEWS
- WES has upped its bid for API to 155c cash. The board has recommended the offer and it will be adjusted by the dividend if paid.
- Myer (MYR) full-year profit $51.7m vs a $13.4m loss last year, beating consensus of a $48m profit. Its FY21 year was one week longer than FY20. Dividend remains suspended. Joanne Stephenson has been appointed Chairman of the board.
- Domain Holdings (DHG) signs binding agreement to acquire Insight Data Solutions (IDS) for $60m, in cash. UBS recently upgraded to a BUY with a target price of 570c. 8% above the current share price.
- Ioneer (INR) and Sibanye Stillwater to form JV to develop a Lithium-Boron Project in Nevada.
- Panoramic Resources (PAN) provides FY22 exploration plans at Euroz Hartleys’ nickel day presentation.
- Telstra Investor Day today. Sees mid-single-digit underlying EBITDA and high-teens underlying EPS compound annual growth rate to FY25
- Select Harvests (SVH) expects theoretical crop volume in 2022 of 29,595MT. Says the 2022 crop is looking good with pollination now complete and strong seasonal conditions.
- Jacobs Engineering Group confirms sale of its 10% stake in Worley (WOR) for ~US$369.3m.
ECONOMIC NEWS/ BOND MARKETS
- Jobs numbers beat estimates due to participation rate falling as lockdowns bite.
- Unemployment rate decreased to 4.5%.
- Participation rate decreased to 65.2%.
- Employment decreased to 13,022,600.
- Underemployment rate increased to 9.3%
- Booster shots cut infection rate, trials in Israel show. CDC meeting next week for a booster conference.
- Pfizer and Moderna said the immunity offered by their vaccines may wane over time. They have a vested interest of course in saying this.
- The outbreak in China is growing with 48 new cases in Fujian.
- Vaccine Tracker: 5.81bn doses in 184 countries. Enough for 37.9% to be fully vaccinated.
- Locally, 260,451 doses and another two months to reach 75%.
- Tencent has fallen so much that it is no longer in the global top ten.
- Macau gambling stocks continue to slide.
US AND EUROPEAN NEWS
- European markets showing early modest gains.
- Cathie Wood continues to sell Tesla. Now sold around US$266m worth this month.
- SpaceX launches successfully.
- France a little bit peeved as Australia buys Nuclear subs from America. Somewhat ironic really. The Scots don’t want the UK subs based in Scotland and France has been mooted as a possible sub base.
- Ray Dalio warns regulators will kill Bitcoin if it becomes too successful.
- Prenetic Biotech, which is involved in CV19 testing merges with a US SPAC in a $1.25bn deal.
- Boris Johnson reshuffles cabinet. Dominic Raab become deputy PM.
- UK inflation hits 3.2% on rising food and transport costs.