The ASX 200 finished the week on a soggy note down 28 points at 7343 (0.4%). Down 0.81% for the week. The market was happy to limp into the weekend after a long week and some frayed nerves. No news from Evergrande on its international bond interest payments putting investors on the side lines. It has now officially passed the deadline but has 30 days to rectify. Banks were stronger as the 10-year yield went through the roof, playing a little catch up to US yields. It hit 1.37% not wanting to be left out. That helped the Big Bank Basket rise to $181.71 up 0.8%. Insurers also did well, QBE rose 1.7% and SUN better by 0.7%. Industrials though were soggy, WES down 0.2%, GMG down 2.4% and TLS off 0.8%. TCL had first day of rights trading with TCL up 0.36% and TCLR up 13.8%. Healthcare in the casualty ward, COH down 4.8% on a patent issue. RMD fell 3.4% on broker down grades and CSL off 0.3%. Energy stocks were in demand, STO up 1.9%, WPL up 1.7% and KAR doing well up 5.86%. Miners slipped BHP still under pressure down 1.7%, FMG off 1.2% and gold miners sagged as bullion fell on a stronger USD and bond yields rising substantially. NCM down 2.5% and NST off 4.3%. We saw some light profit taking in some of the sexy new metal sectors like Uranium and lithium. Tech stocks eased with XRO down 2.1% and WTC off 2.1%. APT managed a gain of 0.4% on the Square US price with the Index down 0.2%.
- Winners: OMH, AVZ, LKE, DGL, KAR, CPU, PMV, JRV.
- Losers: PPK. RMS, COP, TLX, PRU, TLX, SYA
- Positive sectors: Banks. Insurers. Energy.
- Negative sectors: Iron ore miners. Gold miners. Healthcare. REITS.
- Hi 7377 Lo 7334 Narrow range. Conviction lacking.
- Evergrande still a background issue.
- Big Bank Basket: Rallies to $181.71
- All-Tech index: Down 0.2% APT up 0.4%
- Gold: Slips to AUD2402.
- Bitcoin: Steady at US$44113.
- Aussie Dollar: Falls to 72.93c 10-YEAR YIELD: Rallies hard to 1.37%
- Asian Markets: Japan up 2% China up 0.2% and HK flat.
- US Futures: Dow futures down 19 NASDAQ futures down 25.
STOCKS ON THE MOVE
- DHG +1.58% hits a record high.
- LKE +7.76% buyers back.
- DGL +7.02% thin but pushes ever higher.
- KAR +5.86% oil stock rebounding.
- CPU +5.73% something stirring. One to watch next week.
- AEF +4.07% Annual report.
- PMV +5.50% broker upgrades.
- AVZ +8.47% buyers still paying up.
- ARU +14.71% rare earths deal with Europe.
- KCN -7.20% profit taking following Chatree announcement yesterday.
- AEE -1.92% gives up some gains after relisting.
- BMN -10.17% uranium cools.
- PPK -9.68% LIS listing soon.
- RMS -6.09% SLR -5.11% gold casualties.
- AGE -7.32% snaps down a little.
- AXE -6.27% sags into the weekend.
- Speculative Stock of the Day: Highlighted earlier this week, PepinNini Minerals (PNN) +35.80% good volume too on an announcement that it had signed a deal with Ganfeng Lithium for a pipeline to carry brine from the Mariana project in Argentina. Looks like PNN will be able to access this new pipeline for its own project.
IN THE NEWS
- Reuters reporting that some international bond holders have not had teh interest payments at US close.
- ‘Twiggy’ Forrest and Malcolm ‘in the middle Turnbull have launched a new international body in NY to push the Green Hydrogen case. The Green Hydrogen Organization, to be known as GH2. The group will seek to engage with governments to establish energy policies that stimulate demand and markets for the fuel. Turnbull will be chairman. There will be an international summit in Barcelona in May 22.
- Norway has raised rates as the first advanced economy to raise rates. Up by 25bps. BOE has also opened the door to higher rates as inflation set to hit 4% this winter and supply chains are creaking to keep up.
- Westpac chief economist Bill Evans has reiterated his forecast that the Reserve Bank of Australia will wait until March 2023 before hiking rates.
- TNT – Capital raising for $20m at 21c to fund acquisition and some earn outs.
- SIG –2.46% Appoints a new CEO Vikesh Ramsunder. He is currently the group chief executive of Clicks Group, a leader in the South African healthcare market.
- SXY +0.56% Signed an agreement with newcomer 29Metals (29M) to supply its Capricorn copper mine.
ECONOMIC NEWS/ BOND MARKETS
- The IMF has called for Australia to address the rising financial stability risks posed by house price rises. Some commentators expect another 20% rise this year.
- Australian bonds on a charge
- Advisers to top public health agency in the US recommend against third jab for those in high-risk jobs. FDA authorises CV19 booster shots for over 65s.
- Australia plans to allow foreign students back in except the Chinese. Common Chinese Covid-19 vaccines not recognized in Australia.
- China has added a total of US$71bn in liquidity this week.
- China urges Evergrande to avoid default. Stock under pressure again in HK trade down around 7%.
- The CCP has sent jet fighters over Taiwan to show its displeasure in the country’s bid to join the CTPPTPP. 24 fighters in all over two sorties.
- Indian rally at a record high. The S&P BSE Sensex topped the 60,000-level for the first time on Friday and the NSE Nifty 50 Index neared the 18,000-mark. Looks like first time investors are fuelling this rally.
US AND EUROPEAN NEWS
- European markets opening unchanged.
- German elections this weekend. Result may not be known for months. A grand coalition. Debt and foreign policy the key issues.
- ECB is having briefings about Evergrande. Everything is connected to everything. International bond holders remain in limbo. Deadline passes.
- The AUKUS pact is a ‘huge insult’ to NATO partners says one of Merkel’s advisers. Seems to have really upset Europeans.