The ASX 200 kicks 50 points higher to 7258 (0.7%) in tentative trade. A bounce in banks continues with the Big Bank Basket up to $185.22 up 0.6 %. MQG also doing well up 1.7% and MFG down 1.3% as brokers pronounce judgement on FUM losses. Industrials firmed across the board, WOW up 1.5%, WES rising 0.5% on aggressive moves on API up 1.7%. Healthcare in the pink, CSL up 0.7%, SHL up 1.5% and COH up 2.6%. Tech stocks were back in demand, APT leading the charge up 3.1% and XRO doing well up 2.8%. Mining stocks relatively flat, BHP unchanged and FMG down 1.9% with China still on holiday. Energy stocks slid back slightly but the energy story has a long way to run. STO down 2.2% and WPL off 0.1%. In corporate news, plenty happening in small caps, CXL killed it up 14.4% on a good LEILAC report, SZL rose 14.6% on a Target tie up, RED rose 17.8% on KOTH news, CKF hit record highs on Dutch chicken licking news up 6.9%. Payrolls numbers out today but NSW opening up a positive. Travel stocks somewhat mixed though, QAN down 0.7% and WEB up 1.9%.
- Winners: RED, SZL, CXL, IMU, DEG, DTL, BRN, SUL
- Losers: WHC, TAL, CVN, CEN, SGR, AEF, ALG
- Positive sectors: Banks. Tech. Healthcare.
- Negative sectors: Energy.
- Hi 7265 Lo 7216
- Big Bank Basket: Steady at $185.22 (0.6%)
- All-Tech index: Up 2.25% APT up 3.1%
- Gold: Steady at AUD2415.
- Bitcoin: Rallies hard to US$55009.
- Aussie Dollar: Higher at 72.87c 10-YEAR YIELD: Weaker at 1.57%
- Asian Markets: Japan up 0.9% Hong Kong rallies hard up 2.4% China closed.
- US Futures: Dow futures up 140 NASDAQ futures up 105.
STOCKS ON THE MOVE
- CKF +6.93% ‘heel goed’
- BCB +8.11% small cap coal on the rise.
- SZL +14.60% Partnership with Target.
- CXL +14.44% good news on LEILAC report.
- RED +17.78% KOTH powers ahead.
- DEG +9.01% VanEck becoming a substantial shareholder.
- OPY +11.37% USA Market update.
- FYI +6.10% Alcoa JV signed and investor webinar.
- ATL +10.29% thin but heading higher.
- EVS +15.62% Strong start for Q1.
- API +1.67% WES takes a 19.3% stake.
- WES +0.48% gets serious on API.
- TTM +15.00% raises $18m to accelerate drilling at Dynasty.
- YAL -6.50% WHC -6.96% SMR -7.26% coal pullback.
- CVN -5.88% oil and gas pullback.
- MTC -10.24% upward revision of Bonanza grades.
- MX1 -1.54% change of directors’ interest.
- EXP -2.56% retail offer booklet.
- EDV -1.43% loses key executive. D. Murphy staying put. Mathieson Jnr leaving.
- QAN -0.71% WEB +1.93% FLT +0.39% mixed on NSW news.
- Speculative Stock of the Day: YPB Group (YPB) +100.00% first commercial trial in SE Asia for MotifMicro1. It is an anti-counterfeit and consumer engagement solution which can be read on an unmodified smartphone.
IN THE NEWS
- ACCC to conduct investigation into Qube Holdings’ (QUB) acquisition of the Newcastle Agri Terminal.
- Collins Foods (CKF) signs deal with KFC Europe for the appointment as KFC’s corporate franchisee in the Netherlands. The deal sets out a framework for the development of up to 130 net new KFC restaurants in the Netherlands over the next 10 years.
- George Soros reveals bitcoin holding. Not a lot though.
- Wesfarmers (WES) has bought 19.3% of API as it moves to block the SIG merger proposal.
- Sezzle (SZL) – announces a partnership with Target.
- Morningstar says Energy sector is the only one trading at a discount WPL, BPT and STO the top picks.
- Yellow Pages publisher Sensis, now known as Thryv has closed the office and will allow all of its 500 staff to work from home permanently. PwC in the US has told its 40,000 staff in the US they can work from anywhere although be prepared for pay cuts in low -cost locations.
- Short seller activist Bonitas has targeted The Metals Company (TMC.NYSE) as a short and targeted its valuation with Cadence (CDM) as a large shareholder suffering. CDM has recently sold down part of its 1/3 of its holding not subject to escrow. Now 8% of the fund rather than 18%.
ECONOMIC NEWS/ BOND MARKETS
- Bill Evans at Westpac has predicted demand for workers will be so great that by the end of 2022 unemployment will be at 3.8%, a level unseen since 1975. He is also predicting economic growth of 1.4% in the final quarter after a 4% contraction this last quarter on CV19 lockdowns.
- Payroll jobs fell by 0.7% in the fortnight to 11 September 2021, following a 1.5% drop in the previous fortnight according to the ABS. On Tuesday,ANZ Job Ads for September fell 2.8%. Lockdowns weighing on both releases. That said, the numbers should be put into perspective given NSW is set to ease restrictions on Monday with many retail, hospitality businesses set to reopen.
- Immunity provided by the Covid-19 vaccine from partners Pfizer and BioNTech. According to a study in Qatar, protection fell from 77.5% during the first month after the second dose to 20% in months five to seven after the second dose. However, the good news is, prevention of severe and fatal infections remained strong throughout the study period, reaching 96% in the first two months after the second dose and persisting at roughly this level for six months.
- Sydney on track for partial reopening October 11th. NSW hits 70% fully vaccinated target and will reopen on Monday. Newswires are a little behind updating their numbers, indicating only 69.1% fully vaxxed. NSW said it will announce a detailed economic recovery plan in the coming weeks. Swimming pools to open back from Monday, visitors at home, hospitality, retail and beauty open for full vaccinated, with capacity limits. Changes to the reopening roadmap have been discussed to bring a number of elements forward.
- Hong Kong’s Hang Seng Tech Index jumped as much as 4.7%, its biggest gain in more than six weeks.
US AND EUROPEAN NEWS
- Biden and Xi plan a virtual meeting before year end.
- Boris has told the Tory Party conference that Britain needs to wean itself off cheap immigrant labour.
- US considers releasing some emergency oil to counter high prices. Energy secretary says all tools are on the table.
- GM is hoping to double sales by 2030 with EVs kicking in.
- Retail traders in the US are calling gambling problem helplines as trading apps spread.
- Cathie Wood is heading to Florida. Leaving NY. Warmer climes beckon.
- NATO expels 8 Russians for spying. Will that affect any gas deal?