The ASX 200 closes down six points at 7375 (-0.08%) in a see-saw day. AGMs dominating the market. BHP production report knocks some optimism out of the big miners, BHP down 2.0% and FMG off 1.2%. Banks were uninspiring, the Big Bank Basket down to $186.17 with CBA unchanged. MQG still powering ahead up 0.9%. REITs were slightly better as bond yields eased back slightly and technology was in the frame led by APT up 2.7% and Z1P up 5.2% on broker upgrades. The All -Tech Index rose 1.4%. Healthcare did well with CSL up 0.6% and FPH rising 2.7%. In corporate news, TAH revealed a 17% drop in its wagering business and a 2022 demerger timetable. COH stuck to profit guidance up 1.9% and BAP flagged a solid start to FY22, rising 2.0%. RBA minutes hardly raised a pulse and ANZ consumer confidence pushed higher for the sixth week. 10-year yields did eased a little but back up to 1.75% at the ASX close.

MAJOR MOVERS:

  • Winners: CXO, BOE, NVX, PDN, INR, IMU, NXL, BRN.
  • Losers: URW, RED, CMM, CDD, CDA, DEG, TUA.
  • Positive sectors: Tech. Healthcare. REITs.
  • Negative sectors: Miners. Banks. Energy stocks.
  • High 7407 Low 7374.
  • Big Bank Basket: Falling slightly to $186.17 (0.2%).
  • All-Tech index: Up 1.4%. APT up 2.7% Z1P up 5.2%.
  • Gold: Down to AUD2377.
  • Bitcoin: Rallies to US$62546 ahead of ETF listing.
  • Aussie Dollar: Higher at 74.56c.
  • 10-YEAR YIELD: Drops then rallies to 1.75%.
  • Asian Markets: Japan up 0.28%. Hong Kong up 1.25%. China up 0.78%.
  • US Futures: Dow futures down 16. NASDAQ futures down 45.

STOCKS ON THE MOV

  • NVX +10.23% battery stocks charging ahead.
  • BOE +11.86% PDN +8.62% uranium still in vogue.
  • CXO +14.55% technical move higher.
  • Z1P +5.19% broker upgrades.
  • A2M +5.29% change in substantial holding
  • CAE +15.00% drill results 92m @1.2% Cu
  • TTM +9.09% Barry Bourne appointed non-executive director.
  • LRK +9.09% capital raise goes down like a fine single malt whisky.
  • AGE +10.96% investor update.
  • EL8 +11.01% virtual conference update
  • TUA -3.87% profit-taking.
  • CDA -4.47% remains under a cloud.
  • DEG -4.35% slipping on gold price.
  • HTG -3.95% expands ecosystem with Inmarsat Global.
  • RXM -1.85% sell-off continues.
  • RDT -2.00% ceasing to be a substantial shareholder.
  • TAH -2.68% AGM comments. Targets June 2022 demerger but sports betting hurt by lockdowns
  • IEL +1.59% CEO flags an 84% rise in IELTS in the September quarter.
  • Speculative Stock of the Day: Lode Resources (LDR) +110.00% significant sulphides intersected at Webbs Consol. The Project showed significant silver and zinc mineralisation at tenements near Emmaville, NSW.

IN THE NEWS

  • BHP – production numbers this morning. Production and cost guidance remains unchanged for FY22. Major projects under development are tracking to plan, with two new projects approved during the September 2021 quarter. CEO Mike Henry highlighting the push to ‘future-facing’ commodities.
  • Stockland (SGP +0.4% this morning) have reiterated FY22 guidance figures with no changes to expectations.
  • Bapcor (BAP +1.7% this morning) AGM today – a pandemic beneficiary – Q1 guidance a bit flat – No growth in Q1 revenue vs a year ago – they say margins are expected to recover when lockdowns cease. Aims to deliver pro forma earnings at least in-line with FY21 in FY22. The second-half is expected to be stronger.
  • Brambles (BXB) – Q1 sales $1.29bn vs year-ago $1.19bn. Sales revenue growth was 5-7%, below Q1 FY21. Underlying profit growth was 1-2% – excluding short-term transformation costs is expected to be 6-7% in FY22. Management highlighted the impact of shortages across the industry, supply chain issues as well as inflated lumber prices as affecting performance during the period.
  • Fletcher Building (FBU) announced during their AGM that lockdowns during H1 FY 2022 will mean that their EBIT margin will be below 10%.

ECONOMIC NEWS/ BOND MARKETS

  • The RBA continued to observe a strong property market but cautioned less accommodative policy would have negative implications for employment and wages growth. The board acknowledged APRA’s move to lift servicability requirements and added it would also shortly publish a special chapter on macroprudential policy in the October Financial Stability Review.
  • Goldman Sachs is now predicting that house prices will peak late next year. The bank expects a 22% price surge this year and then only a 5% gain in 2022. Flat in 2023 and turning 2% lower in 2024. The bank is predicting that the RBA and APRA will rein in prices through restrictions on LVRs and debt to income ratios. They are also expecting the RBA to be relatively dovish with rate rises. To put some market moves in perspective, if the market is right in the pace of rate rises with rate hikes in late 2022 or early 2023, it says that house prices could fall 13% between 2022 and 2024 and knocking 1.5% off the GDP.
  • ANZ Consumer confidence posts its sixth weekly improvement on the back of NSW’s easing of restrictions. Next week we will likely see another lift given the easing of restrictions in Melbourne. Weekly inflation expectations’ was unchanged at 4.7% and its four-week moving average was steady at 4.8%.

CV19 NEWS

  • Queensland declares they will reopen their borders to New South Wales and Victoria by December 17 when the double-dose vaccination rate hits 80% removing the requirement to quarantine on arrival. Obviously good for travel stocks and the tourism industry. The date may be sooner. Travel stocks are quiet today.

ASIAN MARKETS

  • Japanese minister warns that the country needs to match the US and China to survive in the new chip world.
  • Singapore launches quarantine free travel to 10 countries.
  • Alibaba unveiled a new server chip that’s based on advanced 5-nanometer technology, its server chip is one of the most advanced by a Chinese firm yet. Soon they will be launching hypersonic missiles. Oh wait…

US AND EUROPEAN NEWS

  • European markets opening quietly better.
  • TV network ratings have collapsed since the election of Biden.
  • Boris Johnson says the UK should not be worried about Chinese investment.
  • Almost 900,000 accounts were trading GameStop at the height of its ‘memeness’.

And finally…

Further Education

Mick: I’ve been going to Night Classes every night for 5 months now.
Paddy: oh!

Mick: For example, do you know who Alexander Graham Bell is?
Paddy: No
Mick: He’s the inventor of the phone in 1876;
If you took night classes you’d know this.

The next day,

Mick: Do you know who Alexander Dumas is?
Paddy: No
Mick: He’s the author of “The 3 Musketeers”.
If you took night classes, you’d know this.

The next day, once again:

Mick: And do you know who Jean-Jacques Rousseau is?
Paddy: No
Mick: He’s the author of The Confessions”
If you took night classes,  you’d know this.

This time, Paddy got irritated and said:
And you Mick … Do you know who Sean Reilly is?
Mick: No
Paddy: He’s the fellow who’s bonking your wife?
If you stopped going to night classes, you’d know this!

Clarence

XXX