The ASX 200 closed up 39 points to 7414 (0.5%) in a solid but uninspiring day, limping into the close. Once again AGMs and business updates dominated the market and investors were happy to overlook the continued rise to 1.79% in 10-year yields. The AUD too doing well up to close to 75c. Tech stocks were in demand despite the rate rises, APT up 1.6% and XRO up 1.4%. The All–Tech Index up 1.3%. Banks as usual the biggest driver of the index with the Big Bank Basket up to $187.93. MQG doing well up 2.0% and insurers rallying on bond rates. Resources were generally positive despite coal and uranium on the nose, PDN down 1.6% and WHC off 7.9%. Energy also flat led lower by WPL down 1.8% and STO falling 1.4%. BHP rallied 0.5% on positive broker comments. Consumer stocks mixed on updates, SUL up 1.7%, KGN shooting the lights out as inventory issues seem to have been solved up 6.7%. In other corporate news, FLT dropped 4.8% on its trading update and TYR sagged 3.0% after it announced it would defend a class action. Nothing on the economic front today and Asian markets slightly positive, seems that Evergrande is paying some interest payments to locals just not international investors.

MAJOR MOVERS:

  • Winners: LKE, CDA, WOR, NXL, KGN, OML, A2M
  • Losers: WHC, BMN, YAL, FLT, NHC, BOE, SGR
  • Positive sectors: Banks. Insurers. Tech. Healthcare.
  • Negative sectors: Energy.
  • Hi 7450 Lo 7387
  • Big Bank Basket: Rallying to $187.93(0.94%)
  • All-Tech index: Up 1.3% APT up 1.6% Z1P up 0.3%
  • Gold: Down to AUD2366
  • Bitcoin: Rallies to US$63948 as ETF lists and Ms Wood calls for a US$500,000 target.
  • Aussie Dollar:  Higher at 75.00c 10-YEAR YIELD: Rallies to 1.79%
  • Asian Markets: Japan up 0.37% Hong Kong up 1.3%. China unchanged.
  • US Futures: Dow futures down 22. NASDAQ futures down 11.
  • STOCKS ON THE MOVE
  • BHP +0.47% I see you Twiggy and raise you for Noront.
  • BAP +5.08% broker upgrades.
  • KGN +6.68% corner turned. Inventory issue solved.
  • CDA +7.59% finally bouncing
  • A2M +6.03% cream rising on takeover hopes. Citi says buy still.
  • NXL +7.14% the tech dogs are barking.
  • HFR +17.35% write up on Livewire Markets.
  • SVM +6.52% on the bid list.
  • MNS +4.11%$ NY Lithium plant update.
  • KCN +6.95% pregnant with settlement with Thai government.
  • JAN +9.57% schools back.
  • WSP +14.49% quarterly activities report.
  • LPI +8.54% Deloitte appointed as lead advisor for new ESG program.
  • BMN -7.14% uranium sentiments turns.
  • WHC -7.85% YAL -6.20% old king coal not such a merry old soul.
  • CXO -3.97% profit taking.
  • BPT -3.68% quarterly report, rumours of an acquisition circling.
  • PH2 -10.77% hot air?
  • EL8 -6.61% uranium turns.
  • IPO of the Day: Active Port (ATV) -2.50% muted open for this telco company offering SD-WAN 2.0 which is a wide area network.
  • Speculative Stock of the Day: TruScreen Device (TRU) +19.05% solid volume. Milestones achieved in growth strategy for a world without cervical cancer. This NZ company has developed a real time testing device that can accurately detect precancerous and cancerous cervical cells in cervical tissue.

IN THE NEWS

  • The Aristocrat (ALL) capital raise shortfall has been done at 4560c only slightly below the 4561c Theoretical Ex Rights Price (TERP). The shortfall was covered 10 times at the floor price of 4185c. Seems that institutions are very keen on the deal to buy the UK RMG software specialist Playtech in the $3.9bn deal. Plenty of broker upgrades coming through as well in what isdescibed as a transformational deal.
  • De Grey (DEG) – Capital raising of $125m at 110c to complete PFS for its Mallina gold project in WA and to advance drilling at Hemi. Canaccord Genuity and Argonaut are handling the issue. The brokers were calling for bids by 5pm today.
  • Kogan (KGN) – Gross sales increased 21.1% year-on-year (YoY), but gross profit declined 1.7% on the same basis. Inventory problem looks to have been solved inventories reduced from $227.9m (comprising $191.8m in warehouse, and $36.1m in transit) as of 30 June 2021, to $194.3m (comprising $154.2m in warehouse and $40.1m in transit) as of 30 September 2021.
  • Beach Petroleum (BPT) Production fell to 5.7m barrels down 4% on prior quarter. Quarterly revenue fell 8% to $388m due to lower production volumes.
  • Super Retail (SUL) Like for like sales down 12% from last year as lockdowns bite. ‘Click and Collect’ grew 163% with home delivery just 59% of online sales. It also warned on freight and logistics costs rising.
  • Adairs (ADH) –%Group sales down 8.5% but online sales up 15% with lockdowns affecting trading.
  • OZ Minerals (OZL) – Production expected to increase in line with previous guidance. Prominent Hill and Carapeteena set to be the stars. Cash stood at $188m at quarter end and production of 33,794 tonnes of Cu and 65932 oz Au.
  • NAB – Appoints James Spenceley as a NED.

ECONOMIC NEWS/ BOND MARKETS

  • Nice reminder to the pump and dump chat rooms again today from the ASIC Team.

CV19 NEWS

ASIAN MARKETS

  • New-home prices in 70 Chinese cities, excluding state-subsidised housing, slid 0.08 per cent in September from August, the first drop since April 2015. Existing-home sales plunged 63% from a year earlier in the first 17 days of October, according to note from Nomura.
  • The PBoC set the reference rate for the yuan at a weaker-than-expected level. The PBOC boosted the injection of short-term cash to 100 billion yuan ($15.6 billion), after adding 10 billion yuan per day in the past nine sessions.
  • Evergrande looks to be paying local interest payments just not any international payments. Official default Saturday Oct 23rd.
  • Coal rally halted as authorities in China said it was going to ensure coal output increases to 12m tonnes a day.

US AND EUROPEAN NEWS

  • WeWork is finally coming to the market via a SPAC in a deal at a fraction of its previous optimistic valuation of US$47bn. Now worth US$9bn.
  • Squid Game and huge winner for Netflix as it is looking to reveal more viewer stats.
  • Meanwhile in Greece, the government having sold the port of Piraeus to the Chinese have not seen the level of investment they were promised. Not sure they should be surprised.
  • Facebook launches its digital currency wallet Novi.
  • UK Treasury has warned that taxes will need to rise as part of the zero transition to 2050.

And finally…..

I am going to start selling all my John Lennon memorabilia on eBay, imagine all the PayPal ….

My friend said he didn’t understand cloning. I said that makes two of us.

Clarence

XXX