The ASX 200 rose 2 points to 7415 in a muted session with one eye on Evergrande and the other on AGMs and business updates. Most updates are positive, but sentiment is being held in check by a fall in Evergrande in China. Mixed across the board, banks unchanged with the Big Bank Basket steady at $187.92. WBC the standout today up 0.6%. MQG continues the march to $200 up 0.9% and fund managers fighting back with MFG up 2.3% on its AGM and PPT up 7.8% on FUM. Even AMP looks to be turning a corner rising 4.0%. Industrials mixed with WOW off 0.9% and ALL rising 3.3% after its return to trade following the capital raise and acquisition. REITs firmed, tech was slightly higher with APT up 0.1% and the AllTech Index up 0.5%. In the resource space, BHP continues to find friends but was down 0.2% at the close, RIO and FMG eased slightly. Energy stocks fell after production reports from both STO down 1.1% and WPL down 2.3%. In other corporate news, BRN released news that developers could now buy their chips to trial. One cost $5k, the other $10k. HLS rose 4.4% after a positive update driven by CV19 testing. 29M fell 3.3% after its quarterly report. On the economic front, weekly payrolls and wages numbers out with a rise of 0.2% in the last two weeks up to 25th September. 10 -year yields fell 2bps to 1.79%.

MAJOR MOVERS:

  • Winners: PPT, BRN, CIM, ADN, HLS, NIC, PWH, PEB.
  • Losers: ABB, ERD, BOE, FLT, OML, CXO, ERA, ADH
  • Positive sectors: REITs. Tech (just). Insurers.
  • Negative sectors: Resources. Energy. Healthcare.
  • High 7447 Low 7404.
  • Big Bank Basket: Unchanged at $187.92.
  • All-Tech index: Up 0.5%. APT up 0.1%.
  • Gold: Up to AUD2377.
  • Bitcoin: Slips to US$64967.
  • Aussie Dollar:  Slightly higher at 75.03c.
  • 10-YEAR YIELD: Rallies to 1.79%.
  • Asian Markets: Japan down 1.12%. Hong Kong down 0.57%. China up 0.29%.
  • US Futures: Dow futures down 73. NASDAQ futures down 47.

STOCKS ON THE MOVE

  • ALL +3.27% hitting highs as market loves UK deal.
  • BRN +6.74% solid update and Akida kits are now available for developers. Cost $5k or $10k
  • PPT +7.79% solid FUM update.
  • CIM +5.85% new contract wins. Driving better outlook.
  • HLS +4.40% CV19 boost to earnings.
  • AMP +4.02% money exits slow. Turning the corner.
  • NIC +4.29% nickel price rise.
  • AEE +16.85% Ex entitlement.
  • RHY +11.67% ColoSat test kits deliver consistent results.
  • AOP +11.32% bid from GOIR.
  • EGG +9.39% resignation of director.
  • APA +0.12 % not happy with lack of access to DD.
  • S32 +0.26% reaffirms guidance.
  • ABB -6.40% broker downgrades slightly.
  • FLT -5.82% fall out from earnings update.
  • WEB -3.07% travel stocks under a little pressure.
  • AHQ -15.52% Investor presentation.
  • KCN -5.93% still waiting for Chatree resolution.
  • TIE -7.45% drilling results. Buy the rumour.
  • OML -5.06% profit-taking.
  • CDM -1.40% TMC finds a hole in its finances. Not good news.
  • CWN -0.53% hit with second strike.
  • GQG – priced at $2 for biggest float of the year.
  • Speculative Stock of the Day: Centrex Metals (CXM) +190.70% big volume as term sheet signed with Samsung C&T corporation for phosphate project.

IN THE NEWS

  • Bluescope Steel (BSL) upgrades first-half underlying EBIT guidanceto $2.1-2.3bn vs prior $1.8-2.0bn. Management noting the business continues to benefit from strong spreads, prices and demand.
  • Orora (ORA) will repurchase $150m of its own stock in an on-market buyback.
  • Healius (HLS) increased revenue 44% in the September quarter, driven by COVID-19 testing. Quarterly revenue reached $690m, up from $480m. Pathology numbers were very strong with 40,000 CV19 tests a day.
  • Transurban (TCL) – average daily traffic numbers fell 12.4% in the September quarter.
  • Perpetual (PPT) – FUM increased to $101bn up 2.7%.
  • Woodside (WPL) – Sales revenue was up 19% to $1.53bn.
  • Santos (STO)Quarterly sales record of $US1.14bn in the September quarter, a 6% increase on the same period last year. Net third-quarter production of 21.9m barrels. Debt down to US$3.1bn, gearing at 29.7%. Still awaiting approval to merge with OSH.

ECONOMIC NEWS/ BOND MARKETS

  • NSW unveils a $3bn stimulus package. Gun club upgrades all around. $500m for dining and accommodation and another $739m for housing and social support.
  • Weekly payroll jobs edged 0.2% higher in the two weeks ended September 25 in a positive move.

CV19 NEWS

  • Ivermectin poisonings had a big rise in August as the treatment for CV19 gained popularity. Vaccine would be better.
  • Across the US, hundreds hit with onion poisoning linked to salmonella.

ASIAN MARKETS

  • Evergrande drops heavily after return to trade. The company scrapped talks to offload a stake in its property-management arm and said real estate sales plunged about 97% during peak home-buying season.
  • Malaysian glovemaker Supermax fell by as much as 9% after US customs seized latex gloves made in Malaysia. The customs guys had information that “reasonably indicates” the use of forced labor.
  • The grace period on the first bonds is due Oct 23rd. Hopson has pulled out of buying a stake in the property business.
  • The Vice Premier Liu He said that the risks to the property market are controllable. So is a German Shephard in a bad mood.

US AND EUROPEAN NEWS

  • Paul Tudor Jones that inflation is here to stay.
  • European markets heading lower at the open.
  • Donald J. Trump is launching his own social media platform to rival Twitter and Facebook. It will be called TRUTH.
  • Former WeWork heads will be watching from afar as the company lists via a SPAC.
  • Biden stepping up his efforts to sell the messy social infrastructure message to voters.
  • Chelsea beat Malmoff 4- Nil in Champions League.

And finally…..

What’s the best thing about Switzerland?

I don’t know, but the flag is a big plus.

I can never take my dog to the park because the ducks keep trying to bite him.

I guess that’s what I get for buying a pure bread dog.

Please send me more material!!!!!

Clarence

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