The ASX 200 flops back to a 2-point gain after a strong early session, the index closing at 7443. No real reason for the sluggish performance. Eyes were fixed on AGMs, business updates and news from CWN which was found guilty but now needs to prove its innocence. CWN rallied 8.7% on the news from the latest RC on being able to keep its licence for now. Seems governments need the revenue post CV19. Banks were mixed with CBA down 0.3% and the basket slightly higher at $188.20. Industrials were mixed, WOW and COL dropped, WES rose but maybe that was the lithium talking, technology better but dominated by APT up 3.3% following a move higher by Square. In resources, early enthusiasm in the majors slid away with S32 down 2.1%, MIN off 7.0% and FMG down 1%. Gold miners eased and energy stocks ran out of fizz, little changed. Coal stocks waned on moves from China on prices. In corporate news, GQG joined the boards today as this years’ biggest float down 2.5%. DDR charged ahead with a splendid business update rising 14.1%. PLS announced a downstream JV with POSCO and MIN fell 7% on falling iron ore prices and serious discounting of its product.
- Winners: DDR, AVZ, LKE, NAN, SYA, CWN, PLS, NVX.
- Losers: MIN, RRL, PDN, NHC, WHC, BRN, TUA.
- Positive sectors: Bank. Energy. Lithium.
- Negative sectors: Consumer stocks. Coal. Uranium.
- Hi 7471 Lo 7439
- Big Bank Basket: Up slightly to $187.94
- All-Tech index: Up 1.0% APT up 3.3%
- Gold: Unchanged at AUD2401
- Bitcoin: Bounces to US$62672
- Aussie Dollar: Slightly higher at 75.15c 10-YEAR YIELD: Better at 1.80%
- Asian Markets: Japan up 1.8% Hong Kong down 0.4% and China up 0.1%
- US Futures: Dow futures up 20 NASDAQ futures up 79.
STOCKS ON THE MOVE
- DDR +14.09% happy days with strong update Q3 profit up 26.6%
- CWN +8.70% guilty but must prove innocent.
- PLS +8.13% POSCO downstream JV in Korea.
- CVN +6.06% oil and gas price.
- SYA +9.09% Canadian lithium project.
- NVX +7.62% march continues higher.
- SGR +4.34% hope for a fallen Star.
- RXM +10.64% bargain hunters.
- PLY +2.86% AGM addresses.
- APT +3.30% Macquarie cuts revenue forecasts.
- NMT +14.12% recycling plant news.
- CHL +11.76% going nuts on NZ acquisition.
- KCN+21.47%% no news is good news?
- LMG +60.61% magnesium on the burst.
- GOR – Trading halt pending a material increase in ore reserves at Gruyere.
- MIN -7.04% grade fail on update.
- OSH -1.34% pushes back Alaskan timing.
- WHC -4.23% NHC -4.91% coal remains on the nose.
- RRL -6.14% quarterly report.
- FMS -9.20% quarterly report underwhelms.
- TLS -0.26% brokers bullish on Pacific deal.
- SXE -8.33% AGM comments.
- TIG -8.33% coal price and Mongolian lockdowns.
- CRO -7.94% quarterly reports.
- KGN -3.03% ASX 200 drop out on the cards.
- SUN -0.90% bleak disaster outlook.
- IPO of the Day GQG -2.50% IPO debut. Biggest float this year.
- Speculative Stock of the Day: Korab Resources (KOR) +177.78% Magnesium play. Answers an ASX query on news from a potential deal with Fiat and Daimler for aluminium /alloy products.
IN THE NEWS
- Reliance Worldwide (RWC) to acquire EZ-FLO International for US$325m. Expected to be EPS accretive from year 1.
- Bega Cheese (BGA) is on track to achieve synergies from Lion Dairy and Drinks integration.
- Freelancer (FLN) Q3 gross payment volume $282.6m, +32.4% on pcp.
- Ampol (ALD) Q3 unaudited RCOP NPAT $41m vs year-ago $24m. Remains optimistic about CY22 with improved momentum as restrictions are progressively eased.
- Oil Search (OSH) Q3 production 6.89mmboe vs quarter-ago 6.59mmboe. Revises FY21 production guidance higher. Lowers investment expenditure guidance.
ECONOMIC NEWS/ BOND MARKETS
- Weekly consumer confidence fell 0.2%, its first loss in six weeks. The notable development was a 0.3% jump in ‘weekly inflation expectations’ to 5.0%, its highest value since December 2014. The four-week average was unchanged at 4.8%. ANZ economist Devid Plank said, “the rise in average petrol prices of more than 10% nationally in the past two weeks likely had an impact on household perceptions of price increases.”
- Australian bonds are on track for their worst year since 1994 as the market positions itself for a pickup in interest rates as inflation expectations rise. Tomorrow inflation data is expected to lift 0.8% in the September quarter which would take the annual rate from more than 12-year highs of 3.8% to 3%. The RBA’s key measure, the trimmed mean estimate which excludes volatile components like fuel and food is expected to remain steady at 1.8%. Below the RBA’s 2-3% target range.
- In China, the latest outbreak has spread to 11 provinces and now in the tightly controlled capital of Beijing. Expects outbreak to worsen in the next weeks.
- South Korean GDP rose 0.3% in the July-to-September period, down from 0.8% in the second quarter and just half the 0.6% forecast by economists. Needs a second season of Sqid Game.
- China vows to help Taliban rebuild the country. Wang Yi, the foreign minister, is on a two-day visit to Qatar ahead of a trip to Europe, where he’ll visit Italy, Albania, Serbia and Greece.
- China is considering setting new limits on movements in coal prices to help with its energy issues. It is studying plans for a “price formation mechanism to guide the long-term stability of coal prices in a reasonable range.”
- Another Chinese developer Modern Land Co has missed a payment on a dollar bond.
US AND EUROPEAN NEWS
- European market opening slightly firmer.
- Elon Musk is now worth more than Exxon.
- Jeff Bezos is planning to have a business park in space by the end of the decade. The Office in Space. No one will hear David Brent scream.
- Facebook losing younger users.
- Amazon has agreed a deal with UK spy agencies to store its secret stuff in their cloud.
- UN warns climate goals are off track ahead of COP26.
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