The ASX 200 rose 35 points to 7428 as it digested the Fed taper lite with banks leading the market slightly higher. The Big Bank Basket rose to $189.12 1%. WBC still down and out with MQG showing how it’s done rising 1.3%. Insurers rose slightly too with QBE up 1.3% and IAG up 2.5%. Industrials firm TLS up 0.8%, REA up 2.2% and WES up 0.7%. Miners were mixed, BHP up 0.3% but FMG down 1.4% and RIO dropping 1.5%. Energy shares weaker and gold miners eked out some gains. Lithium stocks seemed to take a breather today with the uranium stocks taking up the baton. The tech sector was better as APT rose 2.4% and XRO rose 0.4%. In corporate news, DMP were sliced and stuffed after its AGM meeting saw warnings of cost pressures and falling sales in Japan, Down 18.4%. PDN rose 12.6% after talking up the reopening of its Namibian uranium plans, others followed suit. DHG mostly unchanged after its update. NHF rose 5.8% on good sales numbers, APT rose after its Square deal jumped another hurdle. Plenty on the economic scorecard but not market moving, bond markets were becalmed as players licked their wounds, 10-year yields steady around 1.83%.
- Winners: AVZ, PDN, VUL, IHL, IMM, BOE, LKE, NMT.
- Losers: DMP, CVW, PAR, BPT, ING, PSI, STP.
- Positive sectors: Banks. Healthcare. Uranium. Industrials.
- Negative sectors: Pizza. Energy. Iron ore miners.
- Hi 7428 Lo 7398 Narrow range. Closed on highs.
- Big Bank Basket: Up to $189.12 (1.0%).
- All-Tech index: Up 1.0% APT up 2.4%.
- Gold: Lower at AUD2382
- Bitcoin: Steady at US$62,743
- Aussie Dollar: Rises to 74.47c. 10-YEAR YIELD: Steady at 1.83%
- Asian Markets: Japan up 0.7%. Hong Kong up 0.1% and China up 0.9%.
- US Futures: Dow futures down 16 NASDAQ futures up 35.
STOCKS ON THE MOVE
- AVZ +13.41% Just keeps on trucking.
- PDN +12.57% uranium back with Langer Heinrich reopening plan.
- VUL +10.17% solid bounce from technical support.
- LKE +8.91% optimism on COO appointment continues.
- CHN +5.39% ceasing to be a substantial shareholder.
- APT +2.35% approval for Square meal.
- NHF +5.78% September quarter revenue up 8.5%
- CIM +0.31% Pilbara contract win.
- IMU +2.70% continues to push higher.
- BOE +9.09% ERA +3.85% uranium back in focus.
- MYR -0.90% sees off Lew move at AGM.
- DMP -18.40% stuffed crust on input pricing pressures.
- ING -5.01% warns on inflation.
- STP -4.59% not so comfy undies.
- PAR -5.93% profit taking.
- BPT -5.15% oil price and withdrawal of resolution at AGM.
- TYR -4.35% broker downgrades.
- 4DS -51.54% degradation in wafers and a one-year delay.
- PSC -6.00% broker recommendation.
- KGN -2.17% UBS warns on cost pressures.
- E25 -6.00% revised shipping strategy yields cost reductions.
- IPO of the Day: CRYP – one of the most successful ETF launched in recent times with very strong volume.
- Speculative stock of the Day: Anson Resources (ASN) +27.27% NOVONIX battery test work announcement from Monday helping.
IN THE NEWS
- Domain Group (DHG) – the AGM includes first-quarter sales up 20% although there is a warning about cost increases as print publishing activities increase after the lockdown and as Jobkeeper repayments are made. They say the spring selling season so far is encouraging.
- CSR first-half underlying profit $86.6m vs year-ago $66.4m.
- Magellan (MFG) FUM announcement this morning – FUM up 1.3%.
- ADBRI Limited (ABC) $58m acquisition today of a Queensland concrete and quarries company including two concrete plants and a quarry west of Brisbane. They call it a “highly accretive acquisition that complements our existing network of concrete assets in the greater Brisbane area”.
- Suncorp Group (SUN) confirms Motor and Homes 12,000 claims from recent Victorian storms costing $225-250m so far. It’s the biggest event this year and takes the total claims experience to 702 million which is top of the expected range.
- The SEEK job ad index compiled by NAB jumped 10.2% in October on the prior month.
- Trade balance for September recorded a surplus of $12.243bn missing estimates of $12.375bn. Exports fell 6% (missing estimates of a 3% drop. Imports fell 2% vs estimates of a 1% improvement.
- Retail sales volumes fell a record 4.4% in the September quarter, following a 0.7% rise in the June quarter. Lockdowns leading to physical store closures in the quarter.
- Sales tumbled 13.9% in the ACT, 11.6% in NSW and 4.5% in Victoria.
- Philip Lowe says Australia does not have an inflation problem. Maybe ING and DMP could tell him differently.
- According to the Federal Chamber of Automotive Industries, motor vehicle sales fell 8.1% year-on-year in October, with 74,650 cars rolled out of car yards. The result was lower than in October 2019. Toyota was the market leader in October with 15,395 vehicles sold.
- The founder of Sydney Machiavelli Restaurant Giovanna Toppi has died at 85.
- China reported 93 new local cases on Wednesday, and 11 asymptomatic infections
- Chinese Premier Li Keqiang says Chinese economy faces downward pressure. He went on to say that the economy needs “cross-cyclical adjustments” to continue in a proper range.
- US Intelligence sources say China is looking to quadruple its nuclear weapons stockpile.
US AND EUROPEAN NEWS
- Bank of England (BoE) meeting tonight. Too close to call but a rate rise seems a possibility.
- Fed goes taper lite. Powell still auditioning to be reconfirmed as chief teller.
- Iranian nuclear talks will restart at months end.
- One US analyst that supposedly famously called the top in the US housing market within two years has a warning again for US homeowners as she believes that US housing is ‘near or at its peak’.
And finally …always a classic from Adam thanks…always see the big picture….
The Lone Ranger and Tonto went camping in the desert.
After they got their tent all set up, both men fell sound asleep.
Some hours later, Tonto wakes the Lone Ranger and says,”’Kemo Sabe, look towards the sky. What you see?”
‘The Lone Ranger replies, “I see millions of stars.”
“What that tell you?” asked Tonto.
The Lone Ranger ponders for a minute then says, “Astronomically speaking, it tells me there are millions of galaxies and potentially billions of planets.
Astrologically, it tells me that Saturn is in Leo.
Time wise, it appears to be approximately a quarter past three in the morning.
Theologically, the Lord is all-powerful and we are small and insignificant.
Methodologically, it seems we will have a beautiful day tomorrow.
“What’s it tell you, Tonto?”
“You dumber than buffalo dung. It means someone stole the tent!”