The ASX 200 falls 5 points to 7452 (-0.1%) with ANZ and MQG ex-dividend. Banks firm with three out of four not bad, Meatloaf would be happy. The Big Bank Basket rose to $190.43. Insurers were better but other financials drift lower. Industrials were mixed, bond sensitive stocks pushed ahead with TCL up 0.7% and SCG rising 2.9%. TLS fell 0.3% and REA down 3.0% with healthcare in ICU as CSL fell 0.8% and SHL down 2.2%. Miners were better despite iron ore under pressure Friday, BHP rose 0.8% after its coal sale, FMG better by 0.4% and gold miners in focus as bullion bubbles away. SBM up 5.2% as a recovery play and EVN up 4.0%. Energy stocks were better on higher crude prices. Lithium a little depressed, ORE down 3.6% and PLS off 3.0%. Tech stocks eased with APT down 0.6% and XRO falling 4.9%. The All–Tech Index was down 1.6%. In corporate news, SYD rose 2.8% on the IFM bid, firming at 875c but many hurdles left to jump. SDR listed today with a staggering 38.5% gain. CUV dropped 8.3% with a board spill on the cards. BHP sold part of its coal business to SMR which celebrated in style rising 14.0%. ALL dropped 2.1% as Gopher Investments approach the target for certain due diligence information. 10-year yields 1.74%.
- Winners: SDR, MNS, BGL, ERA, TLG, CTT, WGX, FLT
- Losers: AVZ, VUL, PNV, CUV, TPW, ASM, DHG, NXL
- Positive sectors: Banks. Gold Miners. Energy stocks. Infrastructure
- Negative sectors: Healthcare. Tech. Telcos
- High 7474 Low 7433. Narrow range. No conviction
- Big Bank Basket: Up to $190.43 (+0.2%)
- All-Tech index: Down 1.6%. APT down 0.6%
- Gold: Rallied to AUD2459
- Bitcoin: Higher at US$65203
- Aussie Dollar: Steady at 74c
- 10-YEAR YIELD: Drifts to 1.74%
- Asian Markets: Japan down 0.18%, Hong Kong down 0.38% and China up 0.39%
- US Futures: Dow futures down 24. NASDAQ futures down 65
FUTURES AND HIGHS AND LOWS
STOCKS ON THE MOVE
- SDR +38.54% a great first day.
- BHP +0.80% sells interest in Mitsui Coal to SMR.
- MNS +18.85% battery tech stocks keep on rising.
- FLT +5.71% WEB +4.76% travel back.
- LMG +41.89% magnesium stocks going well.
- SMR +14.01% Buying BHP coal assets.
- SBM +5.23% gold price but recovery potential.
- TLG +7.61% battery tech.
- SXY +3.14% acquisition of APLNG gas fields and bid at 460c by POSCO.
- PGC +1.64% QTM +1.33% merger.
- GOR +3.26% exits bid for AOP.
- CAE +11.76% keeps pushing higher.
- BGL +10.59% bullion rally.
- ATL +14.75% #vanlife.
- MAD +6.82% going well.
- RED +2.04% KOTH update.
- SGP -1.51% will sell between $1bn and $2bn of shopping centre assets.
- IPL -0.63% will shut its Gibson Island’s plant in Brisbane due to high energy prices.
- PNV -9.69% MD resignation rocks stock price.
- CUV -8.31% second strike possible and board spill.
- AVZ -14.15% profit taking.
- VUL -11.42% AFR article notes paid research.
- DHG -6.37% house boom slowing.
- DTZ -1.18% presenting at conference.
- HNR -6.67% down after report on recycling last week.
- BTI -unchanged- SDR built in.
- Speculative stock of the Day: Marquee Resources (MQR) +30.43% Friday pick kicks again.
IN THE NEWS
- Senex Energy (SXY)confirms an improved 460c offer from POSCO. SXY said it intends to pay a 5c dividend and will acquire APLNG natural gas fields for up to $80m.
- BHP – Confirmed they are selling a controlling interest in two coal mines to Stanmore Resources (SMR) for ~US$1.2bn. Last week there was doubt BHP would exit thermal coal as record prices shifted investor attitudes. Their exit out of fossil fuels continues. The deal will complete next year.
- NIB Holdings (NHF) – Buying a company called Kiwi Insurance for $43 million.
- SYD confirm $32bn takeover from IFM Investors and Global Infrastructure Partners’ consortium. The deal is be the biggest ever cash takeover for a company on the ASX and values SYD’s equity at $23.6bn and the company at about $32.2bn including debt. The deal will face a number of hurdles with regulators including the ACCC, as the IFM Consortium has shareholdings in 9 other Australian airports including Brisbane and Melbourne. It will also have to pass muster with the EU and FIRB.
ECONOMIC NEWS/ BOND MARKETS
- US is open lifting entry restrictions for more than 30 countries, allowing fully vaccinated travellers to fly from places including Europe China and India.
- Japan reported zero Covid deaths for the first time in 15 months.
- The UK is considering some lockdown restrictions.
- China says it’s ready to reduce tariffs when the Asia-Pacific trade deal Regional Comprehensive Economic Partnership Agreement, or the RCEP, comes into force next year. China confirmed that 10 nations including Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, China, Japan, New Zealand and even Australia ratified the RCEP earlier this month.
- China posted a record monthly trade surplus in October. Exports rose 27.1% in dollar terms last month from a year earlier to US$300.2bn.
- China’s party congress kicks off this week bringing together about 400 state leaders, ministers, military chiefs, provincial bosses and top academics. The key agenda item of this meeting will be reviewing the major achievements of the party and its historical experiences over the 100 years since its founding. Xi will address the China International Fair for Trade in Services on Thursday in Beijing.
US AND EUROPEAN NEWS
- Is Musk about to sell 10% of Tesla after a Twitter poll?
- UK’s Sanjeev Gupta under investigation from the French on allegations of ‘misuse of corporate assets and money laundering”.
- Biden gets his infrastructure win, now on to a $1.75tn social package.
Cabbie picks up a Nun. She gets into the cab, and notices that the VERY handsome cab driver won’t stop staring at her.
She asks him why he is staring.
He replies: “I have a question to ask, but I don’t want to offend you”
She answers, “My son, you cannot offend me. When you’re as old as I am and have been a nun as long as I have, you get a chance to see and hear just about everything. I’m sure that there’s nothing you could say or ask that I would find offensive.”
“Well, I’ve always had a fantasy to have a nun kiss me.”
She responds, “Well, let’s see what we can do about that: #1, you have to be single and #2, you must be Catholic.”
The cab driver is very excited and says, “Yes, I’m single and Catholic!
“OK” the nun says. “Pull into the next alley.”
The nun fulfills his fantasy with a kiss that would make a ho*oker blush.
But when they get back on the road, the cab driver starts crying.
“My dear child,” said the nun, “Why are you crying?”
“Forgive me but I’ve sinned. I lied and I must confess; I’m married and I’m Jewish.”
The nun says, “That’s OK. My name is Kevin and I’m going to a Halloween party.”