The ASX 200 pushed 27 points higher to 7470 (+0.4%) on positive US leads and positive updates from ELD and IPL. Banks were mixed with the Big Bank Basket slightly higher at $188.71 as NAB went ex-dividend (8 index points) and CBA fell 0.1%. MQG rose 0.9% and other fund managers rose slightly as MFG put on 1.1%. Industrials firmed with ALL up 1.2% and TLS rising 0.8%, with REITS rallying in yields fell and TCL up 0.7%. Consumer stocks were in demand with healthcare stocks also in the pink. RMD up 5.2% and FPH doing well too up 3.6%. Tech stocks mixed with APT down 0.9% and XRO up 2.5%. Miners were mixed, lithium stocks still in demand, FMG higher on the hydrogen story, both BHP and RIO eased on local iron ore weakness. Gold miners were slightly higher as NCM put on 0.7% and NST 0.3% better. In corporate news, ELD fell 0.7% despite positive FY21 results, IPL firmed 3.9% on its results and MSB had some good news for a change from the Phase III trials of Rexlemestrocel cardiac treatment, up 11.8%. LTR denied it was going to tap shareholders for funds rising 4.8% and BRN fell 9.1% on a new CEO. 10-year yields fell to 1.76% down 5 bps. Short-dated yields also eased back slightly.
- Winners: MSB, ASM, BOE, DUB, ABR, AVZ, RMD, LTR.
- Losers: BRN, MNS, HT1, APM, TUA, DGL, PPC, CRN.
- Positive sectors: Industrials. REITs. Healthcare. Consumer stocks.
- Negative sectors: Iron ore miners.
- High 7479 Low 7438. Narrow range. Low volume.
- Big Bank Basket: Unchanged at $188.71
- All-Tech index: Up 1.1% APT Up 0.9%
- Gold: Lower at AUD2530
- Bitcoin: Steady at US$65812
- Aussie Dollar: Higher at 73.42c. 10-YEAR YIELD: Falls to 1.76%
- Asian Markets: Japan up 0.34% Hong Kong down 0.08% and China down 0.29%.
- US Futures: Dow futures down 2 NASDAQ futures up 32.
FUTURES HIGHS AND LOWS
STOCKS ON THE MOVE
- MSB +11.76% Phase III trial cardiac results.
- ELD -0.74% strong results.
- WPL +1.12% sells half of Pluto 2.
- LNK -unchanged – Due diligence granted.
- TLS +0.76% JV with Woolies on AI data.
- PNR +34.78% confirms large scale Lamboo PGE deposit.
- LTR +4.78% response to media speculation on capital raising.
- RED +3.70% gold price rise.
- ABR +5.83% new mine plan.
- MI6 +32.76% DEV +21.74% Goyder touch.
- NXM +16.00% completes $19m capital raise.
- BRN -9.09% profit taking on new CEO.
- HT1 -7.05% conference presentation.
- TUA -5.14% more profit taking.
- DGL -4.03% thin sell off.
- LMG -28.12% flared back.
- BD1 -11.43% profit taking.
- RDT -7.50% drilling update.
- GCY -4.94% appointment of Simon Lawson as MD
- CIM -1.60% Ventia IPO back on track.
- Speculative stock of the Day: Eastern Iron +61.82% strategic partnership executed with Yahua. Good volume.
IN THE NEWS
- Elders (ELD) full-year underlying profit $151.1m vs consensus $138.9m.Final dividend 22c. Sees excellent trading conditions in the first half of FY22.
- Liontown Resources (LTR) responds to media speculation, says it does not have in place any mandate to raise equity.
- Nickel Mines (NIC) Executive Director and CFO Peter Nightingale resigns.
- ADBRI Limited (ABC) says volumes have recovered from recent Covid restrictions in east coast markets and South Australia.
- Incitec Pivot (IPL) reports full-year EBIT $566.4m ex-items vs consensus $531.2m.Final dividend of 8.3c, 14% franked, bringing total dividends for FY21 to 9.3c. Appoints Chris Opperman as Interim CFO.
- APA Group (APA) – Speculation APA will take a second look at Basslink after the power cable venture was put into voluntary administration last week
ECONOMIC NEWS/ BOND MARKETS
- APRA considering an increase in housing intervention. APRA also asked banks to ensure they have “the ability to limit” lending to borrowers with a debt-to-income (DTI) ratio greater than four times, or six times, and to borrowers with loan-to-valuation (LVR) ratios greater than 80% or 90%. There is speculation in the market that limitations on high DTI or LVR lending could follow.
- Chinese economic news: Industrial output rose 3.5% in October from a year earlier, while retail sales growth accelerated to 4.9%, beating economists’ forecasts. Growth in fixed-asset investment eased to 6.1% in the first 10 months of the year, compared with a forecast of 6.2%. The surveyed jobless rate was steady at 4.9%.
- Beijing Stock Exchange opened today with a focus on small and medium-sized companies. About 70 companies migrated from an existing Chinese board and an additional 10 debuted for the first day. All 10 companies debuting on Monday saw their stock prices more than double.
US AND EUROPEAN NEWS
- President Biden facing more calls to release the strategic stockpiles.
- China accuses EU of threatening global trade.
- Yellen says inflation will stay high until CV19 is under control.
- Biden and Xi to meet virtually.
- Ukraine has been warned of a high probability of a Russian military escalation during the winter.
A Russian Jew was finally allowed to emigrate to Israel.
At Moscow airport, customs found a Lenin statue in his baggage and asked, “What is this?”
The man replied, “What is this? Wrong question comrade. You should have
asked : Who is he? This is Comrade Lenin. He laid the foundations of
socialism and created the future and prosperity of the Russian people.
I am taking it with me as a memory of our dear hero.”
The Russian customs officer let him go without further inspection. At Tel
Aviv airport, the Israeli customs officer also asked our friend, “What is this?”
He replied, “What is this? Wrong question, Sir. You should be asking, ‘Who
is this?’ This is Lenin, the bastard who caused me, a Jew, to leave Russia.
I take this statue with me so I can curse him every day.”
The Israeli customs officer said, “I apologize, Sir, you are cleared to go”
Settling into his new house, he put the statue on a table. To celebrate his
immigration, he invited his friends and relatives to dinner.
One of his friends asked, “Who is this?”
He replied, “My dear friend, ‘Who is this’ is a wrong question. You should
have asked, What is this? This is ten kilograms of solid gold that I
managed to bring with me without paying any customs duty and tax.”
Politics is when you can tell the same rubbish in different ways to fool a
different audience, to allow you to look good in every way….