The ASX 200 finished down 43 points to 7353 (-0.6%) as banks and travel stocks weighed on the index. The Big Bank Basket fell to $172.47 (-1.9%) as CBA dropped another 2.1% and NAB down 1.2%. MQG joined in the sell-off falling 1.0% and insurers were flat to slightly soft. Travel stocks took a hit with FLT down 7.1% to a 2-month low and WEB fell 3.7% as Europe and US see a rise in CV cases and increased restrictions. Seems winter is not good for CV19 cases. Industrials also drifted lower with WES down 0.6%, QAN off 4.0% and REA off 1.1%. Tech fell with APT driving the losses down 2.5% and the All–Tech Index down 1.5%. Miners were a bright spot as iron ore rose in Asian trade, BHP up 0.4%, FMG up 2.1% and S32 doing well too up 2.0%. Base metals also in demand led by POS up 17.0% with lithium stocks back on the march, PLS up 5.1%. Oil stocks fell as a coordinated strategic reserve release looks likely, WPL down 1.9% and STO off 2.1%. Gold miners eased with EVN falling 3.6%. In corporate news, BRN raced away up 20.4% on its first real commercial deal with Megachips and NIC rose 8.0% on an MOU in Indonesia. VUL signed an offtake agreement with Renault up 7.1% and CXL had a rocky day after an ASX speeding ticket, falling 7.5%. Nothing on the economic front. 10 year yields steady at 1.80%
- Winners: BRN, RAC, AVZ, NIC, IAP, VUL, LKE, TUA.
- Losers: ERA, CXL, FLT, IMU, CTD, SZL, BLX, BOE.
- Positive sectors: Iron ore and base metal miners. Lithium.
- Negative sectors: Banks. Tech. Energy. Gold Miners.
- High 7394 Low 7337. Sank and stayed there. Low volume day.
- Big Bank Basket: Lower at $172.47 (-1.9%)
- All-Tech index: Down 1.5% APT down 2.5%
- Gold: Weaker at AUD2547
- Bitcoin: Slightly higher at US$57307
- Aussie Dollar: Higher at 72.50c. 10-YEAR YIELD: Steady at 1.80%.
- Asian Markets: Japan down 0.02% Hong Kong down 0.69% and China up 0.55%.
- US Futures: Dow futures up 101 NASDAQ futures up 34
STOCKS ON THE MOVE
- BRN +20.37% first real revenue with Megachips licencing agreement.
- RAC +11.54% breakthrough Zantrene heart protection discovery.
- NIC +7.98% MOU for next phase of growth.
- VUL +7.07% binding offtake agreement with Renault.
- PLS +5.08% ORE +4.72% lithium no longer depressed.
- POS +17.02% Marcus will be happy, good drill results.
- MNS +14.77% AGM presentation
- PSC +15.38% Partnership process update.
- SLX +10.98% quantum lift.
- TUA +5.92% resumes uptrend.
- DEV +22.52% Goyder Midas touch again.
- MSB -2.33% Oaktree financing deal.
- CXL -7.49% response to ASX query over ZESTY.
- FLT -7.14% WEB -3.72% QAN -4.01% travel on the nose.
- IMU -6.19% final director’s interest.
- SLR -4.29% acquisition of Harte Gold Credit facility.
- LMG -13.64% profit taking flares up.
- ICI -19.44% capital raising weighs.
- PH2 -11.21% proposed issue of securities.
- ANG -6.98% change in substantial holding.
- Speculative stock of the Day: E2 Metals (E2M) +47.92% very good drill results, 16m at 15g/t Au, 22g/t Ag.
IN THE NEWS
- Poseidon Nickel (POS) reports an outstanding intersection of significant sulphides at Silver Swan. POS have released drilling results highlighting an intersection of Ni-Cu sulphides at an estimated true width of 9.8m. POS have completed 18 holes to date and are continuing resource extension and infill drilling.
- Pro-Pac Packaging (PPG) proposes 1 for 10 share consolidation subject to shareholder approval. PPG has noted in consolidation filing that ordinary shares will reduce to 81.1m from 811m and performance rights will reduce to 1.5m from 15m. Proxy voting results so far indicate the resolution will be passed. Trading date post consolidation is expected to be 25 November.
- NextDC (NXT) acquires 19.99% stake in Sovereign Cloud Holdings (SOV) for $12.4M. Sovereign Cloud Holdings is undertaking equity raising to raise ~$35M. Consisting of a placement to NXT along with a fully underwritten entitlement offer to eligible institutional shareholders and eligible retail shareholders. New shares are to be priced at 50c per share.
- Nuix (NXL) receives class action claim in connection with disclosing FY21 revenue forecast. The claim has been filed against NXL, on behalf of William Lay who acquired interests in company shares, in the Supreme Court of Victoria. The claim does not state the amount of any damages sought. NXL is disputing the allegations and will defend the claim.
- McMillan Shakespeare (MMS) has provided a trading update at its AGM, noting that the FY22 outlook remains consistent with comments from the FY21 results. The company does not expect to see any substantiative change to the vehicle supply challenges prior to the end of CY22.
ECONOMIC NEWS/ BOND MARKETS
- CBA is warning that after another good year for property prices in 2022, where they are predicting a 7% rise, the wheels will come off in 2023 with a 10% fall. The reason? Rising interest rates are expected to cool the market. The bank is calling for the RBA to begin raising rates in November 2022, precipitating the house price retreat. Although they are predicting a 10% fall in house prices, the bank is also calling for “an orderly correction”, rather than a dramatic plunge.
- Domestic gas prices are on the move: Prices in Sydney for gas for immediate delivery were $13.50 a gigajoule, and up at $14/GJ or higher in Brisbane and Adelaide, with Victoria slightly softer. That’s up from last month’s average of about $8.15 a gigajoule in some states. Asian LNG spot prices were above $US37.50 per million British thermal units on Thursday, up from under $US2 in the June quarter last year,
- Europe back as CV19 Central.
- New Indian IPO Paytm dropped again after the stock plunged 27% in its debut Thursday Down another 9% today. India’s biggest ever IPO and so far one of the worst. It isIndia’s largest digital-payments provider.
- PBoC looks like it has taken heed of the Chinese economic slowdown and will ease measures to aid a recovery.
- This follows one official bringing up the possibility of ‘quasi-stagflation’.
- Chinese fire a hypersonic missile over the South China Sea.
US AND EUROPEAN NEWS
- Chilean election could make copper market interesting. Conservative Kast leads in first round.
- Biden will speak on the economy on Tuesday. Maybe the Fed Chief will be announced then.
- US intelligence (an oxymoron perhaps) shows Russian build up for a Ukrainian invasion.
- Samsung will name the location of its new chip plant. Maybe in Blackfoot, Idaho.
- The Barbarians are not at the gate but on the phone. KKR offers to buy out Telecom Italia for EUR35bn.
- Man Utd fire Ole Gunnar Solskjaer. Not gonna happen for him after all.