The ASX 200 rose 4 points to 7245 (+0.05%) with banks holding up and resources and techs on the nose. The Big Bank Basket was better at $173.04 with CBA better, up 0.7%. Other financials mixed with MQG up 0.2% and MFG off 4.0% on latest FUM numbers. Insurers sank as QBE gave up 1.4% and IAG dropped 3.8% on lower interest rates. Industrials firmed in defensives with REH up 1.7%, BXB up 1.5% and TCL rising 1.6%. Consumer stocks better as COL and WOW rose 2.6%The tech sector was attacked with gusto, SEK fell 0.7%, REA off 1.2% and TLS down 0.3%. Sell now, buy later stocks collapsed today as APT fell 4.3% on Square falling in the US, SZL dropped 16.1% and ZIP down 10.1%. Other tech high-flyers also came under fire with 360 dropping 14.0% and lithium/ battery tech stocks suffering, NMT down 11.1 % and VUL down 8.4%. The All–Tech Index slid 2.2%. In resources, gold miners were enjoying higher bullion prices and a lower AUD, EVN up 3.7%, SLR up 4.6% and RRL rising 3.0%. Iron ore miners down led by BHP off 1.6% and lithium stocks also falling, AKE (formerly ORE) down 7.2% and PLS off 4.1%. In corporate news, MTS rose 7.3% after positive numbers and a 31% increase in dividends. BAP fell foul of investors as popular CEO got pushed early dropping 5.6%. BLD rose 1.6% after the US exit of its fly ash business, eviscerating the Mike Kane legacy. ANZ job ads were up 7.4% and the 10-year yield fell to 1.57%.
- Winners: MTS. KED, CTT, VSL, HGH, BGL, SLR
- Losers: SZL, SYA, 360, TUA, BRN, NMT, FFX, Z1P
- Positive sectors: Banks. Consumer stocks. Industrials. Gold miners.
- Negative sectors: BNPL. Iron ore miners. Risk. Tech.
- High 7258 Low 7208
- Big Bank Basket: Up to $173.04
- All-Tech index: Down 2.2%
- Gold: Stronger at $2540
- Bitcoin: Steady at US$49192
- Aussie Dollar: Higher at 70.16c
- 10-Year Yield: Lower at 1.57%
- Asian Markets: Japan down 0.42%, Hong Kong down 1.34% and China up 0.21%
- US Futures: Dow futures up 236, NASDAQ futures up 24
STOCKS ON THE MOVE
- MTS +7.34% good upgrade and increased dividend.
- KED +7.09% FY22 H1 Results dates.
- CTT +5.00% one tech stock to rally.
- APA +4.45% hydrogen push.
- BGL +4.64% SLR +4.55% RRL +2.98% gold price gains.
- BLX +3.00% Executive GM trade appointment.
- MLX +10.00% tin price holds up.
- LCK +3.57% urea exposure.
- PDI +2.27% gold price gains.
- CSL -0.46% Mexican donors no longer allowed.
- MFG -3.99% FUM up slightly.
- APT -4.32% Blocked.
- ICI -15.62% VR1 -14.29% Metaverse hits reality.
- SZL -16.14% lost its sizzle.
- 360 –13.98% Tech stocks on the nose.
- NMT -11.11% lithium recycling
- VUL -8.41% sell off continues.
- Z1P -10.14% sell now buy back later.
- JAN -9.02% Omnicron pressure.
- LMG -11.49% flares and flops.
- LIS -12.96% battery tech under pressure.
- Speculative stock of the Day: Nothing on any volume at all.
In The News
- Saudi Aramco extends Worley’s (WOR) contracts for offshore assets by three years.
- Orocobre (ORE) new ASX ticker is “AKE”.
- Bapcor (BAP) board notes Darryl Abotomey’s position as MD and CEO has become untenable. Abotomey to retire immediately, Noel Meehan appointed interim CEO.
- Metcash (MTS) – Up more than 5% in early trade on first-half results. Underlying profit $146.6m vs year-ago $129.6m. Revenue $7.15bn vs year-ago $7.06bn. Underlying EBIT $231.2m vs year-ago $203m. Interim dividend 10.5c/share, fully franked, up 31%. All segments achieved sales growth in the first five weeks of the second half 2022, food up 2.3%, liquor up 7.6% and hardware up 20.1% on the same period a year ago. Sales and earnings growth were driven by shifting consumer behaviour and improved competitiveness in its retail networks.
- Boral (BLD) to sell its North American Fly Ash business to Eco Material Technologies for ~$1bn. Net proceeds from the sale will add to surplus capital. The board to decide on the most appropriate way to return surplus capital to shareholders. The transaction is expected to complete in FY22.
- Magellan Financial Group (MFG) FUM at the end of November $116.41bn vs month-ago $114.80bn.
- Oil Search (OSH)/ Santos (STO) – PNG approval for merger.
Best and Worst
Economic News/Bond Markets
- ANZ’s monthly help-wanted ads surged 7.4% in November to be a record 44.2% above their pre-pandemic level.
- An ANZ economist expects annual wages growth will climb to around 3% in the second half of next year from a tepid 2.2% at present. “The unemployment rate should drop back below 5% in the near-term, and we expect it to fall to around 4% by the end of 2022”.
- Queensland Premier Annastacia Palaszczuk says the state will bring forward its border reopening to December 13th.
- 89% of Japanese favour banning international arrivals. Also, support for Prime Minister Fumio Kishida had risen 6% to 62%.
- Alibaba is replacing its long-standing chief financial officer Maggie Wu with Toby Xu and reshuffling the leaders of its commerce businesses. Alibaba is also creating two Digital Commerce teams, one for international markets, led by Jiang Fan, and another for the domestic market, to be headed up by Trudy Dai.
US AND EUROPEAN NEWS
- Positive start for European markets in store.
- The US is set to announce a diplomatic boycott of the Beijing Winter Olympics. Not that they were invited to send representatives anyway, so purely symbolic. Australia and Canada also consider a similar move.
- US Defence chief warns that China is engaged in rehearsals for an attack on Taiwan.
- Boris Johnson looking to play nice with France as new treaty beckons.
John Travolta tested negative for corona virus last night. Turns out it was just Saturday night fever.
- The World Health Organization has announced that dogs cannot contract Covid-19. Dogs previously held in quarantine can now be released. To be clear, WHO let the dogs out.
- I saw an ad for burial plots, and thought to myself “ That’s the last thing I’ll need.”
- Intelligence is like underwear. It is important that you have it, but not necessary that you show it off.
- Relationships are a lot like algebra. Have you ever looked at your X and wondered Y?
- A courtroom artist was arrested today for an unknown reason… details are sketchy
- People are making end of the world jokes like there’s no tomorrow.
- Whatever you do, always give 100%–unless you’re donating blood