The ASX 200 see-sawed from loss to gain and back again today after two solid days. The index finished down 21 to 7384 (-0.3%) in a late sell-off with banks holding firm. The Big Bank Basket rose to $175.48 flat on the day CBA up 0.2% and NAB up 0.2% the stars. Another heartbreaking day for Hamish as MFG dropped again by another 4.9% to a two-year low. Insurers mixed with a mixed platter in industrials, WES down 1.0%, DMP down 3.0%, TCL off 2.0% and BXB rising 1.5%. Tech was mixed, APT up 0.5% and XRO down 3.2%. The All-Tech Index down 0.6%. Miners were mixed, BHP lost 1.2% but FMG gained 1.5%. IGO had a good day up 1.7% and LYC fell 0.3% despite Macquarie research initiation. Energy stocks eased back. In corporate news, SYD takeover received ACCC approval as did SWM/PRT. OZL rallied 0.6% after offloading some JV stakes. ACCC greenlights CWY deal to buy Suez. In economic news, payroll jobs growth slowed to 0.2%. 10-year yield firmed to 1.67%
- Winners: VUL, IMU, IHL, NVX, AD8, RED, TLX, AGL
- Losers: RBL, CCX, SZL, BTH, TPW, MFG, Z1P
- Positive sectors: Healthcare
- Negative sectors: Miners. Tech. Energy
- High 7418 Low 7378. Narrow range. Lack of conviction
- Big Bank Basket: Up slightly $175.48.
- All-Tech index: Down 0.6%
- Gold: Weaker at $2488.
- Bitcoin: Slips to US$49848
- Aussie Dollar: Higher at 71.71c 10-YEAR YIELD: Firms to 1.67%
- Asian Markets: Japan down 0.5% Hong Kong up 0.9% and China up 1.1%
- US Futures: Dow futures down 64 NASDAQ futures down 30
STOCKS ON THE MOVE
- VUL +13.89% VW offtake deal.
- NVX +6.04% battery tech rebound.
- DGL +3.28% perking up. Urea talk.
- SYD +2.87% ACCC has no issues.
- SWM –3.91% PRT +1.18%- gets the ACCC ok.
- TLG +11.23% drill results
- 4DX -0.42% first commercial scans at I-MED.
- MFG -4.88% two-year low.
- NEU +21.88% kicks again after recent trial news.
- RBL -9.31% index rebalancing.
- Z1P -4.16% consolidating after 20% rise.
- TPW -5.00% physical stores seen as reopening winners.
- ALC -13.99% capital raising and acquisition.
- VR1 -3.12% tech profit-taking.
- Speculative stock of the Day: Apart from VUL and NEU, DigitalX (DCC) +10.23% on decent volume after an update on equity trading platform ‘Sell My Shares’.
IN THE NEWS
- Johns Lyng Group (JLG) to acquire Reconstruction Experts for enterprise value US$144m plus earn-out potential. Launches $230.0m equity raising at 680c. Combining prior guidance with Reconstruction Experts’ expected H2 contribution, JLG upgrades its FY22 forecast revenue to $732.3m a 15% increase and EBITDA to $73.1m, a 21% increase.
- Vulcan Energy Resources (VUL) signs a 5-year binding lithium hydroxide offtake agreement with Volkswagen to deliver between 34,000-42,000 tonnes of battery-grade lithium hydroxide. Delivery to start in 2026.
- ACCC said it will not oppose Cleanaway’s (CWY) proposed acquisition of Suez post-collection waste assets in Sydney OR Sydney Aviation Alliance’s proposed acquisition of Sydney Airport (SYD), OR Seven West Media (SWM) acquisition of Prime Media Group (PRT).
ECONOMIC NEWS/ BOND MARKETS
- Australian jobs data showed a gain of 0.2% in the fortnight to November 13, down from the 1.5% gain in the prior two-week period.
- RBA Governor Philip Lowe said there was currently no strong need for a central-bank digital currency. Lots of talk on crypto and digital currencies and even BNPL but not much action.
- New Zealand plans to raise the legal smoking age by one year every year, effectively banning the sale of tobacco to people born after 2008. “People aged 14 when the law comes into effect will never be able to legally purchase tobacco.”
- Barnaby Joyce tests positive for CV19 in US.
- U.K. Prime Minister Boris Johnson tightened pandemic rules, advising people to work from home and mandating the use of so-called vaccine passports in large venues.
- South Korea reported a record daily number of critical Covid-19 patients, with 857. The country reported 57 deaths and saw 7,102 more cases overall.
- Lyft Inc. said employees can work remotely for all of 2022.
- Property developer Kaisa suspended from trade pending an announcement.
- Chinese producer price index rose 12.9% from a year earlier, above economists’ forecasts of a 12.1% gain.
- The consumer price index increased 2.3%, the fastest pace since August 2020 but below the projected 2.5% gain.
- Vegetable prices jumped 30.6% in the month, although wholesale prices have started to come down. Meanwhile, pork prices were much lower than this time last year, dropping 32.7%. Without that decline, consumer prices would have risen 3%.
US AND EUROPEAN NEWS
- Canada has joined in with US and UK and will boycott the Beijing winter Olympics. Diplomatically of course.
- Finland’s PM caught night clubbing instead of isolating due to CV19 exposure.
- Johnson moves to his cunning Plan B. No more cheese and wine parties. Not without a mask anyway.
- Biden appoints Meg Whitman as Ambassador to Kenya. Not sure that’s a great prize.
- Auf wiedersehen ‘Mutti’.
- Elizabeth Holmes finishes seven days on the stand.