The ASX clawed its way back to finish down 6 at 7447. After a negative start on tech woes, resources kept the index close to flat on thin holiday volumes. Iron ore miners led the gains with BHP up 2.4% and FMG rallying 1.3%. Lithium stocks were back in vogue as PLS piled on the points up 2%, MIN made minor gains up 2.7% and AKE up 0.8%. Energy stocks also in demand with WPL up 2.3%, STO up 0.7% and WHC rallying hard up 5.1%. Even AGL were stirring up 8.6%. Industrials flat across the board with tech taking a hit. XRO down 2.8%, WTC down 2.7% and APT continuing lower by 2.3%. Consumer stocks on the nose, WOW down 0.7%, DMP off 2.3% and WES off 2.3%. Healthcare under pressure again with CSL down 0.9% and RMD off 2.6%. Banks were mixed as CBA rose 0.7% and the Big Bank Basket up slightly to $182.91. MQG suffered after recent gains down 1.8% and MFG bucking up 6.7%. In corporate news, VGI rose 11.1% on takeover rumours. In economic news, building approvals up 3.6% slightly underwhelming against forecasts of 5%. 10-year yield up to 1.91%. Asian markets slightly higher.
- Winners: ERA, NVX, AGL, MFG, JRV, BRN, WHC.
- Losers: ADO, DVP, AX1, CCX, FCL, SYA, TLX, AQZ.
- Positive sectors: Iron ore. Energy. Lithium. Banks.
- Negative sectors: Tech. Healthcare. Industrials. Consumer. REITs.
- Hi 7460 Lo 7410 Low volumes.
- Big Bank Basket: Rises to $182.91
- All-Tech index down 0.7%
- Gold: Steady at $2493.
- Bitcoin: Steady at lower levels at US$42,109.
- Aussie Dollar: Steady at 71.96c 10-YEAR YIELD: Up 5bps at 1.91%.
- Asian Markets: Japan down 0.1% Hong Kong up 0.8% and China up 0.4%.
- US Futures: Dow futures down 10 points. Nasdaq up 44 points.
STOCKS ON THE MOVE
- NVX +10.80% Nasdaq listing rules.
- AGL +8.60% dogs are barking. Broker upgrades.
- MFG +6.74% finding support.
- BRN +6.19% NED appointment.
- AGY +13.04% lithium winner.
- VGI +11.13% merger speculation with RF1.
- ERA +10.81% BOE +4.42% PDN +2.73% uranium back in focus.
- MGX +4.71% iron ore winner.
- RNU +20.00% commercial scale milling trials delivering higher yields.
- ALG -3.64% Omicron casualty.
- DUB -3.51% tech sell off bites.
- IPO of the Day: Careteq (CTQ) -20.00% this is a global (aren’t they all) aged and disability care sector technology provider.
- Speculative Stock of the Day: Kingfisher Mining (KFM) +33.33% significant REE discovery at Mick Well of 12m @ 1.12% TREO.
IN THE NEWS
- Fortescue (FMG) evaluating using a contract miner at Iron Bridge. The move could save ~$250-400m as FMG would avoid having to buy a fleet of haulage trucks. CEO Elizabeth Gaines said the project is on schedule for its first production in December 2022.
- VGI Partners (VGI) in discussions regarding a possible merger. Regal Funds Management (RF1) and Challenger (CGF) named as possible candidates.
- Incitec Pivot (IPL) to acquire Explinvest from Titanobel Group for €91m (~$142m). Expected to be EPS neutral in the first full year of ownership.
- Value stocks – those that are inexpensive relative to their earnings – have outperformed growth by 7% since December 1.
- James Hardie (JHX) +% ousted boss has rejected claims of bullying.
- CHOICE has urged the government to ban CFD products after an ASIC consultation closed before Xmas.
ECONOMIC NEWS/ BOND MARKETS
- Dwelling approvals up 3.6% in November according to the ABS, missing CBA’s estimates of a 5% improvement. Daniel Rossi, ABS Director of Construction Statistics said, “the rise was driven by an increase in approvals for private sector dwellings excluding houses, which rose 9.7%.”
- China reported 92 new local cases on Saturday, which compares to 90,000 in NY.
- China saw its first omicron cases in the community, igniting a mass testing blitz in the northern city of Tianjin.
- China Life Insurance said that things are normal despite its chairman Wang Bin being investigated by the anti-graft watchdog. Wang Bin is “suspected of serious violations of discipline and law, and is currently undergoing disciplinary review and investigation.”
US AND EUROPEAN NEWS
- NATO stands ready for a conflict in Europe. Talks begin on Ukraine.
- Goldman Sachs now expects four fed rate rises in 2022. Goldman’s forecast for the terminal funds rate in unchanged at 2.5%-2.75%.
- The Bank of America says asset price bubbles are “simultaneously popping” in assets including cryptocurrencies, palladium, long-duration technology stocks, and other historically risky areas of the market.
- In the UK Tory MPS have warned of a revolt if Boris doesn’t cancel CV19 curbs.
The Swede’s wife steps up to the tee.
As she bends over to place her ball, a gust of wind blows her skirt up and reveals her lack of underwear.
‘Good God, woman! Why aren’t you wearing any skivvies?’, Ole demanded.
‘Well’ she said, ‘you don’t give me enough housekeeping money to afford any.’
The Swede immediately reaches into his pocket and says,
‘For the sake of decency, here’s a 50. Go and buy yourself some underwear..’
Next, the Irishman’s wife bends over to set her ball on the tee.
Her skirt also blows up to show that she, too, is wearing no undies. ‘Blessed Virgin Mary, woman! You’ve no knickers Why not?’
She replies, ‘I can’t afford any on the money you give me.’
Patrick reaches into his pocket and says, ‘For the sake of decency, here’s a 20. Go and buy yourself some underwear”!
Lastly, the Scotsman’s wife bends over.
The wind also takes her skirt over her head to reveal that she, too, is naked under it.
‘Sweet mudder of Jaysus, Aggie! Where ta friggin hell are yer drawers?’
She too explains, ‘You dinna give me enough money ta be able ta affarrd any.’
The Scotsman reaches into his pocket and says, ‘Well, fer the love ‘o decency, here’s a comb…. Tidy yerself up a bit.’