The ASX 200 was buoyant today up 81 points to 7268 (1.1%). CBA results set the scene. $2bn buyback, $4.7bn cash profit and dividend 175c. Not bad, Stock up 5.6% dragging the other four banks higher. CBA was 26 index points alone. The Big Bank Basket rose to $177.75 (4.0%). Insurers rose but MQG gave back some gains falling 1.9% as brokers knocked the tallest poppy. Industrials back in fashion as tech roared back. WTC up 4.8% CPU smashing it up 11.2% and XRO up 3.5%. The All-Tech Index climbed 3.8%. SQ2 missed out a little up only 1.4%. REA and SEK bounced back, WES better by 1.8%, GMG up 1.2%, TCL up 2.4% and SYD finished up today. It is no more. Healthcare mixed, CSL down 0.9% with other better, SHL up 2.2%, FPH up 2.4%. Mining stocks under pressure. Iron ore stocks feeling unloved as Chinese authorities talk down iron ore prices and speculation. BHP lost 1.7% and FMG down 3.6%. MIN tumbled on very disappointing results, other lithium stocks mixed, AKE up 2.8%, PLS up 1.8% and IGO up 1.7%. Energy stocks fell as oil came off the boil. WPL down0.9 % and STO off 1.3%. In corporate news, BAP fell 7.9% after results and denied media speculation of a takeover approach, TPW started the year well and results cheered with the stock up 9.7%. DGL also doing well on results up 10.0% as were CPU and DDR. PPH updated the market on an insider trading investigation falling 3.4% and IEL fell 3.1% after results. Nothing on the economic front as we await US CPI. Asian markets better. 10-year yields steady around 2.09%.

MAJOR MOVERS:

  • Winners: OMH, CPU, FCL, DGL, TPW, VUL, DDR, ASM
  • Losers: SYR, ADO, MIN, BAP, NAN, RNU, BCK, CTT
  • Positive sectors: Banks! Banks! Banks! for Australia.
  • Negative sectors: Iron ore miners. Energy.
  • Hi 7268 Lo 7183
  • Iron ore futures fall after Chinese regulators warn against speculation. Down 4% in Dalian Futures.
  • Big Bank Basket: Rises $177.75 (4%)
  • All-Tech index: Up 3.8%
  • Gold: Steady at $2552
  • Bitcoin: Slips to US$43397
  • Aussie Dollar:  Rises to 71.61c 10-YEAR YIELD: Off jhighs at 2.09%
  • Asian markets better with China up 0.3%. HK up 2% and Japan up 1.1%.
  • US Futures: Dow up 69 Nasdaq up 36

STOCKS ON THE MOVE

  • TPW +9.69% good start to the year.
  • CPU +11.24% great call from Chris on tech analysis.
  • DGL +9.96% good results.
  • VUL +8.01% heading for Frankfurt
  • CBA +5.58% strong results and $2b buyback.
  • SDR +5.21% turns around after sell-off yesterday.
  • CTT -3.91% founder sell down
  • MIN -8.91% swing and a miss.
  • ADO -9.62% volatility continues.
  • SYR -9.87% completes placement.
  • BAP -7.93% denies takeover speculation and results.
  • NAN -6.04% brokers cool.
  • PPH -3.37% FMA insider trading charges.
  • MAY -12.50% profit taking.
  • Speculative stock of the Day: Rectifier Technology (RFT) +102.33% New orders from Tritium for around US$20m. Tritium in US SPAC listing had a good day yesterday up around 65% at one stage.

IN THE NEWS

  • Nickel Mines (NIC) launches US$225m capital raising to fund the purchase of the remaining 30% interest of the Oracle Nickel project that it doesn’t already own. Raising to be conducted at a price of 137c and will be made up of a US$106m institutional placement, a US$106m conditional placement with Shanghai Decent and a share purchase plan of up to US$13m.
  • Computershare (CPU) reported after the bell yesterday which usually means it is a poor update although that doesn’t appear to be the case. First-half management profit of US$139.5m was up on last year’s US$117.9m. Management revenue of US$1.17bn vs year-ago US$1.10bn and ahead of consensus of US$1.15bn. An interim dividend of 24c was declared, up 4.3% on a year ago. Guidance for the full-year upgraded. EPS US57c vs prior guidance US53.4c.
  • Nick Scali (NCK) denies media speculation that the Scali family intended to sell some of its shares in the company.
  • Mineral Resources (MIN) swings to a first-half underlying loss of $36m vs $430m profit a year ago. Earnings hit by the collapse in iron ore prices and widening discounts. MIN’s average iron ore price achieved for 1H22 was US$71/dmt, a decrease of 41% on the pcp. No dividend given the volatility in the iron ore market although remains on track to meet volume guidance for its mining services, lithium and iron ore segments.
  • Commonwealth Bank (CBA) first-half cash profit of $4.75bn was up 23% on 1H21 and ahead of consensus of $4.41bn. Volume growth in home and business lending, lower remediation costs and lower loan loss provisions helped the result. Improvement in the economic outlook another contributing factor, it was mentioned 26 times in the market release. Retail banking accounts for roughly 50% of its profit so it is good to see above-market growth. Net interest margin (NIM) was in line with consensus at 1.92% but down 14bps vs a year ago. Competition headwinds (as expected) and increased switching to lower margin fixed home loans were named as the culprits.
  • Magellan Financial (MFG) – Lonsec puts eight global equities funds on ‘fund watch’. Maybe a little late for that. The “fund watch” status indicates that no new investment into the funds is recommended because a significant change has occurred.
  • Bapcor (BAP) – Net profit after tax for the six months ended December 31 falling by almost 15% to $57.7m. Revenue was up 1.9% to $900m. BAP lifted its interim dividend to 10¢ per share, from 9¢ a year ago.
  • Megaport (MP1) – reported a 42% lift in revenue to $51.2m for the half year ending 31 December 2021, up from $36m a year earlier. Monthly recurring revenue increased 46% to $9.2m. The growth was driven by the data centres in the US. $104m in the bank and no debt.
  • SYD – RIP delisted.

ECONOMIC NEWS/ BOND MARKETS

Nothing on the data front.

ASIAN MARKETS

  • China’s market regulator has warned iron ore information companies not to fabricate and publish false information in another attempt to keep iron ore prices under control. This could disrupt the very solid iron ore sector. Something to keep an eye on after the big run in the iron ore stocks.
  • Eileen Gu is a class act on and off the piste. Maybe hope for US-China relations.
  • Softbank may bypass UK for a Nasdaq listing of its ARM business.

US AND EUROPEAN NEWS

  • Largest crypto bust. The scary thing was that the heist back in 2016 was only around $100m. Now worth over US$3.6bn. So much for all that promised anonymity.
  • Putin says that Macron is wrong on his interpretation of what the Russian said.
  • The US Army has just released its first strategy report to fight climate change. All weapons to be carbon neutral and net zero by 2035.
  • Butter prices are double from a year ago as US heads to the oven and cookie baking.
  • BP rejects a call for a super profits tax after best year in the last eight. Well of course they would.
  • US household debt jumps by US$1 trillion dollars in 2021. That is the most since 2007.
  • Fauci says full blown pandemic phase is nearly over. Yay.

And finally….

A woman was 3 months pregnant when she fell into a deep coma and woke up after about 10 months.

The woman asked the doctor about her baby.

Doctor: You had twins, a boy and a girl. They’re both fine. And, your brother named them for you.

Woman: No No No! Not my brother. He’s an idiot! What did he name the girl?

Doctor: Denise.

Woman: Ohh, that’s actually a nice name. What about the boy?

Doctor: deeply sighs Denephew.

Clarence

XXX