The ASX 200 closes up 20 points to 7289 (+0.3%). Strong start on NAB results evaporates as US CPI in focus. NAB results positive firing up the sector again with the Big Bank Basket up to $180.78 (+1.7%). NAB rose 4.5%. MQG still under some pressure post result down 2.2%. MFG rallying a little despite platform woes. Insurers under pressure with QBE down 1.0% and SUN off 1.9%. Industrials flat with COL down 1.4% and WOW off 0.7%. Travel stocks mixed, QAN down 2.4% more flights more expensive fuel perhaps? WEB and FLT mixed. Tech stocks doing ok with SQ2 the stand-out up 9.7% as Block rallied in US. The AllTech Index up 1.0%. Miners were mixed BHP down 0.1% and FMG rising 4.0%. Lithium stocks firmed with PLS up 1.2% and MIN bouncing back 3.6%. Gold miners going nowhere and energy stocks losing some oomph with STO down 0.9% and WPL off 1.0%. In corporate news, NAB was the stand-out with better than expected results. CIM dropped 7.1% on plenty of work but not plenty of profit. ASX lost 3.8% and a CEO for no reason. NST down 0.5% on its results. Not much on the economic front with US CPI tonight. Asian stocks Japan up 0.3% and China down 0.5%. 10-year yields steady at 2.09%

End of Day Podcast – Thursday, February 10

Major Movers:

  • Winners: BAP, SQ2, MP1, PDN, CTT, KED, BOE, AMP, CXO, INR
  • Losers: OMH, CIM, DEG, PPC, TPW, AQZ, RBL
  • Positive sectors: Banks. Lithium. Tech
  • Negative sectors: Industrials. Healthcare. Staples. Insurers
  • High 7336 Low 7261
  • Big Bank Basket: Rises to $180.78 (+1.7%)
  • All-Tech index: Up 1.0%
  • Gold: Steady at $2556
  • Bitcoin: Better at US$43853
  • Aussie Dollar:  Rises to 71.70c
  • 10-Year Yield: Steady at 2.09%
  • Asian markets mixed China down 0.1%, HK down 0.3% and Japan up 0.3%
  • US Futures: Dow up 5 Nasdaq down 43

Stocks on the Mov

  • SQ2 +9.71% Block rise shows the way.
  • BAP +10.00% takeover rumours and broker comments.
  • MP1 +7.64% could be turning higher still.
  • CTT +6.67% volatility continues after JD.Com deal.
  • LTR +4.64% lithium on the rise.
  • NAN +4.66% bargain hunters.
  • BOE +6.22% PDN +6.76% uranium back in the mix.
  • MAY +17.86% bouncing back.
  • ICI +25.00% good news on gaming continues.
  • PLY +6.67% deal with Activision.
  • ARR +29.73% name says it all.
  • LOT +10.00% non-deal roadshow presentation.
  • DEG -6.83% presentation backfires.
  • CIM -7.13% results underwhelm.
  • TPW -5.78% broker comments.
  • ASX -3.81% CEO retires with work still to be done.
  • NCK -3.57% sofa not so good.
  • RBL -5.25% bursting a little.
  • RFT -9.20% profit taking.
  • ADO -8.51% TGA approval update.
  • POS -unchanged- investor presentation.
  • 88E – Raising $20m.
  • IPO of the Day: Killi Resources (KLI) +162.50% good debut today for this WA explorer.
  • Speculative stock of the Day: ABX Group (ABX) +33.33% new rare earth discoveries with thicker and higher grades Rare Earth Element (REE).

In the News

  • ASX (ASX) first half underlying profit $250.3m vs consensus $248.5m. Operating revenue $501.4m vs consensus $495.5m. Total expenses $163m, down 7.6%. Net interest income of $21.7m, was down 18.9% vs a year ago. First half dividend 116.4c vs consensus 115.6c. Anticipates operating environment to remain challenging. Expense guidance for FY22 now 7-8% vs prior 5-7%. FY22 Capex guidance remains unchanged at $105-115m. CEO Dominic Stevens to retire in 2022.
  • Magellan Financial Group (MFG) has dropped out of the MSCI Australia Index, has been replaced by Mineral Resources (MIN).
  • AMP (AMP) full-year underlying profit $356m vs consensus $308.6m. On a statutory basis, a $252m loss was achieved with impairment charges, transformational costs and remediation expenses weighing. Revenue from continuing operations was $3.30bn vs year-ago $3.40bn.
  • AGL Energy (AGL)reports first-half profit $194m vs year-ago $328m down 41%, but beating consensus $135m. Revenue $5.17bn vs consensus $5.12bn. Interim of 16c declared. Guidance for the full-year narrowed. Profit $260-340m vs prior $220-340m.
  • CIMIC Group (CIM) full-year underlying profit down 35.2% to $405.4m vs consensus $422.8m. Revenue up 39% to $14.71bn vs consensus $12.65bn. Numbers in line with company guidance. Work in hand $33.18bn, new work $20.4bn. Final dividend 36c, unfranked down from 60c a year ago. Sees underlying profit between $425-460m In FY22.
  • Northern Star Resources (NST) first-half underlying profit $108m vs year-ago $193m. The result was hit by depreciation and amortisation post the Saracen merger. Revenue of $1.81bn was higher than last year’s $1.11bn. An interim dividend of 10c, fully franked, up 5% on the same period last year. No changes to full-year guidance sees gold production between 1.55-1.65Moz at an AISC of $1,475-A$1,575/oz. Aims to be a 2Moz producer by 2026.
  • NAB (NAB) first-quarter results. Cash earnings up 9.1% vs 1Q21 to $1.8bn. Net interest margin was down 5bps to 1.64%. NAB singing the same song as the others, competitive pressures weighing and less favourable lending mix. Morgans Stanley was expecting only a 4bp drop to 1.65%. Expenses were up 2% on the back of higher salaries and leave costs although the bank is hoping those will ease, targeting flat expenses in FY22. Management optimistic about the outlook. “We are well-positioned to continue to grow with a strong balance sheet and disciplined execution of a clear strategy.” Volumes were strong over the quarter, lending and deposits each up $18bn. NAB added it managed to gain market share and the customer experience gauge is no longer negative. CET1 ratio at 12.4%, down from 13.0% in September due to 2021 final dividend and ongoing on-market buyback.
  • Downer EDI (DOW) – profit has risen during the first half of the new financial year. total revenue dipped 2.3% to $5.97bn while profit climbed 19.9% to $88.6m.
  • Nuix (NXL) – ASIC clears financial statements and prospectus.
  • Mirvac Group (MRV) has increased its interim distribution after a strong first-half performance which saw profits and revenues rise. Revenue rose 38% to $1.7bn while net profit soared 44% to $565m. Operating profit climbed 9% to $297m. Interim distribution of 5.1c a share, up from 4.8c a year ago.
  • Origin Energy (ORG) – Non-impairment charge of $200m.
  • Northern Star Resources (NST) first-half underlying profit $108m vs year-ago $193m. The result was hit by depreciation and amortisation post the Saracen merger. fully franked interim dividend of 10c, up 5% on the same period last year. The company said it remains on track to meet its FY22 production guidance.

Economics News/Bond Markets

  • Josh Frydenberg has failed to get his controversial proxy adviser bill through the Senate.

Monthly business turnover indicator.

Winter Olympics

  • No more CV19 news. Olympics much more interesting. HK an issue with 1000 cases a day and zero tolerance.
  • One snowboarder was described by the commentator as someone who doesn’t miss the buffet. Big man apparently.

Asian Markets

  • One of the top experts on the Japanese economy believes that there is a real likelihood that inflation ends the year higher at around 1.5% if petrol prices remain high.

US and European News

  • CPI tonight in US. Expect the unexpected.
  • US is now weighing its options as China ‘buy US’ falls short.
  • Biden approval rating falls to 39%. Fuel prices not helping.
  • US senators say they were stunned with the progress Iran has made with its nuclear program. Probably not in a good way.
  • US has warned Russia again as border build up continues.
  • US lawmakers heading for a restriction on trading by members and staff.
  • Microsoft pledges to ‘be good’ if allowed to buy Activision.
  • Boris Johnson calls time on isolation for anyone even those that test positive. BYOB too. Bring a suitcase to celebrate.

And finally….

Been waiting for an appointment to see my Dr for months now! Finally got to see him today and showed him the itchy rash on my bottom, but he just ignored me and carried on pushing his trolley around Tesco’s