The ASX 200 traded up 51 points today to 7049 (0.7%) in volatile trade ahead of events unfolding in Ukraine. Late 20-point surge helped. US futures having a serious wobble took the wind out of the sails from Saturday as weekend events unfolded. Bank stocks under pressure with the Big Bank Basket down to $171.22 (0.3%), Insurers fell as QLD floods get worse, QBE down 2.5% and IAG off 4.0%. Healthcare mixed with CSL down 0.5%, RMD up 1.8%. Industrials better, DXS up 2.6%, TLS up 0.5%, BXB up 0.9% and EDV rising 1.7%. Oil stocks bounced on oil moving higher with STO up 1.5% and WPL rallying 2.1%. Iron ore miners and gold were firm, BHP up 4.4% and RIO up 3.2%. FMG ex dividend today. Gold miners firmed as bullion pushed above US$1900. NCM up 3.4% and NST up 3.1%. Tech hanging in, WTC up 0.2% and SQ2 rising 1.0%. The All–Tech Index fell 0.6%. In corporate news, Last day of results with Z1P tapping shareholders for another $200m and announcing it is buying SZL for shares. CVN up 17.8% on drilling news. Economic news today with retail trade up 1.8% slightly below estimates. Asian markets weaker and volatile. Oil above US$100.
- Winners: GRR, ALK, 88E, TUA, CUV, JLG, HDN.
- Losers: 360, AX1, FCL, TYR, TLX, OPH, CCP.
- Positive sectors: Iron ore. Gold miners. Energy.
- Negative sectors: Banks. Tech.
- Hi 7050 Lo 6979. Closes on highs.
- Oil above US$100. EU energy ministers to meet today.
- Big Bank Basket: Falls to $171.22(0.3%)
- All-Tech index: Down 0.5%
- Gold: Rallies to $2658
- Bitcoin: Easier to US$37848
- Aussie Dollar: Steady at 71.79c 10-YEAR YIELD: Slips to 2.13%.
- Asian markets fall, Japan down 0.3%, China down 0.4% and HK down 1.4%
- US Futures: Dow down 460points Nasdaq Futures down 300 points. Ruble plunges to record lows.
STOCKS ON THE MOVE
- CUV +8.09% chairman’s letter.
- JLG +7.95% food winner.
- GRR +31.97% great results.
- CVN +17.78% Pavo-1 Drilling update.
- TNT +16.67% cyber play.
- LYC +6.90% sold rally continues. Metal prices squeezed higher.
- CCR +3.53% spurts higher. Fat finger?
- IRI +8.66% bargain hunters.
- 360 -8.93% now 330 again. Tech sell off.
- AKP -3.21% final report. Thin volume as usual.
- NVA -32.97% Korbel gold project starter pit scoping study.
- IAG -3.97% update on second business insurance test case judgement.
- EOS -11.54% results presentation.
- TIG -25.00% coal update.
- Speculative stock of the Day: Carnaby Resources (CNB) +12.96% decent volume. Lady Fanny shines on results and drilling from Friday.
IN THE NEWS
- Betmakers Technology Group (BET) first-half adjusted EBITDA $2.3m vs year-ago -$0.8m and consensus $1m. Net loss widens to $27.8m vs year-ago $4.4m. Revenue $43.5m vs year-ago $7.6m. and consensus is $43.6m. Up 4.4% initially on the release.
- Zip Co (Z1P) to acquire Sezzle in all-scrip offer of 0.98 Z1P shares for each SZL share, Z1P launches $198.7m raising at 190c. The deal values SZL at a 22% premium at $491m.
- Allkem (AKE) swings to profit. First-half profit US$13m vs year-ago US$29.1m loss. Revenue US$192.3m vs year-ago US$35.9m. Upwards pricing momentum for lithium products continues, added lithium carbonate prices for H2 FY22 are expected to be up ~125% on the H1 FY22 and up 25% from previous guidance. WA border opening on March 3 to reduce the pressure on staff and material resourcing and improve cost management. Upgraded pricing and a better outlook for costs are positive takeaways from the release.
- BWP Trust (BWP) chairman Erich Fraunschiel to retire. Tony Howarth appointed replacement.
- Bellevue Gold (BGL) appoints Guy Moore as CFO. Moore was previously General Manager of Finance at Northern Star (NST)
- Redbubble (RBL) – shareholder Osmium Partners (~6% stake) encourages management to explore a sale to a strategic buyer. Etsy, eBay or Amazon named. RBL was a pandemic beneficiary which is now down more than 70% from its 2021 highs.
- Sandfire Resources (SFR) first-half profit US$55.2m missed estimates of US$66.4m. Revenue US$311.8m vs consensus US$290.2m. Interim dividend 3.0c (fully franked) vs year-ago 8.0c.
- BGH Capital has revised its takeover offer for Virtus Health (VRT), upgrading its bid to 765c from 710c.
- Dicker Data (DDR) – net profit rose 28.6% to $73.6m as sales climbed 24.2% to $2.48bn Dividends for the year climbed to 42c on earnings per share up 25.6% to 42.6¢.
- Dalrymple Bay (DBI) – revenue from ordinary activities rose 2054.2% to $505.1mwhile it reported a profit of $129.1m, rebounding from a $113.2m loss a year earlier.
ECONOMIC NEWS/ BOND MARKETS
- The latest Newspoll shows the overall flow of preferences remains unchanged, with a two-party-preferred split of 55-45% in Labor’s favour. This represents a swing of 6.5 points against the government since the last election.
- Preliminary retail trade for January up 1.8%. CBA was expecting a reading of 2%.
- Ahead of the RBA meeting tomorrow the Melbourne Institute Inflation gauge for February has reported headline inflation of +0.5% to be up 3.5% on a year ago.
- Company profit, inventories and wages all improve in the December quarter. Company gross operating profits rose 2.0% in line with estimates, wages and salaries rose 1.9% and inventories rose 1.1% vs estimates of a flat reading.
- Japan’s factory output fell for a second straight month in January. Production slipped 1.3% from the previous month, with falls at automakers and iron and steel manufacturers making the biggest contributions to the drop and driving output below year-earlier levels.
- Chinese EV maker Nio will start trading on the Hong Kong stock exchange next week. The company initially filed for a Hong Kong listing in March 2021, but that was delayed amid regulatory concerns about aspects of its structure.
- Excavator sales a leading indicator of construction activity, fell 48.3% in January from a year ago, data from the China Construction Machinery Association showed. Usage of excavators fell 35% to the lowest level in a year.
US AND EUROPEAN NEWS
- All about Russia.
- Peace talks today at the Belarus border.
- State of the Union today in US.
- EU President Ursula Von Der Leyen now backs Ukraine to join EU.
- German Chancellor Olaf Scholz’s cabinet increases military spending with a €100bn fund in the wake of the invasion of Ukraine
- Russian rouble to come under serious pressure down 20% and the stock market delays opening. SWIFT system under pressure.
- Russian market will ban sell orders from foreign investors.
- Russia is the world’s 11th largest economy.
- Oil giant BP has said it may take a $US25bn hit from the exit of its ~20% interest in Russian state-owned energy producer Rosneft.
- Chelski loses to Liverpool 10-11 on Penalties in Carabao Cup.
Give peace a chance.