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.  

MAJOR MOVERS:

  • 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.

ASIAN MARKETS

  • 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.

And finally…….

Give peace a chance.

Clarence

XXX