The ASX 200 rose 35 points (+0.5%) as commodities rose strongly across the board, oil, iron ore and coal showing serious strength. Well off early highs as we prepare for another bumpy night. Miners were sought out and bought up, BHP up 3.6%, FMG up 4.2% and STO rising 1.7%. WHC up 10.6%, not sure how rain is affecting production at Maules Creek but prices have doubled at Newcastle in a few days. YAL rose 11.0% and SMR in a trading halt as it takes advantage of demand to raise capital. Gold miners under pressure as safe haven selling saw bullion drop. Base metals better, IGO up 4.4%, lithium stocks strong, PLS up 5.3% and CXO rising 5.3%. Coal and oil stocks a feature, SOL up 3.4% and NHC up 4.3%. Healthcare a little sick as CSL fell 1.3% and SHL down another 2.2%. Industrials weighed down by dividends, REITs under a little pressure as bond yields rose to 2.18% again. Banks flat with the Big Bank Basket unchanged. Tech mixed as SQ2 fell 3.1% and CPU up 0.6%. The AllTech Index down 0.5 %. In corporate news, pretty quiet. Economic news with building approvals down 27.9% in January. Must have been omicron affected. Asian markets mixed with Japan up 1.3%, China up 0.1% and HK up 0.5%. 10-year yields up to 2.17%.

End of Day Podcast – Thursday, March 3

Major Movers:

  • Winners: PBH, 5EA, RED, YAL, MCR, WHC, LKE
  • Losers: ERA, 88E, MND, PNV, PTM, MIR, BLX
  • Positive sectors: Iron ore. Coal. Oil and gas. Base metals. Lithium
  • Negative sectors: Healthcare. Gold miners. Tech
  • High 7198 Low 7151. Plenty of dividends around. Hits top of range. Closes on lows
  • Big Bank Basket: Slips to $171.70 (-0.1%)
  • All-Tech index: Down 0.5%
  • Gold: Higher at $2642
  • Bitcoin: Steady at US$43389
  • Aussie Dollar:  Rising to 73.00c
  • 10-Year Yield: rises to 2.17%
  • Asian markets mixed with Japan up 1.3%, China up 0.1% and HK up 0.5%
  • US Futures: Dow up 28, Nasdaq down 18

Stocks on the Move

  • PBH +18.21% CNBC talks mergers in US.
  • YAL +10.98% WHC +10.61% NHC +4.27% coal goes nuts.
  • NMT +8.11% battery bounce
  • LTR +6.95% lithium picks up.
  • RF1 +5.90% investor webinar.
  • 5EA +13.97% second-day bounce.
  • HCH +16.48% copper agreement with Glencore.
  • TLG +12.00% upgrades to Euro graphite resource.
  • STP -7.65% undies are down.
  • MVP -5.79% profit-taking on US presentation.
  • PNV -6.36% reverses recent gains.
  • 88E -7.69% drilling kicks off Monday.
  • Speculative stock of the Day: No huge volume standouts, Lodestar (LSR) +30.00% commences exploration for lithium at Coolgardie West.

In the News

  • Speculation Seven Group (SVW) is looking to sell Crux gas field stake through Macquarie. The 15% stake could cost more than $250m.
  • Stanmore Resources (SMR) announces a partially underwritten entitlement offer to raise US$506m at 110c.
  • Woodside (WPL) – reiterates its climate plan as investor pressure mounts.
  • Syrah Resources (SYR) completes retail component of entitlement offer.
  • Panoramic Resources (PAN) – update at Savannah Nickel Project.
  • Insurance Australia Group (IAG) – contesting close to $300m in claims related to Greensill Capital.
  • CIMIC (CIM) has rebuffed allegations of underpaying workers in its troubled Middle East operations.
  • Telstra (TLS) in advanced talks to acquire a majority stake in Fetch TV.
  • Dusk (DSK) snuffs out candle purchase of Eroma for $28m.
  • Ardent Leisure (ALG) acquires three existing entertainment centres in Colorado.

Economic News/Bond Markets

  • WA reopens. Love Actually remake.
  • Building approvals for January down 27.9% vs consensus of a 3% drop. The ABS pointed out the fall was driven by a large fall for private sector dwellings excluding houses, which fell 43.6%.
  • International trade in January recorded a surplus of $12.891bn, ahead of estimates of $9.05bn. Exports were up8%, imports down 2%.
  • Regal Investment Management believes resource stocks are at the beginning of a decade-long boom

Asian Markets

  • Singapore will set up a new wing of its armed forces dedicated to digital security. ‘Cyber Force’ will be established as a fourth service meant to integrate and expand the city-state’s capabilities in the digital domain.
  • Toyota and Honda join the company boycott of Russia.
  • China could give up on a its ‘Zero Covid Strategy’. Record numbers in HK.

US and European News

  • Eurozone inflation hits 5.8%
  • Powell back 25bps rise. Russia is now un-investable and taken out of MSCI Indices.
  • Russia cut to junk.
  • Roman Abramovich says he will sell ‘Chelski’. Forgives loans. Boat up on Boatsales. 
  • Amazon CEO pledges a boost to cybersecurity in the Ukraine.
  • Credit Suisse asks investors to destroy yacht loan documentation from Oligarchs.
  • Citigroup warns that Russian exposure could cost it US$4bn.
  • January 6th panel says Trump may have committed a crime.

And finally….