The ASX 200 jumped out of the blocks consolidating the gains and finishing up 86 points to 7149 (+1.2%). US futures optimism helping ahead of FOMC this week. Financials and industrials were the backbone, the Big Bank Basket rose to $182.19 (+2.4%), MQG up 2.6% and insurers better with SUN up 3.2%. Higher bond yields driving financials. MFG slipped again on FUM running out the door, down 1.4%. Healthcare was better, CSL up 2.6% and COH up 2.0%. In the industrials, TLS rose 1.6%, COL up 2.2% and WOW higher by 0.9%. REITs firm with tech mixed, SQ2 down 3.7% with CPU up 2.6% and the All-Tech Index up 1.1%. Miners were generally weaker, BHP off 0.7%, FMG down 1.0% and IGO falling 2.0% on delays to the WSA bid. WGX came back from suspension after a capital raise falling 12.70%. Oils eased back, STO down 0.3% and WPL off 0.2%. In corporate news, ELD soared on a business update with an 11.00% gain to a near 12-year high. VRT rose 7.5% on an agreed bid for the company from Cap Vest at 825c. BOE fell 3.8% in half-yearly results. Asian markets mixed with HK under pressure on CV19 issues. 10 year yields up to 2.44%
End of Day Podcast – Monday, March 14
- Winners: NMT, ELD, IHL, JIN, VRT, LFS, PDL
- Losers: WGX, CTT, PDN, INR, STX, CVW, 88E
- Positive sectors: Banks. Insurers. Healthcare. Consumer staples
- Negative sectors: Iron ore miners. Base metals. Gold miners. Lithium
- High 7149 Low 7070. Closes on high.
- Big Bank Basket: Jumps to $182.19 (+2.45%) on a bond yield jump
- All-Tech index: Up 1.1%
- Gold: Higher at $2731
- Bitcoin: Falls to US$38316
- Aussie Dollar: Steady at 72.53c
- 10-Year Yield: Rises to 2.44%
- Asian markets slide in HK especially in tech stocks, down 3.8%. China down 1.3% and Japan up 1.2%.
- US Futures: Dow up 192 – Nasdaq up 59
Stocks on the Move
- ELD +11.00% solid business update. Hits 12 year high.
- NMT +12.59% recycling battery deal with Mercedes.
- VRT +7.53% agrees takeover at 825c.
- ORI +5.87% explosive move higher.
- SHP +14.29% German potash play.
- ADO +11.70% chair search and ED appointment.
- CKA +6.45% Indonesian met coal project.
- LVT -16.00% soon to be dead tiles.
- PNR -13.24% placement weighs.
- WGX -12.70% placement at 210c.
- CTT -8.92% slide continues.
- PDN -7.47% sells mining information for Agadez project.
- Speculative stock of the Day: Qx Resources (QXR) +19.15% good volume nothing on announcement front.
In the News
- Mineral Resources (MIN) has snapped up a 5% stake in Global Lithium Resources (GL1) as part of the explorer’s $29.9m capital raising.
- Elders Limited (ELD) expects to report FY22 Underlying EBIT1 in the range of 20% – 30% above FY21 Underlying EBIT. This outlook exceeds forecast market expectations as calculated from the mid-point of the earnings expectations of sell-side analysts covering Elders. “After finalisation of the February trading numbers, which continue improved earnings for the first quarter, we now believe we will exceed analysts’ consensus for the full year to 30 September 2022 and produce an Underlying EBIT result in the range – which is necessarily broad given we are only five months into our financial year.”
- Virtus Health (VRT) – Entered into a binding implementation deal with CapVest at 825c less the value of any dividends or distributions declared or paid after today, including the 12c a share dividend declared on February 22.
- Magellan Financial Group (MFG) – has reported total FUM of $69.1b vs previous month $77.2bn. MFG experienced outflows of $5bn, which comprised of net institutional outflows of $4.7bn.
- Ampol (ALD) – to sell Gull business to Allegro for NZ$572m
- Telstra (TLS) – is closing in on the acquisition of a 51% stake in Fetch TV for an undisclosed sum
- Liontown Resources (LTR) – swings to a profit, reporting first-half profit of $47.3m vs year-ago ($5.0m).
- Westgold Resources (WGX) – has completed its $100m placement to new and existing investors at 210c.
Economic News/Bond Markets
- Foxconn is halting operations at its Shenzhen sites, one of which produces iPhones, in response to a government-imposed lockdown on the tech hub city. The measures from the Chinese government call for non-essential businesses in Shenzhen to halt until March 20.
- About 300,000 people in Hong Kong are currently in isolation or under home quarantine because of Covid. officials said there were more than 32,000 new confirmed Covid cases, compared with a high of over 56,000 on March 3.
- HK Earthquake just to add to the fun.
- North Korea set to test another ICBM. Bless.
- China planning a massive increase in coal mining to combat reliance on imports. It wants to boost domestic production capacity by about 300m tons. It also plans to build a 620m ton stockpile of the fuel split between government, miners and users.
US and European News
- US and China to meet in Rome for high-level talks. Reasons to be cheerful.
- William Hurt has died. Vale.
- Barack Obama tests positive for Cv19.
- A Chinese company is negotiating with the Taliban to mine one of the world’s largest untapped reserves of copper.
- Russia hoping to pay its debt obligations in Rubles this Wednesday. Could default. First time in 100 years.
I just got an email saying ‘At Google earth we can read maps backwards!’ I thought, “That’s just spam.”