The ASX 200 moved up another 37 points to 7378 (+0.5%) today as banks burst higher as yields continue to move up. 10-year yields hit 2.82% at one stage and the Big Bank Basket rose to $190.85(1.1%) with CBA up 1.3% and NAB up 1.6% as brokers focus on buyback potential in May results. MQG kicked 1.3% higher but ASX lost 1.6% as CHESS issues abound. Insurers flat. Healthcare better with CSL up 0.8% and SHL up 1.7%, FPH fell 7.9% on a profit downgrade on freight cost increases, RMD down 3.0% on similar worries. Industrials were slightly higher with GMG up 1.3%, WES up 0.3% and REA up 1.0%. Tech doing well today, bombed-out shorted stocks like KGN up 7.3% and PBH better by 8.3%. WTC rose 2.1% and SQ2 up another 7.5%. CTT crashed 13.2% lower as the founder sold a near 10% stake at depressed prices. The All–Tech Index up 2.3%.Iron ore and gold miners slipped slightly. Lithium stocks again on the move and battery tech joining in, SYA up 13.5%, SYR up 6.8% and PLS up 3.7% with LTR approaching 200c. UWL went into a trading halt on huge volumes with Macquarie set to emerge with a 500c bid with PSP in tow. In more corporate news, KMD rose slightly on a profit downgrade. CVN rallied strongly up 14.1% on its drill results from Pavo-1 and CXL was rocket emojis all the way on FID on its LEILAC decision, closing up 15.7%. 10-year yields up to 2.78%, off highs. Asian markets better with Japan up 2.2% and HK up 1.6% with China missing the memo and flat.
End of Day Podcast – Wednesday, March 23
- Winners: CXL, CVN, SYA, UWL, IMU, LKE, PBH
- Losers: CTT, 88E, ASB, FPH, MSB, BLY, ADN
- Positive sectors: Banks. Tech. Lithium
- Negative sectors: Iron ore. Gold miners
- Hi 7387 Low 7330
- Big Bank Basket: Rises to $190.85 (+1.1%)
- All-Tech index: Up 2.25%
- Gold: Lower at $2574
- Bitcoin: Rises to US$42056
- Aussie Dollar: Rises to 74.57c
- 10-Year Yield: Kicks to 2.78%
- Asian markets better with Japan up 2.7% and HK up 1.7% with China missing the memo and flat. Again
- US Futures: Dow up 46 – Nasdaq up 10
Stocks on the Move
- CXL +15.66% stunning rise on FID on LEILAC.
- CVN +14.06% drilling results on Pavo-1
- UWL +10.66% huge volume announcement coming. Macquarie bidding 500c.
- IMU +9.62% clinical trial of new cancer therapy.
- KGN +7.30% tech bounce.
- PBH +% finally a rally.
- SQ2 +8.27% Block in US doing well on broker upgrades.
- ARL +43.80% Kalgoorlie nickel project recognition.
- PLT +10.50% upgrades forecast.
- COB +11.54% commencing underground development.
- CTT -13.23% founder sell down.
- 88E -11.90% drilling not looking good.
- ASB -11.25% Philippines OPV update.
- FPH -7.88% freight costs hit margins.
- Speculative stock of the Day: Riversgold (RGL) +47.73% High grade lithium at Tambourah announced yesterday. Buyers today.
In the News
- Macquarie Asset Management and PSP Investments have made a 500c a share bid for Uniti Group.The bid values Uniti’s equity at $3.6bn.
- Carnarvon Energy (CVN) – drilling results from Pavo-1 with Santos (STO) after it disclosed a significant oil discovery at the well.
- Plenti (PTL) up 10.5% after upgrading its profit forecast on the back of loan book growth.
- Kathmandu (KMD) has reported a statutory loss of NZ$5.5m on sales down 0.8% for the 6 months to January 31. It lifted the interim dividend 50% to NZ3c per share.
- Fisher & Paykel Healthcare Corp (FPH)guides FY22 operating revenueNZ$1.675-1.70bn vs FactSet NZ$1.77bn.
- Morgan Stanley has forecast huge buybacks from banks when they report in May. $1bn from ANZ Banking Group and $2bn from National Australia Bank.
- Cettire (CTT) founder and CEO Dean Mintz sold 35m shares in the e-commerce company, equivalent to a 9.2% stake, after his escrow period expired. The block was traded at 135c. Seems timing was extremely bad from Mintz.
- Aussie Broadband (ABB) has forecast between 580,000 and 590,000 active broadband connections by June 30, 2022. It said it expected to make net customer additions between 85,000 and 95,000 over the six months to June 30.
- Anteotech (ADO) – chief executive Derek Thomson has resigned.
Economic News/Bond Markets
- The Australian 10-year government bond yield climbed to a 52-week high of 2.82% before easing back to 2.78%.
- In New Zealand, the yield on 10-year government bonds has climbed to a 52-week high of 3.35% this afternoon.
- Ash Barty retires from Tennis. Class act.
- Speculation of a Tencent buyback in the works. Could follow Alibaba Group Holding Ltd. and Xiaomi Corp with massive buybacks.
- Core inflation in Singapore cooled slightly last month The core consumer price index tracked by the Monetary Authority of Singapore — which excludes private transport and accommodation costs — rose by 2.2% in February, below the median forecasts for a 2.6% increase and the 2.4% pace in January.
US and European News
- UK Spring Budget to come today. Fuel tax cuts of 5p to come. Wow. UK Inflation numbers could see 8% today.
- Biden will unveil new Russian sanctions on his visit to Europe. The U.S. and partner nations are expected to announce a new action aimed at “enhancing European energy security and reducing Europe’s dependence on Russian gas.
- Draghi endorses Ukraine’s bid for EU membership.
- Former Theranos President Ramesh ‘Sunny’ Balwani Begins His Defense
- Major oil pipeline suffers storm damage and could cut up to 1m barrels a day.
- US has agreed to ease tariffs on UK steel and aluminium imports.
- Volvo cuts 2022 production numbers. Musk does a jig at the opening of the first European Gigafactory. Gone viral.