The ASX 200 limped 19 points higher to 7406 (0.3%) in quiet trade. Materials were once again the star sector. BHP up 1.0%, FMG up 1.7% and base metals too better, S32 up 0.4% and IGO better by 3.5%. Gold miners also in demand, NCM up 3.5% and RED up 5.5%. Lithium stocks firmed again, PLS up 3.2% and LTR up 2.7%. Oil stocks slightly positive, STO up 0.6% with coal stocks doing well, YAL up 1.7% and CRN better by 9.5%. In the banks, a slightly softer day, CBA down 1.3% and the Big Bank Basket down to $188.94 (1%). MQG bounced back 0.7% and GQG up 3.4%. Industrials were firm, CWN up 0.6%, ALL up 0.9% and BXB up 1.6%. REITs firm, Tech weaker, SQ2 down 3.1%, XRO up 1.6% and CPU up 1% with the All-Tech Index down 0.4%. In corporate news, FFX rose 5.6% after a resource upgrade, did JCap know? The MD of CXO resigned and PMV fell 1.6% after a good sales result and increased dividend. Nothing on the economic front ahead of the budget next week. Asian markets slightly weaker with Japan down 0.3% with China down 0.9% and HK down 1.6%
- Winners: SYA, DGL, CRN, ECX, FFX, RED, MLX, BSL
- Losers: TLX, BRN, DDR, TUA, IMU, BOE, RNU
- Positive sectors: Iron ore. Gold. Oil. Coal. Lithium and base metals.
- Negative sectors: Banks. Healthcare. Tech.
- Hi 7431 Lo 7394 Narrow range. ASX 200 up 1.5% this week.
- Big Bank Basket: Falls to $188.74 (1.0%)
- All-Tech index: Down 0.4%
- Gold: Rallies to $2605
- Bitcoin: Rises to US$43996
- Aussie Dollar: Rises to 75.23c 10-YEAR YIELD: Steady at 2.77%.
- Asian markets sluggish with Japan down 0.3% with China down 0.9% and HK down 1.6%
- US Futures: Dow up 65- Nasdaq up 28
STOCKS ON THE MOVE
- CRN +9.46% coal price rises.
- DGL +9.49% off highs.
- MGX +3.33% iron ore rises.
- RED +5.48% KOTH getting closer.
- FFX +5.59% JCap report front runs resource increase for Viper and N’Tiola.
- BKW +4.81% broker upgrades
- AVZ +3.17% kicks again. $4bn MC and no mining licence as yet.
- WZR +10.00% waking up.
- PLL +9.73% closure of public offering.
- TLX -11.18% slide continues.
- BOE -4.94% SPP offer documents.
- BET -3.68% PBH -4.36% gamblers lose.
- EMV -10.00% run unwinds.
- Speculative stock of the Day: Mandrake Resources (MAN) +38.30% acquisition of a high grade Chile copper project. Good volume.
IN THE NEWS
- Premier Retail (PMV) – delivered global sales for the half of $770 million, up 0.6% on 1H21 and up 5.2 per cent on 1H20. Like-for-like sales growth for the half was 8.9%. Record interim dividend of 46c, up 36% on last year.
- Z Energy (ZEL) – voted in favour of the scheme of arrangement under which 100% of the shares in the company will be acquired by Ampol (ALD).
- Tietto Minerals (TIE) – Looking to raise $100m today at 50c. Titetto’s flagship gold project is Abujar in Côte d’Ivoire.
- Neuren Pharmaceuticals (NEU) – has received approval from the US Food and Drug Administration to proceed with the Phase 2 trial of NNZ-2591 in Pitt Hopkins syndrome (PTHS).
- Healius (HLS) sells Adora Fertility for $30m as part of its strategy to simplify its portfolio. Its pathology segment did well from the COVID testing in the last two years. Topped out in January this year.
- Brookfield joins with Morrison in a bid for Uniti Group (UWL). This comes after Macquarie Asset Management and PSP Investments submitted a bid for Uniti Group at 500c. Uniti Group approved the new combination and has entered into a new exclusivity deed with the partnership. There has been no change to the proposed consideration, 450c per share. But the new consortium could be a move to outbid Macquarie and PSP Investments.
ECONOMIC NEWS/ BOND MARKETS
- Australian three-year government bond yields hit a fresh three-year peak of 2.25% in the session, the highest since May 2018. It has gained 29bps this week. AUD on track for a four and a half month high up around 1.4% this week.
- ANZ says there is no “mechanical” link between the US Federal Reserve and the RBA. From the end of 2015 until late 2018, the Fed tightened by more than 200 basis points whereas the RBA lowered its cash rate over that period.
- New Zealand mortgage rates are set to rise above 5% for the first time in seven years. The interest rate on a two-year fixed mortgage may rise as high as 5.5% by the end of this year, according to a survey of economists at New Zealand banks by Bloomberg.
- Chinese plane crash mystery deepens as evidence of a mid-air break up.
- Shanghai’s Covid cases jumped more than 60% in a single day to a record 1609 cases.
- Nickel rose to an intraday record in Shanghai after another spike in London. Copper rose for an eighth day in Shanghai too.
- Kim Jong Un fired another ICBM and warned about a “long-standing confrontation with the U.S.”
US AND EUROPEAN NEWS
- Biden says he will respond if Putin uses chemical weapons. Expected to announce a big LNG deal with EU today.
- Larry Fink from BlackRock says Ukraine war marks end of globalisation. Warns on inflation.
- Google, Amazon, Apple, Meta and Microsoft may have to change their core business practices in Europe as EU countries and EU lawmakers signed a deal on landmark rules to curb their powers. The Digital Markets Act (DMA) sets out rules for online gatekeepers – companies that control data and platform access.
- In a sign of the times, Instacart is slashing its valuation by almost 40% to about US$24bn. The food-delivery startup had been valued at $39bn in its most recent fundraising round. Oops.
- Mexico’s president leaked an interest rate rise hours before central banks. Tío.
- Germany sets out EUR16bn aid package to counter soaring energy costs.