The ASX 200 finished the week up 35 points at 7478 (0.5%). Quiet trade with caution ahead of the weekend. Banks were slightly higher with CBA and ANZ showing gains, the Big Bank Basket closed at $189.45 (+0.2%). MQG bounced with a 0.8% gain, MFG fell back 1.6% and PTM had outflows to FUM and outflows to the share price falling 15%. Healthcare mixed, CSL down 0.3%, industrials firmed, TLS up 1.3% and TCL up 1.0% with GMG better with a 0.2% gain. Miners were back in shopping baskets as BHP rose 1.7% as an independent report pronounced the WPL deal fair and reasonable. WPL down 1.5%. FMG rose 0.4% and gold miners firmed as bullion rose, NCM up 2.9% and EVN up 2.1%. Lithium stocks bounced a little as bargain hunters stepped in and UBS upgraded price forecasts. AKE up 2.2%, SYA up 6.8% and MIN up 2.2%. IGO fell 1.7% as the WSA talks continue. Uranium stocks were glowing red hot as French elections this weekend and UK embraces nuclear power too. PDN up 13.1%, BOE up 8.4% and ERA finding buyers up 4.7%. Tech stocks were mixed, WTC down 1.6% and SQ2 fell 1.4%. The All–Tech Index flat. In corporate news, not much really, SGR fell 2.8% on its licence review update and BHP/WPL merger ticked another box. A 237-page merger explanatory memorandum was released. Vote is 19th May. On the economic front, the RBA released its financial stability report and Asian markets were a little higher. 10 -year yields hit 3% then backed off to 2.96%.
End of Day Podcast – Friday, April 8
- Winners: PDN, 5EA, BOE, SYA, CMM, SHV, SMR, GNC
- Losers: PTM, LKE, TYR, IHL, HT1, PRN
- Positive sectors: Iron ore. Uranium. Lithium. Banks
- Negative sectors: Tech just
- High 7492 Low 7454. Narrow range. Low volatility
- ASX 200 down 16 points for the week. Much ado about nothing.
- Big Bank Basket: Up slightly to $189.45. Modest 0.2% rise
- All-Tech index: Pretty much unchanged
- Gold: Better at $2582
- Bitcoin: Rises to US$43,605
- Aussie Dollar: Steady at 74.85
- 10-YEAR YIELD: Better at 2.96%. 3% hit early and backed off
- In Asian trade, HK down 0.15% China up 0.56% and Japan up 0.21%
- US Futures: Dow up 30. Nasdaq up 55
Stocks on the move
- PDN +13.12% uranium fires up on Macron and Johnson.
- BOE +8.40% kicks higher from the off.
- SYA +6.78% director exercises options.
- SMR +5.97% coal in fashion.
- RED +4.05% bouncing back.
- ADN +21.05% investor presentation and director shareholding.
- BTI +16.33% Instaclustr investment pays off.
- 88E +14.29% Icewind update.
- PEN +14.89% uranium play.
- PTM -15.02% FUM disappoints.
- LKE -6.77% slide continues.
- TYR -4.60% no love still.
- SGR -2.81% review update.
- RDT -13.74% Mt Ida drilling update.
- NGI -8.00% placement completed.
- MAY -6.06% weekend profit taking.
- LRS -5.00% profit taking.
- IPO of the Day – Noble Helium (NHE) +97.50% great debit and decent volume.
- Speculative stock of the Day: Okapi Resources (OKR) +31.94% Gold stock. Recent investor presentation.
IN THE NEWS
- Pro Medicus (PME)signs 8-year $32m contract with Inova Health System in North Virginia.
- GrainCorp (GNC) guides FY adjusted EBITDA $310-370m vs prior guidance $235-280m and FactSet $267.7m
- Rio Tinto (RIO)takes 100% control over Queensland Alumina Ltd
- Woodside’s (WPL) $41bn merger deal with BHP is “fair and reasonable” to shareholders, an expert independent report has concluded. KPMG’s independent report into the merger said it would create a stronger business.
- Virtus Health (VRT) suitor CapVest Partners has lodged a fresh claim with the Takeovers Panel about BGHs unconditional 800c cash bid.
- The Independent Liquor and Gaming Authority has advised the Star Entertainment (SGR) that the deadline for provision of the review has been extended from June 30 to August 31.
- Inventories of base metals in LME warehouses have plummeted to critically low levels. Available stockpiles across the six main contracts on the LME, copper, aluminium, zinc, lead, tin and nickel, have fallen to the lowest level on record based on data going back to 1997.
ECONOMIC NEWS/ BOND MARKETS
- Australia’s 10-year physical bond yield briefly broke the 3% mark in morning trade.
- National Australia Bank has upgraded its forecast for the Australian dollar based on a strong commodity price backdrop to trade comfortably into the US80¢ range.
RBA Financial Stability Report
- China CV19 cases hit record of 21,000.
- China kicked off a formal campaign to rein in the potential abuse of algorithms by internet giants from the likes of ByteDance and Tencent. The Cyberspace Administration of China will conduct on-site inspections of firms and ask them to submit their various services for review.
- The Hang Seng Tech Index fell 2.2%. Tencent said it will shut down Penguin Esports in June
US AND EUROPEAN NEWS
- European futures showing around a 1% rise in major markets.
- France heads to the polls this weekend. Macron favourite to win runoff against Le Penn.
- Boris Johnson has pledged to approve up to eight new nuclear power plants in the next eight years
- NATO agrees to supply heavy weapons to Ukraine.
- US imposes strict curbs on contentious Biogen Alzheimer’s treatment.
- Nineteen blank-cheque company mergers (SPAC deals) have been cancelled in 2022 compared with three a year ago. Looks like deals will need to be more attractive to attract buyers.