The ASX 200 fell 31 points to 7454 (0.4%) in quiet trade ahead of US CPI. Everything down across the board, except 10-year yields up to 3.08%. Miners bounced a little in the afternoon as Asia rallied, lithium stocks on the nose again, PLS fell 5.8% on a production report, MIN down 0.2% and BHP unchanged with IGO and S32 down too. Gold miners a little mixed, RED doing well up 2.5% and NCM off 1.1%. Energy stocks flat despite a 2% rise in oil in Asian trade, STO down 0.9% and WPL unchanged. Banks stumbled with WBC down 0.4% and ANZ falling 1.0% on a broker downgrade. The Big Bank Basket eased back to $191.21 (0.3%), MQG rose 0.6%. Healthcare fell as CSL once again under pressure, down 1.3% with RMD and FPH off 3.4% and 2.3% respectively. WES fell 1.0% and other consumer stocks drifted lower in low volume trade. Tech fell with SQ2 down 0.4% and WTC falling 2.2%. The AllTech Index fell 0.9%. In corporate news, IMU fell 8.7% as shares were released from escrow and PAR gained 19.0% on FDA fast tracking designation for OA. In economic news, ANZ consumer confidence rose slightly, and the 10-year keep going higher and higher. 3.08% now. Asian market mixed, China tech on the nose, CSI rose 1.1% HK up 0.6% and Tokyo down 1.7%

MAJOR MOVERS:

  • Winners: 5EA, RRL, PGH, CMM, ELD, SBM, GRR
  • Losers: IMU, CCX, BLX, LKE, PLS, CXO, Z1P, PAN
  • Positive sectors: Iron ore miners just.
  • Negative sectors: Healthcare. Tech. Banks. REITs
  • Hi 7484 Lo 7431. Narrow range. Low volume.
  • Big Bank Basket: Eases to $191.21. Down 0.3%
  • All-Tech index: Down 0.9%
  • Gold: Better at $2635
  • Bitcoin: Down to US$39940
  • Aussie Dollar: Steady at 74.35c 10-YEAR YIELD: Better at 3.08%.
  • In Asian trade, Japan down 0.8%, China down 2.4% and HK off 2.5%
  • US Futures: Dow down 154 Nasdaq down 54

STOCKS ON THE MOVE

  • 5EA +11.23% kicks again.
  • RED +2.50% KOTH getting closer.
  • ARU +1.43% promising bounce.
  • PAR +18.97% FDA fast track for OA.
  • TVL +16.13% NTA down to 26c.
  • 88E +6.67% project Long Horn update.
  • CCX -7.96% rout continues.
  • IMU -8.70% stock released from escrow.
  • Z1P -5.71% change of director’s interest.
  • PLS -5.84% production issues with staff in WA again.
  • LTR -5.34% NVX -5.45% lithium and battery stocks ease.
  • NVA -2.35% Snow Lake lithium hydroxide plant.
  • NET -15.79% big fall low volume.
  • Speculative stock of the Day: Krakatoa Resources (KTA)  +94.92% exploding higher on major clay hosted ionic rare earth discovery at Mt Clere. Decent volume too.

IN THE NEWS

  • The Overseas Investment Office (OIO) has approved Ampol’s (ALD) acquisition of Z Energy.
  • G8 Education (GEM) Q1 operating EBIT $1m vs year-ago $17m.
  • Lynas Rare Earths (LYC) Q3 revenue $327.7m vs quarter-ago $202.7m. Cash balance $768.4m. Q3 NdPr production of 1,687t vs quarter-ago 1,359t.
  • Pendal Group (PDL) reports total group FUM at 31-Mar $124.9bn vs quarter-ago $135.7bn. The board has determined the non-binding indicative offer from Perpetual is not in the best interests of shareholders and PDL intends to commence on-market share buy-back of up to $100m following results on May 10. says Perpetual (PPT) offer is not in the best interests of shareholders and announces a $100m on-market buyback.
  • Firefinch (FFX) reports Q1 Morila gold production of 10,874oz.
  • Southern Cross Electrical Engineering (SXE) awarded ~$50m of iron ore sector projects.
  • Pilbara Minerals (PLS) – Prodcution report shows effect of CV19 in WA but sticks to annual guidance.
  • Block (SQ2) has released accounts showing that Afterpay’s net loss ballooned to US$345.5m ($466.4m) for the six months ended last December 31 from $79.2m in the year-earlier period. Bad debts ballooned to US$176.7m over the six-month period, versus US$72.1min the year-earlier period. Bad debts made up 27.4% of total revenue over the half-year.

ECONOMIC NEWS/ BOND MARKETS

  • Weekly consumer confidence gained 1.3% last week in response to falling petrol prices according to ANZ.
  • Home rents jumped by as much as 21% in some capital cities during the past 12 months. Brisbane posted a 21.2% rise in house rents – the highest increase of any capital city, followed by Sydney with 19.1%. Vacancies across the country falling to just 1%.

ASIAN MARKETS

  • Japan is facing more power shortages next winter unless something changes. The power reserve ratio, which measures available spare capacity, could turn negative for the Tokyo area in January and February 2023. It may need to restart some of its older and inefficient thermal power plants for the upcoming winter months.
  • China’s Premier Li Keqiang issued a third warning about economic growth risks in less than a week. CV19 is taking its toll.
  • Li said that pro-growth measures should be brought forward and accelerated, including tax and fee cuts, sales and usage of special bonds, and incentives to keep jobs. Home sales have slumped and car sales down 10.9% y/y.
  • Video game shares rise after China ends freeze on approvals. Kuaishou Technology was the largest drag, falling as much as 11%, with investors citing concerns about its earnings outlook.
  • Honda announces a US$40bn EV plan. Plans to have 30 models by 2030. Honda also said it plans to produce some 2m electric vehicles a year by 2030.

US AND EUROPEAN NEWS

  • US CPI set to see levels not seen since 1981.
  • European futures set for a fall this morning.
  • German CPI up 2.5% M/M in March.
  • Dewa lists in Dubai with a US$6.1bn IPO. Dewa is the Dubai water authority.
  • Ukraine calls for financial support to ensure survival.
  • Epic Games secures US$2bn from Sony and Lego to build gaming metaverse.
  • Thoma Bravo agrees US$6.9bn deal for cyber security group SailPoint
  • Austria’s Nehammer has said his meeting with Putin left nothing positive to say.
  • OPEC warns of supply shocks due to Russian oil embargo.

And finally…

Clarence

XXX