The ASX 200 rallied 25 points to 7479 (+0.3%). Solid start to the day built as US futures turned positive ahead of US banks kicking off reporting. Miners were the strength today as lithium and uranium stock rampaged ahead. SYA up 16.4%, AVZ up 11.7% and PDN up 9.6%. Big miners also solid with RIO up 2.0% and FMG up 0.8%. S32 rallied 1.4% with IGO up 2.2%. Energy stocks too were better, STO up 1.3% and YAL up 5.8%. Healthcare rallied as CSL ran 0.4% with SHL up 1.6% and industrials subdued. WES up 0.9% being one of the better ones. Banks were positive though CBA was down 0.2% with the Big Bank Basket steady at $191.40. Insurers flat as usual. Tech stocks were mixed with BNPL on the nose, Z1P down 2.3% and SZL down 6.4% now below its IPO price. In corporate news, EML rose 10.5% on speculation that private equity could be back after walking earlier this year from a takeover. In economic news, building activity fell and RBNZ raised rates by 50bps. 10-year yields eased back slightly with Asian markets, Japan up 1.4%, China up 0.2% and HK up 0.8%.

End of Day Podcast – Wednesday, April 13

Major Movers:

  • Winners: SYA, CXO, AVZ, EML, ARU, BET, LKE, PDN
  • Losers: ABC, PPH, JHX, PPT, OPH, Z1P
  • Positive sectors: Miners. Uranium. Lithium. Healthcare
  • Negative sectors: REITs
  • High 7489 Low 7460. Narrow range and low volumes.
  • Big Bank Basket: Steady at $191.40.
  • All-Tech index: Unchanged.
  • Gold: Better at $2647
  • Bitcoin: Slightly better at US$40,102
  • Aussie Dollar: Steady at 74.53c
  • 10-Year Yield: Eases to 3.04%.
  • In Asian trade, Japan up 1.4%, China up 0.2% and HK up 0.8%
  • US Futures: Dow up 220 Nasdaq up 148

Stocks on the Move

  • SYA +16.39% CXO +12.35% lithium is back.
  • ARU +11.27% bouncing back hard.
  • LKE +9.78% bargain hunting.
  • AVZ +11.65% Manono gets tick of approval.
  • EML +10.53% bid speculation.
  • PDN +9.64% BOE +8.49% BMN +16.36% uranium firing up.
  • HIO +17.98% Gina gets involved.
  • NRZ +9.52% urea licensor appointed.
  • PPH -3.00% investor briefing.
  • JHX -2.90% US housing market sags on rate rises.
  • Z1P -2.27% BNPL plunging with SZL down %
  • TVL -8.33% soft touch, reverses yesterday’s gains.
  • 4DS -4.40% profit-taking.
  • Speculative stock of the Day: Oncosil Medical (OSL) +73.81% first commercial pancreas treatment. Good volume too.

In the News

  • EML Payments (EML) announced it had attracted attention from Bain Capital, who has apparently walked away from discussion for now.
  • PointsBet (PBH) has launched its online casino product in the US state of Pennsylvania.
  • Pacific Smiles Group (PSQ) reports FYTD patient fees $166.5m down 8% YoY
  • Carnarvon Energy (CVN)provides a drilling update at the Apus-1 well
  • Southern Cross Electrical Engineering (SXE) awarded $20m of new contracts, order book now at $600m.
  • Ingenia Group (INA) has blamed labour shortages and excess rain for delays in developing new properties. It now expects underlying earnings per share to fall 1¢ to 2¢ in FY 2022.
  • Buddy Technologies (BUD) has gone into receivership, with shares suspended.
  • Cooper Energy (COE) – has been granted an exploration permit for the offshore Victoria Wobbegong prospective gas resource.

Best and Worst

Economic News/Bond Markets

  • The Reserve Bank of New Zealand has lifted its benchmark borrowing rates 0.5% to 1.5% and said it believes inflation in New Zealand will peak over the first half of 2022.

Building Activity -in seasonally adjusted terms in the December quarter:

  • Total dwelling unit commencements fell -13.5% to 50,200 dwellings.
  • New private sector house commencements fell -10.3% to 32,085 dwellings.
  • New private sector other residential commencements fell -19.4% to 17,070 dwellings.
  • The value of total building work done fell -1.6% to $30.3b.

Asian Markets

  • Chinese exports rose more than expected in March. China’s dollar-denominated exports grew 14.7% year-on-year in March, according to official customs data. imports, on the other hand, saw a 0.1% year-on-year decrease in March.
  • China to allow eight cities to shorten quarantine times in trial.
  • Shanghai cases exceed 26,000.
  • Inflation increasing across Asia on higher food and energy prices.

US and European News

  • Lumber (timber to you and I) prices are slipping to levels seen four months ago. Lumber futures fell as much as 8.4% to US$870 per 1,000 board feet in Chicago this week as the DIY market dries up in the US. Not so here as floods cause a tradie drought and some decide to DIY repairs.
  • James Bullard from the Fed has said ‘it’s fantasy to think that modest rate increases will tame inflation’.
  • Mexican truckers are blockading US border over an increase in checks.
  • Capital Group sells EUR1.27bn stake in Deutsche Group.