The ASX 200 has once again tumbled 85 points to 7121 (-1.2%) failing to find support as US futures pointed to another difficult week for equities. A slight rally into the close. Broad-based losses again with resources firmly in the seller’s sights today as a China proxy and the AUD testing 70c. BHP dropped 1.3%, FMG off 5.8% and RIO down 2.3% with gold miners hit too despite bullion being slightly stronger, NST down 3.8% and NCM down 1.6%. Lithium miners and speculative resource companies also sold off heavily, PLS down 6.2%, LTR down 8.7% and AKE falling 6.1%. Some big fallers in second liners like CHN down 9.8% and LKE off 11.5%. Oil and gas stocks tried to buck the trend and found some support with STO up 0.4% and WPL up 0.6%. Industrials are also under pressure across the board with REITs suffering, GMG falling 7.0% and SCG off 3.6%. Consumer stocks mixed with WES down 1.1% but COL up 0.6% and REA dipping 4.3%. NWS got whacked 8.8% post results. Tech under serious pressure again, the AllTech Index dropped 3.1% and XRO testing new lows, down 2.6%, WTC off 4.9% and SQ2 down 6.2%. In the banking sector, a mixed session, WBC rose 3.2% on better than expected results, ANZ down 2.7% as it went ex-dividend, NAB up 0.2% ahead of its dividend tomorrow. MQG once again in trouble falling 2.6%. The Big Bank Basket up slightly to $184.97 Insurers eased. In corporate news, MFG sold its GYG stake falling 8.4%, WBC results better than expected and SGR down 1.0% as VIP packages were suspended. Nothing on the economic front, some news from China showing the impact of Covid shutdowns. Asian markets slid with China down 0.3%, HK closed and Japan down 2.0%. 10-year bond yields pushed to 3.56%.

End of Day Podcast – Monday, May 9

Major Movers:

  • Winners: BRN, REG, PPH, PNV, WBC, WHC, TPG
  • Losers: NVX, DGL, LKE, CHN, CXL, FFX, NWS
  • Positive sectors: Banks. Oil and gas. Coal. Telcos.
  • Negative sectors: Resources, Industrials, Tech.
  • High 7185 Low 7092.
  • Big Bank Basket: Up to $184.97 (0.16%)
  • All-Tech index: Down another 3.1%
  • Gold: Higher at $2674
  • Bitcoin: Drops to US$33614
  • Aussie Dollar: Falls to 70.01c on RBA.
  • 10-Year Yield: Up to 3.56%
  • Asian markets slid with China down 0.3%, HK closed and Japan down 2%.
  • US Futures: Dow 296 Nasdaq down 120.

Stocks on the Move

  • BRN +14.15% kicks after ASX speeding ticket response.
  • REG +4.59% possible election winner.
  • PNV +3.33% correction to director’s interest.
  • TPG +2.33% sells mobile towers.
  • PPH +4.56% some praying for better markets.
  • CNB +9.78% stunning drill results from Greater Duchess.
  • FSF +1.19% revises its 21/22 forecasts.
  • LRS -12.50% lithium wannabes under pressure.
  • DGL -12.12% AFR gets stuck in.
  • FFX -9.57% letter to shareholders re Leo Lithium priority offer.
  • CXL -9.72% partners in $34.5m anti-microbial resistance project.
  • MFG -8.41% sell GYG.
  • HIO -23.08% iron ore under pressure.
  • MGX -8.45% iron ore sellers.
  • IMU -11.11% response to ASX query.
  • Speculative stock of the Day:  Prescient (PTX) +28.00% good volume too on a positive Phase 1b clinical study of PTX-200 and cytarabine in patients with relapsed and refractory acute myeloid leukemia (AML) will expand the cohort at 45 mg/m2 PTX-200 following another complete remission and no dose limiting toxicities at this dose level.

In the News

  • AUB Group (AUB) – to acquire Tysers for $880m plus earnout; launches equity raise.
  • Westpac Banking (WBC) – First-half cash NPAT $3.10bn vs consensus $2.95bn, with a net interest margin of 1.85%, ahead of consensus of 1.83%. Declared interim dividend of 61c.
  • TPG Telecom (TPG) – has sold its entire mobile tower and rooftop infrastructure network to Canadian pension fund OMERS for about $950m.
  • Magellan Financial (MFG) – has entered into an agreement to sell its 11.6% interest in Guzman y Gomez (GYG) for cash consideration of $140m. It expects to record a pre-tax profit on the sale of $34m in FY22. Completion of the transaction is expected to take place in two tranches occurring in June and July 2022.
  • Star Entertainment Group (SGR) – resolved to immediately suspend rebate programs for both domestic and international players across all its casinos until further notice.
  • Suncorp (SUN) – home lending portfolio increased $803m, or 1.7%, in the March quarter, with total home lending lodgements 21%higher than the second quarter of 2022.

Economic News/Bond Markets

  • More than 3000 electric vehicle chargers will be installed across NSW in a plan to boost regional tourism.

Asian Markets

  • In Hong Kong, John Lee won 1,416 votes in Sunday’s chief executive election replaces Carrie Lam. He was the only candidate.
  • China’s exports and imports struggled in April. Export growth in April slowed to 3.9% in dollar terms. Imports were unchanged in April after sliding 0.1% in the previous month. Economists expected a 3% decline.
  • Chinese pig prices are back on the rise. As the herd has now shrunk more than 9% since its peak on African swine fever. Not good for inflation.
  • Japanese PM Fumio Kishida plans to gradually phase out imports of Russian oil. Not a big part of Japanese energy make up.

US and European News

  • US now down for six straight weeks in a row.
  • U.S. banned American accounting and consulting firms from working with Russia.
  • European stocks are expected to open lower on Monday.
  • Macron officially sworn in. Boris just swore on council results.
  • May 9th Russia Victory Day may bring news from Putin. Big parade today.
  • US hits Gazprombank executives with sanctions for first time.

And finally…

The following are results from an OZ-words Competition where entrants were asked to take an Australian word, alter it by one letter only, and supply a witty definition.

Clearly, you need to be an Aussie to understand.

Billabonk:       to make passionate love beside a waterhole

Bludgie:         a partner who doesn’t work, but is kept as a pet

Dodgeridoo:   a fake indigenous artefact

Fair drinkum:  good-quality Aussie wine

Flatypus:        a cat that has been run over by a vehicle

Mateshit:        all your flat mate’s belongings, lying strewn around the floor

 Shagman:      an unemployed male, roaming the Australian bush in search of sexual activity

Yabble:          the unintelligible language of Australian freshwater crustaceans

Bushwanker:  a pretentious drongo, who reckons he’s above average when it comes to handling himself in the   scrub

Crackie-daks:  ‘hipster’ tracksuit pants.

For the Kiwi’s amongst us:

Shornbag:     a particularly attractive naked sheep