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 All–Tech 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
- 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.
- 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.
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