The ASX 200 up 134 points to 7075 (+1.9%), gaining all of the losses from Thursday. Still down 1.8% for the week. Gains across the board as momentum and confidence built. 7000 seems to be the line in the sand for now. Resource stocks led the charge with BHP up 2.0%, FMG gaining 2.0% and RIO up 2.1%. Oil and gas stocks better as oil rose in Asia and Europe, STO up 3.2% and WPL rising 2.7%. Base metal and lithium stocks lagged a little with IGO down 3.5% and S32 struggling. PLS up 0.8% and AKE up 3.7%. Gold miners missed out as bullion fell but suspect Monday could bring bargain hunters in. GOR fell 2.3%, NCM down 0.5% and NST off 0.4%. Banks all finding solid ground finished positive. The Big Bank Basket rose to $182.81 (+0.5%) with a good solid bounce in insurers and MQG up 4.5%. Industrials solid with CSL up 3.3% and some of the oversold large caps being sought, ALL up 3.4%, WOW up 1.2% and WES up 2.5%. TWE up 2.9% as investors hit the bottle after a tough week. REITs better as 10-year yields slipping slightly, GMG up 4.0% and DXS up 2.6%. Tech stocks had a great day but it’s about time, the AllTech Index rose 5.1% making up nearly for the collapse yesterday, SQ2 up 15.0% as bitcoin rallied, WTC up 7.3% and XRO bouncing 9.4% on broker upgrades. In corporate news, PPG fell 17.9% on a trading upgrade, AVH down 8.7% on its quarterly report whilst PNV up another 14.0% on more buying from one director. Nothing on the economic front today. Asian markets, Japan up 1.9% China up 0.8% and HK up 2.3%.

End of Day Podcast – Friday, May 13

Major Movers:

  • Winners: IHL, SQ2, 360, PNV, NMT, CUV, 5EA, TYR, CDA
  • Losers: RED, MAD, IGO, REH, HSN, PPH, SSR, GOR
  • Positive sectors: Everything
  • Negative sectors: Gold miners
  • High 7075 Low 6947. Good rally as sellers backed off.
  • ASX 200 down 1.8% this week.
  • Iron ore down 8.7% for the week.
  • Big Bank Basket: Up to $182.81(0.5%)
  • All-Tech index: Up 5.1%
  • Gold: Falls to $2649
  • Bitcoin: Rallies hard US$30392.
  • Aussie Dollar: Off lows to 68.75c.  
  • 10-Year Yield: fell to 3.39%
  • Asian markets: Japan up 1.9% China up 0.8% and HK up 2.3%.
  • US Futures: Dow up 248 Nasdaq up 140

Stocks on the Move

  • SQ2 +14.99% tech bounce.
  • 360 +14.33% short covering.
  • LNK +8.87% ceasing to be a substantial shareholder.
  • TYR +9.80% bargain hunters.
  • MP1 +9.57% signs of bottom.
  • ACW +25.40% Director Dr Steven Gourlay buying.
  • G6M +15.38% been a good week on King Island.
  • BTH +11.54% business update.
  • RDT +7.41% exceptional maiden diamond assays 34.17m @1.32% Li2O
  • CTT +15.38% oversold bounce.
  • ABY +15.87% bargain hunters.
  • PPG -17.91% trading update.
  • DGO -7.09% gold stocks slip.
  • RED -8.22% profit taking.
  • GOR -2.34% supplementary bidder’s statement.
  • REH -3.10% still in the toilet.
  • DMP -2.32% stuffed crust.
  • JLG -1.82% slipping back a little.
  • Speculative stock of the Day:  Nothing today on any volume at all.

In the News

  • Infomedia (IFM) holder Viburnum Funds discloses initial 14.5% stake via purchase of 375.8m shares.
  • Clinuvel Pharmaceuticals (CUV) projected expenditures are on track.
  • CBA says an RBA increase above 25bp in June would add “unnecessary” pressure on the household sector.
  • Electro Optic Systems (EOS) – selected as the Commonwealth government-furnished equipment provider for marine weapon stations. The government has indicated it may order 36 units of EOS’ remote weapon stations.
  • Virtus Health (VRT) – reported a 1.6% drop in revenue growth during the 10 months to April and a 29.6% fall in EBITDA.

Economic News/Bond Markets

Asian Markets

  • Iron ore headed for its biggest weekly drop since mid-February steady near US$126 a ton in Singapore on Friday and is down around 8.7% this week.
  • China is hinting at stronger travel curbs as it continues to fight CV19. It will limit unnecessary outbound travel for Chinese citizens and tighten the approval of entry and exit documents
  • In the property market, Sunac China Holdings Ltd., the country’s fourth-largest developer, missed a dollar bond payment this week.
  • China’s SMIC posts record quarterly profit on shortage-driven chip demand.

US and European 

  • European markets expected to open around 0.8% higher.
  • Norwegian oil fund denounces ‘corporate greed’ over executive pay. Standard Chartered shareholders lodge protest vote against executive pay.
  • US to increase baby formula imports to tackle national shortage. Maybe a win for A2M. Needs one.
  • Global wheat crop set to fall for first time in four years, US forecasts.

And finally