ASX 200 up another 58 points to 6764 (+0.9%) as the grind higher continues. Late kick helps as US futures rally hard. Resources took up the baton today with iron ore producers pushing ahead. BHP up 4.3%, RIO up 3.0% and FMG doing well up 3.8%. Gold miners rallied after the sharp knee-jerk sell-off yesterday, NCM up 2.9% and NST up 6.1% on a KCGM PFS update. Lithium was mixed as PLS rose 3.0% but AKE off 0.5%. Base metals rallied S32 up 3.7% as coal prices continue to push higher, CRN up 2.9% and WHC in the coal space running hard up 2.7%. Oil and gas stocks better as crude rallies, WDS up 4.3% and STO better by 2.7%. Elsewhere things were mixed, Banks eased after a stunning run yesterday with the Basket down 0.4% to $163.50. MQG rose 0.6% on a $400m Capital Note raising, Insurers eased too. Healthcare stocks going nowhere fast, CSL the exception up 0.4%, the rest in a slow lane. COH down 0.3% and HLS down 2.1%. REITs better GMG the star up 0.7%, Industrials flat, WES down 2.3% and ALL off 0.9%. QAN down 2.2% again, JBH off 3.90%. Tech eased back with XRO down 0.7%, WTC off 0.8% and the index down 1.1%. In corporate news, CKF had a good result with KFC big in Germany, rising 11.5%. BWX crashed 40.6% on an update and capital raise and EOS in a trading halt as it taps the market for fresh funds. TGR up 16.1% on a bid from Canadian group Cooke. On the economic front, consumer confidence rose 3.7% last week. Asian markets a little softer with HK techs under pressure. 10-year yields steady.
- Winners: SYA, TGR, ERA, CKF, PNV, SIG, BPT
- Losers: IMU, 5EA, PBH, VUL, APX, EML, SSR
- Positive sectors: Iron ore. Gold miners. Oil and gas. Coal. Industrials.
- Negative sectors: Banks. Insurers. ‘Old Skool’ platforms.
- High 6764 Low 6709. Closes on high in late surge.
- Big Bank Basket: Falls to $163.50 (-0.4%)
- All-Tech index: Down 1.1%.
- Gold: Drifts to $2635
- Bitcoin: Drifting lower to US$20739
- Aussie Dollar: Steady at 69.47c
- 10-Year Yield Steady at 3.74%.
- Asian markets: Japan up 1.1%. HK down 0.5% China up 0.3%
- US Futures: Dow up 140 Nasdaq up 69 – European markets opening slightly higher.
- TGR +16.12% Cooke bids 485c, gets knocked back.
- SYA +25.00% formally approve NAL restart.
- CKF +11.52% did someone say KFC? Results good. Love it.
- SIG +7.14% ceasing to be substantial shareholder.
- PNV +7.25% rally continues.
- KAR +6.59% oil price rising on dodgy plan to cap prices.
- NST+6.13% KCGM mill optimisation PFS.
- NVA +10.43% RPM Gold deposit update.
- BFG +9.09% bouncing back.
- ICT +8.33% FY22 financial guidance.
- 4DX +27.78% National contract with I-MED.
- 5EA -9.07% more selling hits.
- PBH -8.57% roller coaster continues.
- IMU -10.42% profit taking.
- VUL -6.05% cleansing notice.
- SSR -5.10% comments in Turkish media.
- APX -5.81% sell off resumes.
- BWX -40.60% cap raise and business update.
- TYR -9.83% heading lower again.
- CTT -11.58% sell off resumes.
- CAE -15.56% low volume fall.
- Speculative Stock of the Day: HRL Holdings (HRL) +64.63% receipt of non-binding indicative proposal from ALS at 16c.
In the News
- Electro-Optic Systems Holdings (EOS) trading halt pending capital raise announcement. To launch $15m equity raising at 120c.
- ALS (ALQ) confirms media speculation it submitted a confidential non-binding proposal to acquire HRL Holdings for 16c cash. HRL last traded at 8.2c
- BWX (BWX) launches a fully underwritten $23.2m capital raise at 60c. Sees a loss in FY22 of $10-14m. Sees EBITDA of $45-49m in FY23.
- Collins Foods (CKF) full-year underlying profit (cont ops) $59.7m vs consensus $58.1m. Final dividend of 15c takes the full-year payout to 27c, up 17.4% on last year.
- Macquarie (MQG) issues Capital Notes 6 prospectus to raise $400m.
- Tassal Group (TGR) receives 485c offer from Cooke, follows two previous bids of 467c and 480c. TGR board has determined not to engage with Cooke. They want to see more money.
- Ampol (ALD) gets approval for the sale of Gull business in NZ to Allegro.
- BlueBet (BBT) signs 10-year market access agreement with Caesars Entertainment to operate new online sportsbook in Indiana under ClutchBet business-to-consumer (B2C) brand.
Economic News/Bond Markets
- UBS have lowered their year-end ASX 200 market target from 7700 to 7000 anticipating earnings are on a course to follow equity prices lower. UBS senior economist George Tharenou has maintained his view the Reserve Bank of Australia will keep increasing rates to 2.6% before cutting across the second half of 2023.
- Consumer confidence increased 3.7% last week, possibly helped by the state budget initiatives in NSW and Queensland according to ANZ. Confidence still remains below the long-run average.
- ANZ head of Australian economics David Plank put the rise down to state budget initiatives in NSW and Queensland where confidence increased by 4.3% and 5.2%.
- Census data shows Australians are less religious and more culturally diverse than ever before.
- WA has had its AAA rating restored after being stripped of it in 2013. The new AAA rating is based on high commodity prices, a rebounding economy, cost control and a favourable distribution of federal grants.
- Chinese technology stocks slumped as a plan by Tencent Holding’s major backer to further cut its stake in the company fuelled concerns more investors may look to take profits following a strong rally. The Hang Seng tech gauge has rebounded 43% since a record low in mid-March.
- Bank of Korea is poised to raise its policy rate by 0.5% for the first time next month according to market signals.
- Sri Lanka abruptly restricted fuel supplies and told residents to stay home and decided to limit distribution of fuel to essential services until July 10.
- China’s two largest cities have contained Covid-19, Beijing and Shanghai both recorded zero new locally
US and European Headlines
- G7 continues to explore a ‘cap on energy prices’ to hurt Russia.
- US company spending on private jets for personal use hits 10-year high.
- Spending cutbacks by the consumer already led to a decrease in Chinese manufacturing orders by U.S. importers of 20-30%.
- The Group of 7 nations need to brace for a complete shutdown of Russian gas pipelines in the near term, warned one analyst. Winter is coming.
- Gazprom, Russia’s state-backed energy supplier, has reduced its gas flows to Europe by 60% over the last few weeks.
- Crypto hedge fund Three Arrows Capital has defaulted on a loan worth more than US$670m.
- FTX denies reports that it is interested in buying Robinhood.
- My question is why if it is a G7 meeting, were there 9 leaders sitting around the table?
What’s Orange and sounds like a parrot ?
Quite unexpectedly the Grim Reaper came for me last night, but I beat him off with a vacuum cleaner ….talk about Dyson with death.
Someone passed out on the luggage carousel at Heathrow Airport.
Paramedics said, “it’s okay, they’re coming round slowly.”