ASX 200 rose 30 points to 6678 (+0.5%) in lacklustre trade to end its best week since March up 2.1%. It was another day of bifurcation with resources turning green and banks seeing red. The Big Bank Basket slipped back to $163.35 (-0.4%). Insurers flat. MFG down 3% again on leaky FUM, GQG down 4.1% on its FUM. MQG flat with PNI up 1.7% after good results yesterday. Healthcare doing nada, RHC up 0.9% on speculation on takeover, CSL up 0.1% and industrials flat too. TLS down 0.8%, WOW down 0.3% and ALL up 0.3%. REITs dominated by a fall of 1.2% in GMG and tech becalmed. XRO up 1.6% and WTC rising 0.3%. Resources rallied hard but failed to hold early gains, zero to hero and back, BHP up 0.7%, FMG up 0.6% and RIO up 0.3% all doing well. Gold miners flat, base metals better, IGO up 3.2% and OZL rising 1.7%. Lithium stocks back in favour with PLS up 6.8% and LTR roaring ahead by 7.4%. Oil and gas perked up with crude rises, STO up 2.3% and WDS rallying 1.7%. In corporate news, SBM up 9.6% on a production update and guidance. MFG fell on FUM as did GQG. AWC up 5.2% on Dutch designs on Portland smelter. Nothing significant on the economic front ahead of NFP tonight in the US. Asia markets were rocked by Abe shooting. 10-year yields heading higher again.

Headlines

  • Winners: 360, 5EA, LFS, ERA, SBM, SBM, KAR, LTR, PLS
  • Losers: SKC, ORA, COE, IMU, GQG, BRN, PFP, MFG
  • Positive sectors: Iron ore. Base metals. Lithium. Oil.  
  • Negative sectors: Banks.
  • High 6715 Low 6671
  • Big Bank Basket: Falls to 163.35 (-0.4%)
  • All-Tech index: Up 0.8%.
  • Gold: Lower at $2557
  • Bitcoin: Heading higher at US$20,409
  • Aussie Dollar: Higher at 68.24c.
  • 10-Year Yield:  Higher at 3.47%
  • Asian markets: Shanghai down 0.2% HK down 0.1% and Japan up 0.3% despite Abe shooting
  • US Futures: Dow down 120 Nasdaq down 57 European markets pointing to a flat start.

Major Movers

  • 360 +14.33% bounce continues, zero to hero.
  • LTR +7.37% lithium back.
  • SBM +9.64% production update.
  • WDS +1.72% UBS upgrades to a buy.
  • RHC +0.89% considering a spin-off of its European assets.
  • KAR +7.93% crude bounce.
  • PLS +6.82% June 1uarterly report advisory.
  • VUL +5.13% signs agreement with Enel Green Power
  • WHC +6.34% merry old soul today.
  • AWC +5.17% moves afoot with Portland smelter.
  • DUB +19.62% rally kicks again.
  • WSP +19.09% tech rally.
  • PAN +11.43% nickel play.
  • MVP +11.56% just whistle.
  • QRI -1.67% resignation of company secretary.
  • IMU -4.17% profit taking.
  • MFG -3.02% FUM slip again.
  • Speculative Stock of the Day: Conico (CNJ) +33.33% with some ok volumes, only recent announcement on Ryberg mobilisation on record.

In the News

  • Magellan Financial Group (FMG) total FUM at the end of June $61.3bn. vs $65bn at the end of May. GQG Partners reported a decline in assets under management to $86.7bn from $94.6bn over the month.
  • St Barbara (SBM) – Q4 gold production of 86,403 oz vs quarter-ago 61,819 oz. FY guidance achieved.

Economic News/Bond Markets

  • NAB sees headline inflation up 6.3% vs a year ago when data is released at the end of the month, which would be up on the 5.1% in the prior reading. For core trimmed mean inflation, NAB forecasts a record quarterly increase of 1.5%, and 4.7% for the year.

Monthly Business Turnover Indicator

In seasonally adjusted terms, the monthly business turnover indicator showed:

  • Rises in 11 of the 13 published industries in May 2022
  • The largest increase was in Electricity, gas, water and waste services (22.9%)
  • The largest fall was in Arts and recreation services (-2.3%)
  • Through the year, the largest rises were recorded in Mining (36.4%) followed by Transport, postal and warehousing (31.4%).
  • ANZ say a 50bps increase from the Reserve Bank of New Zealand next week is a “shoe-in”

Asian Markets

  • Former PM Abe has been shot whilst campaigning.
  • Shanghai reported a second day of elevated levels of new coronavirus infections. The city announced 45 new local infections for Thursday, following 54 reported for Wednesday, the highest since late May.
  • Hong Kong’s John Lee has suspended a system that banned airlines from flying routes if they carried passengers infected with Covid.

US and European Headlines

  • German parliament greenlights more intervention in energy markets.
  • G20 Finance ministers meeting continues in Bali.
  • Joe Biden will discuss possible reductions in US tariffs on Chinese goods in a meeting with his advisers set for Friday. Won’t make much of a difference but nice gesture.
  • UK Politics remain interesting. Lloyd’s of London set to stay in landmark City building.
  • Former Theranos executive Sunny Balwani convicted of fraud.
  • GameStop has fired its Chief Financial Officer, Mike Recupero. Diana Jajeh, the company’s chief accounting officer, will become CFO.
  • Peru’s central bank raised its key interest rate by 0.5% to 6% to fight inflation of 5.3%.

And finally…..

Clarence

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