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.
- 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.
- 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”
- 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%.