ASX 200 finished slightly weaker down 3 at 6792 (0%) as the index drifted around ahead of weekend. Dow futures weighing slightly on Snap drop. Banks were firm dominated by trade in ANZ rights up 25.4%. The Big Bank Basket rose to $171.34(0.8%). MQG slipped slightly as brokers warning of a weaker result to come, QBE slumped 2.1% as IAG underwhelmed with numbers falling 1.4%. MFG continued to find friends up 2.3%. Healthcare mixed, CSL down 0.6% and COH up 3.2%. Industrials wafted around, TLS fell 1.3%, REA down 3.9%, DMP down 4.5% with REITs unchanged. Tech patchy with some good gains in DUB, PNV and MP1. The AllTech Index unchanged. Miners were flat with some strength in some gold miners, NST up 2.0% and BHP still under pressure on iron ore pricing down 0.11%. Lithium stocks mixed, Julie Bishop’s MIN fell 1.5%. Oil and gas stocks fell, WDS down 0.6% and STO off 3.0% with coal stocks mixed after a big week. In corporate news, AX1 slipped 11.6% lower on a disappointing update, CRN had a quarterly falling 8.1% and HUM fell 5.9% on an update on potential exposure to Forum Finance. Nothing special on the economic front. Asian markets Japan up 0.4%. China unchanged and HK up 0.2%. 10-year yields under pressure at 3.43%.                                                                                       

  • Winners: ANZR, PBH, ZIP, PNV, 5EA, STX, TLX, INR, CMM
  • Losers: JRV, AX1, RIC, SLX, PDN, WEB, LKE, AQZ
  • Positive sectors: Banks. REITs.
  • Negative sectors: Oil and Gas. Industrials. Insurers.
  • High 6816 Low 6759  ASX 200 up 2.7% for the week. Volume boosted by ETO expiry.
  • Big Bank Basket: Surges to $171.34(0.8%). ANZ Rights trading significantly higher.
  • All-Tech index: Unchanged.
  • Gold: Higher at $2484
  • Bitcoin: Drifts back to US$22,906
  • Aussie Dollar: Eases to 69.06c
  • 10-Year Yield:  Much lower at 3.43%
  • Asian markets: Japan up 0.4%. China unchanged and HK up 0.2%
  • US Futures: Dow down 68 Nasdaq down 106. Snap to blame.
  • European markets eye early weakness. Italian election now Sept 25th.

MAJOR MOVERS

  • ANZR +25.43% kicks off as leveraged exposure to banks.
  • ZIP +13.55% buyers back on update.
  • INR +5.05% Ford deal.
  • PBH +16.25% rally continues. Shorts suffering.
  • TLX +5.51% brokers positive on recent news.
  • MP1+4.25% bump continues.
  • 4DX +24.04% Tech bounce back.
  • IKE +11.43% positive presentation.
  • EML +7.17% powering ahead.
  • DUB +6.86% rising tide.
  • MVP +13.68% give a little whistle.
  • JRV -22.43% results presentation.
  • AX1 – 11.55% trading update
  • SLX -7.49% profit taking, coming off the boil.
  • CRN -8.12% Q2 Quarterly report.
  • DMP -4.48% stuffed crust.
  • KAR -3.81% oil price weakness.
  • MNS -7.04% plant update.
  • IAG -1.41% disappoints UBS downgrades.
  • Speculative Stock of the Day: Nothing on volume or reasons.

IN THE NEWS

  • Ioneer (INR) signs a 5-year binding lithium offtake agreement with Ford. INR will deliver 7k tonnes per year of lithium carbonate to Ford, starting in 2025.
  • Vulcan Steel (VSL) set to acquire Ullrich Aluminium for $149m.
  • Syrah Resources (SYR) enters a non-binding MoU with Ford Motor Company and SK innovation to evaluate a strategic arrangement, including graphite active anode material supply yo BlueOval SK joint venture.
  • Woodside Energy (WDS) clarifies FY guidance, confirming there is no change to the physical product volumes underpinning the FY22 production guidance issued in Jan 22 (which did not include the BHP petroleum production).
  • Insurance Australia Group (IAG) reports preliminary reported NPAT of $347m, exceeding $295.2m expected. Underlying insurance margin for H2 came in at 14.1%, up from 13.5% a year ago, and the company expects to report a CET1 ratio within the target benchmark of 0.9 to 1.1. FY23 guidance included reported insurance margin expectations of 14-16%, GWP of mid-to-high single didgit growth, and modest volume growth and an increase in customer numbers.
  • Mayne Pharma Group (MYX) CFO Peter Paltoglou will step down, effective August 26, set to be replaced by Aaron Gray, previously Senior Vice President at Siemens Healthineers.
  • Brickworks (BKW) expects FY22 EBIT from building products in North America and Australia to be higher on last years numbers. BKW also announced the launch of Brickworks Manufacturing Trust. The company will retain a 50.1% ownership of the new trust, with the other 49.9% sold to Goodman, with the sale price representing a $280m premium to the book value of the assets.
  • Accent Group (AX1) expect FY22 EBIT in the range of $61-63m, including a one-off non-cash charge of approximately $7.6m. The company also provided a trading update, saying the first three weeks of FY23 have seen a return to strong deliveries of new product and positive customer response, with like-for-like sales positive for the period (though comparing to restrictions and store closures in July last year).

ECONOMIC NEWS/ BOND MARKETS

  • National Australia Bank upgraded its forecast for the Reserve Bank’s cash rate to 2.85% by the end of this year, from 2.35%.

ASIAN MARKETS

  • China set to welcome first foreign leader since Olympics. Indonesian leader Jokowoi.
  • The Asian Development Bank has cut the growth forecast for China due to concerns over the country’s zero-Covid approach. Gross domestic product growth for the world’s second largest economy is expected to be at 4% in 2022, down from an earlier estimate of 5%.

US AND EUROPEAN HEADLINES

  • Russia and Ukraine will sign a deal on Friday to reopen Ukraine’s Black Sea ports to grain exports.
  • Amazon agreed to buy primary care provider One Medical for US$3.9bn.
  • Italian election September 25th.
  • US charges former Coinbase employee with insider trading.
  • Hungary sends foreign minister to Moscow to ask Russia for more gas.

And finally…..

One of my favourite bands was “The Palindromes”.
Their first single was, “If I Had A Hi Fi”.

Clarence

XXXX