ASX 200 pushed 17 points ahead to 6807 (+0.3%) despite US futures weakness on Walmart news. Fed watching continues. US results are in focus tonight. Resources carried the day with iron ore producers doing well, BHP up 2.5%, RIO up 1.9% and FMG rallying 2.5%. Base metals were also better as OZL ran 1.1% and lithium stocks firmed. Oil and gas doing ok as crude prices rose and Russia cut back gas supplies in Europe. STO up 2.6% and WDS up 2.8%. Coal stock finding friends again with WHC up 6.4%. Some tech in demand as ZIP led the charge up 19.9%, with WTC up 0.8% and XRO falling 1.3%. The All–Tech Index flat. Industrials were sloppy, CSL down 1.5% and ALL to find any cherries down 1.8%, with TCL coming under fire down 1.1% and WOW off 1.3%. Banks were mixed but ANZ still a firm fave with the Rights up 0.8%. The Big Bank Basket steady at $170.16. In corporate news, MYR delighted shareholders with some good numbers up 21.3%, quarterlies in SYA and PDN with VUL up 4.9% on council approvals. GRR got whacked 11.4% after its quarterly disappointed. NTO blew up on its Q2 update, imploding 22.7%. In economic news, agriculture is going well, Asian markets better with China up 0.8% and HK up 1.4%. 10 -year yields ease to 3.34%.
- Winners: ZIP, PDN, SLX, KAR, NAN, WHC, LKE, TLX
- Losers: GRR, IRE, QAL, FLT, PRU, BRG, CTD
- Positive sectors: Iron ore. Base metals. Lithium. Coal. Oil.
- Negative sectors: Healthcare. Industrials.
- High 6815 Low 6783 Low volume. Small range.
- Big Bank Basket: Steady at $170.16 ANZ Rights trading slightly higher.
- All-Tech index: Flat.
- Gold: Lower at $2473
- Bitcoin: Drifts back to US$21,146.
- Aussie Dollar: Steady at 69.58c
- 10-Year Yield: Slightly lower at 3.34%
- Asian markets: Japan down 0.2%. China up 0.7% and HK up 1.4%
- US Futures: Dow down 114 Nasdaq 48 Walmart warning weighs.
- European markets flat on opening. UBS results in focus.
- ZIP +19.88% buyers back and turnaround happening.
- KAR +7.67% good bounce
- PDN +8.13% quarterly report.
- SLX +7.94% buyers back in.
- BGL +4.83% quarterly report.
- SYA +5.26% placement support.
- MLD +23.75% takeover offer from Theiss at 102.5c
- MYR +21.25% trading update.
- OEC +22.50% signs new contract with Singapore customer.
- DDH +17.46% delivers record FY22 performance.
- ADN -12.36% signs binding Halloysite-Kaolin offtake term sheet.
- PGC +10.71% trading update.
- NTO -22.70% blows up on trading update.
- IPD -12.28% CEO leaves.
- GRR -11.41% quarterly report.
- FLT -5.62% broker downgrades.
- PRU -5.33% June quarter report.
- Speculative Stock of the Day: Top of the pops was Security Matters (SMX) +150.00% announced merger with Lionheart III Corp.
In the News
- Myer Holdings (MYR) expects NPAT of $55-60m and revenue of $2.99-3.00bn. Would be an 11.2% improvement in profit vs FY21.
- Lark Distilling (LRK) Q4 net sales $6.8m, up 72% vs a year ago. Added a search for a new CEO is progressing well and has narrowed the list of global candidates.
- Origin Energy (ORG) to invest an additional $163m in Octopus Energy to maintain a 20% interest. Recent capital raisings now value Octopus at more than £3.5bn, representing close to a four-fold increase in value since Origin’s initial investment in May 2020.
- Woolworths Group (WOW) Chair Gordon Cairns to retire following the AGM on October 26. Scott Perkins appointed replacement.
- Tabcorp (TAH) considering offers to sell all or part of Intecq, a price tag wasn’t suggested.
- Paladin Energy (PDN) Q4 net cash used in operating activities -$1.2m. Cash and cash equivalents US$177.1m at the end of the June quarter.
- Perseus Mining (PRU) Q4 gold production 122.3Koz at AISC US$1,004/oz vs quarter-ago 130.5Koz at AISC US$908/oz. Guidance for December 2022 Half Year of 240-265Koz produced at an AISC of US$1,000 to US$1,100/oz.
- Regis Resources (RRL) FY gold production 437.3Koz at AISC of $1,591/oz vs guidance 420-475Koz at $1.425-1.625/oz.
Economic News/Bond Markets
- Australian agriculture had a bumper year in 2020-21, with a 17% increase in value to $70.9bn according to data released today by the Australian Bureau of Statistics (ABS).
- Wayne Byers to step down from APRA. Off to be Trade Commissioner in NY?
- Multibillion-dollar, Melbourne developer Caydon Property Group, has collapsed in biggest private developer failure since Ralan.
- Goldman Sachs has warned that the growing Chinese property crisis will hurt iron ore prices.
- Used car prices up 7.5% in June quarter. Utes up 8.5%.
- Alibaba’s jumped on Tuesday after the company said it will apply for a dual primary listing in Hong Kong.
- South Korea Q2 GDP expands 0.7%, giving scope for new rate rises
- China’s economic recovery gained momentum in July as business activities resumed and confidence improved.
- China Southern Power Grid the country’s second-largest operator supplying five provinces, said soaring demand lifted power generation to a record 223 gigawatts on Monday, 3% higher than last year’s peak load.
US and European Headlines
- Walmart warns on customer spending and will cut prices to shift stock.
- Alibaba scales back global expansion plan to rival Amazon. Amazon raises prices in Europe for Prime citing inflation.
- Russia cuts deliveries of gas to Europe.
- UBS announced that it had missed expectations for the second quarter of 2022 as its CEO warned of “uncertain times” in markets. Net profit attributable to shareholders of US$2.11Bn, below analyst expectations aggregated by the company of US$2.4bn. Return on tangible equity stood at 16.4%, versus 15.4% a year ago.