Did you miss me? Probably not…just bad news on the doorstep….
The ASX 200 closed at a three-month low at 6469, down 105 points (-1.6%), despite a solid rally off morning lows, wilting into the close. Banks and defensive industrials held up better today as resources were hammered. Commodities on the nose in China not helping sentiment. BHP fell 5.2%, wiping 30 points off the index alone. RIO dropped 5.6% and FMG down 4.9%, with lithium stocks depressed, PLS off 9.1% and MIN down 7.9%. Base metals under pressure, with S32 falling 7.0% and LYC dipping 6.0%. Oil and energy stocks under pressure too on recession fears, STO down 7.3% and WDS off 5.0%, with coal stocks easing. WHC down 14.0% and NHC off 14.7%. Gold miners remain in the naughty corner, with NCM falling 5.9% and NST down 7.1%. Banks held up a little with the Big Bank Basket at $167.18 (-0.4%). CBA and NAB were unchanged whilst financials drifted a little lower, MQG down 1.2% and QBE down 1.7%. Healthcare a little better, CSL up 2.4%, SHL up 0.9% on new directors, RHC fell 2.4% on news KKR are no longer at the gate. Not a big surprise, really. Industrials were mixed but holding the line, TCL up 0.9%. ALL up 0.8% and COL. WOW and WES all solid. Tech was also surprisingly solid, WTC up 1.4% and XRO better by 3.2%, with the All–Tech Index up 0.8%. In corporate news, it was “deal off Monday”, RHC is no longer, and LNK has pulled the plug again on the Dye and Durham deal. LNK fell 7.9% and RHC off 2.4%. CGC lost a CEO and fell 14.2%, and SYR encountered issues in Mozambique, down 18.3%. Nothing locally on the economic front but currency wars continue as the pound gets pounded, near parity with the USD. Asian markets mixed, Japan down 2.7%, with HK and China down around 0.6%. 10-year yields at 3.95%.
- Winners: NAN, MP1, REA, TNE, ALU, XRO, SEK, COH
- Losers: SYR, LLL, NHC, CGC, WHC, AGY, CRN, SLX
- Positive sectors: Healthcare. Supermarkets. Tech.
- Negative sectors: Miners. Oil and gas.
- High 6544 Low 6435.
- Big Bank Basket: Closed at $167.18 (-0.4%).
- All-Tech index: Up 0.8%
- Gold: Steady at $2523
- Bitcoin: Lower at US$18758
- Aussie Dollar: Hurt at 64.93.
- 10-Year Yield: Pushes higher to 3.95%.
- Asian markets: Japan down 2.7%, with HK down 0.6% and China down 0.5%.
- US Futures: Dow down 171 Nasdaq down 74 points.
- GBP lowest against USD since 1971. WTI falling again this morning in Europe.
- European markets: Set to ease slightly FTSE better on lower GBP.
Futures and Highs and Lows
- NAN +4.68% bouncing off lows.
- MP1 +3.62% echoes in SLC move.
- ZIP +1.45% finding support.
- WOW +2.39% defensive buying.
- RAC +1.05% buy back update.
- SLC +9.48% buys Smart Building provider.
- RIO -5.61% issues at Pilbara mine.
- SYR -18.32% trouble at Balma.
- LLL -15.94% JRV -9.26% lithium stocks depressed.
- CGC -14.17% CEO leaves in surprise move.
- NHC -14.69% WHC -14.02% coal stocks fall.
- AJL -21.21% UK fracking move doesn’t help.
- Speculative Stock of the Day: Dundas Minerals (DUN) +102.38% anomalous Co Cu Ni and Ag values in massive sulphides. Not bad volume considering. DUNO up 226%. Market knows why.
In the News
- Sigma Healthcare (SIG) – Reports first-half NPAT -$1.5m vs year-ago -$1.3m. Interim fully franked dividend of 5cps.
- Syrah Resources (SYR) – Provides an update on operations at Balama. Operations have been interrupted by illegal industrial action by a small contingent of local employees and contractors.
- Star Entertainment Group (SGR) – Acting CEO Geoff Hogg to step down, effective date to be determined.
- Paradigm (PAR) – Reports a successful safety review in the MPS VI Phase 2 clinical trial.
- Link Administration Holdings (LNK) – Abandoned the scheme of arrangements with Dye & Durham on Friday night. Announced a special dividend of 8cps, fully franked.
- Universal Store Holdings (UNI) – To acquire Cheap THRILLS Cycles for $50m, consisting of $717.5m cash, $17.5m scrip and $150m of earnout.
- Ramsay Health Care (RHC) – Has ceased acquisition discussions with the KKR-led consortium.
- Costa Group Holdings (CGC) – CEO and MD Sean Hallahan to step down effective immediately.
- Westpac Banking (WBC) – Speculation from the AFR that WBC might retain the wealth unit, with the offer for CFS less than hoped for.
- Qantas (QAN) has appointed Stephanie Tully as the new chief executive of Jetstar.
Economic News/Bond Markets
- Bank of Japan boosted its bond purchase amounts at its regular operation on Monday in an effort to defend the Yen as the soaring USD takes its toll.
- Hong Kong can’t remove all travel restrictions at this stage of the Covid pandemic. The city reported fewer than 4,000 infections on Sunday, the lowest number since early August. There were 117 imported cases.
- Prices to ship a 40-foot container fell under $4,000 for first time since 2020. A 40-foot shipping container from the world’s largest port of Shanghai to Los Angeles fetched US$3,779 last week, the first time the spot price was below US$4,000 since September 2020 and half the level of three months ago, according to Drewry.
- The PBoC said it will impose a risk reserve requirement of 20% on banks’ foreign-exchange forward sales to clients. It will also set the yuan fixing weaker than 7 per dollar on Monday for the first time since 2020.
- Commodity prices in China fall as strong USD makes everything more expensive. Focus shifting to party conference in October for stimulus measures.
- China industrial profits for August out tomorrow.
US and European Headlines
- GBP plunges again as new Chancellor says more tax cuts to come. Very courageous Minister.
- IMF bailouts hit record highs as global economy weakens further.
- Looks like Italy will have its first female PM as Right Wing Meloni storms home.
An invisible man married an invisible woman. The kids were nothing to look at either.
I didn’t think the chiropractor would improve my posture. But I stand corrected.
I took my new girlfriend out on our first date to the ice rink and entry was half price. She called me a cheap skate.
Studies show cows produce more milk when the farmer talks to them. It’s a case of in one ear and out the udder.
I used to date a girl with one leg who worked at a brewery. She was in charge of the hops.
My cross-eyed wife and I just got a divorce. I found out she was seeing someone on the side.
My wife claims I’m the cheapest person she’s ever met. I’m not buying it.
Did you know that a raven has 17 rigid feathers called pinions, while a crow only has 16. The difference between a raven and a crow is just a matter of a pinion.
I told my carpenter I didn’t want carpeted steps. He gave me a blank stair. What did the surgeon say to the patient who insisted on closing up his own incision? Suture self.