ASX 200 kicks 93 points higher to 6555 (+1.4%) after a surge in US markets. Some selling into the close, though. A slightly better CPI monthly number. The first time we have had a monthly number. Very 21st century. Every sector was better. Banks doing well with the Big Bank Basket up to $166.88 (+0.8%). MQG rallied 0.9% as a market leverage play. Insurers rallied hard too as yields fell, QBE up 1.8% and SUN better by 1.6%. ASX up 2.4% though IRE dropped like a stone following a guidance downgrade, down 17.3%. Healthcare better, CGS the standout on Alzheimer breakthroughs in the US, up 16%. CSL up 1.6% and COH rising 2.6%. Even RHC rallied 1.8%. Industrials too doing well, WES up 2.0%, TLS up 1.6% and REITs back in favour. GMG up 0.8% and SCG rallying 2.0%. Tech better, the All–Tech Index up 1.3%, WTC up 2.7% and ‘old skool’ platform stocks also back in demand, SEK up 2.2% and REA better by 2.5%. Resources were a good place to be. Gold miners one of the big winners with NCM up 2.6%, GMD up 15.2% and NST up 4.5%. DEG also had a decent day up 7.2% and SBM rose 3.0% as consolidation in the Leonora region look to be kicking in again. RED in a trading halt raising money. BHP rose 2.5%, RIO up 1.0% and base metals doing well, IGO up 2.1% with lithium back, PLS up 1.5% and MIN rallying 3.4%. Energy of any sort better again. Coal and oil stocks rising as sabotage and US inventories help sentiment. STO up 2.3% and WHC running another 4.6%. In corporate news, IRE stumbled falling 17.3%, PMV rose 14.6% after it announced a special dividend and buyback with good numbers from Smiggle. AJL dropped 25.8% as it raised money at 11c. ATL takeover was cleared with some caveats and WOW appointed a new Big W chief. In economic news, CPI for the month came in slightly less than expected but given petrol prices are rising again, this could be short-lived. Asian markets mixed with Japan up 0.8%, China down 0.1% and HK up 0.1% Dow Futures down 193 points.
- Winners: PMV, ARU, 29M, TPW, CRN, BOE, APM
- Losers: IRE, PPM, MSB, PNV, COF, ASB, PRN, LLL
- Positive sectors: Everything.
- Negative sectors: WOW.
- High 6595 Low 6488
- Big Bank Basket: Closed at $166.88 (+0.8%).
- All-Tech index: Up 1.3%
- Gold: Unchanged at $2544 on rising AUD
- Bitcoin: Pushing higher at US$19,546.
- Aussie Dollar: Off rally highs at 64.86c
- 10-Year Yield: Smacked to 3.94%
- Asian markets: Better with Japan up 0.8%, China down 0.1% and HK up 0.1%
- US Futures: Dow down 193 Nasdaq down 89
- Porsche kicks off today in Germany.
- PMV +14.61% good results and buy back.
- DEG +7.18% gold back in favour.
- BOE +7.66% buyers back.
- RMS +5.43% broker upgrades.
- CGS +16.01% Alzheimer break throughs for Biogen and Eisai.
- GMD +15.17% change in substantial holding for DCN
- ATL +11.54% ACCC green lights with conditions.
- ASN +14.04% lithium rich horizons discovery
- PDI +9.09% more high-grade gold below Bankan.
- IRE -17.30% USD takes it toll. Guidance cut.
- AJL -25.81% placement at 11c.
- MTO -6.23% back down on thin volume.
- Speculative Stock of the Day: Raiden Resources (RDN) +17.65% wide shallow Ni Cu Sulphide mineralisation intersected.
In the News
- Premier Investments (PMV) – Full-year retail EBIT $335m vs consensus of $328.3m. Announced a 12-month on-market share buyback for up to $50m. Revenue, gross margins, and statutory NPAT were all ahead of consensus. Final dividend of 54cps announced, plus a special dividend of 25cps, both fully franked.
- Karoon Energy (KAR) – Speculation KAR could be looking at M&A opportunity with an associated equity raise according to the AFR.
- Magnetic Resources (MAU) – Provides drilling results from the Trayning tenement.
- IRESS (IRE) – Provides full-year guidance update at its AGM, NPAT $54-58m vs prior guidance of $63-72m.
- Jupiter Mines (JMS) – Reports second-quarter Tshipi Borwa Manganese mine NPAT of $54.9m vs year-ago $15.3m.
- Nuix (NXL) – ASIC sues NXL and its board for continuous disclosure and directors’ duties breaches.
- AGL Energy (AGL) – Guides to full-year NPAT of $200-320m vs consensus of $313.4m. Targeting a complete exit form coal by FY35.
- Telstra Corp. (TLS) – Repeats full-year guidance in presentation. Full-yea EBITDA of $7.8-8.0bn vs consensus of 7.88bn.
Economic News/Bond Markets
- Australian Bureau of Statistics data showed Australian household wealth plunged $484bn in the June quarter to $14.4 trillion. Superfund losses and house prices to blame.
MONTHLY CPI INDICATOR
- The monthly CPI indicator rose 7.0% in the year to July and 6.8% to August.
- The largest contributors in the 12 months to August were new home construction (+20.7%) and automotive fuel (+15.0%), with the slight decrease from July to August due to a decrease in fuel prices.
- Food and non-alcoholic beverages inflation increased to 9.3% in the 12 months to August, with prices rising across most food categories, fruit and vegetables the largest increase, rising from 9.1% in June to 18.6% in August.
Seasonally adjusted estimates for August 2022:
- Total job vacancies were 470,900, a decrease of 2.1% from May 2022.
- Private sector vacancies were 425,500, a decrease of 3.3% from May 2022.
- Public sector vacancies were 45,300, an increase of 10.5% from May 2022.
- An EV maker and a unit of China’s real estate developer China Vanke Co. plunged in their trading debuts in Hong Kong, following IPOs that together raised more than $1.5bn.
- Chinese electric-vehicle maker Zhejiang Leapmotor Technology Co. slumped as much as 42% to HK$25.05 after raising US$800m at HK$48.
- Leapmotor’s dismal debut tumble casts a shadow on the expected start for CALB a Chinese battery supplier for electric vehicle makers expected to start trading in Hong Kong next week.
- “Do not bet on a one-sided appreciation or deprecation of the renminbi exchange rate,” the central bank said in a Chinese statement on its website
US and European Headlines
- Mackenzie Scott, former wife of Jeff Bezos, one of the world’s richest and most influential philanthropists, filed for divorce from Dan Jewett, a science teacher. Scott is worth around US29bn.
- Biden approves US$1.1bn more in military aid to Ukraine.
- Russia denies Nord Stream sabotage allegations.
- Hurricane Ian batters Florida.
- Porsche priced at EUR 82.50. Debuts today. Lots of fanfare and beautiful cars. Values Porsche at EUR75bn. Raised EUR 9.4bn. 12.5% floated now. One of the biggest IPOs in 25 years for Germany. No shareholder discounts!
Into a Belfast pub comes Paddy Murphy, looking like he’d just been run over by a train. His arm is in a sling, his nose is broken, his face is cut, and bruised, and he’s walking with a limp.
“What happened to you?” asks Sean, the bartender. “Jamie O’Conner and me had a fight,” says Paddy. “That little O’Conner,” says Sean, “He couldn’t do that to you, he must have had something in his hand.”
“That he did,” says Paddy, “a shovel is what he had, and a terrible lickin’ he gave me with it.”
“Well,” says Sean, “you should have defended yourself. Didn’t you have something in your hand?” That I did,” said Paddy, “Mrs. O’Conner’s breast, and a thing of beauty it was, but useless in a fight.”