ASX 200 fell another 81 points to 6475 (-1.2%) as September quarter ends in negativity. For the week, the index is down 100 points and for the quarter a mere 93 points. Some rebalancing taking place and nerves ahead of a long weekend in NSW and a week-long holiday in China. Banks well and truly in the doghouse today with the Big Bank Basket down to $162.95 (-2.4%). MQG continuing under pressure down 4.2% with insurers flat. Defensives in healthcare and industrials sold off, CSL down 0.6%, COH off 6.6% and PME being hit hard on profit taking down 5.6%. REITS eased, tech whacked WTC down 5.6% and XRO falling 4.3%. The AllTech Index down big time following Nasdaq, off 3.1%. Industrials like TCL eased, BXB down 2.2% and TLS fell 0.8%. Resources though were a bright spot especially in the heavily sold off gold miners. NCM up 2.7% NST up 4.5% and SBM up 6.5%. BHP better too up 0.9% with RIO up 2.7%. Base metals and lithium stocks eased. In corporate news, CXO revealed a $100m placement, TGR recommended takeover scheme, Nick Falloon exits NEC and RBA meeting next week. TPG response to ACCC views. Nothing on the economic front but China data showed the economy is still failing to fire. Asian markets, China down 0.2%. HK up 0.2% and Japan off 1.8%. 10-year yields at 3.89%. Dow Futures down eight points.

Headlines

  • Winners: QAL, CMM, SLR, RRL, SBM, BGL, APM, RMS
  • Losers: 5EA, CAR, PNV, COH, NCK, WTC, PME, PBH
  • Positive sectors: Gold miners. Iron ore.
  • Negative sectors: Everything. Banks especially bad.
  • High 6563 Low 6461
  • Big Bank Basket: Closed at $162.95 (-2.3%).
  • All-Tech index: Down 3.1%
  • Gold: Higher at $2563
  • Bitcoin: Pushing higher at US$19,454
  • Aussie Dollar: Better at 64.92c
  • 10-Year Yield:  Lower to 3.89%
  • Asian markets: Caution ahead of Chinese holiday and PMIs. China down 0.2%. HK up 0.2% and Japan off 1.8%
  • US Futures: Dow down 8 Nasdaq up 9.
  • European markets set to open flat.

Major Movers

  • QAL +8.80% secures $440m commitment.
  • SLR +7.27% SBM +6.47% BGL +6.38% gold doing well.
  • IKE +18.46% results of meeting.
  • GAL +11.86% kicking higher.
  • SPL +9.65% AGM date announced.
  • GSS +7.32% Appendix 4G
  • PME -5.59% profit taking.
  • NCK -6.07% ex dividend and some.
  • 5EA -13.98% down again.
  • CAR -7.79% tech under pressure.
  • PNV -6.81% falling hard.
  • Speculative Stock of the Day: Alchemy Resources (ALY) +35.00% wins ballot in highly prospective lithium region.

In the News

  • Core Lithium (CXO) – Launches $100m institutional placement at $1.03 per share.
  • Hastings Technology Metals (HAS) – Reports full-year NPAT ($9.4m) vs year-ago ($6.3m).
  • Pilbara Minerals (PLS) – Appoints Vince De Carolis as COO, effective early 2023. 
  • AUB Group (AUB) – Completes previously announced acquisition of Tysers.
  • Commonwealth Bank Australia (CBA) – Completes previously announced sale of CommInsure General Insurance to Hollard Holdings Australia. 
  • Talga Group (TLG) – Reports FY NPAT ($35.9m) vs year-ago ($19.9m).
  • Sandfire Resources (SFR) – Upgrades FY23 guidance. CEO and MD Karl Simich to step down, effective immediately.
  • Telix (TLX) – Announces first patient dosed with Illuccix in New Zealand.
  • A2 Milk (A2M) – Provides guidance update. First quarter sales marginally ahead of plan, EBITDA in line with plan.
  • Tyro Payments (TYR) – Remains in discussions with private equity consortium, seeking to elicit a higher bid.
  • Nitro Software (NTO) – Still in discussions with the rejected Potentia consortium.
  • Develop Global (DVP) – Reports full-year NPAT of ($9.2m) vs year-ago ($89.9m).
  • Mount Gibson Iron (MGX)Reports group mineral resource 59.8Mt at 62.2% Fe vs year-ago 67.4Mt at 61.7% Fe.
  • Magnetic Resources (MAU) – Reports full-year NPAT ($7.8m) vs year-ago ($8.6m).
  • Qualitas (QAL) – Secures new $440m commitment from global institution for Construction Debt Fund II; total committed FUM $5.33bn, +25% YTD.
  • Paradigm Biopharmaceuticals (PAR) – Trading halt pending clinical data relating to phase II PARA_008 clinical trial.
  • Monash IVF Group (MVF) – Completes previously announced acquisition of ART Associates Queensland; provides PIVET Medical acquisition update.

Economic News/Bond Markets

Asian Markets

  • China heading for a one-week Golden holiday next week.
  • China’s factory activity continued to struggle in September. The official manufacturing purchasing managers index (PMI) rose to 50.1 from 49.4 in August, according to a statement from the National Bureau of Statistics.
  • The non-manufacturing gauge, which measures activity in the construction and services sectors, fell to 50.6 from 52.6 in August. That was lower than the consensus estimate of 52.4.
  • The Caixin private gauge of manufacturing activity fell to 48.1 in September from 49.5 in August. That was worse than the consensus expectation of 49.5.
  • South Korean chip production falls for the first time in four years.

US and European Headlines

  • UK Chancellor set to chat to Bank of England today.
  • Germany adopts a EUR200bn energy aid package.
  • Truss facing Conservative party conference this weekend. Labour ahead by 33% in polls.
  • Meta announces hiring freeze.
  • Russia will annex four former Ukrainian territories today.
  • Disaster declared in Florida from Hurricane Ian. Heading for Carolina.

And finally….

Relay runners eh? You have to hand it to them…

Ill never forget the look at the check out when I asked the girl how long it took to grow one after I bought some bird seed.

I asked a German if he knew the square root of 81. He said No.

Clarence

XXXX

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