ASX 200 dropped from the open closing down 54 points (-0.8%) at 6677 finishing the week down 1.2%. Quiet trading, volumes boosted by options expiry. 10-year bond yields ramped higher again at 4.22%. Banks on the nose today with the Big Bank Basket down to $179.96 (-1.5%). Insurers also falling foul to sellers, QBE down 2.8%, SUN off 2.2% and MFG sinking into oblivion, down another 2.8%. Industrials falling again, REITs suffering on the higher bond yields, GMG down 3.6% and TLSDA down 1.6%. Staples off as price rises due to floods set to kick inflation higher. Nothing RBA can do about that. COL off 1.5% and WOW down 1.4%. Tech unchanged after the drubbing yesterday. Resources tried to hold the line but in the end, BHP slid 0.7% with FMG off 1.0%. MIN up 3.1% and lithium stocks bid again, although AKE off on production delays. Oil and gas stocks doing well as WDS rose 2.6% and STO up 0.9%. In corporate news, BCB fell 13.3% on a placement, other coal stocks rose, NHC hit a record high up 7.7%. 360 raised prices and gained 7.3% and PRU up 5.6% on its 90% consolidation of Mako. Nothing on the economic front today. UK the focus. Asian market modestly lower. 10-year yields up to 4.21%. Dow Jones futures down 45 points.
- Winners: TLX, NHC, MAD, 360, YAL, PRU, SYR, CRN, SMR
- Losers: BCB, KKC, PBH, HMC, TPW, TYR, COE, ORG
- Positive sectors: Lithium. Oil and gas. Coal.
- Negative sectors: Banks. Insurers. REITs. Supermarkets.
- High 6727 Low 6668 ASX 200 down 1.2% for the week.
- Oil slightly higher in Asia.
- Big Bank Basket: Closed down at $179.96 (-1.5%)
- All-Tech index: Unchanged.
- Gold: Lower at $2588
- Bitcoin: Falls to US$19051
- Aussie Dollar: Steady at 62.61c. Best week since August.
- 10-Year Yield: Higher at 4.21%
- Asian markets: Japan down 0.3%, HK down 0.2% and Chin up slightly.
- US Futures: Dow down 45 Nasdaq down 75.
- European markets opening flat.
- TLX +12.67% kicking on again.
- MAD +7.36% pushes higher on thin volumes.
- 360 +7.31% raises prices.
- SYR +5.77% still alive and kicking.
- NHC +7.69% notice of AGM.
- CRN +5.37% WHC +4.59% coal back.
- CTT +10.92% luxury buyers back.
- ICT +11.36% business update.
- VHT +1.69% appointment of joint company secretary.
- BCB -13.33% capital raising.
- KKC -9.00% investor update gives back gains from Thursday.
- JRV -1.77% results presentation.
- NVX -3.07% response to ASX query.
- AJL -17.07% UK fracking looks off the cards.
- PNR -20.59% placement weighs
- RBL -7.55% no sign of inflating.
- EBR -7.21% reinstatement to quotation.
- MPL – now suspended until Wednesday.
- MGH -4.10% slide continues on thin volumes.
- Speculative Stock of the Day: Nothing on any volumes. Very quiet in spec land.
IN THE NEWS
- Sezzle (SZL) – Underlying merchant sales rose 0.6% Quarter on Quarter to $421.5m, with total income increasing 4%. ‘burn’ in 3Q22 was negative US$3.5million compared to negative 3Q21 US$13m.
- Aussie Broadband (ABB) – Reaffirms FY23 guidance at AGM. Stating in FY22 “Residential revenue increased by 36%, business 54%”. With the gross margin being higher due to the acquisition of OTW.
- Life360 (360) – Has decided to permanently increase the price of subscriptions for new and existing customers. The increase in price will create a lower retention rate overall but is expected to increase revenue.
- Best and Less Group (BST) – Outlined in this morning’s AGM was the agreement to open 11 new stores in FY23. Sales had improved after the first half of the year when government-mandated closures had significantly impacted sales.
- Allkem (AKE) – First quarter lithium carbonate sales were 3,721 tonnes, generating record quarterly revenue of US$150m. Production at Olaroz Facility was also up 17% on the previous corresponding quarter. AKE expects demand to remain robust, and spodumene pricing in December is expected to be in line with September
- Cooper Energy (COE) – Reported record full-year performance, EBITDAX increased 169% year on year to $80.7 million. Revenue reported an increase of 56% to $205 million. Growth trajectory to continue driven by higher gas production and resultant cash generation.
- Cleanaway Waste Management (CWY) – Has reaffirmed its FY23 guidance following today’s AGM speeches. “Cleanaway delivered a strong underlying financial performance”, expecting FY23 EBITDA to be in the range of $650-690m based on current operating conditions. Throughout this year, they have acquired two landfill sites and five transfer stations.
- AMP’s pool of Australian wealth management assets declined by almost $4bn. Assets under management (AUM) in its superannuation and financial advice division of $121.4bn at September 30, down from $125.1bn at the end of June.
- CBA forecasts headline inflation to add 1.6% in the September quarter, taking annual price growth to 7%.
- Malaysian elections 19th November. Maybe implications for LYC.
- Japanese inflation rises to an 8-year high on weak yen and energy costs. Sept core CPI rises 3.0% yr/yr, matches forecast.
- Indian Diwali kicks off this weekend.
- Xi Jinping looks set for third term. Who else will win? Who is number 2? You are number 6. Be seeing you.
- Where is the Chinese GDP data?
US AND EUROPEAN HEADLINES
- UK PM to be decided by Monday. Lettuce pray. Interesting that she is the first PM to resign to the King. Oh dear. Oh dear.
- Cathie Wood back buying Tesla. Another 66,190 shares for Ark Innovation.
- Germany drops opposition to gas cap. Adidas slashes guidance.
- Renault numbers today.
- US Navy chief warns China could invade Taiwan before 2024.
- EV start-up Arrival to cut UK jobs in production shift to US.
I wanted to go swimming in the river when I visit Paris. My mate said ‘Are you insane?’
We were so poor when I was a kid my mum bought all my clothes from the army surplus store.
I was the only Japanese General at school.