ASX 200 falls 35 points to 6964 (0.5%) ahead of US CPI tonight. Banks eased back as NAB saw downgrades post results, falling 2.1%, the Big Bank Basket down to $182.93 (1%). MQG fell 1.0% and insurers slid slightly as bond yields fell to 3.72% in the 10s. Plenty going on with PPT, PDL one up one down. MFG fell another 3.2% as it continues to head lower. Industrials were mixed, CSL up 1.1% on an upgrade, COH better by 1.5% but others slightly lower. REITs better on lower yields, Staples continue to find bargain hunters with EDV, COL and WOW all doing ok. Resources slipped as China locked down more areas due to CV19. BHP fell 1.5%, FMG off 2.0% and base metals and lithium stocks falling away. PLS down 3.3% and MIN off 1.1%. Gold miners were mixed, DEG up 2.1% and NCM down 1.3%. Energy stocks weak, WDS down 2.3% and STO fell 1.6% with WHC dipping another 3.3%. ORG bucked the trend as Brookfield lobbed a 900c bid into the equation, in other corporate news, NWS rallied 8.7% on better Q1 numbers, XRO fell hard by 10.9% on margin and growth issues, PPT got another bid at 3300c rising 14.8% whilst PDL fell 10.9% on a delay. CPU gained 4.1% after better AGM update and A11 fell 4.0% after a presentation at the Noosa Mining Conference. On the economic front, no big news but US CPI in focus. Asian markets weaker and 10-year yields fell to 3.72%. Bitcoin craters.Finding some support.
- Winners: ORG, PPT, NWS, SFR, CXL, RNU, RPL, CPU
- Losers: PDL, XRI, AEF, LLL, SMR, TUA, SQ2, CTT
- Positive sectors: Staples. Telcos.
- Negative sectors: Banks. Iron ore. Energy. Tech.
- High 6988 Low 6955. Narrow range again.
- Big Bank Basket: Closed up at $182.93 (-1%)
- All-Tech index: Falls 1.8% CPU up XRO down.
- Iron ore down 1% in Asia.
- Gold rallies to $2663
- Bitcoin: Crashes to US$16,321 off lows though.
- Aussie Dollar: Lower at 64.15c
- 10-Year Yield: Lower at 3.72%
- Asian markets: Japan down 1.0%, HK down 1.9%, China down 1.1%.
- US Futures: Dow up 65 Nasdaq up 52
- European markets opening around 0.5% lower.
- ORG +34.77% Brookfield bids 900c in opening salvo.
- PPT +14.82% improved non-binding offer at 3300c.
- NWS +8.72% First quarter earnings.
- SFR +5.25% new CEO and MD announced.
- CXL +4.69% SPP ends today.
- DXI +3.37% strategy presentation.
- TIE +0.63% Abujar gold project update.
- AVH +9.65% Co-primary endpoint met in RECELL trial.
- CTM +8.25% Jaguar MRE jumps to 108mt @0.87% Ni.
- TBN +10.26% EP98 update.
- KGL-15.15% Copper project feasibility study.
- WR1 -11.58% profit taking.
- PDL -10.93% could be left at the altar. Requests delay.
- XRO -10.85% heading that way on results.
- AEF -8.37% reverses recent rally.
- SQ2 -5.70% bitcoin falls.
- CTT -5.56% profit taking continues.
- PBH -5.24% heads lower again.
- Speculative Stock of the Day: Invictus Energy (IVZ) +161.90% elevated gas shows confirms working hydrocarbon system. Big volume too. Honourable mention to OD6 +82.61% outstanding initial drill assays.
IN THE NEWS
- Origin Energy (ORG) – Origin receives a non-binding bid at $9.00/share cash from Brookfield consortium. This proposal values Origin at $18.4 bn on an enterprise value basis.
- Regal Partners (RPL) – According to the AFR, RPL has increased their acquisition offer to $33 per share of Perpetual (PPT). 10% higher than the previous offer that was rejected. Perpetual (PPT) has announced they have now also rejected the revised bid of $33.
- Xero (XRO) – Announced an increase of revenue by 30%, yet an increase in net losses by 172% to $16.13m. The bulk of net loss increases is being made up by income tax expenses increasing 216% from the previous year. Looking forward, the company expects the industry to grow significantly, while in FY23, operating expenses are expected to be between 80-85% of operating revenue.
- Computershare (CPU) – Reported an increase in revenue by 12.2%, with earnings per share increasing by 10.6%. Looking forward, CPU forecasts an increase in revenue. Income revenue will be approximately $800m with an ongoing focus on cost-out, yet also noting a challenging macro environment moving into the coming periods.
- Suncorp Group (SUN)– Suncorp investor update reaffirmed FY23 targets. Insurance trading ratio of 10-12% and the cost-to-income ratio of approximately 50%. Q1 results: home lending is up 3.3%, deposits up 4.4% and NIM 1.99%.
- Scentre Group (SCG) – Reported an increase in sales by $2.4bn in the third quarter compared to the previous year, with portfolio occupancy at 98.8%. SCG forecasts dividends to be 15c per share for 2022, representing a 5.3% growth.
- Ansell (ANN) – Has warned of a decrease in revenue, with EPS expected to be in the lower half of its guidance of US115c to US135c. ANN noted growing concern around global economic outlooks with the destocking of products in life science. The revenue downside risk is seen to be partly offset by moderation in cost inflation.
- Nine Entertainment (NEC) – Nine Entertainment held its annual general meeting. Announcing a record year for the company with NPAT more than double that of FY20. Key highlights include revenue up 15% to $2.7bn, and group EBITA up 24%.
- EML Payments (EML) – The Prepaid Financial Services arm in Ireland has been notified by the Central Bank of Ireland that total payment volume restrictions will apply for a further twelve months until December 2023.
- Ingenia Communities (INA) – says its Group FY23 result is expected to be at the lower end of the FY23 guidance range amid labour and supply shortages and flooding in Victoria.
- There were 89,164 couples who married in 2021, well below pre-pandemic marriage numbers.
- Marriages in New South Wales and Victoria were down 31.0% and 34.6% respectively when compared with 2019.
- There were 56,244 divorces granted in 2021.
- The median duration of marriage to divorce was 12.2 years.
- 47.8% of the divorces granted were of couples with children under 18 years.
- The median age at divorce was 45.9 years for males and 43.0 years for females
So now you know.
- Crypto markets face weeks of deleveraging in the fallout from the crisis at digital-asset exchange FTX.com, a period of upheaval that could push Bitcoin down to $13,000, according to JPMorgan Chase & Co. strategists.
- Neel Kashkari, who once called bitcoin an “utterly useless” currency, is at it again, calling it the “Wild Wild West and chaos all rolled into one.” Summed it up well.
- Sequoia Capital wrote down the entire value of its stake in FTX .
- Putin will not be at the G20 in Bali.
- Chinese stocks dropped as the nation increased COVID-19 restrictions to curb an outbreak in a key manufacturing hub.
- Hong Kong’s Hang Seng Index fell 2.44% in early trade as Hang Seng Tech Index dropped more than 3%.
- TikTok slashes global revenue targets by at least $2bn.
- TSMC, the world’s largest contract chipmaker has begun construction on a building that may eventually house its second fabrication facility in Arizona. TSMC, whose production sites are mostly in Taiwan, has started to diversify over the past year.
US AND EUROPEAN HEADLINES
- Midterm results hang in the balance. Biden heads off to Egypt and Bali and ASEAN.
- Jim Cramer on Wednesday warned that growth stocks could take another beating if the October consumer price index reading shows that inflation is still running rampant.Crammer is a valued reverse indicator.
- Paul Allen, the late co-founder of Microsoft, looks to be heading to top US$1.5bn at auction.
- Biden says Musk security concerns ‘worthy of being looked at’
I don’t officially smoke but I do enjoy the odd cigar while tending to my herb garden.
Hopefully the herbs can’t speak so won’t snitch on me, but I guess only thyme will tell!
Can you name 3 fruits beginning with the letter T
Tin of peaches
What does someone with two left feet wear to the beach? Flip-flips.