ASX 200 rose 51 points to 7232 (0.7%) in disappointing trade really. Early signs of kicking on evaporated and we gave a little back, iron ore in China slipped over 2% but that didn’t hurt BHP up 1.0% and RIO up 0.5%. Base metals held firm with S32 up 2.0%, LYC up 1.8% and MIN doing well up 1.9%. Gold miners rallied despite little movement in bullion, NST up 2.2% and NCM better by 2.4%. Energy both old and new, was the place to be, lithium stocks mixed, AKE up 1.5% and CXO rising 2.1%, WDS up 0.9% and coal stocks soaring as WHC rose 5.6% with YAL up 3.8%. Big Banks were also better yet again, CBA hitting records, up 0.5%, the Big Bank Basket up to $188.18 (1.1%). MQG joined in today up 1.6% and insurers also firm. Industrials positive, REITS a little better and healthcare ahead with CSL up on upgrades and news. Techno slipping as WTC crashed 6.7% on its AGM statement. All-Tech Index down 0.5%. In corporate news, CXL rose 7.8% on its CEMEX announcement, CHN up 6.5% on a drill report and QAN dominated as it raised guidance by $1bn in just six weeks, rising another 5.3%. PNV slipped back 8.9% on its capital raise and GNG fell 6.5% on its AGM report. Nothing to write home about on the economic front. Japan closed for Thanksgiving. China seeing more lockdowns and the index easing back slightly. 10-year yields back to 3.58%
- Winners: CXL, BRN, CHN, WHC, LLL, QAN, SGF, INR
- Losers: PNV, WTC, SGR, SLX, GOZ, ZIP, 5EA
- Positive sectors: Banks. Iron ore. Base metals. Oil and gas. Coal.
- Negative sectors: WTC
- High 7247 Low 7199 Narrow trading range. Thin volumes.
- Dalian iron ire futures down over 2%.
- Big Bank Basket: Closed up at $188.18(+1.1%)
- All-Tech index: Down 0.5%
- Gold eases to $2613
- Bitcoin: Rallies to US$16,503
- Aussie Dollar: Higher at 66.35c
- 10-Year Yield: Steady at 3.58%
- Asian markets: Japan closed for holiday. HK up 0.4% and China down 0.4%
- US Futures: Dow unchanged Nasdaq down 29.
- European markets
- BRN +6.92% sector picking up.
- CHN +6.45% AGM address and drill results.
- QAN +5.28% profit upgrade.
- CXL +7.83% CEMEX deal.
- KAR +3.48 % oil prices.
- WHC +5.60% coal prices.
- AMI +9.09% broker upgrades.
- TLG +8.82% EIB appraising up to EUR300m for project.
- PPE +8.41% response to press speculation on strategic review.
- FHE +8.16% WA government award s lead agency status to Bristol Springs.
- PNV -8.85% stumbles on capital raise.
- WTC -6.66% AGM Comments.
- SIQ -2.86% NSW Health contract and earnings outlook.
- SGR -5.56% star falling back to earth.
- A11 -3.23% profit taking.
- Speculative Stock of the Day: Codrus Minerals (CDR) +95.65% after announcing it had secured a large-scale Niobium rich REE project in WA.
IN THE NEWS
- Netlinkz (NET) – Has signed an agreement with SpaceX for NET to be a non-exclusive global reseller of the Starlink satellite-based high-speed internet. There is no minimum contract term with the company fully funded to commence rollout in December 2022, with revenue to commence in January 2023.
- WiseTech (WTC) – Announced at AGM that the company managed a 25% increase in revenue from the previous year while EBITDA increased 54% in the same period. The company also grew their EBITDA margin by 9% to 50%. Looking forward the CEO has reconfirmed FY23 guidance with revenue expected to grow at 20-23% with EBITDA margin increasing a further 1% to 3%.
- Qantas Group (QAN) – Has provided an updated forecast for 1H23 with Underlying profit before tax expected to be between $1.35bn and $1.45bn. Qantas stating, “Continued strength in travel demand has resulted in the Qantas Group upgrading its profit expectations for the first half of FY23.” Continuing on to say “Consumers continue to put a high priority on travel ahead of other spending categories and there are signs that limits on international capacity are driving more domestic leisure demand, benefiting Australian tourism.”
- Chalice Mining (CHN) – Has announced drilling updated with potential for material resource growth at Julimar mine, several outstanding new intersections up to 650m beyond the current resource. Demonstrating the strong potential for the mine.
- CSL Limited (CSL) – TheFDA has approved CSLs Hemgenix (formerly EtranaDez) for the treatment of adults with Hemophillia B.
- Home Consortium Limited (HMC) – Home Consortium Ltd reaffirms FY23 guidance at AGM. FY23 share guidance of 12c and the continued strategy to re-invest earnings into high ROE growth opportunities.
- Macmahon Holdings Limited (MAH) – Macmahon Holdings Ltd has received a notice of award from Talison Lithium for the Greenbushes lithium project (subject to closing conditions and execution of contract within 30 days). Contract to commence 1 July 2023 for a 7-year period with an option to extend for up to 2 years. The contract is estimated to generate revenue in excess of $1.1bn over the initial 7-year term.
- Smartgroup Corporation LTD (SIQ) – Smartgroup announces renewal of services arrangement with NSW health and provides earnings update. CY2022 NPATA in the range of $60m – $61m.
- RBNZ raises rates by 75bps. Forecasts a recession in 2023. Of course, if you stopped raising rates then maybe no recession. It now forecasts the NZ economy to dip into a year-long recession next year with the cash rate to peak at 5.5% from 4.1% forecast in its previous projections.
- Services Sentiment in Australia decreased 47.2 points in November from 49.3 points in October.
- China’s daily Covid infections rose to just under a record high, as major cities from Beijing to Shanghai placed curbs on peoples’ movements.
- There were 28,183 new cases recorded for Tuesday, up from 27,307 Monday. Shanghai will ask new arrivals into the city to stay away from public venues from Thursday for five days. In Beijing, residents must provide a negative PCR test result taken within the previous 48 hours before being allowed to enter public venues or catch a bus from Thursday.
- The new Avatar film The Way if Water, a sequel to the 2009 hit movie, was cleared by Chinese regulators for a Dec. 16 release date.
- Beijing is showing signs that its intense crackdown on the domestic video games sector could be easing
- Japan closed today for another holiday.
US AND EUROPEAN HEADLINES
- Saudi Arabia declares a national holiday after beating Argentina in the World Cup.
- NASA’s Orion Capsule comes within 81 miles of the moon, flies past Tranquillity Base.
- Russia threatens to restrict gas flows to western Europe via Ukraine.
- Manchester United could be up for sale. Ronaldo leaves after interview.
- Iran announces nuclear enrichment programme expansion.
- HP Plans Layoffs With PC Demand Slump Stretching Into Next Year.
- Russia luanches 2 new nuclear powered Arctic Icebreakers.
- European gas cap in focus.
- FOMC minutes tonight, the focus.