ASX 200 dropped another 54 points to 7175 (0.8%) as international recession fears continue. Banks eased back with the Big Bank Basket down to $182.35 (0.8%). MQG slid another 1.4% with insurers coming off their highs, QBE down 1.4%, MPL pushing higher by 2.1%. FUM managers again under pressure, PPT down 2.8% and GQG off 1.4%. REITs better as 10-year yields stable. GMG up 1.3% and CHC the stand out up 3.0%. Industrials were firm generally, WES up 0.7%, TCL up 1.2% and WOW and COL doing ok. Tech stocks mixed, the AllTech Index down slightly. XRO rebounded 0.9%. Resources were mixed, iron ore stocks giving back some recent gains, BHP down 0.8% and FMG off 1.8%. Lithium stocks under pressure as Goldman Sachs weighed in with another report. CXO down 9.9% and LTR taking it especially hard, down 7.5%. Gold miners though in the box seat as bullion increased, NCM up 2.0% and EVN up 3.6%, Good drill results from CHN saw the stock soar 13.11%. Oil stocks also on the nose with WDS down 4.3% and STO off %. BPT recovered some ground from yesterday up 0.3%. Coal stocks slipped a little. In corporate news, DOW were hammered after it ‘presented an ability to be opaque’ with a $40m accounting issue. JRV returned to trade up 4.6%. In economic news, we had international trade and tourism numbers. 10 year yields steady at 3.35%. Asian markets mixed with HK once again sprinting ahead on relaxation of restrictions up 2.8%, China up 0.2% with Japan down 0.5%.

HEADLINES

  • Winners: CHN, BGL, IDX, WAF, JRV, SLR, RMS
  • Losers: DOW, CXO, NVX, LTR, CKF, S32, HUB
  • Positive sectors: REITs. Industrials. Utilities.
  • Negative sectors: Lithium. Iron ore. Energy. Banks.
  • High 7228 Low 7170
  • Big Bank Basket: Closed down at $182.35(0.8%)
  • All-Tech index: Down 0.7%
  • Gold better at $2655
  • Bitcoin: Slips to US$16833
  • Aussie Dollar: Up to 67.16c
  • 10-Year Yield: Slips to 3.35%
  • Asian markets: Asian markets mixed with HK once again sprinting ahead on relaxation of restrictions up 2.8%, China up 0.2% with Japan down 0.5%.
  • US Futures: Dow down 20 Nasdaq down 18

MAJOR MOVERS

  • CHN +13.11% drilling report
  • BGL +7.98% gold in favour.
  • TNE +2.53% bounce from sell off.
  • WR1 +9.49% continuing to push higher.
  • AIS +4.55% HLX new conductive copper targets.
  • LRS -10.34% Maiden JORC resource
  • WIN -19.61% assays confirm high grade lithium discoveries.
  • RBL -2.54% ceasing to be substantial shareholder.
  • BTH -halt – media regarding placement and approach by SQN Investors.
  • CXO -9.92% GS has PT of 100c.
  • LTR -7.49% sold off on GS report.
  • CKF -5.10% did anyone say KFC?
  • RNU -3.13% successful completion of placement at 27.5c
  • NVX -8.09% battery tech on the nose too.
  • Speculative Stock of the Day: Patriot Battery Metals +38.04% Ken Brinsden’s new home flying again. Yesterday’s stock of the day. New listing.

IN THE NEWS

  • Woolworths Group (WOW) – ACCC has outlined preliminary competition concerns with Woolworths proposed acquisition of independent supermarket SUPA IGA Karabar. Woolworths already operates two supermarkets within 5km radius of SUPA IGA Karabar. ACCC is investigating the impact of the acquisition on the competitiveness of other independent supermarkets in the region and whether removing the wholesale customer of Metcash impacts the efficiency and competitiveness of other stores that operate under the IGA banner.
  • Renascor Resources Limited (RNU) -Renascor Resources Limited announces they have completed it’s $70m institutional placement at 27.5c. Proceeds to be used to progress the development of the Siviour BAM Project.
  • CSL Limited (CSL) is investing $900m in a new plasma processing plant in Melbourne as the company looks to switch back strategies from COVID vaccines to specialist blood-based medicines. The new processing facilities will help increase processing volumes and efficiency. The chart turned up an RSI sell signal this morning as it broke down through the 70-level. Broker recommendations still remain favourable, indicating CSL could be a good long-term play.
  • Downer (DOW) – Has updated NPATA guidance for FY23 following accounting irregularities in the Utilities business, involving historical misreporting of revenue and work in progress. The misreporting has resulted in an estimated overstatement of pre-tax earnings of $30m to $40m, accumulated across FY20 to FY23.
  • HomeCo Daily Needs REIT (HDN) – Acquires Southland Boulevarde a supermarket in Perth for $92.5m. The company has also advised it is on track for a target first close equity raising of $500m by 1H2023, this will provide up to $1.0bn of acquisition funding capacity.
  • Immutep (IMM) – Has announced that they have achieved commercial scale in manufacturing of Eftilagimod Alpha ahead of clinical trials.
  • Commonwealth Bank (CBA) – Has increased the limit of the indemnity provided to CountPlus from $300m to $520m to cover certain remediation activities that were identified at the time of sale and up to four years post-sale.
  • Link Group (LNK) – Has provided an update on the Conditional and non-binding proposal from Dye and Durham Corporation to acquire Link Groups Corporate Markets business and all of the BCM business, for a total of $1.27bn. LNK has now announced that the deal has fallen through, despite best efforts. LNK has also reaffirmed FY23 guidance.
  • Ross Youngman the chief executive of funds manager Ausbil will retire in the third quarter of 2023 to be succeeded by Mark Knight.
  • AVZ Minerals (AVZ) says it has filed the first of two International Chamber of Commerce (ICC) arbitrations against Dathomir Mining in a dispute over 15% ownership rights to the Manono Project in the Congo.

ECONOMIC NEWS

International Trade in Goods and Services, Australia

Key statistics

  • The seasonally adjusted balance on goods and services surplus decreased $227m in October.
  • Goods and services credits (exports) fell $568m (0.9%) driven by non-monetary gold.
  • Goods and services debits (imports) fell $340m (0.7%) driven by Fuels and lubricants.
  • Tourism gross domestic product (GDP) rose 26.4% to $35.1bn in chain volume terms in 2021-22 but remains below the 2018-19 peak of $61.9bn.
  • Tourism’s contribution to economy GDP rose to 1.6% in 2021-22 but remains below the 2018-19 level of 3.1%.
  • Domestic tourism consumption rose by $5.3bn to $85.0bn in 2021-22 while international tourism rose by $5.6bn to $6.4bn in chain volume terms.
  • Tourism filled jobs rose to 501,400 in 2021-22 but remains below the 2018-19 peak of 701,100 filled jobs.

ASIAN MARKETS

  • Japanes GDP shrank an annualised 0.8% in the three months to the end of September from the previous period, revised figures from the Cabinet Office showed.
  • Hong Kong could scrap its outdoor mask mandate and shorten the isolation period for people who test positive for Covid as part of a suite of major relaxations in the city.
  • Sime Darby will be BYD’s exclusive distributor in Malaysia, with the first showroom to open later this month.

US AND EUROPEAN HEADLINES

  • Peru plunges into political crisis as president ousted.
  • Former Theranos executive Sunny Balwani sentenced to nearly 13 years for fraud.
  • FTX held talks with Taylor Swift over $100mn sponsorship deal.
  • Qatar received just over 765,000 visitors during the first two weeks of the World Cup, according to an organizers’ report obtained by Reuters, falling short of the country’s expectations for an influx of 1.2m during the month-long event.

And finally….

A lorry carrying tortoises overturned on the F1 today a policeman attending the scene said it was a turtle disaster.

Finally, they are talking about banning decorative glitter. Apparently, it’s been on the cards for years.

I was in a shoe shop this morning and was trying on a shoe.

I said to the assistant: “It’s too tight”.

She said: “Try it with the tongue out”,

I said: “It’th nho ghood, it’th thtill thoo thight!”

Clarence

XXXX

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