ASX 200 finished up 37 points to 7153 (0.5%). A thin and directionless day despite the rise. Investors are winding down. Resources mixed after the 29M production issue caused them to fall hard down 22.2% with BHP and OZL announcing the deal is done. Now to regulatory issues and timing. Lithium stocks continue to slip as brokers pile on with downgrades. Oil and gas stocks slightly firmer with WDS up 0.2%. Limited moves elsewhere. Gold miners gave back some gains with NCM off 1.1% and NST down 0.8%. Industrials firmed again with REITS doing well despite yields pushing higher again. GMG up 1.3% and SCG up 1.4%. Tech stocks better as WTC rose 1.5% and XRO up 1.6% with the All Tech Index up 1.8%. Banks slightly better as the Big Bank Basket rose to $183.70 (0.6). MQG rallied 0.5% and Fund Managers were better, MFG up 2.3% and GQG up 2.6%. Healthcare in rude health today, CSL up 1.2% and COH gaining 2.7%. In corporate news, KGN rescued a small furniture player from administration, BHP went official with OZL and 29M tried to sneak through a downgrade. Failed. MPL will return another $207m of the savings from CV19 to customers. Nothing on the economic front. Asian markets slightly higher, HK up 0.5%, China up 0.6% with Japan up 0.5%. 10 -year yields also pushing higher again. 3.78%.

HEADLINES

• Winners: AX1, SMR, DHG, 360, TPW, INR, CIA, STX
• Losers: 29M, SBM, WBT, SM1, SLT, STA, CXO
• Positive sectors: Tech. Healthcare. Industrials. Banks.
• Negative sectors: Gold miners. Lithium.
• High 7167 Low 7119
• Big Bank Basket: Closed at $183.70 (0.6%)
• All-Tech index: Up 1.7%
• Gold steady at $2691
• Bitcoin: Steady at US$16,852
• Aussie Dollar: Higher at 67.62c
• 10-Year Yield: Firms to 3.78%
• Asian markets: HK up 0.5%, China up 0.6% with Japan up 0.5%.
• US Futures: Dow up 86 Nasdaq up 33

MAJOR MOVERS

• DHG +5.47% on a charge after big sell off.
• CIA +4.96% iron ore player.
• PME +3.91% signs $15m deal with Luminis Health.
• CXL +4.14% good to see.
• 360 +5.38% bounces back.
• POS +7.89% SPP out of the way.
• GAL +9.88% enthusiasm emerges.
• TNT +9.09% exploding higher.
• 29M -22.10% production downgrade
• WBT -5.37% change of director’s interest.
• STA -3.75% good yesterday. Bad today.
• ZIP -6.90% cleansing notice.
• CXO -2.91% sinking slowly.
• LTR -1.89% downgrades.
• Speculative Stock of the Day: Not much volume in the speculative end as you would expect. CYM +22.67% on offtake prepayment for Nifty restart.

IN THE NEWS

• Synlait Milk Limited (SM1) – Synlait Milk provided a half-year guidance update today. FY23 guidance remains unchanged and anticipates HY23 NPAT to be down on HY22 despite an increase in nutrition, consumer, and food service volumes. Synlait intends to release an FY23 NPAT guidance range at HY23 result on 27 March.
• IGO Limited (IGO) – IGO has announced that mining and processing operations have resumed at their Nova Operation following fire damage at the 10MW power station. IGO expects full-year production to be at or just below the guided range and expects to provide further updates on Nova’s production and cash cost guidance as part of the December 2022 quarterly report released on 31 January 2023.
• 29 Metals (29M) – Provided a trading update after hours last night. 29M has stated that they are expecting gold and silver production to be 10 to 15% lower year on year for 2023 while they are expecting costs to be higher for production in 2022. Copper and zinc production is also expected to be flat in 2023.
• Oz Minerals Limited (OZL) – Oz Minerals has entered a Scheme implementation deed with BHP under which has agreed to acquire 100% of Oz Minerals shares via a scheme arrangement following a four-week period of due diligence. Oz Minerals shareholders will receive 2825c per share representing a 49.3% premium to Oz Minerals closing share price of 1892c per share on August 5 prior to BHP’s proposal, implying an EV of A$9.6bn. Implementation date mid to late April 2023.
• Kelsian Group (KLS) has been awarded a New Sydney bus services contract. The contract includes the renewal of their current contract in region 3 as well as the taking over of region 13. The contract will cover $800m in funding over the contract term of seven years.
• Medibank Private (MPL) – to return a further $207m to customers, bringing the total COVID-19 support package to $950m. Customers will receive the money through “cash back” which will be deposited in their bank account. Medibank has said, “Our commitment has been to ensure that we would not profit from the pandemic”.
• NRW Holdings (NWH) has announced their subsidiary has entered into a 5-year mining services agreement with Jellinbah Mining, for the operation and maintenance of 600-tonne excavators and 220-tonne dump truck fleet. The contract is estimated to be worth $230m and will commence in January 2023
• Kogan.com (KGN) has purchased “Brosa” out of administration for $1.5m. KGN plans to relaunch Brosa as an online outlet in the hopes of expanding its online furniture market share.
• Pro Medicus Limited (PME) – Pro Medicus Limited signs 7-year $15m deal with Luminis Health. Pro Medicus subsidiary Visage Imaging will replace PACS throughout the Luminis Health network.
• Clive Palmer has sold the Yabulu nickel and cobalt refinery in Townsville to a Swiss consortium for $1.3bn and there are now plans to restart operations within 18months and hire back 800 workers.

ECONOMIC NEWS

End of Year scores on the doors

• Spending from ANZ data sources between November 20 and December 18 was just 10% higher than it was in 2019, despite the benefits of 1.8% population growth and inflation of 10.5% since then.

ASIAN MARKETS

• Nothing of note today.

US AND EUROPEAN HEADLINES

• Two of the FTX crypto fraudsters have pleaded guilty and are cooperating with authorities. Ellison and Yang face 110 years in jail. Ms Ellison has pleaded guilty to seven counts relating to wire fraud and Mr Wang pleaded guilty to four counts.
• Trump’s tax records show $53mn in net losses over six-year span.
• Cathie Wood’s Ark sheds almost $50bn in assets since 2021 peak.
• Core Scientific, one of the largest publicly traded crypto mining companies in the U.S., is filing for bankruptcy.
• Semiconductor maker Micron announced it would reduce its headcount by about 10% in 2023, in the latest example of a technology industry slowdown affecting employment.

And finally……

Happy Xmas and hope 2023 is a good one. No Beeks tomorrow…back on the 9th January

Clarence

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