Did you miss me?

Happy New Year…..

ASX 200 started the week up 42 points to 7154 (0.6%). A solid start but off the intraday highs. Banks somewhat lacklustre with the Big Bank Basket up to $180.41 (0.2). Mixed across the financials, AMP slipped 4.2% on a Collinmate update, GQG rose 5.7% on FUM and insurers slid on IAG update. Industrials firmed with TCL up 1.1%, QAN up 1.9% and REITs better with GMG up 1.4%. Tech a little mixed, CPU sold off hard down 5.5% as brokers turn bearish, WTC up 1.3% and the All–Tech Index slightly higher. In resources, gold miners shone, NCM up 2.8%, NST up 1.7% and EVN pushing another 2.2% ahead. Lithium shares were mildly positive, PLS floundered a little, off 0.8%, CHN rose 1.5% and S32 up 3.8%. Iron ore miners mixed, BHP up 1.0% but FMG down 0.8%. Energy shares better, WDS up 1.2% and STO up 1.3%. Coal stocks mildly positive. In corporate news, FMG CFO resigns, IGO -Tianqi bids for ESS at 50c. IMU up 6.3% on ethics approval for Vaxinia trials. Stellantis has bought into E25 with the stock rallying 14.6%. On the economic front, building approvals fell more than expected. Asian markets slightly higher with Japan closed for a holiday. HK opens its border to China for the first time in three years.

HEADLINES

• Winners: RNU, PDN, ARU, NIC, PDN, PNV, DYL
• Losers: TLX, CPU, ABB, CIA, AMP, RPL
• Positive sectors: Gold miners. Industrials. REITs. Uranium. Oil and gas.
• Negative sectors: Insurers.
• All-Tech index: Up 0.5%
• Gold better at $2710
• Bitcoin: Steady at US$17205
• Aussie Dollar: Higher at 69.28c
• 10-Year Yield: Falls to 3.72%
• Asian markets: HK up 1.8%, China up 0.6% with Japan on holidays.
• US Futures: Dow up 85 Nasdaq up 55

MAJOR MOVERS

• ARU +7.84% change of director’s interest.
• CHN +1.45% resource rally continues.
• AGY +5.60% positive research around.
• CXL +5.12% good to see.
• NIC +6.67% nickel in focus. PAN +5.41%. Savannah update.
• WR1 +14.85% sector consolidation.
• VHT +13.64% signs multiple contracts worth NZ$12.3m.
• E25 +14.58% signs offtake agreement.
• DRO +16.00% another $11m order.
• BMN +11.04% PDN +9.56% interest stirring in Uranium.
• TLX -7.16% trading update and conference presentation.
• CPU -5.53% negative broker research.
• AMP -4.17% update on sale of Collimate Capital.
• TNT -7.14% more shares released from escrow.
• KLL -14.00% ASX query kills rally.
• IPO Disappointment of the Day: VHM -15.56% so much hype and so little interest from buyers. $30m raised at 135c.
• Speculative Stock of the Day: Tempus Resources (TMR) +46.3% Not a great time of year with volumes and liquidity still on the low side. But good drill hole assays results with 28.1g/t AU over 28.5m helping this one along nicely. Good day too with bullion prices up.

IN THE NEWS

• AFT Pharmaceuticals Limited (AFP) – Held operations update and reaffirmed commitment to payment of maiden dividend following the completion of FY23.
• Imugene Limited (IMU) – Receives HREC approval to commence phase I clinical trial of VAXINIA in Australia.
• GQG Partners Inc (GQG) – Reports FUM as of 31 December $88bln vs $90.7bln a month ago.
• Element 25 (E25) –  $30m investment in the company by car Giant Stellantis. Stellantis has also signed an offtake agreement with E25 under which they would be supplied 10,000 tonnes a year of battery-grade manganese sulphate monohydrate for 5 years.
• Insurance Australia Group Limited (IAG) – Confirms 2023 reinsurance program and 10% quota share renewals.
• Telix Pharmaceuticals (TLX) – Provided a market update reporting a 39% increase in US sales of Illuccix kit for prostate cancer imaging. The increase represents a total of AU$149.7m in sales since its launch in Q3 2022.
• Rare Earth’s company VHM Limited (VHM) is due to begin trading at 12.30pm on the ASX today with a market cap of $265m. It rasied $30m at 135c. VHM signed a memorandum of understanding to supply China with rare earth concentrate less than 3 months ago.
• IGO has entered into a joint venture with Tianqi Lithium to acquire Essential Metals (ESS) for 50c per share. ESS’s board has recommended that shareholders vote in favour of the takeover.

ECONOMIC NEWS

• Australian building permits fell 9% month on month, significantly worse than the market consensus of a 1% decline. This marks the third straight month of decline in building permits.

• The local housing market has recorded its deepest downturn on record, after national home values fell 8.4% since their May peak, CoreLogic figures show. The previous record downturn was the 8.38% drop between October 2017 and June 2019, when APRA clamped down on runaway lending to investors.

ASIAN MARKETS

• Japan PM Kishida reiterated the intention to review the BOJ policy accord, suggesting that BOJ needs to make policies more flexible with an eye on eventual normalisation.
• Jack Ma, the founder of Ant Group was given up control of the group after the group released a statement saying, “no shareholder” will have “control over Ant Group”. This comes after a long-running crackdown on Ma by the Chinese government and the government forcing Ant Group to cancel their IPO.
• Ford and SK Innovation’s battery unit cancelled plans to build an electric-vehicle battery plant in Turkey amid rising global interest rates and weaker EV demand in Europe, the Korea Economic Daily reported. India’s GDP growth to slow to 7% this fiscal year, down from 8.7% in the previous year as covid related distortions ease and pent-up demand for goods levels out.
• Hong Kong economy to grow by 3.3% this year – Bloomberg survey shows.

• Taiwanese lawmakers have passed new rules that let local chip firms turn 25% of their annual research and development expenses into tax credits.

US AND EUROPEAN HEADLINES

• Thousands of supporters of former Brazilian President Jair Bolsonaro stormed the country’s top government institutions on Sunday. President Joe Biden called the storming “outrageous,” while leaders across Latin America were quick to pledge solidarity with newly sworn in President Lula.
• Goldman Sachs to cut 3200 jobs this week. More than a third of those will likely be from within its core trading and banking units.
• UK PM set to hold talks with unions as stoppages continue across the country.

And finally……

Clarence

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