ASX 200 closed up another 60 points to 7388 (0.8%) as banks took up the baton again. The Big Bank Basket rose to $187.82 (0.95%). CBA up 0.8%, WBC up 0.7% with fund managers up strongly too, MFG up 2.9% and GQG up 2.6%. Insurers steady. REITs better again on rate outlook. GMG up 2.2% and SGP up 1.9%. Tech stocks also doing well with WTC up 4.0% and XRO up 4.6% with the Index up 2.6%. Lower rates helping. Industrials firmed, TCL up 1.3% and WES up 1.2%. Healthcare stocks firmed, CSL up 1.4% with SHL up 1.9% and FPH rallying 2.9%. Meanwhile, iron pre-stocks eased back from highs as China looks to clamp down on price rises. BHP up 0.1% with FMG under pressure, off 2.1%, Gold miners better, NCM up 2.4% and NST up 2.9%. Lithium stocks struggling to gain traction, INR doing well up 21.9% on US deal. Oil and gas stocks better, WDS up 1.6% and WHC up 2.4%. In corporate news, SUL had a positive business update rising 7.7%, BBN went down 11.6%, screaming on a dummy spit as December sales disappointed. BTH rose 13.6% on ARR jump and PNV up 2% on record revenue numbers. Nothing on the economic front. In Asia, Japan fell 0.7% ahead of BoJ policy meeting, China up 1.5% and HK up 0.7%. 10-year yields steady at 3.59%. US markets closed tonight. Dow futures up 37 points and Nasdaq futures up 10 points.

HEADLINES

• Winners: INR, MAF, WBT, AEF, MYR, SUL, MP1, TYR, 360
• Losers: CXO, BCB, ARU, LTR, MND, HLI, MAQ, AQZ
• Positive sectors: Banks. Energy. Tech. Industrials. REITs. Gold.
• Negative sectors: Lithium. Iron ore.
• High 7396 Low 7335
• Big Bank Basket: Closed at $187.82(0.95%)
• All-Tech index: Up 2.9%
• Gold better at $2748
• Bitcoin: Surging US$21131
• Aussie Dollar: Better at 70.0c
• 10-Year Yield: Steady at 3.59%
• Asian markets: Japan fell 0.7%, China up 1.5% and HK up 0.7%.
• US Futures: Dow up 37 Nasdaq up 10. Physical markets closed tonight.

MAJOR MOVERS

• INR +20.88% US loan backing.
• WBT +9.51% keeps on heading higher.
• TYR +6.93% business update
• SUL +7.68% business update.
• 360 +6.46% broker upgrades.
• MYR +8.63% grant of performance rights.
• SLX +5.39% hitting highs.
• BTH +13.59% positive update $130m ARR.
• KGN +13.40% e-commerce is back.
• ZIP +9.02% big move. Short squeeze.
• BOC +7.94% must be a copper boom.
• BBN -11.55% dummy spit on December sales.
• LTR -3.85% CXO -6.17% lithium under pressure.
• ARU -4.76% sinking back.
• FMG -2.06% Chinese iron ore moves and corporate governance issues.
• AGY -2.31% soggy lithium.
• Speculative Stock of the Day: Norfolk Metals (NFL) +14.29% after additional copper was identified at Roger River.
• Above Average Volumes: SRZ, TOU, CXU, AHL.

IN THE NEWS

• Ioneer (INR) – The US Department of Energy has made a conditional offer of a loan up to $700m for the development of the Rhyolite Ridge Project Lithium-Boron Project. The offer follows after almost 2 years of extensive and detailed due diligence. The loan would secure a 50% interest in the project.
• Clinuvel Pharmaceuticals Limited (CUV) – Shares positive results of Phase II study CUV156 that justify further progression of study in XPC and the ongoing CUV152 study in XPV patients.
• Origin Energy Limited (ORG) – Brookfield and EIG are likely to ask for another extension as their exclusive due diligence sets to expire today. No announcement yet.
• Polynovo Limited (PNV) – Record 1H23 sales $27.3m +67.5% and total revenue $29.5m +62.2%
• Super Retail Group Limited (SUL) – Reports 1H23 revenue of $1.96bn.
• Tyro Payments Limited (TYR) – Reports 1H23 $216.6m +45% YoY on track for a positive free cash flow in FY24.
• Tietto Minerals Limited (TIE) – Reports maiden gold pour at Abujar project weighing 414oz and provides guidance forecast of 260Koz of gold in first-year production.
• Bigtincan Holdings Limited (BTH) – Reports 1H23 annualised recurring revenue of $130m driven by customer wins and expansions and remains on track for its guidance for FY23.
• Baby Bunting Group Limited (BBN) – Reports 1H23 NPAT $5.1m from $12.5m 1H22 down 59%. For FY23 BBN expects NPAT to be in the range of $21.5-$24m and gross profit margin to be between 38-39%.

ECONOMIC & OTHER NEWS

• Virgin IPO process kicks off.
• Optimism and a strong outlook for the Euro area applies pressure on the Swiss Franc. Traditionally like the USD the Swiss Franc is used to ride out market turbulence as a currency haven. The optimism has driven the euro-franc past parity for the first time in six months, a big turnaround from last year when the franc rose, and the Euro fell on inflation and recession fears.

ASIAN MARKETS

• China’s National Health Commission said on Saturday that nearly 60k people died at hospitals from Covid-related causes between Dec. 8 and Jan. 12. Nature Medicine said that 76% of Beijing’s 22m population were probably infected with the virus by Dec. 22 and that figure would rise to 92% by the end of January.
• Japan’s annual wholesale prices rose at a faster-than-expected pace in December, the Bank of Japan said today.
• China’s urban new home prices continue slide in December. Total spending on personal luxury goods by South Koreans year-on-year grew around 24% to $16.8 billion, amounting to $325 per capita.  
• Xinhua reported PBOC Vice Governor Xuan said monetary policy will focus on expanding domestic demand and supply-side structural reform coordinating monetary policy with fiscal and social policy to up support for target segments of the economy. PBOC has discussed additional structural tools to offer support for the real estate sector.

US AND EUROPEAN HEADLINES

• US markets closed tonight for Martin Luther King Jnr holiday.
• Peru declares state of emergency in Lima after deadly protests.
• Anthony Scaramucci called 2023 a “recovery year” for bitcoin and predicted it could trade at $50,000 to $100,000 in two to three years.
• Bank of America CEO Brian Moynihan said Friday that the bank is preparing for a potential recession in 2023, including a scenario where unemployment rises rapidly. “Our baseline scenario contemplates a mild recession”.
• Davos kicks off today

And finally….

Clarence

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