ASX 200 shook off early apathy post the jobs number and BHP quarterly and saw the ASX 200 up 42 points to 7435 (+0.6%). SPI and ETO expiry helping volumes. Resources led the charge higher with BHP up 1.2%, RIO sprinting ahead 3.3% and FMG doing well up 1.7% ahead of Chinese New Year and better ore prices. Lithium stocks remain under some pressure, PLS up only 0.3% and IGO up 0.9% with some base metal stocks falling, NIC returned from a trading halt falling 6.7% towards placement price. Gold miners were steady but unspectacular. NCM up 0.9% and NST rising 1.0%. Oil and gas stocks eased, WDS down 0.6% and STO down 1.6%. Coal stocks better in places. Industrials firm with TLS up 1.5% and TCL enjoying lower bond yields up 1.5%. REITs too slightly higher, GMG up 0.6%. Tech stocks in the naughty corner, CPU down 0.1% and XRO off 1.1%. The All–Tech Index fell 0.5%. Healthcare better and banks heading higher again. The Big Bank Basket up to $188.19 (+0.7%). Insurers better despite lower yields, QBE better by 0.8% and SUN up 3.7%. Fund managers slid with MFG still falling, down 0.6%. In corporate news, plenty happening, BHP quarterly production numbers cheered, NWL fell hard on FUA numbers, down 9.2%. NIC returned after 102c placement, AWC troubled by Alcoa numbers disappointingly down 6.8% and PDN fell 5.8% on its quarterly. On the economic front jobs numbers at 3.5% slightly higher, maybe the RBA can pause? Maybe. Asian markets mixed. 10-year yields 3.32% Dow futures down 41 points. Nasdaq futures down 5 points.

HEADLINES

• Winners: NAN, GRR, VEA, SGF, RSG, MGX, WBT, MYR, PXA
• Losers: NWL, NVX, AWC, NIC, INR, PDN, JDO, PBH
• Positive sectors: Iron ore. Banks. Golds. REITs
• Negative sectors: Tech. Oil and gas. Staples.
• High 7440 Low 7380
• Big Bank Basket: Closed better at $189.28 (0.7%)
• All-Tech index: Down 0.5%
• Gold heads higher to $2766
• Bitcoin: Off highs at US$20762
• Aussie Dollar: Off highs to 69.04c
• 10-Year Yield: Bashed to 3.32%
• Asian markets: Japan reverses down 0.9%, Chia up 0.3% and HK steady.
• US Futures: Dow down 41 Nasdaq down 5.

MAJOR MOVERS

• NAN +8.02% earnings update.
• WBT +3.95% record highs.
• GRR +5.15% iron ore play.
• MGX +3.97% same.
• RSG +4.08% updated resource estimate.
• PMT +38.29% exciting new lithium hits.
• NXL +14.63% results update
• CCX+11.72% Brett Blundy sees opportunity.
• EOS +8.97% stirring.
• BUB +13.56% China awakes wanting milk?
• MIN +0.42% rules out WGO bid.
• NWL -9.19% FUA
• AWC -6.76% Alcoa results disappoint.
• NIC -6.70% back after huge placement.
• INR -6.67% rules breach.
• PDN -5.77% quarterly report.
• CDA -3.77% profit taking.
• Speculative Stock of the Day: Bass Oil (BAS) +57%.One we have written up before after chatting to the CEO in October. Seems to be taking positive signs from drilling by neighbour STO.
• Above Average Volume: NTL, ALV, FG1

COMPANY NEWS

• BHP released its quarterly activities report with no major surprises. Production of copper, iron, coal, and nickel all increased compared to the previous quarter. The company also confirmed its FY23 guidance and stated that the performance of Escondida and BHP Mitsubishi Alliance is trending towards the lower end of the range. Western Australia Iron Ore production reached a record high of 146 million tons.
• Netwealth Group Limited (NWL) – Reports FUA at 31 December of $62.4bn up 7.4% ($4.23bn) from previous quarter.
• Viva Energy Group Limited (VEA) – Reports Q4 refinery sales with total sales 3,779.6m up 12.0% YoY.
• Nickel Industries Limited (NIC) – Announces the completion of its institutional placement which raised ~$264m. Returns to trade.
• Nuix Limited (NXL) – Provides H123 results with statutory revenue $85-88m vs year-ago $84.0m, & underlying EBITDA $24-26m vs year-ago $24.7m.
• Imdex Limited (IMD) – Announces it has entered into a binding agreement to acquire Devico for an implied enterprise value of $324.
• Resolute Mining Limited (RSG) – The updated resource estimate for Syama North increases 58% to three million ounces of gold at a cut-off grade of 1g/t Au. Mineral resource now totals 34m tonnes.
• Alumina Limited (AWC) – Provides commentary on Alcoa’s Q4 earnings EBITA of $27m vs $69m in Q3 and AWAC refining business 2.8 vs 2.9mt in Q3. Production lower due to San Ciprian curtailment.
• Praemium Limited (PPS) – Reports FUA of $42.8bn vs $42.1bn last quarter.
• Bellevue Gold Limited (BGL) – Announces its mining proposal and mine closure plan for Bellevue Gold project has been approved by the Department of Mines. Construction and development on track and on budget for first gold in second half of 2023.
• Mincor Resources NL (MCR) – Reports significant assay results from underground drilling of the Durkin North within the higher prospective exploration zone at its long and Durkin north Operations at Kambalda in WA.
• Leo Lithium Limited (LLL) – Responds to media reports speculating a capital raising and has stated the company is substantially funded for the construction of stage 1 of Goulamina and that the Goulamina project remains within budget with construction occurring over 2023 and Q1 2024.
• Nanosonic Limited (NAN) – Reports H1 earnings profit before tax of ~11.4m vs $3.3m in the corresponding year. Provided revised FY23 guidance as follows total revenue growth 36%-41% gross margin 77%-79% and operating expenses to grow 22%-27%.
• Djerriwarrh Investments (DJW) lifted its interim dividend of 7.25c, up 7.4% on the 6.75c distribution in the prior corresponding period. The improved dividend income was attributed to the addition of JB Hi-Fi in the previous calendar year and increased holdings in BHP.

ECONOMIC & OTHER NEWS

• Australia’s December employment increased by 14.6K, lower than expected. The unemployment rate was 3.5%, and the participation rate was 66.6%. This could potentially cause a pause on interest rate rises as signs of a slowing economy.

• Japan’s balance of trade is up to JPY 1,448.5bn in December from JPY 603.1bn the year prior marking the 17^th month straight of the deficit its longest stretch since 2015.
• New Zealand Prime Minister Jacinda Ardern will resign on February 7th, citing a lack of energy and motivation. National election will be held on October 14th.
• Vice Premier Liu He declares Covid wave has peaked, return to normal occurring faster than expected.

ASIAN MARKETS

• Investment into China slumped in the final two months of last year by the most on record.

• The 76.6bn yuan (US$11.3bn) in actually utilised new foreign direct investment in December was almost 29% lower than the same period a year earlier
• Prius hybrids are being targeted by thieves in Japan for components containing scarce metals that jumped in value following Russia’s invasion of Ukraine.
• Xi warns of Covid spread as China starts lunar new year migration.

US AND EUROPEAN HEADLINES

• Jerome Powell tests positive for CV19. Says it is ‘transitory’.
• Netflix tonight. Did Ginge make a difference?
• Twitter account operated by the Russian Embassy in Sweden posted a map identifying Crimea as part of Ukraine.
• Crypto broker Genesis prepares to file for bankruptcy as soon as this week.

And finally….

Apparently, this notice can now be found in all French churches

En entrant dans cette église, il est possible que vous entendiez l’appel de Dieu. Par contre, il n’est pas susceptible de vous contacter par téléphone. Merci d’avoir éteint votre téléphone. Si vous souhaitez parler à Dieu, entrez, choisissez un endroit tranquille et parle lui. Si vous souhaitez le voir, envoyez-lui un SMS en conduisant.

Translation:

It is possible that on entering this church, you may hear the Call of God. On the other hand, it is not likely that he will contact you by phone. 

Thank you for turning off your phone. If you would like to talk to God, come in, choose a quiet place and talk to him. 

If you would like to see him, send him a text while driving.

Clarence

XXXX