ASX 200 finished the week well up 17 points to 7452 (+0.2%) at a nine-month high, with big resources driving things higher. BHP heading up on broker positivity up 0.5% with RIO up 1.0%, gold miners doing well too, NCM up 2.4% and NST rallying another 3.2%. PLS was the standout after its huge cash pile just keeps on growing, up 13.2% and MIN up 1.8%. In lithium we trust, except for LTR which cratered 8.3% on a Kathleen Valley update with some cost blowouts (more funding required?). Base metals were firm, S32 up 0.2% and LYC up 2.2%. Oil and gas stocks continuing higher, WDS up 0.7% and STO seeing friends after quarterly, up 1.5%. Coal stocks soaring as WHC delivered rising 6.2%. Banks stuck with the Big Bank Basket unchanged at around $189.01. Other financials eased back, money managers down MQG off 0.7% and ASX off 0.8%. Insurers slightly better. Industrials mixed, healthcare saw some profit-taking as COH dropped 1.2% and RHC down 1.0%. Tech eased, XRO down 1.1% and Staples down. WOW off 0.5% and ALL off 1.1%. In corporate news, KAR up 3.4% on Brazilian permits, CCX down 7.7% on sales drop and SUL in trouble over pay. In economic news, Japanese inflation at its highest level in 40 years. Asian markets gearing up for the Rabbit, Japan up 0.5%, China up 0.5% and HK up 1%. 10-year yields steady at 3.40%. Dow futures up 39 points and Nasdaq up 43 points.
- Winners: PLS, RSG, RNU, WBT, MCR, TER, WHC, GRR
- Losers: CTT, LTR, PBH, INR, NAN, PNI, CDA, CGF
- Positive sectors: Iron ore. Oil and gas. Coal. Lithium.
- Negative sectors: Fund managers. Gaming. Old skool platforms.
- High 7456 Low 7427 narrow range again.
- ASX 200 at nine month high: up 1.7% for the week.
- BHP hits $50. Just.
- Big Bank Basket: Closed steady at $189.01 (0.1%)
- All-Tech index: Down 0.3%
- Gold heads higher to $2784
- Bitcoin: Off highs at US$21,089
- Aussie Dollar: Better to 69.20c
- 10-Year Yield: Rallies to 3.41%
- Asian markets: Japan up 0.5%, China up 0.5% and HK up 1% ahead of the Year of the Rabbit. That’s all folks.
- US Futures: Dow up 39 Nasdaq up 43.
- PLS +13.18% cash is king.
- RSG +11.76% gold price move and resource upgrade.
- WBT +7.83% just keeps on going.
- WHC +6.16% quarterly cheers sector.
- RNU +8.33% bit of a bounce.
- WR1 +18.13% certainly win some with this one.
- RFG +11.70% something in the oven.
- LIN +6.52% Kangankunde project update.
- AIS +8.59% picking up again.
- CTT -15.35% luxury takes a hit.
- LTR -8.33% Kathleen Valley update. Cost blow out and funding question.
- NAN -6.64% broker downgrades
- INR -7.14% debt ceiling issues.
- CDA -3.70% rot is back.
- VUL -2.30% resumes downturn.
- Speculative Stock of the Day: Nothing much to write home about. Lincoln Materials (LML) +162.16% has been reinstated to quotation after large dilution form recent rights issue. 67 for 50. Raised $1.255m. Could have done a GoFund Me page.
- Above Average Volume: QAL, CUF, H2G
- Pilbara Minerals (PLS) – the company beat broker production forecasts by 16%, and shipment forecasts by 4%,Huge cash pile grew by over $800m in the last quarter. Dividends coming this year.
- Super Retail Group (SUL) – The Fair Work Ombudsman has filed proceedings in the Federal Court in relation to pay arrangements for some team members at the company. SUL has made back payments of more than $52.7m.
- Pro Medicus (PME) announced that its subsidiary, Visage Imaging, has signed a $25m, 7-year contract with the University of Washington.
- Liontown Resources (LTR) has announced that on-site construction for its Kathleen Valley Lithium Project continues to ramp up, with a clear pathway to deliver on schedule by mid-2024. The stock under pressure on potential funding requirements at the tail end of 2023.
- BHP (BHP)has said that the cost of producing coal in New South Wales, Australia may soon exceed the government’s $125 cap on prices, raising the prospect of compensation for companies affected by the electricity price control scheme. Glencore has challenged the NSW government on how the cap will affect household power bills.
- Fisher & Paykel Healthcare (FPH) has provided revenue guidance for FY23, with expected revenue of $1.55bn to $1.60bn. The company has seen increased sales of its hospital hardware and consumables in China due to COVID-19 and an early start to the flu season in North America.
- Perpetual Limited (PPT) announced the completion of the acquisition of Pendal Group. The company’s AUM were $93.7bn at the end of 2022, +4% from the previous period. The company expects H123’s underlying profit after tax to be in the range of $65-$70m.
- Whitehaven Coal (WHC) expects to report an H123 EBITDA of approximately $2.6bn, subject to final audit. They also reported a December quarter-managed run-of-mine production of 4.8Mt, +21% from the September quarter. Whitehaven Coal reported an average coal price of A$527/t for the quarter.
ECONOMIC & OTHER NEWS
Monthly Business Turnover Indicator
In seasonally adjusted terms, the November 2022 monthly business turnover indicator showed:
- Falls in eight of the 13 published industries.
- The largest rise was in Other services (9.1%).
- The largest fall was in Arts and recreation services (-6.6%).
- Through the year, rises were seen in all 13 published industries.
Silver could hit a nine-year high of $30 per ounce this year and become a better performer than gold. Silver is in a shortage and there is a notable drawdown in the available physical stocks held in New York and London’s physical hub. Silver is a material commonly used in the manufacturing of cars, solar panels, jewellery and electronics.
- China’s Covid-19 infections have fallen to a “relatively low” level, a top official said ahead of the Lunar New Year holidays.
- Japan’s core consumer prices in December rose 4% from a year earlier, double the central bank’s 2% target, adding to recent signs of mounting inflationary pressure. This is likely to keep alive market expectations that the BoJ will soon end its yield control policy and allow interest rates to rise.
US AND EUROPEAN HEADLINES
- Davos continues.
- Genesis Trading filed for bankruptcy protection after suffering crippling losses from the collapses of FTX.
- Fed black out kicks out on Saturday. Brainard last head off the rank.
- Jamie Dimon calls bitcoin a ‘pet rock’.
- US Supreme Court yet to find who leaked draft abortion ruling.
- US announces plans to send 90 Stryker combat vehicles to Ukraine.
Gong hei fat choy (Happy New Year)
Church ladies with computers They’re Back! Those wonderful Church Bulletins! Thank God for church ladies with computers. These sentences (with all the BLOOPERS) actually appeared in church bulletins or were announced in church services:
The Fasting & Prayer Conference includes meals.
The sermon this morning: ‘Jesus Walks on the Water.’ The sermon tonight: ‘Searching for Jesus.’
Ladies, don’t forget the rummage sale. It’s a chance to get rid of those things not worth keeping around the house. Bring your husbands.
Remember in prayer the many who are sick of our community. Smile at someone who is hard to love. Say ‘Hell’ to someone who doesn’t care much about you.
Don’t let worry kill you off – let the Church help.
For those of you who have children and don’t know it, we have a nursery downstairs.
Next Thursday there will be tryouts for the choir. They need all the help they can get.
Irving Benson and Jessie Carter were married on October 24 in the church. So ends a friendship that began in their school days.
A bean supper will be held on Tuesday evening in the church hall. Music will follow..
At the evening service tonight, the sermon topic will be ‘What Is Hell?’ Come early and listen to our choir practice.
Eight new choir robes are currently needed due to the addition of several new members and to the deterioration of some older ones.
Scouts are saving aluminium cans, bottles and other items to be recycled. Proceeds will be used to cripple children.