ASX 200 fell 12 points at 7482. Resources came under a little pressure as China came back online and RIO fessed up to losing a radioactive capsule. RIO down 1.1% on the news, BHP off 0.6% and FMG off 1.3%. Lithium stocks in demand again as Chinese producers making record profits, PLS up 2.0%, AKE up 1.1% and rare earths also doing well with LYC up 6.9% with ARU continuing 1.8% higher. Quarterlies helping sentiment. Gold miners steady and better in places, SBM up 6.1% and NST rallying 1.0%. Oil and gas steady with coal stocks steadier after a dismal day Friday, WHC down 0.5% and NHC 0.7% better. In the industrials, REITs continue to find buyers, GMG up 1.1% and CHC rallying 2.2%. ‘Old Skool‘ platforms better too, REA up 2.8% as first cab off the results rank. Tech better following Nasdaq higher with the Index up 2.2% and XRO up 3.1% with WTC better by 5.2%. Healthcare under pressure, RMD fell hard on results and comments, down 6.8%. Banks flat with the Big Bank Basket unchanged. In corporate news today, plenty of quarterlies again, SUN and IAG hit by floods in NZ down 2.0% and 3.7% respectively. LFS soared 9.1% on news that DJs will be using it as card provider. LYC soaring on quarterly. OZL sees record output but pricing pressures from higher energy prices. Nothing on the local economic front. In Asia, mixed results as Lunar New Year ended. 10-year yields up to 3.56%. Dow Jones futures down 105 points. NASDAQ futures down 54 points.
- Winners: LKE, SYA, WTC, SEK, INR, BOE, AX1.
- Losers: JRV, MGX, A4N, CIA, RMD, TNU, FCL, STX
- Positive sectors: Lithium. Tech. REITs. Telcos.
- Negative sectors: Healthcare. Iron Ore. Staples.
- High 7506 Low 7474. Narrow range. Big week beckons. Again.
- Big Bank Basket: Unchanged $190.37
- All-Tech index: Up 2.2%
- Gold higher to $2723
- Bitcoin: Off highs at US$23,671
- Aussie Dollar: Eases to 70.97c
- 10-Year Yield: Rallies to 3.56%
- Asian markets: Japan flat. HK reopens and slips 1.6% China up 1.2%.
- US Futures: Dow down 105 Nasdaq down 54.
- CXL +6.59% positive announcement
- LFS +9.09% new David Jones card provider.
- CXO +8.85% Ellie update, production still on track.
- CTT +7.34% luxury is back.
- SBM +6.12% shorts covering.
- LYC +6.94% quarterly report.
- PMT +15.94% more good results.
- WR1 +14.02% pushing higher again.
- AGE +16.67% makes it snappy with quarterly.
- CHL +16.57% quarterly report.
- NWC +18.37% media write-up.
- EOS -7.97% quarterly report.
- IPD -13.24% quarterly report.
- JRV -11.29% disappointing drilling report. Confirms RAM deposit.
- RMD -6.81% results fail to inspire.
- MGX -8.01% quarterly.
- CIA -7.10% broker downgrades.
- RIO -1.14% apologies for losing the radioactive capsule.
- STX -4.05% quarterly.
- IAG -3.74% SUN -1.95% on NZ floods.
- Speculative Stock of the Day: BluGlass (BLG ) +47.22% after announcing it had launched a Laser product suite at Photonics West.
- Above Average Volumes: 3PL, HMI, CUP, EVZ, BLG, BPP, SOM
- Omni Bridgeway Limited (OBL) reports strong portfolio growth of nearly $30bn and completed three transactions in the secondary market for proceeds of $60m. Other highlights include investment income of $156m, potential investment opportunities of ~$228m, and expansion of operations with new offices in Paris, Milan, and Miami.
- Suncorp (SUN) estimates its losses from the ongoing flooding in New Zealand to be capped at NZD 50m ($54.8m), after receiving around 3,000 claims, which it expects to increase. The company will take time to assess the full extent of the damage.
- Starpharma Holdings Limited (SPL) released its quarterly results. The report includes positive preliminary clinical trial data for their drug AZD0466, which was well tolerated in patients with advanced leukemia. They ended the quarter with a strong cash balance of $44m and a positive net operating cash flow of $2.2m.
- Insurance Australia Group Limited (IAG) is helping customers affected by the recent storms and flooding in Auckland New Zealand and encourages them to file claims. The financial impact of the event is unknown, but IAG may reassess its estimate for natural peril costs in FY23. IAG has reinsurance in place and a $236m maximum retention for natural catastrophe events.
- Core Lithium (CXO) reports operations in Finniss are managing the impacts of tropical cyclone Ellie and remain on track for commissioning the concentrator and producing the first spodumene concentrate in H1 2023. The miner has already shipped its first cargo of high-grade DSO for $951/dmt and signed a 5-year O&M contract with Primero for its Dense Media Separation plant.
- Bega Cheese Limited (BGA) – Vita International has exercised a call option to purchase a 49% share in Vitasoy Australia from Bega Cheese’s subsidiary National Foods Holdings for $51m. BDD Milk will provide transition services for the sale and distribution of Vitasoy Australia’s products in Australia until March 2023.
- Aeris Resources Limited (AIS) provides Tritton exploration update. Aeris discovered 750kt1 of copper in the southern half of their land, and 14 priority areas for further exploration after conducting a survey. They also found more high-grade copper while drilling at the Kurrajong and Avoca Tank sites, and plan to continue drilling at these sites and at the Murrawombie site.
- Cedar Woods Properties Limited (CWP) has increased its ability to borrow from ANZ, Bankwest, and NAB, with an extended corporate finance facility of $330m, up from $300m. This additional funding will be used for current projects and past acquisitions.
- Mount Gibson Iron Limited (MGX) has reported a 47% increase in high-grade iron ore sales from the previous quarter to 0.7m Mwmt, bringing the half-year total to 1.1 Mwmt. Heavy rain and flooding in the Kimberley region has caused some shipping delays, but MGX still expects to meet the lower end of their ore sales guidance for the 2022/23 financial year, with the remainder to be made up in the following year.
- Nitro Software Limited (NTO) reported strong financial results for the quarter. The ARR was up 27% to $58.8m, exceeding the mid-point of their guidance. Revenue up 31% to $66.8m, with subscription revenue growing by 50%. They also had record cash receipts for the December quarter and year, which were up 39% from the previous year. Nitro ended the year with $28m in cash and no debt.
- Fineos Corporation Holdings PLC (FCL) released Q2 results. They had a cash balance of €24m and no debt at the end of December 2022. Cash receipts from customers were down 18% pcp. CEO Michael Kelly said that the first half of the year closed out in line with expectations. They also announced that QSuper Limited became the first client in Australia to upgrade to their cloud-based platform, which will improve customer experience, security, and technology capabilities.
- OZ Minerals (OZL) reported a 21% increase in copper production in Q4 2022, resulting in a record-high production of 36,307 tonnes and meeting the company’s 2022 group output and cost guidance. The company’s net revenue for the year was $1.9bn, a 8% decrease from the previous year due to reduced sales volumes and weaker copper prices.
ECONOMIC & OTHER NEWS
- Chinese students enrolled in Western unis have been told to book flights and get themselves back to campus for face-to-face teaching before the new year begins. In an official announcement on Saturday, the Chinese Service Centre for Scholarly Exchange (CSCSE) said academic degrees and diplomas would no longer be recognised if the study was undertaken online. This was a CV19 policy change that is now being undone.
- Australia’s underlying budget deficit for 2022/23 was running at $14.7bn for the six months to December 2022, a $11.5bn improvement on the deficit profile from the October 2022 budget, according to CBA’s chief economist, Stephen Halmarick.
- Deutsche Bank has sharply revised its forecast of the peak in the RBA cash rate to 4.1%, from 3.35%. It now expects the RBA to lift the cash rate on February 7, and then again in March, May and then to make a final move in August.
- Chinese onshore equities are headed for a bull market with the CSI300gaining about 20% from its recent lows seen at the end of October last year.
- Lunar New Year holiday trips inside China surged 74% from last year after authorities scrapped COVID-19 travel curbs.
- Adani says short seller’s report was a ‘calculated attack’ on India. Adani Group’s chief financial officer Jugeshinder Singh said on Monday that he is confident that the Adani Enterprises IPO will be fully subscribed.
- China’s lithium producers are enjoying record profits.
- Tianqi Lithium is forecasting 2022 preliminary net income surged 1,011%-1,132% from a year earlier to a range of 23.1bn yuan to 25.6bn yuan. Gangfeng reported yesterday that its preliminary net income could climb 244%-321% to a range of 18bn yuan to 22bn yuan.
US AND EUROPEAN HEADLINES
- Investors are still predicting the US market will fall hard this year. Roughly 70% of the 383 respondents in the latest MLIV Pulse survey, with the biggest weighting,35%, said the lows won’t be in until the second half of 2023.
- BP cuts long-term forecast for oil and gas demand.
- Trump ‘more angry’ than ever.
- European markets opening slightly lower across the board.
A 60 year old guy goes to his doctor for his physical and gets sent to the
Urologist as a precaution. When he gets there, he discovers the Urologist
is a very pretty female doctor.
The female doctor says, “I’m going to check your prostate today,
but this new procedure is a little different from what you are probably
used to. I want you to lie on your right side, bend your knees, then
while I check your prostate, take a deep breath and say, ’99’.
The old guy obeys and says, “99”.
The doctor says, “Great”. Now turn over on your left side and again,
while I repeat the check, take a deep breath and say, ’99”.
Again, the old guy says, ’99’.”
The doctor said, Very good. Now then, I want you to lie on your back
with your knees raised slightly. I’m going to check your prostate
with this hand, and with the other hand I’m going to hold on to your penis to keep it out of the way. Now take a deep breath and say, ’99’.
The old guy begins, “One … Two … Three” ..