ASX 200 gave back nearly all of the early gains closing up 10 points at 7512 (0.1%) as big resources saw profit-taking across the board. Had to happen at some stage. BHP fell 1.4% with RIO under serious pressure having found the capsule down 2.3%. FMG held up better. Gold miners were superstars, NCM up 3.7% with NST up 4.6% and DEG up 3.4%. Lithium stocks better, LTR up 2.3% and CHN doing well up 6.2%. SYA too bouncing back up 5.9%. Oil and gas stocks slid as WDS fell 1.0% and STO off 1.6%. Coal stocks ease, WHC down 1.2%. Industrials and tech the winners today. Tech stocks powering ahead as Meta delivered. WTC up 6.8%, XRO surging 7.5% and ALU up 3.5%. The All–Tech Index up 3.6%. REITs better, GMG up 0.9% and MGR up 1.7%. Interest rate sensitive stocks also doing well, TCL up 0.9% and AIA up 1.0%. Healthcare still trundling higher, CSL up 1.0% and FPH up 0.6%. RMD a slight struggle, off 0.7%. Old Skool platform stocks better too, REA up 3.0% and CAR up 2.0% and SEK doing well up 5.4%. Banks slipping off highs with the Big Bank Basket down to $189.89 (0.5%). Insurers falling hard with QBE off 4.8%. MQG kicks higher by 1.8%. In corporate news, PNI disappointed with results falling 2.7%, ASX has two new board members and DRO in a halt as it raises money. On the economic front, building permits jumped 18.5% MoM in December 2022. Asian markets mixed, HK up 0.4% the best of the bunch. Dow Jones futures down 42 points. NASDAQ futures up 122 points.

HEADLINES

• Winners: MP1, WAM, 360, RNU, COF, XRO, WGX, WTC
• Losers: BCB, QBE, AOM, STX, LFS, CPU, VUK
• Positive sectors: Healthcare. Gold miners. Tech. Industrials.REITs.
• Negative sectors: Iron ore. Oil and Gas. Banks. Insurers.
• High 7548 Low 7505. Rally fades.
• Big Bank Basket: Slips to $189.89 (0.5%)
• All-Tech index: Up 3.6%
• Gold better at $2733
• Bitcoin: Rallying to US$23914
• Aussie Dollar: Back up to 71.46c
• 10-Year Yield: Down to 3.50%
• Asian markets: HK up 0.4% Japan unchanged and China little changed too.
• US Futures: Dow down 42  Nasdaq up 122
• ECB and BoE to raise 50bps tonight.

MAJOR MOVERS

• MP1 +11.11% bouncing back. Way to go.
• WAM +10.07% investment update and dividend.
• 360 +8.47% tech rally.
• XRO +7.47% jumbo rally.
• SYA +5.88% bouncing back.
• JHX +4.30% US builders recovery.
• COF +7.98% results cheer. Sign for other REITs?
• PDN +5.52% uranium making a quiet comeback.
• NXS +7.34% meeting results.
• CNB +10.60% Mt Hope shines with 39m @5.2% copper.
• IXR +5.71% US downstream strategy.
• MME -11.63% sell off continues.
• MEI -6.45% profit taking.
• BET -unchanged – scraps $15m bonus to Tripp.
• APM -4.28% completes acquisition of Everyday Independence.
• PNI -2.69% results disappoint.
• VUK -3.58% downgrades.
• CPU -3.62% interest rates cool.
• Speculative Stock of the Day: Not much volume in anything SPA up 96% on new CEO announcement of Ex NEA executive. Not sure it will last.
• Above Average Volumes: GCR, HCD, RPL, RIM.

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COMPANY NEWS

• OM Holdings Limited (OMH) reports positive drilling results from Bryah Resources project. The results ranged from 33.3% to 54.9% manganese. Drilling is set to begin at all four prospects and Brumby Creek after the receipt of Program of Works and Heritage approvals.
• Autosports Group Limited (ASG) has completed the acquisition of Motorline BMW, MINI, Bodyshop, and Gold Coast BMW and MINI. The purchase consideration was $66m, funded by cash reserves and a debt facility.
• Clinuvel Pharmaceuticals Limited (CUV) reports first positive results for afamelanotide’s protective effect on skin exposed to UV radiation. The drug was well tolerated with only mild side effects and reduced DNA damage, increasing skin melanin density.
• Imugene Limited (IMU) – Phase 1 clinical trial of cancer-killing virus CF33-hNIS (VAXINIA) has advanced to Combination Cohort 1. The trial is evaluating the safety of VAXINIA and aims to recruit up to 100 patients in the US and Australia.
• APM Human Services (APM) completed the acquisition of Everyday Independence for $52.5m. Everyday Independence is a leading National Disability Insurance Scheme (NDIS) provider, delivering evidence-based therapies to children, youth, and adults, and will significantly increase APM’s service reach to NDIS participants across all ages.
• Zimplats (ZIM) – Announced in the quarterly report, there were three lost-time injuries, increased mined and milled volumes, and increased 6E metal in concentrate and final production, with higher cash costs at $839 per 6E ounce.
• WAM Capital (WAM) declared a fully franked interim dividend of 7.75c, with an annual yield of 10.4%. The investment portfolio increased 6.6% in January 2023 and the estimated profits reserve is 14.7c

ECONOMIC & OTHER NEWS

• Building permits in Australia jumped 18.5% MoM in December 2022, a reversal from a revised 8.8% fall the previous month. Gains led by a 56.6% increase in private sector dwellings excluding houses. Across Australia, total dwelling approvals rose in New South Wales (48.4%), Victoria (20.7%), Queensland (8.3%), and Western Australia (6.4%), while Tasmania (-49.7%), South Australia (-24.6%).

• The RBA will replace the portrait of Queen Elizabeth II from its Australian 5-dollar note with a new design to reflect and honour the history of our Indigenous culture. It will take years to design and print the new banknote. Until then, the current note will continue to be issued.
• CBA economist Gareth Aird believes there’s a ‘non-trivial’ risk that the Reserve Bank raises interest rates by 40bps at next Tuesday’s board meeting

ASIAN MARKETS

• Bonds of the Adani’s flagship firm plunged to distressed levels in US trading.

• Adani Group losses now around US$100bn since the Hindenberg.

US AND EUROPEAN HEADLINES

• ECB and BoE tonight. Strikes weigh.
• Czech president-elect says west must accept China is ‘not friendly’.
• UK unveils wide-ranging plans to regulate crypto industry.
• Michael Burry (The Big Short) tweeted ‘Sell’ on Twitter yesterday ahead of FOMC. He has now deleted his account.

And finally…

Clarence

XXX