ASX 200 closes up 47 points to 7558 (+0.6%) as 10-year yields tumble and rate-sensitive stocks rally. Banks leading the charge higher with CBA hitting records, ANZ screaming ahead up 2.3% and the Big Bank Basket up to $192.72 (+1.5%). ASX up 2.5% and fund managers cheering up, even MFG up 1.4%. MQG lagging a little. Insurers under a little pressure after IAG warning on margins. Industrials doing very well, TLS up 0.7%, WOW up 0.7% and WES rallying 1.3% with TCL up 0.9%. Tech better in places, CPU rallied 3.8% as traders squared books, WTC fell 2.4% and XRO down 0.7% with the All Tech Index up 0.8%. REITS doing well, GMG the star, up 2.8% with SGP in the frame too up 3.0%. Healthcare soared led by CSL which is trying to break out from 4 years of slumber as positive numbers from one competitor boosting confidence, up 3.0%. Resources were in a world of pain as sector rotation continues, BHP off 1.9% and RIO down 2.0% with FMG falling 1.3%, lithium stocks better, PLS up 1.9% and AKE up 0.8% with gold miners playing Duke of York marching up and then back down again. NCM down 2.9% and NST off 4.0%. Oil and gas finding support with STO up 0.9% and WDS up 0.7%. Coal stocks are slightly better. In corporate news, JHG doing well up 12.9% in latest FUM numbers. On the economic front we got some lending numbers and Asian markets slipped on tech woes in HK. 10-year yields falling to 3.38%. Dow Jones futures up 19 points. NASDAQ futures down 182 points.

HEADLINES

• Winners: WBT, JHG, PNI, AGY, BRN, HMC, VG1, URW
• Losers: RMS, WGX, PDN, RRL, A4N, GOR, WAF
• Positive sectors: Healthcare. Tech. Industrials. Banks.Oil and Gas.
• Negative sectors: Iron ore. Gold miners.
• High 7565 Low 7496.
• ASX 200 up 64points this week (0.9%)
• Big Bank Basket: Soars to $192.72 (1.5%)
• All-Tech index: Up 0.8%
• Gold falls to $2713
• Bitcoin: Slips to US$23467
• Aussie Dollar: Back up to 70.61c
• 10-Year Yield: Collapse to 3.38%
• Asian markets: Japan up 0.3% HK down 1.8% and China down 1.7%
• US Futures: Dow up 19 Nasdaq down 182 as three ‘A’ stumble.

MAJOR MOVERS

• WBT +14.80% superstar stock on broker upgrade.
• JHG +12.85% good AUN result.
• PNI +9.58% brokers warm after fall.
• BRN +5.56% doing better.
• AGY +6.43% remains on trend higher.
• LEG +8.33% maiden resource estimate for Mawson.
• ASM +8.22% rare earths back in vogue.
• AVL +12.50% vanadium starting to attract interest.
• CBA +1.3% hits record high.
• WGX -7.17% gold falls.
• PDN -6.98% large block trade weighs.
• SYR -5.16% graphite falls.
• IAG -2.1% warns on margins.
• BGA -3.96% CEO turns sour and leaves.
• OPY -suspended and potentially delisting. Negotiates with lenders.
• CRR -7.94% scoping study for Mavis Lake lithium project.
• MME -7.89% continues to slide.
• MEI -10.34% profit taking continues.
• Speculative Stock of the Day: SPA +49.06% again after new CEO but also Genetic Technologies (GTG) +133.33% launches the world’s first comprehensive risk test for Breast and Ovarian cancer.
• Above Average Volumes: GTG, BUY, PDN, SUH, CAT.

COMPANY NEWS

• Charter Hall Social Infrastructure REIT (CQE) acquired a 49.9% interest in Innovation Quarter for $66.9m at a 4.8% capitalisation rate. The acquisition is expected to have no impact on the existing FY23 distribution guidance of 17.2c.
• Strike Energy Limited (STX) announced that their bid for Warrego Energy is their final and best offer and will not improve the terms of the offer by offering more shares. They are urging Warrego shareholders to accept the offer promptly.
• Janus Henderson (JHG) – Reports total assets under management increased 5% to $287bn in the December quarter, driven by market appreciation and FX tailwinds. Despite this, the company reported a decrease in earnings per share from $0.65 in the prior quarter to $0.39, and experienced net outflows of $11bn over the quarter. The stock has declined 30% in the past year.
• Liontown Resources (LTR) – Iron Mine Contracting has started open pit mining operations at the Kathleen Valley Lithium Project in Western Australia, with the first blast fired successfully at the Mt Mann Open Pit.
• IAG Group (IAG) – Forecasts a significant increase in gross written premiums, expecting a rise of 7.5% in the last 6 months of 2022. The company also expects a net profit of $468m, which includes a $252m tax adjustment, versus $173m in the same period the previous year.

ECONOMIC & OTHER NEWS

Australian Lending Indicators

In December 2022, new loan commitments (seasonally adjusted):

• fell 4.3% for housing
• fell 2.8% for personal fixed-term loans
• rose 99.4% for business construction (a typically volatile series) but fell 0.6% in trend terms
• fell 6.1% for business purchase of property (a typically volatile series) and fell 1.4% in trend terms

The value of total housing loan refinancing between lenders fell 1.5% but remained high at $19.1bn in December 2022.

• ANZ CEO says there could be more rate rises than some people expect. Shayne Elliott said consumer spending and overall demand remained solid, and the Reserve Bank of Australia would privately want to start seeing unemployment levels rising.

ASIAN MARKETS

• Adani group has now lost half its value since the Hindenburg report.

• China’s service sector showed a rebound in the first month of 2023, according to the Caixin/S&P Global services purchasing managers’ index (PMI).
• The reading rose to 52.9 in January, above the 50-mark that separates growth from contraction — from the business activity index of 48 seen in December.
• Japanese services purchasing managers’ index came in at 52.3 for the month of January, ticking higher than the previous reading of 51.1 seen in December.

US AND EUROPEAN HEADLINES

• US Jobs number tonight.185k and 3.6% the numbers to keep an eye out for.
• Chinese Spy balloon over Montana in the US. Must be spying on the Yellowstone Ranch.
• Four ‘A’s all disappointing. Alphabet, Amazon, Apple, Atlassian. Apple sales drop 5% in the largest drop since 2016.
• Blinken to meet Xi in first visit to China by a Biden cabinet secretary.
• US police receive less training than plumbers.
• Ferrari raises outlook after record-breaking 2022.

And finally….

There was a power failure in a Dublin Department Store last week – and three hundred people were stranded on the escalators for more than two hours.

PADDY:  “If you can guess how many pheasants I’ve got in me bag you can have both of them”.

SHAUN:  Three.

“We’re looking for a Treasurer for the Xmas fund”, said Paddy. “Didn’t you take on a new one last month ?” said Murphy. “That’s the one we’re looking for”, Paddy replied.

The Dublin pensioners club go on a mystery tour every Wednesday and, to make it interesting, they have a sweep to guess where they are going. Shamus, the coach driver, has won five weeks on the trot.

Clarence

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