ASX 200 fell 35 points to 7504 (-0.46%) after the RBA raised rates 25bps as expected though perhaps a more hawkish tilt than some had hoped for. Losses across the board accelerated, Banks sagged, CBA down 0.4% NAB down 0.5% and the Big Bank Basket down to $191.42 (-0.3%). MQG edged 0.7% higher following a 9-month update, insurers better on the rate rise, QBE up 0.2% and SUN rising 0.9%. Industrials flopped around with the REITs down and dirty, GMG falling 2.3%, SCG off 1.0% and staples also slipping lower, COL down 0.9% and WOW off 1.2%. Tech under a little pressure but held up well all things considered. WTC down only 1.8% and CPU off 0.5%. The All–Tech Index fell 0.2%. Healthcare in casualty. RMD falling another 1.1%, CSL seeing profit taking down 1.2% and SHL sliding 3.3% on broker commentary. In resources, another sorry day as some lithium players fell again, BHP off 0.4% and RIO down 0.9%. FMG bucked the trend rising 0.4% and gold miners steadied with NCM up 1.7% and EVN rising 0.6%. Energy stocks firmed, WDS up 0.3%, and coal stocks doing very well, WHC up 1.9% and NHC rising 3.7%. In corporate news, NXL rose 43.7% on a court win, TCL slipped 0.6% lower on results and CEO retirement, MQG showing class again with positive results boost. In economic news, the RBA decision dominated all, trade surplus numbers too with a $12,237m surplus. Asian trade mixed with Japan flat and China and HK both better. Dow Jones futures up 3 points. NASDAQ futures up 19 points.
- Winners: BCB, TER, WBT, SMR, NHC, PNV, YAL
- Losers: ARB, EMR, CTT, TPW, LIC, CNI, HMC
- Positive sectors: Coal. Oil and gas. Gold miners.
- Negative sectors: Banks. Tech. Lithium. REITs. Staples. Healthcare.
- High 7554 Low 7495.
- RBA raises rates 25bps. Hawkish tone.
- Big Bank Basket: Falls to $191.42(0.3%)
- All-Tech index: Falls 0.2%
- Gold falls to $2700
- Bitcoin: Slips to US$22871
- Aussie Dollar: Back up to 69.34c on RBA news.
- 10-Year Yield: Back up to 3.6%
- Asian markets: Japan flat, HK up 0.8% and China up 0.3%
- US Futures: Dow up 3 Nasdaq up 19
- WBT +4.79% charged up again.
- TER +4.94% coal back in favour.
- SLX +2.98% following uranium sector higher.
- NXL +43.65% wins court case.
- MAP +12.16% signs US distribution agreement.
- ARB -12.39% broker downgrades.
- CTT -6.59% rethink on results.
- EMR -8.15% rally fails to hold.
- NCK -4.35% sell off continues as brokers downgrade.
- TPW -5.82% follows NCK down in sympathy.
- MEI -7.69% profit taking continues.
- ASM -7.69% pausing for breath.
- Speculative Stock of the Day: EV Resources (EVR) +53.33% good volume on the back of a $25m commitment from Sapphire Global Energy Fund. It is a draw-down facility so when EVR draws money, Sapphire gets stock and can obviously sell them on market for cash.
- Above Average Volumes: OM1, EVR, PBP, PSQ, C29
- Cettire Limited (CTT) released 1HFY23 results showing 57% growth in gross revenue and a 65% rise in sales revenue. The delivered margin was 25.1% and Adjusted EBITDA was $16.7m. Acquisition costs decreased to 7.9% of sales, leading to improved profitability due to efficient operations. The company ended 1HFY23 with $53.3m cash and no debt, ready for growth. Cettire continues to prioritize localization, including a Chinese site launch, to expand in emerging markets.
- Centuria Capital Group (CNI) reported its HY23 results with OEPS of 7.4c and DPS of 5.8c. The company reaffirmed its FY23 guidance with OEPS of 14.5c and DPS of 11.6c and has a total AUM of $21.2bn with strong growth across alternative sectors. Group total operation revenue up 14.6% ($159.7m) and operating recurring revenue reflected 91% of total revenues.
- Macquarie Group (MQG) – 3Q trading update showed a slight increase compared to last year’s record December quarter. The report highlights a substantial increase in profit from commodities trading, global markets trading, and Macquarie Capital. Macquarie retains a cautious outlook.
- Transurban Group (TCL) released its 1H23 results. Key highlights are as follows; record traffic volume of 2.5m trips, interim distribution of 26.5c, proportional toll revenue of $1.658bn, and proportional EBITDA of $1.238bn. TCL also boasts a strong financial position with 97% of debt hedged and significant progress on multiple infrastructure projects including the West Gate Tunnel and the M7-M12 Integration Project.
- GQG Partners Inc (GQG) reports FUM increased to $92bn as of January 31st, up from $88bn from December 31st.
- Healius Limited (HLS) results showed a 33.6% decrease in total revenue due to a significant drop in COVID-19 testing (88.1% lower than 1H 2022). EBITDA margin was 20.5%, unchanged from 1H 2022. BAU (business as usual) pathology revenue was up 1% and Lumus Imaging revenue was up 8.3%. Decreased margins were due to COVID-19 testing decline and a fee cut. Healius is restructuring costs and focusing on revenue growth and digital pathology transformation. Expects stronger 2H 2023 with BAU trading and up to 2,000 COVID tests daily.
- Medibank Private Limited (MPL) has announced a 2-month deferral of its average 2.96% premium increase, the lowest in 22 years, returning an additional $59m to customers. The company’s COVID-19 support and customer give-back program now stands at $1bn, the largest financial give-back from any Australian health insurance fund to date.MPL is still down almost 15% from data leak trading prices are consumers struggle to regain confidence in the brand.
- NIB Holdings Limited (NHF) announces it will increase its private health insurance premium by 2.72% on September 1st, 2023, which is the second lowest increase in 20 years and below the industry average of 2.90%. The increase has been postponed five months and is due to a slow pace of claims and a focus on affordability for members.
- Pushpay Holdings Limited (PPH) has reconfirmed and narrowed its previous guidance range. The company has revised its Underlying EBITDAF to be between $55m-$57m, with positive operating revenue growth expected to be between 5% and 6%.
- Region Group (RGN) has released its half-year results, showing a statutory net loss after tax of $95.1m, down 122% YoY, largely due to a decrease in property valuations. Despite the loss, the company’s Adjusted Funds From Operations (AFFO) is up 5.9%, driven by property net operating income growth of 4.2%, and AFFO per security increased by 3.4% YoY to 7.60 cps.
ECONOMIC & OTHER NEWS
The RBA raised the cash rate by 25 basis points to 3.35% at its Feb meeting, aligning with expectations. This marks the 9th rate hike since May 2022, resulting in a 325bps increase. The board dropped prior guidance and emphasized that inflation remains too high, reiterating the need for further rate increases to reach the 2-3% inflation target. The central bank aims to balance inflation control with economic stability, forecasting GDP growth of 1.5% in 2023 and 2024 and a 3% mid-2025 inflation rate. Yields and AUD rally. Equities fall.
- Baidu surged more than 15% after affirming it’s on track to publicly roll out its ChatGPT-like service in March. It is going to be known as Ernie Bot. It drives the fastest milk cart in the west.
- Tech investors say the worst is over as China reopens and exits its zero-Covid policy. Morgan Stanley said in a report that China’s Central Economic Work Conference explicitly promoted the role of platform companies in leading economic growth and creating employment opportunities.
- Japanese workers’ nominal wages grow at the fastest pace in 26 years.
US AND EUROPEAN HEADLINES
- State of the Union Address tonight. Buybacks in Biden’s sights.
- US is keeping the balloon.
- Turkish quake toll hits over 4000.
- Binance will suspend U.S. dollar withdrawals and deposits for international customers beginning Feb. 8, the company said.
- Bed Bath & Beyond tries to avoid bankruptcy with US$1bn financing plan.
- Manchester Cityaccused of financial rule-breaking by Premier League.
The ability to speak several languages is an asset, but the ability to keep your mouth shut in any language is priceless. Happiness is not having to set the alarm clock.
When I get a headache, I take two aspirin and keep away from children just like the bottle says.
Just once, I want the prompt for username and password to say, “Close enough.”
Becoming an adult is the dumbest thing I’ve ever done.
If you see me talking to myself, just move along. I’m self-employed. We’re having a meeting.
“Your call is very important to us. Please enjoy this 40-minute flute solo”.
Lately, have you’ve noticed people your age are so much older than you.