ASX 200 rallies 26 points to 7530 (0.4%). Results in focus. BLD shows pricing power up 12.8% with CSR following in its wake. Resources attracting buyers again. BHP up 0.2% and RIO up 1.1% with the gold miners mixed, NCM up 2.6% and NST better by 1.0%. Lithium stocks back in demand, PLS up 3.8% and AKE up 2.9% with LTR doing well too, up 3.8%. Coal stocks eased back after solid gains yesterday, oil and gas mixed, WDS up 0.6% and STO down 0.3%. In the industrials, healthcare slid led by CSL off 0.6% and SHL falling 3.0%. REITs mixed with GMG up 0.1% and GPT down 0.9%. Tech mixed too. CPU down 0.4% despite yields pushing higher. The Big Bank Basket rose to $192.07(0.3%). NAB the standout up 1.0%. Insurers doing well as SUN reported and rose 4.6% with QBE up 0.8% and IAG up 2.8%. MPL also putting in a solid day up 2.0%. Mixed session in staples and retail, DMP falling 1.2% and BXB down 2.0%. In corporate news today, AMC fell 3.3% on results, ELD had to reply to an ASX please explain, down 5.9%. BHP had to shut its iron ore production due to a fatality. WGO finally fell to Gina after STX threw in the towel. CHC back in acquisition mode this time in Canberra and SUN kicked the lights out with a big jump in insurance premiums behind a profit jump. Nothing on the economic front today and Asian market mixed. 10-year yields heading higher again up to 3.62%. Dow Jones futures down 22 points and NASDAQ futures up 4 points.

HEADLINES

• Winners: BLD, ADT, AGY, RNU, IMU, LLL, TLG, MGX, MCR
• Losers: PNV, DDR, ELD, ICA, HLS, AX1, RMS, UMG
• Positive sectors: Iron ore. Lithium. Gold miners. Banks. Insurers. Gaming.
• Negative sectors: Healthcare. Staples.
• High 7535 Low 7507. Narrow range
• Big Bank Basket: better at $192.07(+0.3%)
• All-Tech index: Falls 0.1%
• Gold falls to $2696
• Bitcoin: Better at US$23259
• Aussie Dollar: Back up to 69.64c
• 10-Year Yield: Back up to 3.58%
• Asian markets: Mixed with Japan down 0.4%, HK up 0.3% and China up 0.1%.
• US Futures: Dow down 22 Nasdaq up 4

MAJOR MOVERS

• BLD +12.78% Kerry will be happy.
• AGY +9.15% starting to run again.
• LLL +6.72% lithium juniors finding support.
• ARU +5.79% pushing back up again.
• TLG +6.16% going well again.
• VML +9.09% rare earth play stirring.
• NXL +13.08% now a possible takeover target.
• GLN +11.16% moves to 100% ownership Candelas Project,m
• LRS +9.09% Salina project expansion.
• AIS +8.82% Bell Potter conference presentation.
• BKY -14.44% permitting update.
• GSS -10.84% sell off continues.
• PNV -12.08% no skin off.
• DDR -10.65% distribution announcement and results preview.
• ELD -5.86% ASX Pauline Hanson ‘please explain’.
• AX1 -5.36% shoe drops. Another retail stock down.
• SPECULATIVE STOCK OF THE DAY: Spacetalk (SPA) +52.38% on decent volume. Punters are in again after the NEA man was appointed CEO.

COMPANY NEWS

• Strike Energy Limited (STX) announces it will accept Hancock’s offer for Warrego shares, increasing the value of Strike’s Perth Basin asset portfolio. This acceptance will result in $116m in immediate cash funding at a premium to Strike’s undisturbed share price.
• Boral Limited (BLD) has reported impressive results with strong growth in underlying revenue, earnings, and profit. Underlying NPAT rose by 53%, adjusted EPS up 50% driven by a 12% increase in revenue, and the EBITDA margin rose to 5.7%. The company has a positive outlook and expects its earnings to remain stable in the second half of the year. Overall, it is a strong performance for Boral Limited.
• Dreadnought Resources (DRE) has found rare earth mineralization at its Bresnahan project in WA. The mineralisation is similar to that found at the Browns Range project and is believed to be the first application of the unconformity HREE model outside of Canada’s Athabasca Basin and Northern Australia. Dreadnought controls over 3,700 sq km of land at Bresnahan and also confirmed high-grade gold, silver, and antimony veins. The company will start target generation and definition work in February/March 2023.
• Amcor (AMC) Reported strong results, with GAAP net income up 62% on pcp, and an adjusted EPS of 36.6 cents, up 8%. Results showed “excellent operating leverage despite challenges in the macroeconomic environment”. The company has also completed the sale of its Russian business and announced a bolt-on acquisition in China to strengthen its healthcare packaging business in Asia Pacific.
• Suncorp (SUN) – Announced a 44.3% increase in its net profit to $560m for the interim period, with earnings up 63% at $588m. Interim dividend 33c..
• Fortescue Metals Group (FMG) has signed a Mining Convention for the Belinga Iron Ore project in Gabon. The convention covers all legal, fiscal, and regulatory regimes for the 4,500 sq km project and allows for the first mining in 2H23. The estimated capital for early-stage mining development is around $200m with investment planned for 2023-24. The deposit was discovered in 1955 and has multi-billion tonne potential and high grades.
• BWP Management (BWP) – The distribution per unit for the half-year ended 31 December 2022 is 9.02c per unit, with an ex-distribution date of 29/12/2022 and a payable date of 24/02/23.
• Wotso Property (WOT) announced a 21% increase YoY in total revenue from continuing operations to $30,926,000, DPS unchanged at 3cps. Management comments “Rising interest rates are beginning to have an impact but our existing interest rate hedges combined with increasing revenue streams, means we enter the environment of higher interest rates and inflationary pressures with cautious optimism and on the lookout for our next opportunity”. Financial health remains strong, but like many of their peer REITs lacks liquidity in their balance sheet.
• Elmo Software Limited (ELO) – The Supreme Court of New South Wales has approved the scheme for Cookie Monster AcquireCo to acquire all of the issued shares in ELMO, which is expected to become legally effective tomorrow. The merger provides ELMO shareholders with a significant premium of 100.4% over the last trading price (12/10/22). The all-cash consideration offers certainty of value and was recommended by the Independent Board Committee of ELMO.
• BHP has suspended operations at its iron ore project after a worker was hit and killed by a train. BHP said the worker was hit by the train about 9.30pm on Tuesday at the Boodaire rail yard.

ECONOMIC & OTHER NEWS

• ANZ Bank chief executive Shayne Elliott has warned that the cash rate is entering dangerous territory for mortgage customers that borrowed to their limits. The buffer that the banks built into home loans had now gone. The lowest rate ANZ ever gave anyone was 1.94% as a fixed rate.

ASIAN MARKETS

• China must work to create a path to modernization that is both more efficient than capitalism and better safeguards social justice, President Xi Jinping told top officials this week.

US AND EUROPEAN HEADLINES

• State of the Union Address. Biden warns China over balloon flights. Kicks off re-election campaign.
• The president made an impassioned appeal directly to House Republicans to lift the debt ceiling without conditions. Not sure they were listening.
• “No president added more to the national debt in any four years than my predecessor (Trump). Nearly 25% of the entire national debt that took over 200 years to accumulate was added by one administration alone.”
• Ukraine to receive up to 178 German tanks from allies.
• BP slows oil and gas retreat after record US$28bn profit.
• Microsoft plans to release technology to help big companies launch their own chatbots using the OpenAI ChatGPT technology.

The following questions were set in last year’s AGED examination These are genuine answers (from 16 year olds) AGED test is for a US High School Diploma

Q Name the four seasons

A. Salt, pepper, mustard and vinegar

Q. How is dew formed

A. The sun shines down on the leaves and makes them perspire

Q. What guarantees may a mortgage company insist on

A. If you are buying a house they will insist that you are well endowed

Q. In a democratic society, how important are elections

A. Very important. Sex can only happen when a male gets an election

Q. What are steroids

A. Things for keeping carpets still on the stairs  (Shoot yourself now, there is little hope)

Q… What happens to your body as you age

A. When you get old, so do your bowels and you get intercontinental

Q. What happens to a boy when he reaches puberty

A. He says goodbye to his boyhood and looks forward to his adultery  (So true)

Q. Name a major disease associated with cigarettes

A. Premature death

Q. What is artificial insemination

A.. When the farmer does it to the bull instead of the cow

Q. How can you delay milk turning sour

A. Keep it in the cow  (Simple, but brilliant)

Q. How are the main 20 parts of the body categorised (e.g. The abdomen)

A. The body is consisted into 3 parts – the brainium, the borax and the abdominal cavity. The brainium contains the brain, the borax contains the heart and lungs and the abdominal cavity contains the five bowels: A,E,I,O,U  (wtf!)

Q. What is the fibula?

A. A small lie

Q. What does ‘varicose’ mean?

A. Nearby

Q. What is the most common form of birth control

A. Most people prevent contraception by wearing a condominium.  (That would work)

Q. Give the meaning of the term ‘Caesarean section’

A. The caesarean section is a district in Rome

Q. What is a seizure?

A. A Roman Emperor.

(Julius Seizure, I came, I saw, I had a fit)

Q. What is a terminal illness

A. When you are sick at the airport.  (Irrefutable)

Q What does the word ‘benign’ mean?

A. Benign is what you will be after you be eight  (brilliant)

Clarence

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