ASX 200 falls another 57 points to 7432 (-0.8%) to a three-week low, as results fall short and resources beyond underwhelming. Iron ore stocks starting to throw in the towel, BHP down 0.3%, RIO off 1.1% and FMG falling 2.3%. Gold miners weaker again, NCM down 1.9% and NST off 3.1%. Lithium stocks holding up relatively well, PLS steady with AKE down 1.3%. Coal stocks though walloped, WHC down 3.7%, NHC off 8.6% and SMR down 2.5%. Oil and gas stocks also in the doldrums, WDS off 1.7% and KAR down 1.8%. Banks eased again but still holding up relatively well. The Big Bank Basket down to $191.18 (-0.4%). MQG tumbling 1.3%, insurers solid on rates rising again with 10-year up to 3.71% yield. Money managers falling too, MFG down 3.4% with GQG off 1.7%. Tech stocks fell, WTC down 5.1%, XRO off 2.1% and the index falling over 2.1%. REITs suffering and healthcare weaker. RMD down 1.3% and COH falling on deaf ears off 1.3%. Results again dominating, REA fell slightly off 2.7%, NWS off 6.9% as cost-cutting kicks in, DHG falling hard on REA numbers down 6.1%. In economic news, the RBA released its Statement of Monetary Policy again with a hawkish boas and stresses more rate pain to come. Chinese CPI rose to 2.1% on Lunar New Year demand. Asian markets mixed still with Japan up slightly and China down0.6%. 10-year yields pushing higher again to 3.72%. Dow Jones futures down 44 points. NASDAQ futures 32 points.
- Winners: IMU, A4N, UMG, BOE, OBL, JLG, ARF, LFS, SLX
- Losers: MSB, NHC, BCB, TER, NWS, CMM, SQ2, TIE
- Positive sectors: Staples. Insurers.
- Negative sectors: Coal. Gold. Tech. REITs. Fund managers.
- High 7487 Low 7429
- ASX 200 falls 1.6% for the week.
- Big Bank Basket: Down to $191.18 down 0.4%
- All-Tech index: Falls 2.2%
- Gold falls to $2682
- Bitcoin: Lower at US$21800
- Aussie Dollar: Falls to 69.22c
- 10-Year Yield: Back up to 3.72%. warnings flashing.
- Asian markets: Mixed with Japan up 0.1%, HK down 1.8% and China down 06%.
- US Futures: Dow down 44 Nasdaq down 32
- IMU +7.41% patent approval.
- UMG +4.79% AGM presentation.
- JLG +3.53% stirring.
- WBT +3.53% up she goes still.
- SYA +2.13% bouncing off lows.
- BOE +4.53% SLX +2.79% interest in uranium still.
- APX +12.54% AI inspired bounce.
- MSB -9.75% profit taking.
- NHC -8.61% WHC -3.73% coal falls into hole.
- DHG -6.13% REA results weigh.
- DEG -4.45% book squaring after rise yesterday.
- NEC -5.88% owns DHG.
- SVL -17.95% placement to raise $18m.
- AVH -5.07% fourth quarter results date. PNV down 6.06% too.
- SPECULATIVE STOCK OF THE DAY: Nothing again with over $1m in volume. MGT the closest up 40.1% on news yesterday of its Iron Peak Mineral Resources significantly improved.
- REA Group LTD (REA) -2.7% – Has reported its 1H23 results with revenue growth of 5% to $617m and a decrease in EBITDA of 2%. The revenue growth was driven by 3% growth in Australia and 48% growth in REA India. The Group’s operating costs increased by 15% YoY, mainly due to higher employee costs, investment in strategic initiatives, and increased marketing and travel costs. The Board has decided to pay a final dividend of 75cps fully franked, flat YoY. REA is trading on a PE of 41.1x and has dropped 13.3% over the past year as property prices continue to fall thanks to rising interest rates.
- News Corporation (NWS) -6.9% – Reported its second quarter FY23 results, with total revenues at $2.52bn, down 7% of pcp, primarily due to negative foreign currency impact and lower revenues in the Book Publishing and Digital Real Estate Services segments. Net income for the quarter was $94m, down 64% on pcp, due to lower Total Segment EBITDA, higher losses from equity affiliates, and inflationary pressures.
- Imugene Limited (IMU) +7.4% – Has received approval for a patent related to its B-cell activating immunotherapy called PD1-Vaxx. The patent protects the treatment’s composition and method of use until 2038 and a clinical trial combining PD1-Vaxx with another cancer treatment will be conducted to determine the treatment’s safety and effectiveness in treating lung cancer.
- Silver Mines Limited (SVL) -18%. Has successfully raised A$18m in a capital raising. The funds will primarily be used for the progression and pre-development expenses of the Bowdens Silver Project, as well as exploration activities at other projects and general working capital purposes.
- Medibank Public (MPL) +0.7% Lawyers allege MPL failed in its duty to protect its customers by having bad security.
ECONOMIC & OTHER NEWS
RBA Statement of Monetary Policy
- The Board’s priority is to return inflation to target. High inflation makes life difficult for people and damages the functioning of the economy. And if high inflation were to become entrenched in people’s expectations, it would be very costly to reduce later. The Board expects that further increases in interest rates will be needed to ensure that the current period of high inflation is only temporary. In assessing how much further interest rates need to increase, the Board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market. It remains resolute in its determination to return inflation to target and will do what is necessary to achieve this.
Monthly Business Turnover Indicator –Key statistics
- In seasonally adjusted terms, the December 2022 monthly business turnover indicator showed:
- Rises in seven of the 13 published industries.
- The largest rise was in Accommodation and food services (+5.0%).
- The largest fall was in Other services (-6.0%).
- Through the year, rises were seen in all 13 published industries.
UBS chief economist George Tharenou has revised his peak cash rate forecast and is now expecting the cash rate will peak at 3.85% in mid-2023, up from a peak of 3.35% previously forecast for mid-February citing “extra hawkishness” after SoMP released today.
- China’s consumer inflation accelerated last month as the Lunar New Year holiday spurred demand following the nation’s reopening from COVID-zero. The consumer price index rose 2.1% from a year earlier, the National Bureau of Statistics said today.
- The producer price index, meanwhile, fell 0.8% after declining 0.7%the previous month.
- MSCI revises Adani Group weightings after free float review.
US AND EUROPEAN HEADLINES
- Biden appears to rule out Ukraine visit as invasion anniversary looms.
- Nelson Peltz calls off Disney proxy fight.
- South Africa declares a national state of emergency over continual power cuts.
- Trafigura faces hit of up to $577m over alleged nickel fraud.
Today’s 3-year-olds can switch on laptops and open their favourite apps. When I was 3, I ate mud.
So, you drive across town to a gym to walk on a treadmill?
I didn’t make it to the gym today. That makes five years in a row.
I decided to stop calling the bathroom “John” and renamed it the “Jim”. I feel so much better saying I went to the Jim this morning. Old age is coming at a really bad time.
If God wanted me to touch my toes, He would’ve put them on my knees.
Last year I joined a support group for procrastinators. We haven’t met yet.