ASX 200 opened strong, waivered, then rallied to close up 60 points at 7069 (0.9%). Gains across the board with banks solid but unexciting, the Big Bank Basket up to $168.65 (0.55%), MQG rallied 0.9% with insurers back in demand as yields steadied, QBE up 2.3% and SUN rallying back 1.9%. Wealth managers to doing ok, MFG up 4.8% and PTM rising 1.8%. Healthcare was better, CSL up nearly 1.8% and gains in COH and SHL adding to the green. REITs rallied with SCG up 1.7% and SGP firing 3.2% higher. Tech better XRO up 4.0% the standout, the All Tech Index up 1.6% with CPU recovering 2.3%. Industrials firm. TLS up 0.5% and COL ahead by 0.9%. In resources, BHP up 1.2% with RIO and FMG doing well too after Chinese economic data, Lithium stocks remain mixed, early jumps saw a seller’s ambush in some, Gold miners eased, energy stock mixed, WDS down 1.0% and STO up 0.8%. Old king coal was a merry old soul as WHC gained 3.7%. In corporate news, 29M cratered again on the rain issue in QLD, KAR had some good news on Patola well and rose 2.5% and PRN rose 7.5% on a new safety taskforce. Nothing on the economic front locally but Chinese data mostly inline but no huge boom post-Covid. Asian market slightly better. 10-year yields up to 3.44%. Dow futures down 14 points and Nasdaq futures down 1 point. 

HEADLINES

• Winners: NEU, PRN, RSG, PXA, LNK, 360, CRN, CTT
• Losers: 29M, HM1, GRR, AAC, IMU, SIG, SDR
• Positive sectors: Pretty much everything.
• Negative sectors: Gold miners.
• High 7069 Low 7019 – Closes on high.
• Big Bank Basket: Up to $168.65 up 0.55%
• All-Tech index: up 1.6%
• Gold falls to $2841.
• Bitcoin: Rallies to US$24803. Off highs.
• Aussie Dollar: Better at 66.96c.
• 10-Year Yield: Steady at 3.44%.
• Asian markets: Japan up 0.1% and HK up 1.3% with China up 0.4%.
• US Futures: Dow down 14 Nasdaq down 1

MAJOR MOVERS

• NEU +19.36% kicks again.
• 360 +5.76% doing well.
• TIE +3.45% no reason.
• MFG +4.81% perking up a bit.
• A11 +7.32% slight bounce.
• 29M -14.75% rain halts play.
• HM1 -6.35% ex dividend.
• IMU -4.00% corporate presentation.
• GRR -4.94% still under a little pressure.
• BGL -3.36% half-yearly reports.
• MP1 -2.20% remains volatile.
• Speculative Stock of the Day: VTG +75.00% Now paying fully franked dividend and no price adjustment to bid price.

COMPANY NEWS

• 29Metals (29M) – Capricorn Copper has been impacted by extreme weather events, with the site experiencing significant increases in water levels and areas of inundation. Site access has been restored, allowing for recovery plans to be prepared. The interruption to operations is now expected to be more significant than the preliminary assessment.
• Northern Star Resources (NST) – Announced that it will temporarily stop production at its Pogo mine in Alaska, after discovering damage to a piece of machinery during a routine mill shutdown. Repairs are expected to take up to six weeks, and production in FY23 is expected to be impacted by 20,000-40,000 ounces.
• Enero Group (EGG) has secured the funds it had deposited with Silicon Valley Bank following the bank’s collapse. Enero stated that the cash was now held at a major US financial institution and had no remaining exposure to SVB.
• Briscoe Group Limited (BGP) reported total sales up 5.56% to $785.9m for the full year. The company also announced a final dividend of 16cps, bringing the total dividend for the year to 28cps, up 3.7% on pcp.
• Contact Energy (CEN) customer business fell in mass market electricity and gas sales on pcp. Tauhara project progress was slightly behind target, and there was a decrease in inflows into Contact’s Clutha catchment.
• Life360 (360) has regained access to its funds stored in Silicon Valley Bank after the bank’s closure and is transacting normally.
• Meridian Energy (MEN) reported a decrease in national hydro storage to 105% of historical average, while Waiau catchment inflows and water storage were below average. Meridian’s retail sales volumes up 9.7% on pcp, with the agricultural segment showing the highest increase.
• Clover Corporation Ltd (CLV) has achieved record results in 1H23, with total revenue of $44.4m, up 49.5% from 1HFY22. The company experienced revenue growth in Europe & Middle East, Asia, and ANZ, and has won new business in China. Dividend declared fully franked of 0.75c. NPAT was $3.6m, up 81.1% from 1HFY22, with EBITDA supported by resourcing of raw materials and price increases.

ECONOMICS & OTHER NEWS

OVERSEAS ARRIVALS AND DEPARTURES

In January 2023:

• Arrivals: 1,608,010 – a monthly increase of 347,460 trips.
• Departures: 1,376,850 – a monthly decrease of 138,440 trips. 

ASIAN MARKETS

• China’s industrial production grew 1.3% YoY in December 2022, beating market estimates but slowing from the previous month due to rising COVID infections and a downturn in the property sector. The output of manufacturing and mining sectors decreased, while utilities rebounded, and for the whole year of 2022, industrial production increased by 3.6% YoY.

• Retail sales rose 3.5% from the same period last year, the National Bureau of Statistics said Wednesday, in line with forecasts and reversing from a 1.8% drop in December. 

• Fixed-asset investment climbed 5.5% during the two-month period, better than the 4.5% estimate and 5.1% growth for last year. Property investment contracted 5.7%, less than the 8.5% decline predicted by economists.
• The urban unemployment rate rose to 5.6% from 5.5% in December. The jobless rate for young people jumped to a six-month high of 18.1%.

US AND EUROPEAN HEADLINES

• UK Budget.  Energy the focus.
• Fed considers tougher rules for midsized banks after SVB’s collapse. KPMG stands by audits of Silicon Valley Bank and Signature Bank.
• US prosecutors were investigating Signature Bank’s work with crypto clients before regulators seized the lender last weekend.
• Germany’s military upgrade to take ‘half a century’ at current pace, says report.
• Credit Suisse finds ‘material weaknesses’ in financial reporting controls.

And finally…

Clarence

XXXX