ASX 200 finished down 103 points at 6966 (-1.5%). ECB decision tonight and Debit Suisse rescue package with huge liquidity pool in focus. Selling was concentrated in resources again today, with BHP down 4.8% under pressure on UK class action and falling commodity prices. RIO also on the nose with FMG down 3.2%. Lithium stocks remain under pressure, PLS down 3.0% and MIN down 2.5%. Base metals weaker as copper fell, S32 down 4.8% and SFR off 0.7%. Oil and gas stocks also tanked after crude falls, Asian oil slightly better but WDS still down 5.4% and STO off 4.9%. Gold miners better but not stunning, NCM up 0.4%. Banks were easier too, CBA off 0.1% and WBC down 2.1%. The Big Bank Basket fell to $167.03 (-1%). Insurers eased, fund managers down led by MQG off 1.7% and MFG off 6.3%. PTM fell 4.1% too. Industrials were relatively sanguine, TLS up 0.7%, COL up 1.3% and healthcare stocks better on defensive buying, CSL up 1.8% and RMD rallying 1.2%. REITs were mixed, Tech down slightly with the All–Tech Index down 1.2% and WTC off 0.4% and CPU off 7.0%. In corporate news, PPH saw the bid price raised. IPH tumbled 10.6% on a new cyberattack. DEG did well up 2.5% on a Brolga update and TLX up 2.7% on an FDA extension. On the economic front, unemployment fell back to 3.5% with 64,500 new jobs created in February. Asian markets were spooked and 10-year yields falling to 3.34%. Dow futures up 107 points and Nasdaq futures up 61 points. 

HEADLINES

• Winners: PPH, LTR, NEU, AIA, TLX, GOR, LLC, DEG
• Losers: HTA, IPH, RNU, NWH, BOE, FBU, CTT, CRN, BCB
• Positive sectors: Healthcare. Gold miners. Staples.
• Negative sectors: Iron ore. Lithium. Oil and Gas. Coal. Banks.
• High 7027 Low 6911
• Big Bank Basket Down to $167.03 down 1%
• All-Tech index: Down 1.2%
• Gold rallies hard to $2887.
• Bitcoin: Eases to US$24373. Off highs.
• Aussie Dollar: Lower at 66.27c.
• 10-Year Yield: Lower at 3.34%.
• Asian markets: Japan down 1.3% and HK down 1.5% with China down 0.5%.
• US Futures: Dow up 107 Nasdaq up 61

MAJOR MOVERS

• PPH +14.16% increased offer to NZ$1.42.
• NEU +4.37% another kick higher.
• TLX +2.69% FDA expanded approval of illuccix in US.
• DEG +2.47% resource definition at Brolga.
• AIA +2.75% monthly traffic update.
• CMM +2.22% broker report
• A11 +13.64% Macquarie Research
• FSF +9.93% guidance update.
• EGG +5.35% Investor strategy webinar.
• IPH -10.61% cyber hack.
• BCB -7.02% half yearly accounts.
• INR -5.00% sellers back.
• 360 -5.84% Randy Zuckerberg buys a small amount.
• NTU -17.50% half yearly accounts.
• PMT -14.75% complicated Canadian placement.
• RHY -12.96% no method, dropping again.
• SPECULATIVE STOCK OF THE DAY (So Far) – Dynamic Metals (DYM) +25.00% thick high-grade nickel intercepted on first drill hole at DFW Prospect.
• Above Average Volume: MCL, WBE, RMX, DYM, LNU.

COMPANY NEWS

• Brambles (BXB) – Has issued a €500m green bond with an eight-year maturity at 4.25% to finance and/or refinance its portfolio of eligible green assets.
• Kelsian Group (KLS) – To acquire All Aboard America! Holdings for an enterprise value of $US325m. The purchase will be funded by selling $281m worth of equity, and tapping $226m from its debt facilities.
• Fonterra Shareholders Fund (FSF) – Reported a net profit of NZ$546m for the six months to December 31, up 50% YoY, and has lifted its guidance for financial 2023 to between NZ$55c and NZ$75c.
• BHP Group (BHP) will defend a class action in the UK over its alleged failures in the Samarco dam collapse in Brazil. BHP and Rio Tinto shares tumbled overnight in New York due to a drop in commodity prices
• De Grey Mining (DEG) has reported positive results from extensional drilling at Brolga, confirming the consistency of mineralization and extensional potential. The drilling results will increase confidence of early production.
• IPH Limited (IPH) detected unauthorised access (cyberattack) to a portion of its IT environment and is working with external cyber security advisors to investigate the incident.
• Latitude Financial (LFS) – Detected a cyber-attack that stole personal information from two service providers, impacting approximately 225,000 customer records. The attack is believed to have originated from a vendor used by Latitude. Placed in a trading halt
• Pro Medicus (PME) – Co-founders, Dr Sam Hupert and Mr Anthony Hall, have each sold 1m shares in the company, representing less than 4% of their respective shareholdings. They remain the two largest shareholders in the company, with their combined shareholdings after the sale representing over 50% of the company’s shares on issue.
• Sayona Mining (SYA) – Produced first commercial grade lithium concentrate at its North American Lithium operation with approximately 1,200 tonnes produced, including 6% lithium grade. The company remains on track to become North America’s leading hard rock lithium producer, with the first lithium shipment expected in July 2023.
• Telix Pharmaceuticals (TLX) – Received FDA approval for the expanded use of its Illuccix kit, allowing physicians to select patients with metastatic prostate cancer for therapy.

ECONOMICS & OTHER NEWS

• The ABS reports that the country’s unemployment rate fell to 3.5% in February, with employment increasing by around 65,000 people and the number of unemployed decreasing by 17,000 people. Bringing the rate back to the level seen in December 2022.

• ANZ Bank’s economics team is calling for two more rate increases after the latest labour force report showed the jobless rate fell to 3.5% in February from January’s 3.7%.
• New Zealand’s economy contracted by more than expected in the final three months of 2022. Economists expect the RBNZ will raise the OCR by 25bps next month.

ASIAN MARKETS

• Some good news from China. New homes values climbed 0.3% in February after policy easing. Sales rose in February for the first time in 20 months.

• In China a record 7.7m people took the civil service exam this year for more than 200,000 government jobs. Given the prestige of a government job and the high youth unemployment it is no surprise.

US AND EUROPEAN HEADLINES

• ECB decision tonight. European markets expected to open higher by around 1.5%.
• CS rescue package from central bank. Ability to borrow up to CHF50 Billion from Swiss National Bank.
• There it is Barney Frank defends role at Signature Bank: ‘I need to make money’. Frank was co-author of the Dodd-Frank Act. Man has to eat.
• Sam Bankman-Fried said to have taken $2.2bn from FTX entities.
• Boom in ‘zero day’ options draws regulatory attention.
• UK Budget offers £9bn business tax break and surprise pension boost.

And finally….is it a coincidence that the chair of Debit Suisse is Axel Lehmann.

My grandfather has the heart of a lion and a lifetime ban at the zoo.

3 unwritten rules of life . 1) 2) 3)

Clarence

XXX