ASX 200 falls 47 points to 6969 (-0.7%) but steady at lower levels as we await the US and European markets. Resources in a funk with BHP off 0.8% and MIN down 2.9%. The Lithium and battery material stocks cratered hard, PLS down 4.7%, CXO off 3.8% and AKE down 4.3%. Rare earths also remain under pressure with LYC down 3.2% and ARU off 7.9%. Gold miners were firm but unspectacular despite bullion heading higher. NCM up 1.1% and NST rallying 2.0%. Oil and gas stocks eased back and coal not such a merry old soul as WHC fell 2.8%. Banks were weaker but no great dramas, the Big Bank Basket dropped to $168.75 (-0.4%). MQG back in the doghouse down 1.8% and wealth managers falling away again, MFG down 3.9% and IFL off 2.8%. Insurers weaker, QBE down 1.6%. Industrials were mixed. Defensives in staples doing ok, WES up 0.2% and WOW up 0.1% with BXB doing well up 0.8%. REITs eased back, tech down with XRO off 0.9% and NXT off 1.6%. Healthcare mixed, COH off 2.3% and RMD down 1.2%. In corporate news, BKW results helped the stock rally 3.1%, SOL lifted its dividend by 24% and WBT revealed a cash call and an SPP at 500c. SIG reported an increase in revenue of 6.2%. Nothing on the economic front. Asian market mixed, China unchanged and HK up 0.8% but Japan slightly lower. 10-year yields eased to 3.31%. Dow futures up 141 points. NASDAQ futures up 60 points.

HEADLINES

• Winners: UMG, 29M, TUA, LFS, ADT, EHE, 360, A4N
• Losers: PNV, AGY, MP1, LKE, SYR, ARU, URW, SYA
• Positive sectors: Gold miners. Staples.
• Negative sectors: Lithium. Rare earths. Iron ore. REITs
• High 6999 Low 6950
• Big Bank Basket down to $168.75 (0.4%)
• All-Tech index: Down 1.1%
• Gold higher at $2935
• Bitcoin: falls to US$27388
• Aussie Dollar: Better at 67.30c
• 10-Year Yield: Pushing lower to 3.31%.
• Asian markets: Japan weaker by 0.3%, China up 0.4% and HK up 0.8%
• US Futures: Dow up 141, Nasdaq up 60

MAJOR MOVERS

• UMG +5.52% Inverness facility commences production.
• TUA +4.62% investor presentation.
• RSG +2.74% change in substantial holding
• BKW +3.13% results bedding down well.
• EVN +2.14% some love for Jake.
• ADT +3.77% keeps in heading higher.
• PAN +18.52% mmm, mystery move.Good volume too.
• 88E +9.09% Hickory -1 Surface hole completed.
• BKT +8.00% signs MOU for Rail Transportation from Mahenge
• PNV -12.32% chairman sells stocks to buy a house in US.
• AGY -11.83% LKE -8.08% SYA -7.50% lithium and battery stocks under pressure.
• OFX -10.11% Investor presentation
• MAY -10.61% update on timetable for drilling.
• Speculative Stock of the Day (So Far): Besra Gold (BEZ) +87.5% Reinstatement to trade. Up to a US$300m non-binding drawdown offtake funding agreement to facilitate 3m Oz Bau Gold Project. BEZ is a mining company focused on East Malaysia.

COMPANY NEWS

• TUAS Ltd (TUA) reported revenue of $39.6m for 1H23, up 55% YoY. The company’s loss for the period was $7.5m, down 44% YoY, and no dividends were paid. EBITDA increased 128% to $14.3m, but after accounting for depreciation and amortisation expenses of $22.1m, the company reported an operating loss of $7.8m.
• Sigma Healthcare (SIG) – Reported a 6.2% increase in revenue to $3.7bn for the full year, with a net profit of $1.8m compared to a loss of $7.2m in the prior corresponding period. The company declared an interim dividend of $0.005 per share
• Brickworks (BKW) Reported a 5% increase in dividends for H1 2023, extending its record of 47 consecutive years of dividend increases. The company also posted a record adjusted net profit of $410m on sales of $584m.
• Washington H. Soul Pattinson (SOL) reported a 24.1% increase in its fully franked dividend to 36c for its half-year financial results. The company’s revenue decreased by 74% to $290.m, but its profit after tax attributable to members rose by 167% to $453m.
• Core Lithium (CXO) has secured additional sales agreements with Sichuan Yahua for the sale of approximately 18,500 tonnes of spodumene concentrate from the Finniss Lithium Operation, in addition to the existing binding agreement to sell Yahua 300,000 tonnes over four years. Pricing for both cargos is linked to the Fastmarkets price with no floor or ceiling.
• WeeBit Nano (WBT) – Trading halt after a 20% fall yesterday and a $45m capital raise at 500c to institutions. SPP to follow at same price.
• Nitro Software (NTO) – announced that five non-executive directors have resigned from its board effective immediately. Current board member Kurt Johnson will stay on as chairman for a transitional period.

ECONOMICS & OTHER NEWS

• Household wealth fell for the third consecutive quarter, decreasing by 0.4% ($57bn) in the December quarter 2022, according to figures released today by the Australian Bureau of Statistics (ABS).
• The value of residential land and dwellings dropped by 2.7% ($260bn) in the December quarter and contributed 1.8% points to the overall decline in household wealth. Residential land and dwellings are valued at $9.2 trillion which is 3.9% ($374bn) lower than December 2021.

ASIAN MARKETS

• Chinese President Xi Jinping and Russian President Vladimir Putin have agreed to cooperate on a range of economic and business areas.

US AND EUROPEAN HEADLINES

• BoE decision today.
• Hindenberg Research will soon release a new report on another target, the US short seller said in a tweet a few hours ago without offering any more details.
• Coinbase receives SEC warning about potential legal action. Stick tumbles 15% after hours.
• Marshall Beard, chief strategy officer at U.S.-headquartered cryptocurrency exchange Gemini, said $100,000 could be a possibility for bitcoin. Paolo Ardoino, chief technology officer at stablecoin issuer Tether, said bitcoin could “retest” its all-time high near $69,000. Not that these two have no reason to spruik it. Get Lindsay Lohan back.
• US bondholders prepare to sue Swiss over $17bn Credit Suisse wipeout.
• Billionaire Ratcliffe plans to offer more than £5bn for Manchester United.
• Boris Johnson says he may refuse to accept Partygate verdict.
• London stock market £200bn smaller than Paris.
• Relativity Space, a 3D-printing specialist, launched the inaugural flight of its Terran 1 rocket. It failed to reach orbit. It flew for three minutes.

And finally…….

Clarence

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