ASX 200 drifted lower during the session off highs closing up 7 points at 6962 (+0.1%). Banks turned down slightly after a early positive start. CBA down 0.8% and ANZ off 0.4% with the Big Bank Basket at $166.15 (-0.4%). MQG off 1.5% slipping further down although insurers better, QBE up 0.9% and MPL up 1.6% as LFS seems to have taken the pressure and focus off their cyberattack. Money managers slightly firmer, MFG up 2.1%. Industrials better mostly, TLS up 1.0% and EDV up 2.8% on NSW election results and pokie reforms, with ORG doing well ahead of possible M&A news later this week, up 2.3%. Healthcare better led by COH up 1.9% and RMD gaining 1.7%. REITs in demand as yields fall, GMG up 2.1% and DXS up 0.4%. Tech slightly better as CPU rise 1.1% and the index up 0.4%. Resources were a mixed bag as disappointing Chinese data drew sellers. BHP down 0.2% and RIO off 0.6% with the lithium stocks once again under pressure. PLS down 3.4% and LKE tumbling 13.5% as the Chairman sold shares last week. Gold miners mostly better but unremarkable, NCM up 1.0% and NST up 2.6%. Energy stocks hit hard as WDS fell 3.4% and STO down 1.6% with WHC off 1.5%. On the corporate front, ALD fell 1.2% as it outlined outages at Lytton, IPD soared 111.86% on some good news and IVC officially rejected the TPG bid. KCN in a trading halt, raising $46m and CHN in a halt pending a resource upgrade. UMG in a halt too as it looks like it has drawn the attention of a suitor. PMV results today and paying a special dividend, down 2.5%. Nothing on the economic front, Asian markets eased. 10-year yields down again to 3.20%. Dow futures up 142 points. NASDAQ futures up 51 points.

HEADLINES

  • Winners: A4N, SDR, DBI, NWH, SIG, SYR, BRN
  • Losers: LKE, CTT, WBT, AGY, TUA, INR, VUL, SLX
  • Positive sectors: Healthcare. REITs. Industrials. Tech. Gold miners. Utilities.
  • Negative sectors: Iron ore. Lithium. Banks.
  • High 6989 Low 6960 Narrow range. Waiting.
  • Big Bank Basket down to $166.15 (-0.4%)
  • All-Tech index: Up 0.6%
  • Gold slips a little to $2967
  • Bitcoin: eases to US$27905
  • Aussie Dollar: Lower at 66.53c
  • 10-Year Yield: Pushing lower to 3.20%.
  • Asian markets: Japan up 0.5%, China down 1.1% and HK down 0.5%.
  • US Futures: Dow up 142 Nasdaq up 51

MAJOR MOVERS

  • SYR +4,76% broker research.
  • A4N +10.79% Bell Potter research.
  • LTR+2.35% becoming a substantial holder.
  • TYR +2.12% response to media speculation on further bid.
  • AIS +14.15% good rally. No news.
  • PAN -6.45% back down again.
  • AGY -6.98% lithium under pressure again.
  • WBT -7.65% cracks.
  • PLS -3.37% under pressure again.
  • VUL -5.19% group management report.
  • PMV -2.49% results and special dividend.
  • LKE -13.54% chairman sells down.
  • LFS -2.48% now one of the biggest cyberattacks in Australia.
  • KCN – rattles the tin for $46m at between 150c to 160c.
  • UMG – in play with takeover.
  • Speculative Stock of the Day:  Impedimed (IPD) +111.86% Good announcement today on its Bioimpedance spectroscopy with NCCN guidelines. Good volume too.
  • Above average volume – TCF, ALO, PYR, IPD, FRB, TEG, FFG

COMPANY NEWS

  • NRW Holdings (NWH) has completed the acquisition of OFI Group Holdings for $4m, which is expected to generate $40m in revenue next year, with approximately half coming from internal demand from the NRW METS companies. NRW also announced that DIAB Engineering has been awarded a contract worth $30m over three years for Crusher and Supporting Infrastructure Maintenance works at Iron Bridge.
  • Latitude Group (LFS) – Cybercrime update: Around 7.9m Australian and New Zealand driver licence numbers and 53,000 passport numbers were stolen.
  • Healius (HLS) – Perpetual Investment Management, which holds a 12.5% stake in HLS, stated that it finds Australian Clinical Labs (ACL)unsolicited takeover proposal unappealing and believes it could lead to an unwarranted shift of value from HLS shareholders to ACL.
  • Allkem (AKE) – Olaroz resource has increased by 27% to 20.7Mt, with the total resources in the Olaroz-Cauchari basin now at 27Mt, confirming its status as one of the largest lithium resources in the world.
  • Ampol (ALD) – Announced earnings will be affected by the temporary halt of its fluidised catalytic cracking unit at its Lytton refinery due to maintenance, with an estimated impact on EBIT of $30-$50m, but the company expects to resume service in May with no anticipated supply disruptions for customers.
  • Synlait Milk (SM1) – Net profit after tax for the first half of the financial year fell 83% to NZD 4.8m, with revenue dropping 3% to NZD 769.8m, while its full-year net profit guidance range was set at NZD 15m to NZD 25m.
  • Nitro Software (NTO) – Potentia’s takeover offer has been increased to 220c per share, up from 217c per share, after Potentia’s relevant interest in Nitro exceeded 75%. Nitro recommends its shareholders to accept the all-cash consideration of 220c per share.
  • InvoCare (IVC) – Has rejected TPG’s takeover bid of $12.65 per share, stating that it does not offer compelling value to shareholders. The company has offered limited access to non-public financial information to determine if TPG can come up with a revised proposal.
  • Premier Investments (PMV) – First-half net profit after tax rose to $174.3m, with record first-half sales of $905.2m, up 17.6% YoY, while also declaring a record interim dividend of 54c and a special dividend of 16c, a 52.2% increase.

ECONOMICS & OTHER NEWS

ASIAN MARKETS

  • Chinese Industrial profits in the January-February period dropped 22.9% from a year earlier, the National Bureau of Statistics said Monday. For the entirety of 2022, profits declined 4% from the prior year.
  • Profits of foreign firms decline 35.7% in the first two months.
  • North Korea fired two short-range ballistic missiles into the sea off its east coast on Monday morning, South Korea’s military said.

US AND EUROPEAN HEADLINES

  • European markets are expected to open around 0.8% higher.
  • First Citizens Banshares Inc will acquire Silicon Valley Bank after its collapse earlier this month from FDIC. All deposits will be assumed by First Citizens.
  • Money market funds swell by more than $286bn as investors pull deposits from banks.
  • U.S. pharma giant Pfizer has signed an agreement with China to cooperate on improving the country’s health coverage.

And finally….

Clarence

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