Wednesday 5th April – Australian Market Wrap | Beeks Downunder-Because not all financial news is boring!

ASX 200 closed up 1 point to 7237 in a boring day of trading. RBA rate pause apparently not stimulating markets as much as one would think.Phil Lowe’s speech at the Press Club dominated. US Jobs numbers creating uncertainty in the global economy and helping to push gold ever higher. NST up 3.1%, NCM up 3.1% and EVN up 4%. Iron ore stocks fell, BHP down 1.5%, RIO down 0.9%. Lithium mixed but mostly up MIN down 0.3%, and LTR up 2.7%, PLS down 1.1% Oil and gas peaking from OPECs news WDS down 0.6%, and WHC down 3.9%, with NHC down 1.2%. The Big Bank Basket unchanged at $172.18. MQG dropped 0.7%, Nothing too exciting. MFG got slammed, down 4.1% after FUM dropped again. Insurers firm QBE up 1.4%. All Tech Index gaining in the last minute, up 0.7%, SQ2 up 0.8%. Quick look earlier in the day showed that the Tech sector has been one of the best performing sectors this year as it rebounds from last years falls. Healthcare mixed, REITs mixed as well, CHC unchanged and GMG down -1.1%. In corporate news, CMM gained as they reported positive results from the Karlawinda Gold Project, VEA also gaining on news of a $1.15bn acquisition. MFG reported $3.4bn of outflows sending the price ever further down. On the economic front, RBA Lowe said “The decision to hold rates steady this month does not imply that interest rate increases are over”. Asian markets better, Japan down 1.9%, China closed for Tomb Sweeping Day. 10-year yields steady at 3.25%. Dow futures down 27 points. NASDAQ futures down 13 points.

HEADLINES

Winners: RED, RSG, IHL, SVL, STX, BGL, CXO, RMS
Losers: QAL, SLX, DGL, LYC, GRR, MFG, NVX
Positive sectors: Gold, Telecoms, Tech, Industrials, Healthcare.
Negative sectors: Iron ore, Energy, Metals & Mining.
High 7262 Low 7218
Big Bank Basket flat $172.18
All-Tech index: Up 0.7%
Gold at $3016.41
Bitcoin: steady at US$28569
Aussie Dollar: Lower at 67.31c
10-Year Yield: Edges lower to 3.24%.
Asian markets: Japan down 1.9%, China up 0.5% and HK down up 0.7%.
US Futures: Dow down 25 Nasdaq down 15

MAJOR MOVERS

RSG +14.4% AGM notice.
BGL +8.4% golds in demand.
CXO +8.1% maiden spodumene concentrate ready for export. Dewatering finished.
IDX +6.1% change of director’s interest.
IMU +7.7% first patients dosed in IT and IV cohort.
RED +20.00% record gold production of 17,550 oz in March.
BOT +5.00% investor update.
PAR -14.9% sell-off continues.
HHR -14% presentation – transformational farm out.
FDV -13% capital raise.
MFG -4.1% FUM falls again.
LYC -4.8% rare earth prices falling.
SLX -5.7% profit taking.
NVX -4.00% CEO presentation.
Speculative Stock of the Day. Western Mines Group (WMG) +173.91% confirms discovery of significant nickel system. Elevated Ni and S coincident with highly anomalous Cu and PGE demonstrate the disseminated sulphides observed are magmatic nickel sulphide mineralisation.

COMPANY NEWS

Capricorn Metals (CMM) – Karlawinda Gold Project delivered a strong Q3, producing 30,841 ounces of gold, with year-to-date gold production at 91,156 ounces. The company is on track to achieve the mid-point of FY23 guidance. The company’s cash and gold on hand at the end of March 2023 increased to $119.5m, reflecting robust operating margins.
Gold Road Resources (GRR) – Presented a updated 3-year mine production outlook for Gruyere, which ranges between 335,000 and 375,000 ounces per annum, reaffirming the life-of-mine until 2032. Gruyere celebrated its one-millionth ounce of gold production and is set to deliver 2m ounces during 2025.
Imugene Limited (IMU) – Announced that the Phase 1 MAST study evaluating the safety of VAXINIA, a cancer-killing virus, has dosed the first patients in cohort 3 of the monotherapy dose escalation trial. The study aims to recruit up to 100 patients across approximately 10 trial sites in the US and Australia and is anticipated to run for approximately 24 months.
Spark New Zealand (SPK) – Released a three-year strategy that will invest in data centres and new technologies to fuel growth in its core markets and its high-tech portfolio. Over the next three years, the company plans to invest $250-$300m in the high-growth data centre market and $40-$60m in 5G Standalone
West African Resources (WAF) – Increased its unhedged reserves to 6.4m ounces of gold, with mineral resources increasing to 12.6m ounces of gold, following exploration success and targeted underground drilling in 2022, delivering a robust 10-year production plan, aiming to become a +400,000 ounce per annum gold producer with the development of its second gold mine at Kiaka.
Magellan Financial Group (MFG) – Reported $3.4bn in institutional outflows in March, with speculation pointing to UniSuper and HESTA as potentially behind the yanked mandates. However, the decline in funds under management was $2.1bn as foreign exchange movements and market appreciation made up the difference.
Viva Energy (VEA) – To acquire OTR Group for $1.15bn from Peregrine Corporation. The deal will be funded by $1bn of debt and capital and an equity component of $150m.
Carsales.com (CAR) – Raised $121m from retail investors in the second stage of its entitlement offer, issuing about 6.1m new shares at an offer price of 1995c per share. The proceeds will be used to fund the acquisition of an additional 40% of shares in Webmotors and to strengthen the balance sheet.
Tribeca Global Natural Resources (TGF) – Raised $16.04m from its one for four pro-rata entitlement offer. The entitlement offer raised $3.2m and issued 1,522,033 new shares, while the shortfall facility raised $12.84m and issued 6,115,104 new shares.

ECONOMIC AND OTHER NEWS

NZ Central Bank raises interest rates by 50bps raising the Official Cash Rate to 5.25% from 4.75%.
RBA Lowe said “The decision to hold rates steady this month does not imply that interest rate increases are over” in a speech in Sydney a day after the RBA held its cash rate at 3.6%.

ASIAN MARKETS

Singapore retail sales up 12.7% YoY recovering from a 0.8% drop in the previous month.
Inflation in Thailand down to 2.83% in March a 15-month low.
Japan March final services PMI 55 vs 54 prior month.
Former BoJ official says BoJ could end YCC in April stating, “There’s a possibility in April if you consider the current circumstances objectively”. “Long-term yields won’t rise abruptly even if the YCC is scrapped” as long as the market environment continues to have little momentum for higher yields.
China has urged the World Trade Organization to scrutinize U.S.-led technology export restrictions aimed at curbing its ability to make advanced chips,

US AND EUROPEAN MARKETS