ASX 200 rose strongly to 7310 up 91 points (1.3%) in quiet post-Easter trade. Both banks and resources fired up with industrials solid too. BHP led the resources gaining 2.1% with RIO up 1.9% and FMG gaining 2.9%. Gold miners too were better despite bullion easing, NCM saw the bid increased from Newmont rising 5.2%. NST up 2.1% and EVN up 3.9% on production guidance. Base metals and lithium found some love, MIN up 3.6% and AKE gaining 2.7%. LTR pushed ahead by 1.2% with CHN doing well too, up 3.3%. Energy stocks were better, WDS up 0.8% and STO rising 1.1% with KAR outperforming up 6.2%. Coal stocks flat, though. Banks better with WBC leading the charge up 1.8% as results loom. The Big Bank Basket rallied to $173.72 (1.1%). MQG a little underwhelming up only 1.1%. Fund managers modestly better with GQG up 1.5% on FUM increase. REITs firmed with SGP up 3.7% and GMG up 1.5%. Industrials firm but not spectacular, TLS pushing 0.5% ahead. WES up 1.4% and AGL firming 2.6%. Tech a bit floppy with the index slightly higher. In corporate news, a little quiet with NCM the focus. Better consumer confidence numbers locally and in China, the CPI came in below forecasts. In Asian trade, Japan up 0.8%, China down 0.4% with HK flat. Dow futures up 46 points, Nasdaq futures up 2 points. 

HEADLINES

• Winners: STX, EMR, NIC, SFR, A4N, KAR, RMS, INR
• Losers: IMU, RNU, HGH, DTL, REG, RED, SIG
• Positive sectors: Banks. Iron ore. Gold Miners. Lithium. Industrials.
• Negative sectors: None.
• High 7322 Low 7235
• Big Bank Basket Higher at $173.72 (1.1%)
• All-Tech index: rises slightly by 0.4%
• Gold Steady at $2998
• Bitcoin: Steady at US$30,090
• Aussie Dollar: eases to 66.70c
• 10-Year Yield: yields steady at 3.25%.
• Asian markets: Japan up 0.8%, China down 0.4% with HK flat.
• US Futures: Dow up 42 Nasdaq up 5
• European markets expected to open around 0.8% higher. G7 Meeting in Washington.

MAJOR MOVERS

• NIC +7.1% issuance of new notes.
• PDN +5.0% interest in uranium increasing.
• KAR +6.17% oil price helping.
• SFR +6.52% quarterly report advisory.
• SLX +4.41% that uranium bounce.
• NCM +5.16% increased offer from Newmont.
• DOW +4.95% bargain hunters.
• TWE +4.26% barley review gives hope.
• EVN +3.85% production update.
• PMT +9.12% bargain hunters in battery material.
• ASO +4.55% popping up on nickel radar.
• IMU -13.33% easing back.
• HGH -3.27% lodges limited disclosure statement.
• ERAR -20.00% rights start trade.
• IVZ -10.71% placement weighs.
• IPO of the Day: Evergreen Lithium (EG1) +20% – Good start for 25c IPO.
• Speculative Stock of the Day: Australian Rare Earths (AR3) +84.00% on a weekly column feature from Warwick Grigor from Far East Capital. Some commentators suggest that China will ban the export of rare earths. This would be in a response to US moves to target the chip-making industry.

COMPANY NEWS

• Latitude Financial (LFS) Received a ransom demand from cybercriminals behind the recent attack but has decided not to pay. The company stated that they do not want to reward criminal behaviour and that paying a ransom is unlikely to result in the return or destruction of the stolen information.
• Oz Minerals (OZL) – Vietnam’s Competition and Consumer Authority has given the green light to BHP Group (BHP) plan to acquire OZL, but the scheme still needs approval from OZ Minerals shareholders and the court.
• Chorus Ltd (CNU) – Reported an increase of 15,000 fibre connections to 1.01m during Q3, while total broadband connections remained steady at 1.18m. Extreme weather events and limited field workforce resources constrained connection activity. Copper broadband and voice connections declined by 21,000 during the quarter.
• Mayne Pharma Group (MYX) – Completed the sale of its US retail generics portfolio to Dr. Reddy’s Laboratories for an upfront cash consideration of $90m, with a potential $15m in future contingent milestone payments.
• Lycopodium (LYL) – Updated full-year guidance and now expects revenue of $320m and net profit after tax of $45m, citing a high level of activity across all operating sectors. The company said the continued high level of activity translated into healthy financial performance.
• Evolution Mining (EVN) – Updated its FY23 production guidance, expecting to produce 660,000 ounces of gold and approximately 48,000 tonnes of copper due to the impact of the weather event at its Ernest Henry operations. The event will result in lower gold and copper production of around 17,000 ounces and 10,000 tonnes respectively.
• GQG Partners (GQG) – Funds under management increased to $94.5bn in March, with net flows of $5bn during the quarter, but the firm warned that flows may have been driven by seasonality and strong investment results from 2022. GQG cautioned against simple extrapolation of these flows through the year.
• Newcrest Mining (NCM) – Newmont Corporation has presented a conditional and non-binding takeover offer that would allow NCM shareholders to receive 0.40 Newmont shares per each NCM share held, representing an implied value of $32.87 per share. There is also the possibility of up to US$110c as a special dividend.

ECONOMICS & OTHER NEWS

• Consumer sentiment in Australia has risen by 9.4% in April after the Reserve Bank kept the cash rate on hold, according to a Westpac-Melbourne Institute survey. Confidence has reached its highest level since June 2022. Despite the lift in April, Westpac characterises Consumer Sentiment as weak and consistent with Westpac’s view that consumer spending through 2023 and at least the first half of 2024 will be lack-lustre.

• China is set to review the Barley tariffs that it has imposed on Australian imports.

ASIAN MARKETS

• China’s consumer inflation slowed in March despite a pickup in economic activity, while producer prices contracted further. The consumer price index rose 0.7% last month from a year earlier. Producer prices dropped 2.5% in March, following a 1.4% decline in the previous month.
• The Bank of Korea kept its benchmark interest rate unchanged and said it intends to keep policy restrictive to combat inflation.
• Japanese investors sold $411m of Australian government bonds in February, the eighth consecutive month of selling, the Japanese Ministry of Finance said.

US AND EUROPEAN HEADLINES

• G7 Finance meeting in Washington.
• US first quarter earnings expected to decline 6.8%. Announcements kick off Friday.
• UK junior doctors strike.
• Bitcoin climbed above $30,000 for the first time since June 2022.Biden set to visit Northern Ireland on anniversary of Good Friday accord.

• Big US banks expected to report deposit flight in upcoming earnings.
• US and the Philippines have launched their largest combat exercises in decades that will involve live-fire drills, including a boat-sinking rocket assault in waters across the South China Sea. The war exercises will run until April 28^th.
• The Super Mario Movie scored the biggest opening weekend in the US for a film this year. A film about a plumber. Hardly Casablanca.
• World Bank has revised global growth up slightly.

And finally….

My wife Rose is leaving me because of my obsession with pens.

Bye Rose.

Went to a pub today. Had a ploughman’s lunch. He wasn’t amused

Clarence

XXXX