ASX 200 rose 38 points to 7362 (+0.5) after a slow start and a rethink ahead of the US reporting season. For the week, the ASX 200 is up nearly 2%. Gold miners led the way higher with NCM up 1.9% and NST running 4.4% higher. Lithium stocks also in demand, PLS up 5.0% and AKE bouncing 5.4% with IGO rallying 5.3%. Iron ore stocks flat as we await news of Cyclone Ilsa. Banks better too after BOQ pre-result results this morning with a $200m write-down of good will. The Big Bank Basket up to $173.80 (+0.9%). MQG up 0.7% and insurers firmed too. MFG continue to bleed down another 2.7%. Industrials firm, staples bouncing back, COL up 0.2% and WOW rallying 1.0%. CSL weaker with REITs mixed, GMG down 1.4%. Interest rate sensitive stocks did ok, QAN up 0.6% and TCL up 0.1% with Tech a little dull. The All-Tech Index up 0.3%. In corporate news, GMD is set to raise $450m in two tranches to buy SBM’s Leonora gold assets, WES CEO sells around $9m worth of shares and KAR fell 5.4% after delays to bring production back online after maintenance shutdown. BOQ fell 0.9% on a pre-result result and a write down of $200m on a 2007 acquisition.Nothing on the economic front. Asian markets mostly firmer. 10-year yields up to 3.33% Dow futures down 65 points. NASDAQ futures down 20 points.
- Winners: RED, A4N, TIE, SLR, AKE, IGO, ABB
- Losers: KAR, TER, WLE, OBL, JIN, TLG, HLS
- Positive sectors: Gold. Lithium. Banks. Oil and gas.
- Negative sectors: Coal.
- High 7364 Low 7314
- Big Bank Basket Rallies to $173.80 (0.9%)
- All-Tech index: Up 0.4%
- Gold Steady at $3011
- Bitcoin: Pushing higher again to US$30,762
- Aussie Dollar: Higher at 67.79c
- 10-Year Yield: yields stronger at 3.3%.
- Asian markets: Japan up 0.5%, China up 0.6% with HK up 0.3%.
- US Futures: Dow down 65. Nasdaq down 20
- European markets opening around 0.3% higher. Hermes results out.
- RED +8.57% kicking higher on bullion prices.
- IGO +5.33% deal with Wyloo on battery materials in WA.
- SLR +5.98% gold fever.
- A4N +10.16% kicking higher again.
- DMP +4.53% Ausbiz tip.
- 4DX +16.34% ‘Penguin’ stock kicks again after Miami deal.
- XRF +11.63% Quarterly trading report.
- RCE +23.01% delayed response to Family 4 patent granted.
- ERA -10.53% becoming irrelevant.
- CDM -4.95% investment update disappoints.
- KAR -5.44% production downgrades on maintenance.
- WLE -4.4% placement and SPP.
- JIN -4.10% no jackpots here.
- MP1 -2.71% book squaring.
- NEU -2.69% profit taking.
- Speculative Stock of the Day:Nothing on any volume.
- Bank of Queensland (BOQ) – They have interim results in a week’s time on April 20 but have today pre-announced a $200m goodwill write-down on its 2007 acquisition of Home Building Society and a $60m risk management program which will be reflected in the results. The risk management program comes at the request of regulators who have demanded a “material uplift” in their risk and compliance management. That means the statutory first-half net profit will be $4m instead of $212m last year. They also expect a lower dividend from 22c to 20c.
- Karoon Energy (KAR) – Have lowered production guidance to the bottom end of the range today due to the extended shutdown of Bauna production due to ongoing maintenance.
- Nickel Industries (NIC) has announced a US$400m capital raising in the corporate bond market the notes pay a huge coupon of 11.25% and will be listed on the Singapore stock exchange
- IGO Ltd (IGO) – Given approval by Western Australia’s government for a battery material facility to be located in Kwinana-Rockingham, with a feasibility study expected to be conducted by mid-2024. The company is in discussions with a global battery chemical manufacturer for a partnership in the project.
- WAM Leaders (WLE) – Announced a share purchase plan worth up to $30m, with an interim franked dividend of 4.5c, offering existing investors the opportunity to buy shares at the lower of $1.4749 or a 2.5% discount to the five-day VWAP at the issue date.
- Contact Energy (CEN) – Customer business recorded a mass market electricity and gas sales of 296GWh. The Wholesale business recorded a contracted Wholesale electricity sales of 629GWh.
- Genesis Minerals (GMD) – announced a $450m placement to investors to help pay for SBM, while the two remain in voluntary suspension. The raising was priced at 115c a share, a 4.5% premium to the last traded price and 9.7% higher than the 10-day volume weighted average price.
ECONOMICS & OTHER NEWS
Causes of Death in Australia
- The mortality rate remained low in 2021 (507.2 per 100,000 people).
- Ischaemic heart disease was the leading cause of death.
- Suicide was the 15th leading cause of death.
- There were two deaths from Influenza, a record low.
- The rate for Alcohol-induced deaths was the highest in 10 years.
- All top five leading causes of death are non-communicable diseases (they are not passed from person to person).
- There were 1,122 deaths due to COVID-19 registered in 2021.
- China is expected to achieve around 5% economic growth this year as the property market improves, according to People’s Bank of China Governor Yi Gang.
- Japan approved plans for its first gambling resort Friday, opening the way for a casino in Osaka to open its doors by the end of the decade. Things do move slowly in Japan.
- China’s People’s Bank of China’s Governor Yi Gang met with US Federal Reserve Chair Jerome Powell in Washington this week for their first one-on-one talk since 2020. The last conversation took place on March 2nd 2020 and lasted 17 minutes. Just ahead of the emergency pandemic rate cut.
- Singapore’s central bank on Friday left its monetary policy settings unchanged.
US AND EUROPEAN HEADLINES
- European markets are expected to open around 0.3% higher.
- JP Morgan numbers tonight – Earnings of $3.41 per share, 29.7% higher than a year earlier. Revenue of $36.24bn, 14.7% higher than a year earlier.
- German Foreign Minister in Beijing for a three-day meeting. Let the fawning begin.
- Brazilian President in China too. Must be a special on.
- US arrests a 21-year-old for the most recent Pentagon security leak. Apparently, 3m Americans have access to Top Secret documents. 1% of the population. Does that seem a lot? I think so.
- Bernard Arnault, the world’s richest person, is solidifying his lead over second-ranked Elon Musk. His fortune is up US$12bn to almost US$210bn. That would buy him 5 Twitters if he was dumb enough to tweet that. Elon Musk is worth around US$180bn. Almost feel for him. Arnault is the man behind LVMH. He owns 48% of the luxury goods supplier.
- French protesters storm LVMH HQ.
- Exxon chief’s pay jumps 52% after oil boom.
- Boeing says deliveries of 737 Max jet will be held up by production issue. Can’t get the parts.