ASX 200 closes up 20 points in a quiet trade to 7382 (+0.3%). Resources took a hit early but recovered from lows. Gold miners worse off NCM down 2.3%, NST off 2.5%, and EVN down 2.2%. REITS the best-performing sector today, SCG, URW, and MGR up 2.6%, 3.5% and 1.8%. Lithium stocks mixed, MIN up 1.7%, PLS up 1.3%, while AKE slipped 0.3%. Banks were also mixed. ANZ up 1% and NAB rose 0.7%, while BOQ slipped 1.1% ahead of results later this week. The Big Bank Basket rose to $174.88 (+0.6%). Tech stronger with WTC up 1.2% and XRO rose 1.1%. The All-Tech Index rose 0.5%. Healthcare better led by CSL up 0.2%, RMD up 0.6%, COH up 0.2%. Elsewhere, WES up 0.9%, WOW down 0.4%, and TLS flat. In corporate news, Transurban (TLC) reports 12.9% increase in average daily traffic YoY a record third-quarter result, Evergreen Lithium (EG1) rocketed to 69c today after its IPO last Tuesday at just 25c per share before closing down 20%, Regis Resources (RRL) dropped 11.2% on updated guidance with lower-than-expected gold output for March quarter, and Virgin Australian cancels Aussie IPO meetings for now. Nothing on the economic front today. Asian markets up, Japan up 0.4%, HK up 1.2% and China up 1.1%. 10-year yields 3.36% steady here. Dow Jones futures up 62 points and Nasdaq futures up 11 points.

HEADLINES

• Winners: LKE, SYA, QAL, SGR, 29M, IMU, URW
• Losers: RRL, RED, NHC, RSG, WAF, WGX, ARU
• Positive sectors: Banks. REITs. Oil and Gas. Industrials. Lithium.
• Negative sectors: Gold miners. Insurers.
• High 7391 Low 7362
• Big Bank Basket Rallies to $174.88(0.6%)
• All-Tech index: Up 0.47%
• Gold slips to $2989
• Bitcoin: Falls to US$29977
• Aussie Dollar: Lower to 67.10c
• 10-Year Yield: yields stronger at 3.37%.
• Asian markets: Japan up 0.4% China up 1.2% with HK up 1.1%
• US Futures: Dow up 62 Nasdaq up 11.
• European markets set to open slightly higher.

MAJOR MOVERS

• LKE +18.48% achievement of major milestone for Kachi.
• SYA +10.26% significant increase in lithium resource at Moblan.
• 29M +4.26% strengthens board
• QAL +8.26% change of director’s interest.
• NEU +3.22% back in winner’s enclosure.
• LAU +16.19% market and guidance update.
• A11 +17.59% I can see no reasons, because there are no reasons.
• EML +13.91% CEO resigns. Advisor to look at options.
• GMD +10.00% in the beginning there was Leonora.
• RRL -11.16% March quarterly and guidance downgraded.
• RED -10.53% gold stocks under pressure again.
• SBM -5.43% new deal with GMD.
• TIG -28.00% sanctions regime update.
• AMA -34.69% car crash update. Smashed.
• PAR -4.69% pushing lower again.
• Speculative Stock of the Day:Australian Rare Earth (AR3) +30.65% Koppamurra Mineral Resource up 25% indicated resource up 40%.

COMPANY NEWS

• Federal Court of Australia approves BHP, Oz Minerals (OZL) scheme of arrangement.
• St Barbara (SBM) – To sell Leonora assets to Genesis Minerals (GMD) for $600m, with the consideration to include upfront cash, shares and contingent shares. The deal also involves a capital raising by Genesis, with $470m to be raised in new equity at 115c.
• Arovella (ALA) – Released data showing that its ALA-101 cells could be a therapy for CD19 express leukemias and lymphomas. The cancer treatment research group has partnered with Imugene (IMU) for some of its research, and its treatments are still at an early clinical stage.
• EML Payments (EML) – Appointed Kevin Murphy as interim CEO as the company commences a global search for a permanent CEO to replace Emma Shand who has resigned. EML also announced it will transition away from its previous long-range strategy and will instead focus on addressing the challenges it is facing today, including conducting a strategic review of the business with a potential sale of all or parts of the business.
• Perseus Mining (PRU) – Confirmed that its employees and assets are safe following reports of armed conflict in and around Khartoum, Sudan.
• Regis Resources (RRL) – Revised its production and cost guidance for FY23 after reporting lower than expected gold output in the March quarter, citing slower ramp up of the new Duketon Garden Well. The company now expects FY23 gold production of 450,000 to 470,000 ounces, all-in sustaining costs of $1795 to $1845 per ounce.
• Transurban Group (TCL) – Reported a record third-quarter result with a 12.9% YoY increase in average daily traffic. Sydney and Brisbane had particularly strong performances, while Melbourne traffic continued to improve.
• AMA Group (AMA) – Downgraded its earnings guidance for FY23 due to margin compression, now expecting EBITDA in the range of $60-68m, compared to its previous guidance of $70-90m. However, the group still expects to be operating cash flow positive for H2 2023.
• Perenti Ltd (PRN) – Subsidiary Barminco has secured a 12-month contract extension at Newcrest’s Red Chris mine in Canada, which is expected to deliver around $90m of revenue. The extension allows Barminco to continue underground development works, and PRN does not expect it to impact its current FY23 guidance range.

ECONOMICS & OTHER NEWS

• Commonwealth Bank has slashed its fixed-rate borrowing costs. CBA cut its 3-year fixed rate packaged loan for both owner occupiers and investors on Friday by 0.4% to 5.59% and 5.69% respectively. Macquarie Bank, Adelaide Bank and Bank of Queensland were among the smaller lenders to have reduced their fixed mortgages by up to 0.6%, while Credit Union SA was the most aggressive by slashing its fixed rate by 1.66%.
• The Airwallex digital economy index out today shows a drop of almost 0.1% in digital business turnover since the March quarter of last year, worth $124m. The largest decline in activity was in Western Australia, down 36%, while Victoria was down 25.6%. Activity was up almost 13% in NSW and by 6.1% in Queensland.
• The Australian Competition & Consumer Commission (ACCC) has extended its review period in relation to ANZ’s merger authorisation application for the acquisition of Suncorp Bank. The ACCC requested, and ANZ has agreed to, an extension of the review period from 12 June 2023 to 28 July 2023.
• Bain Capital’s big IPO candidate Virgin Australia has cancelled this week’s one-on-one meetings as it looks like the IPO timetable has been pushed back.

ASIAN MARKETS

• PBoC offered 170 billion yuan (US$25 billion) of funds to banks through the medium-term lending facility. That resulted in a 20 billion yuan net injection in April, the smallest since November. It also left the interest rate unchanged at 2.75%, the eighth month for it to stand pat
• Retail buying of stocks tied to electric-vehicle batteries has added more than US$11bn in market value to Korean company Posco Holdings.

• Singapore’s home sales rose to a six-month high in March

US AND EUROPEAN HEADLINES

• Janet Yellen said US banks are likely to become more cautious and may tighten lending further in the wake of recent bank failures, possibly negating the need for further Federal Reserve interest rate hikes.
• European markets set to open slightly higher.
• Bing may replace Google as the default search service on Samsung devices, according to a New York Times.
• Merck buys Prometheus Biosciences for almost US$11bn.

And finally…

Clarence

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