ASX 200 slipped another 24 points lower to 7293 (-0.3%) in quiet trade again. Off lows on Deutsche Bank numbers. Quarterlies dropped and volatility at company levels. Banks eased with CBA down 0.8% and the Big Bank Basket down to $174.21 (-0.6%). MQG lost 0.3% and insurers fell with SUN down 1.1%. Healthcare under pressure, CSL down 0.6% with COH off 0.7% and RMD down 1.4%. REITs slipped again, GMG down 0.8% and SCG off 0.7%. Industrials fell slightly, QAN off 2.0% and WES down 0.6%. ALL falling 1.6% with tech easing despite Nasdaq gains. WTC down 0.1% and XRO off 0.7% with the All –Tech Index unchanged. In resources, big miners slightly better, BHP up 0.8% and FMG up 1.0%. Gold miners mixed, NST up 0.6% and NCM down 2.1%. Lithium stocks under pressure in places, PLS off 0.5%. AKE enjoying a 4.2% bounce on takeover speculation. Oil and gas stocks eased, WDS down 0.8% and coal steady. In corporate news, BKL was the big story as Kirin lobbed an agreed $95 bid. ABC fell hard on a Kwinana update, UMG down 4.7% on a downgrade to earnings. In economic news, international trade process indexes out. In Asia, Samsung reported the lowest operating profit since 2009 as demand continues to fall. Japan up 0.4%, HK up 0.3% and China up 0.9%.. 10-year bond yields rose slightly to 3.39%. Dow futures up 49 points. NASDAQ futures up 91 points.
- Winners: BKL, BRN, RSG, AKE, PRN, REG, ALK
- Losers: SYR, ABC, CXO, SYA, UMG, CXL, MP1, IMU, ADT
- Positive sectors: Iron ore miners. Utilities.
- Negative sectors: Healthcare. Banks. Oil and gas. REITs.
- High 7325 Low 7275
- Big Bank Basket Lower at $174.21 (0.6%)
- All-Tech index: Unchanged.
- Gold steady at $3015
- Bitcoin: Up to US$29117
- Aussie Dollar: Better to 66.32c
- 10-Year Yield: Higher at 3.39%.
- Asian markets: Japan up 0.4%, HK up 0.3% and China up 0.9%.
- US Futures: Dow up 49 Nasdaq up 91.
- European markets set to open lower. Deutsche results in focus.
- BKL +22.75% takeover at 9500c.
- AKE +4.15% speculation on M&A.
- KLS +3.28% Ausbiz Buy.
- GRR +1.68% iron ore improves slightly.
- SDR +3.29% quarterly report.
- RSG +4.55% WGX +2.35% gold bubbling along.
- JRV +14.94% quarterly report and presentation.
- KGN +11.66% kicks on broker upgrades.
- HLO +9.67% trading update.
- XRF +8.33% talked up on The Call today.
- POS +5.41% nickel moves.
- TIG -40.00% potential privatisation.
- ALC -10.00% quarterly report.
- SYR -9.54% Convertible issue and DFS.
- ABC -6.12% Kwinana project update.
- CXO -5.53% lithium under pressure again.
- UMG -4.73% trading update.
- ADT -3.52% chairman’s AGM letter
- Speculative Stocks of the Day:Nothing on any volume. BKL the standout on takeover.
- Telix Pharmaceuticals (TLX) – To acquire Dedicaid GmbH in a deal aimed at expanding the Australian biotech company’s artificial intelligence capabilities. The €2.2m acquisition will allow Telix to add predictive capabilities to its AI platform.
- Sandfire Resources (SFR) – Copper equivalent production fell by 2% to 30,000 tonnes in Q1 due to the company’s DeGrussa operation transitioning from mining operations to stockpile processing. The company revised its copper production guidance for FY23 to 87,000 tonnes.
- United Malt Group (UMG) – Revised its first-half underlying EBITDA guidance downwards to approximately $51m from the earlier estimate of $58-66m, citing lower sales volumes and the delayed start of its Inverness facility.
- Blackmores Ltd (BKL) – Japanese company Kirin Corporation has launched a $1.9bn takeover bid for BKL, with the offer being made via a scheme of arrangement. The bid, which is endorsed by the board and major shareholder Marcus Blackmore. BKL is priced at $95 per share, representing a 23.7% premium to the last closing price.
- Air New Zealand (AIZ) – Updated its earnings guidance for the FY23, expecting earnings before other significant items to be in the range of $510m to $560m due to strong demand and lower jet fuel prices, partially offset by softer cargo revenues.
- Ampol (ALD) – Reported an unaudited Group EBIT of $345.4m for 1Q23, up 82% YoY, with strong performance across all areas of the business, including an increase in total fuel sales volume by 50%. Lytton Refiner Margin remained above historical levels, and repair work is on track.
- ASX Ltd (ASX) – Yieldbroker has proposed to sell 100% of its shares for $125m, with ASX owning approximately 43% of Yieldbroker. ASX’s participation is subject to board approval, and if the sale proceeds, ASX will gain a reversal of prior year impairment losses of approximately $25m after tax.
- Newcrest Mining (NCM) – On track to achieve its FY23 production guidance following solid Q3 results, with gold production of 510koz and copper production of 31kt, and a reduced injury rate. Newmont has been granted exclusive due diligence following a revised proposal to acquire 100% of Newcrest.
- Northern Star Resources (NST) – Gold sold of 363,081oz at an AISC of A$1,813/oz. The production was slightly lower than expected, but the company maintains its FY23 production guidance.
ECONOMICS & OTHER NEWS
International Trade Price Indexes
- Export price index rose 1.6% this quarter and 6.9% through the year.
- Import price index fell 4.2% this quarter and rose 4.7% through the year.
- The federal government’s proposed overhaul of the immigration system will help businesses compete in the global war for talent, says the Australian Chamber of Commerce and Industry.
- Travel prices are increasing at their fastest pace on record, according to data from the Australian Bureau of Statistics. Domestic holiday costs increased by 25% in the year to March, while international holiday prices were 38% higher. The figures represent the fastest pace of travel inflation since records began in 1983.
- Chinese industrial profits decline 21% despite strong economic data.
- ZJLD a Chinese liquor group tumbled on their debut in Hong Kong today following what was HKs biggest initial public offering this year. The KKR & Co.-backed firm raised HK$5.3bn (US$680m) after selling shares at HK$10.82, near the bottom of a marketed range.
- Samsung’s profit plunged in the first quarter of 2023 as prices for its memory chips continued to fall and demand remained weak. Samsung’s lowest operating profit since the first quarter of 2009.
- Singapore is raising property taxes to cool its red-hot housing market. Big rises in stamp duty especially for foreign buyers.
US AND EUROPEAN HEADLINES
- European markets are heading for a lower open Thursday. Only slightly.
- Deutsche Bank results out. Q1 PBT up 12% Y/Y to EUR1.9bn. Highest since 2013.. Revenues up CET1 Ratio 13.6%.
- Barclays results Q1 – On track to deliver 2023 tragets. CET1 13.6%. Results from Unilever, AstraZeneca, WPP, Sainsbury’s and TotalEnergies, among others.
- Volvo out too.
- Italy releases consumer confidence figures for April.
The world’s cleverest student does the world’s funniest book report.
Students at a local school were assigned to read 2 books, ‘Titanic’ and ‘My Life’ by Bill Clinton.
One student turned in the following book report, with the proposition that they were nearly identical stories!
His cool professor gave him an A+ for this report.
Titanic: Cost – $29.99
Clinton : Cost – $29.99
Titanic: Over 3 hours to read
Clinton : Over 3 hours to read
Titanic: The story of Jack and Rose, their forbidden love, and subsequent catastrophe.
Clinton : The story of Bill and Monica, their forbidden love, and subsequent catastrophe
Titanic: Jack is a starving artist.
Clinton : Bill is a buls**t artist.
Titanic: In one scene, Jack enjoys a good cigar.
Clinton : Ditto for Bill
Titanic: During the ordeal, Rose’s dress gets ruined.
Clinton : Ditto for Monica.
Titanic: Rose gets to keep her jewellery.
Clinton : Monica is forced to return her gifts.
Titanic: Rose remembers Jack for the rest of her life.
Clinton : Clinton doesn’t remember anything.
Titanic: Jack surrenders to an icy death.
Clinton : Bill goes home to Hillary – basically the same thing