ASX 200 closed up a mere 17 points at 7309 (+0.2%) after a promising start was ambushed by caution. Down around 0.28% this week. Big week. Banks were modestly better with CBA up 0.3% and ANZ doing well up 1.0% with MQG up 1.1%. The Big Bank Basket rose to $175.02$ (+0.9%). Insurers and fund managers also better with QBE up 1.1% and MFG gaining 2.9%. Industrials mixed, healthcare under a little pressure, CSL down 1.1% and RMD reporting quarterly fell 0.1%. REITs are slightly firmer with tech doing ok on Nasdaq moves. TLS up 0.5% and REA doing better too up 0.8%. Resources mixed, Iron ore stocks drifting, Lithium stocks a tad higher led by PLS up % on its quarterly. IGO up 2.0% and AKE up 3.8% also doing well. Gold stocks eased although NCM bucked the trend rising 1.4%. In corporate news, MP1 knocked the lights out with a significant upgrade and rallied 41.5%. Plenty of quarterlies in resources and tech. Nothing much on the economic front with US PCE in focus. Asian markets seeing some buyers emerge. Japan up 1.2%, HK up 0.2% and China up 0.7%. 10-year yields at 3.39%. Dow futures down 28 points. NASDAQ futures down 13 points.
- Winners: MP1, MAD, BOE, PLS, EMR, RED, SDR
- Losers: SYR, PBH, IMD, A4N, OML, ALK, PRN, TLX
- Positive sectors: Banks. Tech. Lithium. REITs.
- Negative sectors: Healthcare.
- High 7330 Low 7297. Narrow trading range again. ASX 200 down 0.28% for the week.
- Big Bank Basket Higher at $175.05 (0.9%)
- All-Tech index: Up 0.6%
- Gold eases to $3004
- Bitcoin: Up to US$29457
- Aussie Dollar: Steady at 66.14c
- 10-Year Yield: Higher at 3.39%.
- Asian markets: Japan up 1.2%, HK up 0.2% and China up 0.7%.
- US Futures: Dow down 28 Nasdaq down 13.
- MP1 +41.46% major upgrade from company.
- SDR +5.51% broker upgrades.
- BOE +9.13% quarterly report
- PLS +7.07% quarterly report.
- PDN +4.80% bit of love for uranium.
- M7T +13.11% quarterly report.
- AVH +8.18% broker report.
- BOT +6.17% quarterly activities report.
- SYR -9.77% not happy Jan with convertible issue.
- PBH -6.06% looking to sell US business now local business sale talks have failed.
- A4N -4.93% quarterly report.
- JRV -12.00% chairman’s address to AGM.
- SRX -15.09% quarterly report.
- Speculative Stock of the Day: Nothing on any volume. MP1 the stand out.
- Liontown Resources Ltd (LTR) released its quarterly activities report indicating that mining operations have started at the Kathleen Valley Lithium Project. Construction work is ongoing at a fast pace, and the project remains on track to start production in mid-2024. LTR cash at bank stands at $305.1m.
- Origin Energy (ORG)FYTD23 production down 5% due to wet weather impacts and an expected decline in non-operated assets. FYTD23 sales were down 3% due to lower production. APLNG revenue was down 13% from the previous quarter but up 34% on the prior year due to higher oil prices and higher market-linked short-term contract prices.
- Coles Group (COL) – Reported a 6.5% increase in group sales revenue to $9.7bn in Q3, with supermarket sales revenue up 7% to $8.6bn. The company also reported that supplier input cost inflation is expected to moderate in Q4, largely due to cycling elevated levels of inflation in the prior corresponding period.
- Megaport (MP1) – Expects its earnings to be “materially above” the market consensus due to initiatives aimed at improving the company’s performance and cash generation. The firm now forecasts a normalised EBITDA of $16m to $18m in FY23, exceeding the market consensus of $9m.
- PointsBet (PBH) – In talks with multiple parties about potential transactions involving part or all of its North American business. The company also ended discussions regarding the sale of its Australian business in December but is still in talks with other third parties.
- Coronado Global Resources (CRN) – Was in talks to acquire Crimson Oak Grove Resources mine potentially, but the two companies are no longer in discussions for any transaction.
- Silver Lake Resources (SLR) – Reported sales of 62,852 ounces of gold and 262 tonnes of copper in Q3 and expects its FY23 group sales to be at the bottom end of its guidance range of 260,000 to 275,000 ounces at an AISC of $1950 to $2050 per ounce.
- ResMed (RMD) – Q3 revenue rose 29% to $1.1bn, while income from operations grew 28%. However, gross margin fell by 150bps to 55.3%.
- Mirvac Group (MGR) – Lowered earnings guidance for FY23 due to weather conditions affecting residential settlement timelines and delayed settlement expectations at Aspect North, now expecting FY23 operating earnings per share of at least 17cps.
- Leo Lithium (LLL) Goulamina Lithium Project is progressing well. Leo Lithium held cash at 31 March of $71.2m, and the Goulamina JV held cash of US$92.7m. Early revenue from targeted export of DSO is on track for H2 2023, and the first spodumene concentrate product remains on schedule for Q2 2024.
- Imugene Ltd (IMU) reported its Q1 2023 activities and cash flow. The report highlights important progress in the clinical trials, such as dosing of the first patients in the VAXINIA combination study and cohort 3 of monotherapy. Imugene has $151.5m in cash or equivalents to support its clinical pipeline and operations.
- Pilbara Minerals (PLS) – produced 148kt and shipped 144kt of spodumene in 3QFY23. The company reported a total cash balance of $2.7bn by the end of March. It increased its FY23 unit cost guidance by 4% (mid-point) to A$600/t-A$640/dmt given continued cost inflation pressures. The reported realised price of US$4,840/dmt was 6% lower than some had forecast. But bear in mind that cash operating costs are US$432/t.
ECONOMICS & OTHER NEWS
Producer Price Indexes– Final demand (excluding exports)
- Rose 1.0% this quarter.
- Rose 5.2% over the past twelve months.
- National Australia Bank will miss the Reserve Bank’s deadline for switching on new payments capabilities, known as PayTo, while ANZ has only partially enabled the system, which is not available to clients using its mobile apps.
- The Bank of Japan scrapped its guidance on future interest rate levels and called for a long-term review of its policies while keeping its main stimulus measures unchanged at the first meeting under Governor Kazuo Ueda’s leadership.
- China’s largest chipmaker SMIC won’t be able to produce cutting-edge chips competitively if it continues to be cut off from advanced equipment, analysts told CNBC.
US AND EUROPEAN HEADLINES
- US PCE tonight. This is the one that the Fed watches closely.
- Amazon says cloud growth slowed as customers cut costs.
- Norway’s $1.4tn wealth fund calls for state regulation of AI.
- Tesla rival BYD’s profit soars more than 400% in first quarter.
And finally…..Have a great weekend.