ASX 200 closed down 70 to 7197 (-1%) in another dismal day of trading as the US spooks markets. Only Gold gaining today as bullion hits $AU3,033, NST up 2.3% and NCM up 1.8% and EVN up 3.7%. Energy sector the worst hit today as oil prices get whacked on demand speculation, with WDS down 2.3%, STO down 2.5%, and BPT off 3.5%. Coal eased with WHC down 0.4%, and NHC down 0.6%. REITs dropping off with interest rates to cause more pain, GMG is down 1%, and MGR unchanged. The Big Bank basket down 1.8% to $173.03 with banks being shaken globally on US instability. CBA down 1.8%, and NAB down 1.9%. Short sellers continuing to attack in the US and likely more blood to be spilled. Resources not fairing too well as global recession fears continue to hamper markets, BHP down 0.8% and RIO down 2.1%. Lithium mixed with PLS up2.4% and MIN down 1.4%. Tech continuing its downward trend. The All-Tech index down 0.4%, and SQ2 down 2.9%. In corporate news, Macquarie Equities Conference continued with AMC reporting a downgrade in earnings outlook for FY23, sending the price down 9.5%. OML also cited a softening in demand and tougher market conditions, sending the price down 23.9%. FLT had some good news with growth in the travel sector and providing EBITDA guidance. In economic news, Australian retail sales have risen for the third month in a row, growing 0.4% MoM. The RBA chief gave a speech saying if productivity didn’t increase, it will be harder for the RBA to get inflation back to its 2 to 3% target band. Asian markets mixed, Japan down 0.1% and HK down 1.8% with China up 1.1%. 10-year rate down 4bps to 3.41%. Dow Jones futures down 70 points and Nasdaq futures up 3 point.

HEADLINES

• Winners: MSB, WGX, JIN, RED, RSG, FCL, IFM
• Losers: OML, AMC, CUV, PNV, JDO, ARB, RHC
• Positive sectors: Telcos. Gold miners.
• Negative sectors: Banks. Insurers. Iron ore. Oil and gas.
• High 7254 Low 7161
• Big Bank Basket Smacked to $173.03 (-1.8%)
• All-Tech index: Down 0.44%
• Gold rallies to $3023.
• Bitcoin: Rises to US$28507
• Aussie Dollar: Eases to 66.67c
• 10-Year Yield: Lower at 3.41%.
• Asian markets: Japan up 0.1%. China May Day holiday. HK down 1.7%
• US Futures: Dow up 70 Nasdaq up 3. FOMC tonight.

MAJOR MOVERS

• JIN +6.85% Macquarie Conference presentation.
• MSB +8.43% becoming a substantial shareholder.
• WGX +7.74% gold rally bump.
• RSG +5.38% RED +6.45% SLR +4.2% GOR +4.68% Bullion rally.
• APX+5.65% teams with Nvidia to enable AI solutions.
• BRB +4.49% RMS hit 50.1% and control.
• PRU +0.93% 38.1m-share block trade crosses at 212c, representing 2.8%
• OML -23.93% Macquarie Conference presentation. Shouldn’t have gone!
• AMC -9.53% Macquarie Conference presentation. Won’t go next year.
• ARB -5.69% market update.
• JDO -5.97% chopped today. Back and forth.
• PNV -6.19% market update.
• RHC -4.83% business update.
• FMG -4.08% contract win for GNP.
• DHG -3.00% Macquarie Conference presentation.
• Speculative Stock of the Day: Greentech Metals (GTE) +164.29% good volumes too on news of assays showing a 19m thick copper mineralisation zone at Austin.

COMPANY NEWS

• Flight Centre (FLT) – FY23 trading update shows that the company is recovering well, with strong sales momentum and a growing balance sheet. It has amended its guidance and is now targeting $270m-$290m underlying EBITDA and is targeting a 2% underlying PBT margin for FY25.
• Domain Holdings Australia (DHG) – Reported a decline in digital revenue and total revenue for Q1 FY23. The company also revised its FY23 cost guidance to be at the higher end of prior estimates and expects a mid-single-digit percentage point reduction in EBITDA margin for FY23 compared to the previous year due to market challenges, including consumer confidence shocks and global banking insolvencies, affecting listing volumes.
• Ooh!Media Ltd (OML) Reports the market softened at the end of Q1 and into Q2 due to a decline in the broader macroeconomic environment in Australia and New Zealand, with Q1 revenues growing 3% YoY but trading softening significantly in March. Road and Fly continue to grow strongly, while Street revenue is impacted by the launch of City of Sydney.
• JB Hi-Fi (JBH) – Australian division reported a modest 0.8% increase in sales in the third quarter, while its New Zealand division saw a sales increase of 10.8%. Its subsidiary, The Good Guys, however, reported a negative 3.8% in sales during the same period.
• Ramsay Healthcare (RHC) – Revenue rose by 10.9% to $11.2bn in its nine-month earnings, while net profit increased 16.6% to $235.1m, and EBITDA grew 6.8% to $1.5bn. The company attributed the growth to increased surgical admissions, a recovery in non-surgical admissions, and the contributions of its subsidiaries.
• Hub24 (HUB) – Agreed to acquire myprosperity, a provider of client portal technology for advisers and accountants. The deal involves the purchase of 100% of myprosperity’s shares.
• Amcor (AMC) – Downgraded its full-year earnings guidance due to challenges in its June quarter, expecting current market conditions to persist in the near-term. The packaging company has adjusted its fiscal 2023 outlook with its adjusted EPS and Free Cash Flow ranges updated to 72-74 cps and $US800-900m, respectively.
• MoneyMe (MME) – Reported $61m in gross revenue in the third quarter, down 5% compared to the prior quarter. The company’s gross customer receivables decreased by 5% to $1.18bn.
• AVJennings (AVJ) – Reported a 50% drop in sales in Q3 due to challenging trading conditions, with sales of AUD 30mn from 102 lots, and a 17% decline in volumes compared to the same period last year.
• Mineral Resources (MIN) – Rules out potential move for Liontown Resources (LTR) or spin-off of its own lithium assets.

ECONOMICS & OTHER NEWS

• Australian retail sales rose by 0.4% in March, with food retailing and cafes/restaurants/takeaway food leading the gains, while household goods retailing and clothing/footwear sales declined. Retail turnover increased modestly across states and territories, with Queensland recording the only rise over 1%.

Foreign investment in Australia rose $432.9bn to $4,598.8bn

Australian investment abroad rose $351.2bn to $3,742.0bn

• The CBA is urging the RBA to take some action as threats emerge, it says “time is of the essence” when it comes to giving the RBA new powers to regulate Apple. CBA said payments with digital wallets on smartphones continue to surge and are more popular in Australia than many other countries. CBA is pointing to possible ‘anti-competitive’ conduct by big tech, which seems a bit rich coming from the largest bank in Australia.
• The RBA chief has given a speech saying if productivity didn’t increase, it will be harder for the RBA to get inflation back to its 2 to 3% target band. From the AFR, “Labour productivity, represented by the level of output produced per hour of work, is the same today as it was three years ago, after falling 4.2% since its peak in March last year.”

ASIAN MARKETS

• China still closed for Golden Week. More than 159m trips were made by car, rail, airplane and waterways in the first three days of the five-day holiday. Back trading tomorrow. Chinese stocks listed in Hong Kong fell for a second day.

• Korean inflation reached a 14-month low of 3.7% while hovering above the central bank’s target of 2%. Bank of Korea Governor Rhee Chang-yong says it’s too early to start talking about rate cuts though.

US AND EUROPEAN HEADLINES

• European markets opening better across the board.  Unicredit results in focus.
• BNP Results too. Stellantis results beat expectations. Q1 revenues up 14% to EUR 47,2bn. Buyback initiated.
• FOMC decision tonight.
• US says more than 20,000 Russian forces killed in Ukraine since December.
• Starbucks still expects uncertainties in China’s recovery.
• New Vale base metals boss Cutifani to focus on margins, marketing and potential IPO.

And finally…

I saw Spandau Ballet reform for a one off gig last night, though sadly Gary & Martin weren’t in the band. They sounded brilliant but their appearance was totally un-kemped!

One of my ancestors invented the glove.

When I say ‘invented,’ I mean he had a hand in it.

I went to my doctor yesterday and told her I thought I had an unhealthy obsession with singing Carpenters songs. She asked if there was any pattern to the behaviour. I said, well It tends to happen more on rainy days and Mondays!

Clarence

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