ASX 200 closed down 4 points to 7193 (-0.1%) after hitting its lowest levels in nearly five weeks amid a sharp selloff in big heavyweight banks. NAB -6.4% was hammered today despite ROE surging to 13.7%, the highest level since 2019, as its net interest margin fell short of expectations falling to 1.77% down from 1.79% in the December quarter. CBA -2.6%, ANZ -2.4%, WBC -4.1%, MQG -0.8%, Big Bank Basket tumbles 3.4% to $167.19. REITS best-performing sector today recovering yesterday’s losses up 2.0%, GMG +1.8%, SCG +2.5%, and SGP +2.3%. Mining and base metals in positive territory today BHP up 1.6%, RIO up 1.3%, and FMG rose 1.5%. Safe haven Gold rallies, NST +2.5%, AGG +2.2%, and EVN +7.2%. Interest rate-sensitive tech sector strong, SQ2 +3.4%, XRO +1.8%, and WTC +1.2%. Defensive sectors Healthcare and Staples underwhelmed failing to find support, WOW down 0.2%, EDV off 0.6%, RHC down 2.2%, and RMD slipped 0.2%. Lithium was a little mixed PLS up 2.2% and MIN off 4.6%. Industrials and insurers mixed, MPL up 1.7% while SUN fell 0.3%. In corporate news, WBC, ANZ, and MQG passed on Tuesday’s RBA rate hike to borrowers, MFG +3.4% reported net outflows of $2.4bn, and HLS +0.3% rejected takeover bid from ACL. In economic news, Australia posted its largest trade surplus since last June, the trade surplus rose to $15.2bn in March up from $14.1bn in the previous month, significantly higher than expectations of a $12.6bn gain. China’s PMI unexpectedly fell to 49.5 in April from 50 in March missing consensus of 50.3, marking the first contraction in factory activity since January. Asian markets rose broadly, Japan closed, HK up 0.8% with China up 0.6%. Australia 10Y yield down 3.31%. Bitcoin down 0.17%. Dow Jones futures up 53 points and Nasdaq futures up 57 points.

HEADLINES

• Winners: EVN, SBM, REG, 360, JIN, RSG, INR
• Losers: SUL, NAB, IFM, SYR, 29M, GMD
• Positive sectors: REITS, Gold, Resources, Tech, Utilities, Energy, Telecoms, Consumer Discretionary. 
• Negative sectors: Staples, Banks.
• High 7201.7 Low 7141.8
• Big Bank Basket Smacked to $167.19 (-3.4%)
• All-Tech index: Up 0.6%
• Gold rallies to $3055.
• Bitcoin: Rises to US$29120
• Aussie Dollar: Better at 66.85c
• 10-Year Yield: Lower at 3.32%.
• Asian markets: Japan on Greenery Day. Children’s Day tomorrow. China down 0.1% HK up 1.1%
• US Futures: Dow up 53 Nasdaq up 57. ECB tonight.
• ECB today. European markets opening slightly down. Boss results. VW and RIO AGM.

MAJOR MOVERS

• SBM +7% yup really. SLR comes up with alternative offer.
• JIN +5.2% broker upgrades following prestation.
• RED +3% RSG +5.1% WAF +2.56% gold doing well sill.
• ALX +3.7% IFM building stake?
• CGS +11.2% industry news.
• IKE +6% performance update and presentation.
• LRS +3% creeping higher.
• SUL -7.1% broker downgrades.
• MIN -4.6% under pressure.
• GMD -4.8% SLR tries to spoil the party with SBM.
• NAB -6.4% missed it by that much.
• OML -4% downgrades on update.
• ACL -3.3% knocked back by HLS.
• CXL -4.7% thin volume.
• ANG -20% trading update and guidance.
• MEI -9.7% crashes to earth on presentation.
• Speculative Stock of the Day: Caspin (CPN) +15.25% ground-breaking rare earth discovery at Mount Squires.

COMPANY NEWS

• National Australia Bank (NAB) – Reported a 17% surge in cash profit to $4.07bn for the first half of the year and declared an interim dividend of 83c. Earnings in NAB’s business banking division rose by 19.9% to $1.71bn.
• ASX Ltd (ASX) – The ASX Group Monthly Activity Report for April 2023 shows that the total capital raised in the month was $2.6bn, which was a decrease of 16% on the pcp. The report also indicates that there was 1 new listed entity admitted, and 11 delisted, leaving a total of 2,311 listed entities at the end of the month. In addition, the report reveals that the average daily number of trades on the cash market was down 20% on the pcp.
• Briscoe Group (BGP) – Announced a 2.8% rise in sales to NZ$181.2m YoY in its latest quarter results. The company said that gross margin continues to remain a major focus, and it expects difficulty in replicating last year’s record profit result.
• Austin Engineering (ANG) – Downgraded its profit guidance, with net profit expected to be in the range of $17m to $19m, down from the previous estimate of $24m, citing labour shortages and manufacturing lead times as reasons for the revision.
• Northern Star Resources (NST) – Mineral resource has increased to 57.4Moz, with a growth of 3.5Moz from exploration success across operating centers, offsetting mine depletion and portfolio optimization. Group Ore Reserve remains stable at 20.2Moz, after mining depletion, with continued definition and growth at Thunderbox’s key growth regions.
• Credit Corp Group (CCP) – On track to achieve its earlier guidance for FY23, which includes net lending of $140-150m, NPAT of $90-97m, and EPS of 133-143c. Also noted uncertain customer outlook.
• Vulcan Energy Resources (VUL) – Raising $109m through a share offering with Canaccord Genuity and Bank of America as joint lead managers, offering shares at $5.10 per share, a 17.2% discount to the last close of $6.16.
• Australian Clinical Labs (ACL) – Offered 0.74 ACL Shares for each Healius (HLS) share, which Healius Board has deemed unattractive and recommends shareholders reject the offer. The key reasons behind the board’s recommendation include the offer being plainly inadequate, highly conditional and uncertain to proceed, and containing material uncertainty about delivering expected cost synergies.
• Magellan Financial Group (MFG) -Net outflows of $2.4bn in April, consisting of net retail outflows of $0.4bn and net institutional outflows of $2.0bn.
• IGO Ltd (IGO) – Metal Hawk Ltd (MHK) will acquire IGO Limited’s 51% joint venture interest in the Kanowna East, Emu Lake and Fraser South projects in Western Australia. The deal will result in IGO’s shareholding in MHK increasing from 5.4% to 8.2%.
• Centaurus Metals Ltd (CTM) has successfully produced the first-ever nickel sulphate from its Jaguar Nickel Project in Brazil, confirming its ability to produce a high-quality nickel sulphate product for the fast-growing EV market.

ECONOMICS & OTHER NEWS

• The seasonally adjusted balance on goods and services surplus increased to $15.3bn in March, up by $1.1bn from the previous month. Goods and services credits rose by $2.2bn, driven by metal ores and minerals, while goods and services debits rose by $1.1bn, driven by non-industrial transport equipment.

Weird ABS Stat today – Trivia Answers

• 8,092 federal defendants finalised in 2021–22, up 2% from the previous year.
• Harassment and threatening behaviour remained the most common principal federal offence (56%).

• Most judgements resulted in a guilty outcome (95%).
• Almost one-third of those with a guilty outcome received a fine (31%).

ASIAN MARKETS

• Chinese markets reopen after Golden Week. Caixin April Manufacturing PMI falls to 49.5 from 50.
• Chinese made 274m domestic trips during the five-day break that began on Saturday, a rise of 70.8% from a year earlier, and 19% more than during 2019, the Ministry of Culture and Tourism said on its website.
• Chinese tourists spent US$21.4bn during holiday season, similar to pre CV19 levels.
• Temu owner PDD moves headquarters to Dublin from Shanghai

US AND EUROPEAN HEADLINES

• European markets opening mixed. Not by much either way. ECB today.
• J&J consumer arm valued at $41bn in biggest US IPO since 2021.
• Biden set to nominate Philip Jefferson as Fed vice-chair.
• Messi in talks with the Saudis in a $400m deal. Might need oil prices to go up to afford him.
• Iran seizes second oil tanker in a week as tensions with US increase .

And finally…..

Clarence

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