The ASX 200 took a hit today, dropping 36 points (-0.5%) to close at 7199. The downturn was widespread, with gold and resources the worst performers. Gold miners saw a substantial drop, losing its lustre following recent hawkish comments from Fed officials. NCM down 2.1%, EVN down 2.3%, and NST off 1.1%. Resource stocks faced headwinds, BHP down 0.8% and RIO down 0.3%. Lithium shares also under pressure despite higher carbonate prices, MIN down 1.7%, SYA off 4.4%, and LTR slipped 1.8%. The financial sector struggled, with the Big Bank Basket dipping to $167.83 (-0.5%), MQG experienced a sharp decline of 1.3%. NAB and CBA also faced selling pressure, slipping 1.0% and 0.5%, respectively. Technology stocks were the winners today, reversing yesterday’s losses, with WTC gaining 1.0%, XRO up 1.9%, and ALU up 1.0%. The All-Tech Index up 0.3%. REITS eased, GMG down 0.9%, and CHC down 0.4%. Defensive sectors no better, Healthcare and Industrials down. WES eased 1.1%, RMD down 0.9%, and MPL tumbled 0.9%. In corporate news, CTT rallied 13.2% after the company confirmed the company founder and CEO Mintz does not have any intention to sell shares in the company at the current time, putting the rumours to rest. TPW +19.1% on positive results in their trading update. IPL off 7.8% after reporting net profit down 6% in 1H23. In economic news, Australian private sector wages up 0.8% in Q1, leading to an annual growth rate of 3.8%, the highest since June 2012. Japan’s economy grew 0.4% QoQ in Q1, exceeding expectations of 0.1%. In Asia, markets are mixed, Japan up 0.3%, HK down 1.0%, and China down 0.6%. Australia 10Y yields gained to 3.43%. Bitcoin flat Dow Jones futures up 20 points and Nasdaq futures up 26 points.

HEADLINES

• Winners: CTT, LKE, 360, SKC, QAL, DBI, ABB
• Losers: IPL, WBT, RED, CXO, SFR, SBM, ALK
• Positive sectors: Tech. Builders.
• Negative sectors: Banks. Gold miners. Insurers. Lithium.
• High 7223 Low 7160 Lack of conviction.
• Dalian Iron ore futures climbed to their highest levels in more than three weeks.
• Big Bank Basket: Bounces to $167.83 (-0.5%)
• All-Tech index: Up 0.3%
• Gold steady at $2996
• Bitcoin: Falls to US$27007
• Aussie Dollar: Drifts to 66.40c
• 10-Year Yield: Steady at 3.43%.
• Asian markets: Japan up 0.3%. China down 0.6% and HK down 1%
• US Futures: Dow up 20 Nasdaq up 26
• European markets: opening slightly weaker. Focus on debt ceiling discussions. UBS flags potential US$17bn hit from CS takeover.

MAJOR MOVERS

• CTT +13.17% Dean says no dice.
• 360 +5.72% tech bounce.
• GRR +1.87% iron ore strength.
• UMG +2.30% investor presentation. Lager is back.
• SKO +37.74% FY results announcement.
• TPW +19.05% May Business update
• PMT +15.41% drilling report.
• LRS +11.76% still going well.
• IPL -7.84% blows up on disappointing numbers. Second half story.
• WBT -6.89% ASX query but shorts winning.
• CXO -5.58% shorters busting out bubbles.
• SBM -4.80% WGX -3.77% gold sell off.
• SFR -4.86% takes another leg down.
• BEZ -14.52% what the lord giveth…
• Speculative Stock of the Day: Rhythm Biosciences (RHY) +95.17% UK CA granted for ColoSTAT.

COMPANY NEWS

• Incitec Pivot (IPL) – Repots net profit down 6% 1H23 due to lower commodity prices and higher gas costs. The company expects improved earnings in the second half.
• Best & Less (BST) – Sales up 1% to $222m boosted by Mother’s Day spending. BST lowered its net profit guidance for the period, citing inconsistent trading conditions and historic low consumer confidence.
• United Malt Group (UMG) – Reported net loss of $14m 1H23 and will not pay an interim dividend. Revenue increased 16% to $757m and expects significant earnings increase in 2023. Lager is back with a drop off in craft beer. Malteries Soufflet is still conducting DD with its 400c bid.
• Immutep Ltd (IMM) – Announces positive results from the Phase II TACTI-002 trial, where it demonstrated a robust initial overall survival benefit in first-line non-small cell lung cancer patients.
• Monadelphous Group (MND) – Entered into an agreement to acquire BMC, with the aim of expanding its presence in the east coast-based energy sector. The acquisition is expected to cost $22m.
• Anteris Technology Ltd (AVR) – Received a new utility patent from the US Patent and Trademark Office for its DurAVR™ transcatheter heart valve.
• Appen Group (APX) – Raised $30m in equity through a placement and institutional entitlement offer.
• Strike Energy Ltd (STX) – Provided an update on the Walyering gas field development, confirming construction ongoing with start-up on track for 1H23. Gas sales expected to commence shortly.
• Vulcan Energy Resources (VUL) – Provided an update on its Zero Carbon Lithium™ Project in Germany, with the successful installation of a crystallizer in the Lithium Extraction Optimisation Plant.
• NUIX Ltd (NXL) – Under investigation by ASIC into the CEO’s acquisition of shares and Nuix’s response to an ASX enquiry. Nuix will fully cooperate with ASIC’s investigation.
• Temple & Webster (TPW) – Maintains its earnings guidance of 3% to 5% for the full year. Sales losses reduced to 5% in the first half, and reports year-on-year growth as it moves past COVID-impacted periods.
• Fortescue Metals (FMG) – New CEO Fiona Hick says acquisitions in the critical minerals sector are an option for the company, signalling a potential shift in strategy for the company. Twiggy said ideally, the mining division will supply lithium and other battery minerals to the company’s clean energy focused Fortescue Future Industries. Ms Hick also said FMG was growing more comfortable about its investment in Gabon with its IO project.

ECONOMICS & OTHER NEWS

• The private sector experienced a 0.8% increase in wages in Q1 2023, leading to an annual growth of 3.8%, the highest since June 2012. The public sector saw a 0.9% quarterly rise, resulting in an annual growth of 3.0%, the highest since March 2013. Although the public sector had higher quarterly growth, the larger private sector was the main driver of wage growth in Australia. Slightly better than expected on the wage front but pressure remains on the RBA

• Daniel Andrews has pushed the pause button on the Melbourne Rail link project after discussions with PM.

ASIAN MARKETS

• Japan’s economy grew by 0.4% QoQ in Q1, surpassing market expectations of 0.1% and achieving the fastest expansion since Q2 2022, fully recovering from pandemic disruptions.
• China’s home price growth slowed in April, underscoring the challenges the market is facing following a brief recovery.
• New-home prices in 70 cities, excluding state-subsidised housing, rose 0.3% last month from March, when they grew 0.4%.

US AND EUROPEAN HEADLINES

• Pfizer plans to launch a $45bn bond offering in the US high-grade bond market, one of the largest on record, to support its acquisition of Seagen.
• Elizabeth Holmes lost her final request to remain free on bail. She will soon have to report to start her 11 ¼ year sentence.
• Elon Musk said the electric-car maker will dabble in advertisements. Musk also said that he’s going to continue to say what he thinks on Twitter even if it causes some advertisers to abandon the platform.
• President Joe Biden has scrapped planned stops in Australia and Papua New Guinea following his trip to Japan for the Group of Seven meeting.
• If you want to join Monaco’s richest 1%, you’ll need an eight-figure fortune. It takes US$12.4m to make the cut in Monaco, according to research from Knight Frank. Are you in the 1% Club?

• The world’s 500 richest people have added almost $600bn to their combined fortunes this year.
• Well that’s a surprise – the management of failed US banks refuse to hand back millions of dollars in pay,
• BlackRock calls employees back to the office four days a week.
• FTC warns of ‘rampant’ pharma consolidation as it targets $28bn Amgen deal.
• Target will report fiscal first-quarter earnings before the bell on Wednesday. Earnings per share: US$1.76. Revenue: US$25.29bn

And finally….

Clarence

XXX