ASX 200 closed down 8 to 7209 (-0.1%) in a subdued trading day. ASX 200 high of 7227, low at 7204. Namibia’s threat to take minority stakes in natural resources, including uranium, led to a sharp sell-off of PDN falling 19.6%, DYL down 5.7%, and BMN slid 5.9%. The Big Bank Basket lost its grip on yesterday’s gains, down to $170.22 (-0.5%), banks down across the board, ANZ taking the biggest hit down 1.4%, followed by CBA -0.4%, NAB -0.2% and WBC -0.2%. Coal stocks eased back. Base metals and iron ore miners edged higher, BHP rose 0.3% and RIO up 0.2%. Energy stocks found no support from stronger oil prices, WDS down 0.4%, STO down 0.4% and STX off 3.2%. Gold stocks are broadly up, NST +0.6%, DEG +0.4% and WAF +0.6%. Tech flat, All-Tech Index up 0.3%, CPU +1.1%, WTC +0.5%, and WBT +7.4%. REITS fell in late afternoon trade, VCX -1.6%, CHC -2.2% and SCG off 1.4%. Lithium stocks closed mixed, MIN +1.4%, LTR +1.1%, while SYA plummeted +11.9% after completing a $200m bookbuild placement. TLS managed a 0.7% gain, and other defensives better WOW up 0.1% and RHC up 1.1%. In corporate news, QAN +2.7% on EBIT guidance, small-cap PFT surged +20% after announcing expectations for revenue to grow 50%, and CGF +2.6% following investor day. In the land of economic woes, Australian building permits nosedived, falling 8.1% MoM, significantly below consensus for a 2% rise – an unfortunate blow for renters. ANZ-Roy Morgan consumer confidence fell 1.1pts to 76.2, marking thirteen straight weeks below the 80 mark. The main driver for the decline is the reduced confidence in personal financial situations compared to a year ago. Asian markets are down, Japan down 0.1% and HK off 0.2% with China slipping 0.6%. Australia 10Y yield down to 3.69%. Dow Jones futures up 59 points and Nasdaq futures up 72 points.

HEADLINES

  • Winners: LLL, WBT, MAD, NIC, SFR, PNV, LFG, QANLosers: PDN, SYA, BFL, IDX, IMU, VUL, APMPositive sectors: Insurers. Iron ore. Tech. Telco. Healthcare.Negative sectors: REITs. Banks. Oil and gas.High 7227 Low 7207 Very narrow range.Big Bank Basket: Falls to $170.22(0.5%)All-Tech index: Up 0.3%Gold steady at $2973Bitcoin: Higher at US$27733Aussie Dollar: Slips to 65.17c10-Year Yield: Drifts lower to 3.69%.Asian markets: Japan down 0.1% and HK off 0.2% with China slipping 0.6%.US Futures: Dow up 59 Nasdaq up 72.

MAJOR MOVERS

  • LLL +9.4% roaring ahead.

  • WBT +7.4% catching the AI bug again.

  • SFR +3.7% acquisition of exploration tenements in NSW completed.

  • AD8 +2.5% recent rally kicks on.

  • NIC +4.6% POS +9.5% nickel back in demand.

  • AKP +34.1% AGM address, pause in trade. Low volume.

  • CGF +2.6% investor day.

  • CAT +6.4% nine lives. Big run since results.

  • AVL +8.6% $49m government grant agreement executed.

  • ADO -8.2% another down day on profit taking.

  • SLA -8.8% WES says no more.

  • 29M-5.6% falls resumes.

  • PDN -19.6% stories that Namibia is looking at taking minority stake.

  • SYA -11.9% back from $200m capital raise.

  • APM -4.3% profit taking.Speculative Stock of the Day: Nothing on any volume today.

COMPANY NEWS

  • Lifestyle Communities (LIC) – Expects new home settlements in the range of 355 to 365 for FY23 and maintains its guidance for future home settlements. The company anticipates an underlying profit in line with FY22 due to an increase in annuity income drive by higher number of homes under management. LIC maintains guidance of delivering 1,100-1,300 between FY22 and FY24.

  • Paladin (PDN) – trading halt following reports on Bloomberg that the government is looking to take minority ownership positions in all mining and petroleum companies for which it would not have to pay.

  • Wesfarmers (WES) – Will not to match EC Healthcare’s bid for Silk Laser, as the chain laser and injectables clinic receives an acquisition proposal at $3.35 per share.ayona Mining (SYA) – Completes a successful $200m bookbuild placement to advance its lithium resources in Québec, including development of lithium hubs and investment in downstream processing to meet growing global demand for electrification.

  • Sandfire Resources Ltd (SFR) – Alkane Resources (ALK) completes previously announced acquisition of Macquarie Arc Tenement Packages.

  • Qantas Airways Ltd (QAN) – Outlined its EBIT targets at its investor presentation today. EBIT margin target of 18% for Qantas Domestic and 15% for Jetstar Domestic in FY24 and beyond. EBIT margin target of 8% for Qantas International in FY24, with a future goal of 10-12%. Jetstar International aims to achieve an EBIT margin target of 10-12% in FY24 and beyond.

  • Global Lithium Resources Ltd (GL1) – Completed initial ore sorting trials at its Manna Lithium Project in WA. The trials demonstrated a 90% increase in lithium grade (Li2O) and a 93% reduction in iron content. Good results. GL1 to complete DFS for the Manna Lithium Project by December 2023.

  • Atlas Arteria (ALX) – Held AGM today and reaffirmed FY23 distributions of 40cps.

  • Worley Ltd (WOR) – Announced it completed the sale of North America turnaround and maintenance business to CAM Industrials Solutions.

  • Challenger Ltd (CGF) – Expects FY23 normalised NPBT to be slightly above the midpoint of $485-$535m guidance range.

  • Crown Resorts and AUSTRAC – Agreement to a $450m fine. Highest ever for a casino operator.

ECONOMIC & OTHER HEADLINES

BUILDING APPROVALS:The total number of dwellings approved fell 8.1% in April, in seasonally adjusted terms, following a 1.0% decrease in March

  • Average consumer confidence for May fell to its lowest since monthly readings post the economic recession in December 1990, according to data released by the ANZ-Roy Morgan weekly survey today.Consumer Confidence was down 1.1pts to 76.2 this week and has now spent thirteen straight weeks below the mark of 80.

ASIAN MARKETS

  • Chinese youth unemployment hits a record high. Official data shows urban employment among the 16- to 24-year-olds in China hit a record 20.4% in April, about four times the broader unemployment rate. 6m of the 96m 16- to 24-year-olds in the urban labour force are currently unemployed.The Hang Seng China Enterprises Index dropped as much as 0.8% on Tuesday, marking the fifth day of declines and taking its losses from a Jan. 27 peak to about 20%.

  • It is the little things. In China, some esoteric commodities are flashing warnings.

  • Indonesia’s largest taxi operator will turn to BYD for 80% of its electric-vehicle fleet.China’s Shenzhou 16 mission blasted off from the Gobi Desert sending three astronauts to the Chinese Space Station. China remains the only country to operate its own space station apart from International Rescue and Thunderbird 5.Japanese Prime Minister Fumio Kishida has fired his own son, who was his secretary, for holding and inappropriate party last year. The PM has pledged to increase spending on defence and childrem Just not his.

US AND EUROPEAN HEADLINES

  • US and UK markets back today. Let the debt wrangling begin.European markets expected to open slightly stronger.Debt ceiling faces its first test today in House Rules committee.UK shop inflation hits a record high of 9% last month up from 8.8% in April. In April, official food inflation was 19.1%, only marginally down from a 45-year high of 19.2%.

  • Nvidia chief Jensen Huang says AI is creating a ‘new computing era’. Huang predicts that the world is entering a “new computing era”. Just by speaking to the computer, the desired functions will come forth. So why does Alexa ignore me in the mornings.Spain’s PM Sánchez calls snap election after regional defeats.Musk expected to visit China this week.
And finally….

What do you call a guy who’s really loud?

Mike.

Five out of six people agree that Russian Roulette is safe.

I told my girlfriend she drew her eyebrows too high. She seemed surprised.

A Roman walks into a cafe holds up 2 fingers and gets 5 coffees.

Q: What time is it when the clock strikes 13? A: Time to get a new clock.

I couldn’t figure out why the baseball kept getting larger. Then it hit me.

Clarence

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