The ASX 200 clocks its third consecutive fall, down 18 points to 7100 (-0.3%), as gains in mining and energy stocks were offset by losses in Tech and healthcare. All-Tech Index down 2.5%, following the Nasdaq, as investors took some profits. XRO -5.3%, WTC -3.4%, and ALU -4.9%. Energy was the best-performing sector today, as oil prices steadied following mixed stockpile data, BPT up 3.5%, WDS up 1.1%, and COE gained 7.4%. REITS fell as bond yields rose, SCG -3.3% and MGR off 3.4%. Consumer discretionary stocks continued to come under pressure, with WES falling 1.1%, HVN down 2.7%, and LOV off 5.2%. Gold sector was down, despite a rise in gold prices from a softer dollar, NST off 2.2% and EVN down 3.4%. Financials and banks were flat, with the Big Bank Basket up to $163.92 (-0.1%), NAB, and ANZ fell, while WBC and CBA found some support up 0.8% and 0.2%. Iron ore is up 3.91% for the week, BHP, RIO and FMG enjoyed the support up 1.2%, 2.1%, and 1.7%, respectively. Coal stocks found some buyers, NHC +8.6%, WHC +5.5% and YAL up 4.4% In corporate news, AMP +0.5% sold SuperConcepts to Pemba Capital, ZIP confirmed share placement and reaffirmed guidance, SSM +8.7% received a tax refund of $50.2m and AIZ +1.4% after it announced it raised its earnings forecast. In economic news, Australia’s trade surplus fell to $11.16bn in April down from $14.82bn last month, significantly below market expectations of a $14bn gain, shipments fell to a nine-month low, with total exports to China falling 15.4% from last month. Asian markets were mixed, Japan down 0.7%, HK down 0.1% with China up 0.5%. Australia bond yields spike following Canada’s interest rate hike, 10Y yield up 17bps to 3.99% 2Y yield up 14bps to 4.02%.Dow Jones futures down 31 points and Nasdaq futures down 57 points.

HIGHLIGHTS

  • Winners: NHC, WHC, TUA, CPU, YAL, SMR, GRR
  • Losers: IMU, NVX, RSG, MYR, PNV, RWC, BLD, XRO
  • Positive sectors: Iron ore. Oil and gas. Coal. Utilities.
  • Negative sectors: Healthcare. REITs. Tech. Gold miners.
  • High 7132 Low 7094
  • Big Bank Basket: Steady at $163.92.
  • All-Tech index: Down 2.5%
  • Gold Unchanged at $2940
  • Bitcoin:  Rallies to US$26965
  • Aussie Dollar: Pushes to 66.77c.
  • 10-Year Yield: Surges to 3.99%.
  • Asian markets: Mixed Japan down 0.7% and HK down 0.1% with China up 0.5%.
  • US Futures: Dow down 31 Nasdaq down 57.
  • European markets heading for a mixed open. Sunak in USA. Set to announce AI summit.

MAJOR MOVERS

  • NHC +8.6% WHC +5.5% coal is king.
  • BPT +3.5% bargain hunters.
  • EHE +1.7% creeping higher.
  • CXL +1.7% finding a few buyers.
  • AVH +10.7% PNV switch perhaps.
  • AXE +13.9% a quantum leap?
  • SSM +8.7% ATO refund.
  • XRO -5.3% tech rally fading.
  • IMU -7.0% slide continues.
  • LOV -5.2% retail woes.
  • PNV -5.9% profit taking, director buying.
  • BLD -5.7% business update.
  • CTT -4.4% tech rally under pressure.
  • NVX -6.9% profit taking.
  • EGG -9.5% trading update.
  • BBN -8.8% brokers downgrade.
  • HAS -6.7% sell-off continues.
  • NMT -8.3% profit taking.
  • Speculative Stock of the Day: SLM +35.6% Wiseowl tip, Capital raise and LRS invests $3m at 55c as a strategic investment.

COMPANY NEWS

  • Air New Zealand (AIZ) – Raised its earnings forecast for FY23 to NZ$580m, surpassing its previous guidance range of NZ$510m to NZ$560m, as it plans to invest NZ$3.5bn in aircraft and retrofitting over the next five years.
  • Enero Group (EGG) – Anticipates a 26% increase in revenue for FY23, reaching a range of $241m to $244m, while expecting earnings to rise by approximately 22%.
  • Infratil (IFT) – Successfully completed its underwritten placement, raising NZ$750m at a price of $9.20 per share, which will be used for the acquisition of a stake in One NZ.
  • Alpha Hpa Ltd (A4N) – Received initial payment of $2.475m under the Modern Manufacturing Initiative. Total amount of the MMI-C grant is $45m.
  • Westgold Resources Ltd (WGX) – Reports record production on its Bluebird Mine at Meekatharra. Bluebird May production 49kt at 4.0g/t gold for 5.3Koz vs month-ago 48kt at 3.7g/t for 5.8koz
  • AMP Ltd (AMP) – Announced it has entered into an agreement to sell its SMSF administration and software business SuperConcepts for ~$8m. The sale is expected to result in an accounting loss of ~$7m.
  • Ingenia Communities Group (INA) – Reaffirmed FY guidance. Underlying EPS of $0.191-0.215.
  • Strike Energy Ltd (STX) – Awarded Lead Agency Service by the Department of Jobs, Tourism, Science and Innovation of WA. Under the framework the department will provide STXs gas projects with case management for government interfaces and the coordination of approvals across a range of Government departments.
  • Rural Funds Group (RFF) – Released an investor newsletter stating that cash profits declined in H1 2023 but are expected to increase in FY24. Despite higher interest costs, RFF has grown rental revenues. Gearing ratio is projected to rise to 40% by the end of FY24 due to farm development.
  • Service Stream Ltd (SSM) – Received a material tax refund of $50.2m inclusive of interest.
  • OoH!Media Ltd (OML) – Completed its market share buy-back program. OML acquired 59,864,587 shares for ~$82m.
  • Magnis Energy Technologies Ltd (MNS) – Provides results from pilot scale production in New York. MNS produced Anode Active Material samples using US pilot equipment, showcasing a first-cycle efficiency of over 94.4% and a reversible capacity of over 355 mAh/g.
  • Byron Energy Ltd (BYE) – Announced drilling of SM58 G4 well postponed by rig delay.
  • Airtasker Ltd (ART) – Announced that 4 Ventures will invest $6.5m for a 20% stake in Airtasker UK, the company’s subsidiary. The investment will enable Airtasker to accelerate its UK marketplace growth.
  • Southern Cross Electrical Engineering Ltd (SXE) – Received four awards across a range of sectors in NSW and ACT totalling $50m.
  • Andromeda Metals Ltd (ADN) – Signed a legally binding offtake agreement with Plantan Yamada solidifying their relationship for delivery of high-quality kaolin from The Great White Project (GWP) into the Japanese market.
  • ZIP – Raising $25m at 47c and doing a deal with the convertible holders to reduce debt.

ECONOMIC & OTHER HEADLINES

  • Fitch has downgraded its view of Australian and New Zealand banks to “deteriorating” from “neutral”, warning on further headwinds with earnings and asset quality.
  • It says the revision is driven by weakening economic activity and its effects on bank credit metrics in the second half of the year.

International Trade in Goods and Services:

Key statistics

    The seasonally adjusted balance on goods and services surplus decreased $3,664m in April.

  • Goods and services credits (exports) fell $2,961m (5.0%) driven by Metal ores and minerals.
  • Goods and services debits (imports) rose $703m (1.6%) driven by Civil aircraft and confidentialised items.

ASIAN MARKETS

  • Singapore’s new carbon exchange clears 12,000 tonnes of credits on first trading day.
  • Japan’s GDP rose 0.7% QoQ in Q1 2023 up from 0.1% in the previous period, marking the second consecutive period of growth and the steepest pace since Q2 in 2022.

US AND EUROPEAN HEADLINES

  • European markets expected to open around 0.4% lower across the board.
  • Rishi Sunak in US pursuing a trade deal with Biden.
  • Wildfire smoke makes New York air quality worst in world.
  • Lionel Messi says he will join Major League Soccer’s Inter Miami.
  • India and Germany in talks on €5bn submarine deal.

And finally……

These are actual complaints received by ‘Thomas Cook Vacations’ from dissatisfied customers

  • “On my holiday to Goa in India, I was disgusted to find that almost every restaurant served curry. I don’t like spicy food.”
  • “They should not allow topless sunbathing on the beach It was very distracting for my husband who just wanted to relax.”
  • “We went on holiday to Spain and had a problem with the taxi drivers as they were all Spanish.”
  • “We booked an excursion to a water park, but no-one told us we had to bring our own swimsuits and towels. We assumed it would be included in the price.”
  • “The beach was too sandy. We had to clean everything when we returned to our room.”
  • “We found the sand was not like the sand in the brochure. Your brochure shows the sand as white but it was more yellow.”
  • “It’s lazy of the local shopkeepers in Puerto Vallarta to close in the afternoons. I often needed to buy things during ‘siesta’ time – this should be banned.”
  • “No-one told us there would be fish in the water. The children were scared.”
  • “Although the brochure said that there was a fully equipped kitchen, there was no egg-slicer in the drawers.”
  • “I think it should be explained in the brochure that the local convenience store does not sell proper biscuits like custard creams or ginger nuts.”
  • “The roads were uneven and bumpy, so we could not read the local guide book during the bus ride to the resort. Because of this, we were unaware of many things that would have made our holiday more fun.”
  • “It took us nine hours to fly home from Jamaica to England. It took the Americans only three hours to get home. This seems unfair.”
  • “I compared the size of our one-bedroom suite to our friends’ three-bedroom and ours was significantly smaller.”
  • “The brochure stated: ‘No hairdressers at the resort.’ We’re trainee hairdressers and we think they knew and made us wait longer for service.”
  • “When we were in Spain, there were too many Spanish people there. The receptionist spoke Spanish, the food was Spanish. No one told us that there would be so many foreigners.”
  • “We had to line up outside to catch the boat and there was no air-conditioning.”
  • “It is your duty as a tour operator to advise us of noisy or unruly guests before we travel.”
  • “I was bitten by a mosquito. The brochure did not mention mosquitoes.”

And lastly a real gem

  • “My fiancée and I requested twin-beds when we booked, but instead we were placed in a room with a king bed. We now hold you responsible and want to be re-reimbursed for the fact that I became pregnant. This would not have happened if you had put us in the room that we booked.”