ASX 200 kicked 76 points higher to 7251 (+1.1%) as the BoJ kept policy unchanged, China on the precipice of stimulus and the US bull market rolling on. Banks led the charge higher with the Big Bank Basket up to $169.39(+1.2%). ANZ, a laggard, with a miserly 0.7% gain. MQG up strongly by 1.2% with money managers also putting on the Ritz, MFG up 0.9% and GQG up 1.0%. Insurers firmed with QBE up 1.0%. Industrials across the board looking very solid. TCL rallied 0.7%, WES up 1.2% and REA in ‘old skool platforms’ up 3.5%. Consumer stocks also finding some support, TWE up 0.7% and JBH up 1.1%. LOV better by 1.4% and APE up 2.6% on buyback news. Tech in demand as usual. XRO up 2.6% and WTC at all-time highs up 1.2%. REITs did well as yields fell, GMG up 1.6% and MGR rising 1.8%. Healthcare mildly better but CSL still bleeding slightly, down 0.6%. Big Resources were firm but unspectacular. BHP up only 0.4% and FMG unchanged. Gold miners better, NCM up 1.7% and lithium stocks back in demand. MIN up 3.7% and PLS putting on 4.9%. Oil and gas stocks rose on oils rebound. In corporate news, AGL shocked the market with a serious upgrade, flying 9.7% higher. MIN confirmed a new gas discovery, ANZ agreed a deal with QLD to seal the SUN deal, DEG rallied 6.7% after denying it leaked information to the media. Nothing major on the economic front, although Bill Evans at Westpac downgraded the GDP outlook. Asian markets better, BoJ holds and Nikkei heads for 10th week of gains. Only 0.3% but will take that. HK up 1.3% and China up 0.6%. Stimulus beckons. 10-year yields steady around 4.0%. Dow futures down 10 points. NASDAQ futures up 1 point.

HIGHLIGHTS

  • Winners: FCL. AGL, LLL, ASB, INR, WHC, LTR, SMR
  • Losers: SGR, IDX, MMS, ABC, CKF, NEU
  • Positive sectors: Everything.
  • Negative sectors: Nothing.
  • High 7262 Low 7182. ASX 200 up 2% for the week.
  • Big Bank Basket: Higher at $169.39(+1.2%)
  • All-Tech index: Up 1.9%
  • Gold falls to $2842
  • Bitcoin:  Falls to US$25495
  • Aussie Dollar: Higher at 68.88c.
  • 10-Year Yield: Kicks to 4.03%.
  • Asian markets: Higher Nikkei up another 0.3% after BoJ.
  • US Futures: Dow down 10 Nasdaq up 1. Quadruple witching and quarterly rebalance.
  • European markets opening slightly higher.

MAJOR MOVERS

  • AGL +9.7% upgrades to profits.
  • INR +8.8% lithium stocks back in vogue.
  • PMT +7.7% kicks again.
  • WHC +8.3% coal price.
  • LTR +8.3% no reason. None needed perhaps.
  • LLL +9.4% continues to roar ahead.
  • WR1 +14.8% lithium bounce.
  • JRV +25.0% begins work funded by US DoD.
  • CKF -3.0% shut up and take my money.
  • SGR -5.4% slips sliding away.
  • SIG -0.6% resignation of CFO.
  • DGL -13.5% brokers downgrade.
  • AEF -9.1% profit taking.
  • BUB -6.1% sliding into year-end.
  • IDX -4.3% low volume.
  • Speculative Stock of the Day: Greentech Metals (GRE) +34.9% kicks again. Good volume and punters can’t get enough after the appointment of expert lithium advisers.

COMPANY NEWS

  • De Grey Mining (DEG) – Clarifies that the West Australian article titled “De Grey sitting on $3bn extra” was not initiated by the company, and no forecast financial information has been announced regarding the resource upgrade.
  • Eagers Automotive (APE) – Plans to continue its on-market share buy-back, purchasing up to 10% of its shares over the next 12 months.
  • Monadelphous Group (MND) – Secured contracts worth $120m, including projects with Rio Tinto and BHP. The contracts involve upgrading conveyor systems, providing maintenance services, and operating coal preparation plants in various regions of Australia.
  • AGL Energy (AGL) – Revised its profit guidance for fiscal year 2023, expecting improved conditions in the second half, with underlying earnings projected between $1.3bn and $1.375bn and underlying profit between $255m and $285m, driven by higher electricity prices and increased plant production.
  • Centuria Industrial REIT (CIP) – Declared Q4 DPS of 4c
  • Suncorp Group Ltd (SUN) – Agreed to an investment package worth $25m subject to QLD government approval of Suncorp Bank acquisition by ANZ.
  • Australian Unity Office Fund (AOF) – Estimated Q4 distributions of 25c, payable 27 July.
  • Newmark Property REIT (NPR) – Announced an estimated distribution of 2c for Q2, in line with guidance.

ECONOMIC & OTHER HEADLINES

  • Westpac’s chief economist, Bill Evans, has lowered the bank’s growth forecasts for 2023 and 2024 to reflect a higher peak Reserve Bank cash rate of 4.6%. Evans said the move also reflected a delay to the central bank’s first rate cut in 2024 from February to May. The bank lowered its growth forecasts to 0.6% in 2023 and 1% in 2024.

ASIAN MARKETS

  • UBS lowered its forecast for China’s gross domestic product growth this year as the property rebound weakens and the consumption recovery loses momentum. The economy is now expected to grow 5.2% this year, down from a previous projection of 5.7%.
  • BoJ – Ueda keeps negative rate at -0.1%, leaves YCC untouched. The BOJ stuck to its view that inflation will slow toward the middle of the current fiscal year ending in March.

US AND EUROPEAN HEADLINES

  • Blinken you miss it visit to Beijing this weekend. Optics over substance.
  • Boris Johnson condemned for lying to parliament
  • Virgin Galactic set to start commercial flights this month.
  • US bank regulator begins $460mn sale of SVB’s German assets.
  • Current artificial intelligence systems like ChatGPT do not have human-level intelligence and are not even as smart as a dog, Meta’s AI chief Yann LeCunn said. He added that an AI system could now pass the Bar exam in the U.S to become an attorney (not sure that is a bad thing). However, he said AI can’t load a dishwasher, which a 10-year old could “learn in 10 minutes.”

And finally….

An Airbus 380 is on its way across the Atlantic. It flies consistently at 800 km/h at 30,000 feet, when suddenly a Eurofighter with a Tempo Mach 2 appears.

The pilot of the fighter jet slows down, flies alongside the Airbus and greets the pilot of the passenger plane by radio: “Airbus, boring flight isn’t it? Now have a look here!”

He rolls his jet on its back, accelerates, breaks through the sound barrier, rises rapidly to a dizzying height, and then swoops down almost to sea level in a breathtaking dive. He loops back next to the Airbus and asks: “Well, how was that?”

The Airbus pilot answers: “Very impressive, but watch this!”

The jet pilot watches the Airbus, but nothing happens. It continues to fly straight, at the same speed. After 15 minutes, the Airbus pilot radios, “Well, how was that?

Confused, the jet pilot asks, “What did you do?”

The Airbus 380 pilot laughs and says: “I got up, stretched my legs, walked to the back of the aircraft to use the washroom, then got a cup of coffee and a chocolate fudge pastry.”

The moral of the story is . . . .When you’re young, speed and adrenaline seems to be great. But as you get older and wiser, you learn that comfort and peace are more important. This is called S.O.S.: Slower, Older and Smarter, so it’s time to slow down and enjoy the rest of the trip.

Clarence

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