The ASX 200 started the week on a positive note, up 44 points to 7292 (+0.6%), rising for its sixth consecutive session and reaching its highest levels in six weeks. Healthcare and consumer stocks led the market today, bouncing back from last week’s losses with CSL +2.4%, RMD +1.5%,and MSB +6.8%. Supermarket giants WES +0.9% and COL +1.3% led the consumer staples rally as UBS upgraded the stock to buy. Insurers enjoyed the most gains in the financial sector, with SUN gaining 2.0% and QBE up 1.1%. Banks good, the big four banks all up over 1%, with ANZ leading the banks up 1.5%. Big Bank Basket up to $171.34 (+1.2%). Tech stocks rallied. All-Tech Index up 0.9%. Semiconductor company WBT is among the best performers up 8.7%, XRO +1.3% and WTC +0.6%.  Meanwhile, Energy and mining stocks were mostly down, falling in lockstep with oil, as WTI crude futures fell toward $71 a barrel, giving back some of last week’s gains. BHP down 0.7%, FMG off 1.0% and WHC -2.9%. In corporate news, KAR +1.5% despite the oil producer downgrading its production guidance, LKE fell 20.0% on news that its Argentina Lithium project would be delayed and cost more than originally anticipated. ABP +5.8% completes the institutional component of an equity raising for Abacus Storage King. ASB -1.6% secured a US$71.7m contract with the US Navy for the construction of a Navajo class ship. Nothing on the economic front. Asian markets down, Japan down 0.4%, HK down 1.1%, and China off 0.5%. Australia 10Y yield down to 3.98%. Bitcoin up 0.61%. Dow Jones futures down 43 points, and Nasdaq futures up 13 points.

HIGHLIGHTS

  • Winners: WBT, MSB, PPM, ABP, FCL, RSG, SGR
  • Losers: LKE, LTR, MGX, NHC, CHN, ADT
  • Positive sectors: Banks. Healthcare. Tech. Consumer stocks.
  • Negative sectors: Iron ore. Base metals. Oila nd Gas. Coal.
  • High 7303 Low 7246.
  • Big Bank Basket: Higher at $171.34 (+1.1%)
  • All-Tech index: Up 0.9%
  • Gold steady at $2849
  • Bitcoin:  Rallies to US$26463
  • Aussie Dollar: Steady at 68.62c.
  • 10-Year Yield: Kicks to 3.99%.
  • Asian markets: Lower across the board Japan down 0.4% HK down 1.1% China down 0.5%
  • US Futures: Dow down 43 Nasdaq up 13.
  • European markets set to open lower across the board.

MAJOR MOVERS

  • PBH +21.6% DraftKings offer $283m for US business.
  • ONE +19.6% agreement with Baxter International.
  • CTM +13.4% acquires Jaguar nickel offtake rights from Vale.
  • ABP +5.8% completes ASK equity raising; guides DPS.
  • DMP +4.1% starting to bottom.
  • FCL +5.1% contract win, guidance.
  • LLL +2.9% roaring again.
  • UMG +1.4% Malteries Soufflet due diligence extended to end of June.
  • KAR +1.5% production guidance.
  • WBT +8.7% research report.
  • PPM +6.0% M&A appeal.
  • KGN +4.3% oversold.
  • DLI +6.0% good buying following Idemitsu Australia taking increased strategic stake at 70.75c.
  • LKE -20.0% now two-phase project at Kachi.
  • LTR -6.0% giving back some of last week’s gains.
  • NHC -5.8% WHC -2.9% coal stocks on the nose.
  • ILU-4.3% downgraded at UBS.
  • Speculative Stock of the Day: True North Copper (TNC) +390.6% raised $37.3m at 25c. Cu-Au at Cloncurry and Cu-Co at Mt Oxide. Drilling commenced last week.

COMPANY NEWS

  • PointsBet (PBH) – Announced that it will enter discussions with DraftKings regarding the latter’s $283m proposal to acquire PointsBet’s US business, surpassing Fanatics’ previous $150m offer.
  • Bravura Solutions (BVS) – Libby Roy is set to resign as the CEO. Andrew Russell, a non-executive director, will serve as the interim CEO until a new CEO is appointed.
  • InvoCare (IVC) – Following the revised proposal from TPG Capital Global to acquire the company for $13.00 per share in cash, TPG is conducting due diligence and working towards a scheme implementation deed. TPG’s exclusivity period has been extended for two weeks.
  • Lake Resources (LKE) – Announced a two-phase development plan for its Kachi brine project in Argentina, targeting the production of 50,000 tonnes per annum of battery-grade lithium carbonate.
  • Meridian Energy (MEZ) – Monthly operating report for May highlights increased national hydro storage, with total inflows at the third-highest level on record. Water storage in the Waitaki and Waiau catchments was above average, while national electricity demand was 1.6% higher compared to the same month last year.
  • Lynas Rare Earths (LYC) – Provides an update on the commissioning of its new Kalgoorlie Rare Earths Processing Facility, with Stage 4 commissioning expected to be completed by June 30. The first production of Mixed Rare Earth Carbonate is now anticipated in August.
  • Telix Pharmaceuticals (TLX) – Announced the dosing of the first patient in a Phase II STARBURST study, evaluating the company’s TLX250-CDx imaging agent in a broad range of cancer indications.
  • Strike Energy (STX) – Construction at Walyering is on track and progressing well. Production and operational updates to follow.
  • Austal Ltd (ASB) Awarded $104m fixed-price incentive contract option from US Navy for construction of a fifth Navajo-class ship.
  • Karoon Energy Ltd (KAR) – Baúna production has resumed, averaging around 33,000 bopd since May and expected to stabilise at 33,000 – 35,000 bopd by 1QFY24. Due to extensive maintenance and production ramp-up, the planned shutdown has been deferred to 3QFY24, leading to revised FY23 production guidance of 7.0 – 7.1 MMbbl.
  • Regis Heathcare Ltd (REG) Announced it has entered an agreement to sell its vacant land and Hollywood retirement village to Hesperia for $53m.
  • Austal Ltd (ASB) Awarded $104m fixed-price incentive contract option from US Navy for construction of a fifth Navajo-class ship.
  • Pantoro (PNR) – Obtained a four-year $55m loan facility from Nebari Partners to replace its current debt facilities, including those held by Tulla Resources.

ECONOMIC & OTHER HEADLINES

  • The Indigenous Voice to parliament vote has passed and a referendum will take place later this year. The vote is expected around October and must take place two months after the legislation becomes law, and not more than six months.

ASIAN MARKETS

  • Support for the Japanese PM has fallen according to three polls over the weekend making an early election less likely.
  • HK is rolling out a new program called HKD-RMB Dual Counter Model. 24 stocks will now be able to be bought and sold in HK using the yuan.
  • Analysts at Goldman have joined the continuing chorus as it lowered its estimates for China’s GDP this year to 5.4% from 6% previously.

US AND EUROPEAN HEADLINES

  • US markets closed for Juneteenth today.
  • Blinken goes to China.
  • AstraZeneca drafts plan to spin off China business amid tensions.
  • Italy strips China’s Sinochem of its influence as Pirelli’s largest investor.
  • France is making a major push to position itself as Europe’s hub for artificial intelligence at at France’s annual technology conference Viva Tech.
  • Paris Air Show opens today. Expect large orders from India.

And finally…..

Clarence

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