Beeks Downunder-Because not all financial news is boring!

ASX 200 closed down 2 points to 7195, sinking from early gains after Retail sales show signs of resistance, coming in at 0.7% for May compared to 0.1% forecast. Consumer discretionary had an obvious boost from the higher retail numbers, EDV up 0.6%, DMP up 2.1%, and BBN jumped 7.4%. Banks continued to rally, ANZ gained 1.2% and MQG rose 0.7%. Big Bank Basket up to $171.55 (+0.55%). Energy stocks gained as US inventories declined more than expected. STO +0.7% and BPT +0.8%. REITS lower. Healthcare stocks were mostly flat, RMD up 0.8% and RHC down 1.8%. Resources lower as base metals dropped overnight on China demand speculation. Iron ore dropping, BHP -1% and RIO -1.2%. Gold continues to be sold off, nearing four-month lows. NST -1.7% and EVN -2.1%. In corporate news, MAH +19.2% upgraded their earnings guidance as cost inflation recovers and secures more contracts. WBT dropped 11.4% even as their ReRAM product has been fully qualified. In economic news, Australian retail sales beat estimates growing 0.7% for May, compared to a forecasted growth of 0.1%. Job vacancies in Australia fell by 2% for the quarter still high compared to pre-pandemic levels as employers struggle to hire and maintain employees. Asian markets mostly lower, Japan down 0.1%, HK down 1.3%, and China down 0.1%. Bitcoin up 0.33%. Dow Jones futures up 4 points and Nasdaq futures up 12 points.

HIGHLIGHTS

Winners: LRS, TYR, SDR, TPW, TYA, AZS, WAM, PBH
Losers: WBT, BGA, LFG, HPI, CKF, APA
Positive sectors: Banks. Tech. Healthcare. Old school platforms.
Negative sectors: Iron ore. Gold miners.
High 7223Low 7189
Big Bank Basket: Higher at $171.55 (+0.55%)
All-Tech index: Up 1.6%
Gold Steady at $2880
Bitcoin: Eases to US$30,224
Aussie Dollar: Steady at 66.09c
10-Year Yield: Higher at 3.92%
Asian markets: Japan up 0.1% HK down 1.3%, and China down 0.1%
US Futures: Dow up 6 Nasdaq up 13.
European markets expected to open unchanged.

MAJOR MOVERS

LRS +13.8% Samba time.
AZS +6.1% good news keeps coming with new research out. Up Andover fist.
TPW +7.4% buyback update.
TYR +9.2% nice EOFY bounce.
PBH +5.5% how much is the Australian business worth?
LOV +3.3% sharing some Love.
AGY +4.0% kicks.
MAH +19.2% guidance update.
DGL +13.7% EOFY window dressing.
NXS +20.8% market update.
IR1 +14.3% appointment of strategic advisor.
BGA -6.1% getting smaller.
LFG -5.9% estimated distribution.
RAC -8.5% Board changes
WBT -11.4% Hero and villain in a day.
Speculative Stock of the Day: Nothing on any volume today. Gold Mountain (GMN) the biggest and the best up 33.3% Still picking up interest form its proposed acquisition of a lithium package in Brazil.

COMPANY NEWS

National Australia Bank (NAB) – Alison Kitchen, the chair of KPMG Australia, has been announced as a non-executive director of NAB.
Medibank Private (MPL) – Revealed its plan to return $125m to customers as a result of permanent net claims savings during the COVID-19 pandemic. The insurance provider aims to give cash back to Medibank and AHM customers as part of its commitment to not profiting from the pandemic.
Nufarm Limited (NUF) – Welcomed the approval of Aquaterra® Omega-3 oil by the Norwegian Food Safety Authority for use in fish feed. The approval opens up opportunities in the Norwegian aquaculture market and strengthens Nufarm’s confidence in its revenue aspirations for seed technologies.
West African Resources Limited (WAF) – Secured full funding for the development of the Kiaka gold project through a US$265m syndicated corporate loan facility.
Transurban Group (TCL) – The ACCC has expressed concerns regarding Transurban’s planned acquisition of a majority stake in Horizon Roads, the operator of the EastLink toll road in Melbourne.
St Barbara (SBM) – Announced the appointment of Andrew Strelein as its new chief executive, effective from July 1. Additionally, Sara Prendergast will assume the role of chief financial officer.
The Australian Securities Exchange (ASX) – Denied making a decision on the technical partner for the replacement of its CHESS system. This follows claims made by Senator Deborah O’Neill during a senate inquiry that the ASX had selected Nasdaq for the CHESS replacement project.
Fenix Resources (FEX) – Entered into a binding agreement with Mount Gibson Iron Ltd (MGX) to acquire MGX’s Mid-West iron ore and port assets. The acquisition includes the Shine Iron Ore Mine, storage sheds at Geraldton Port, Mid-West rail sidings, and assets at the Extension Hill Iron Ore Mine.
Macmahon Holdings (MAH) – Provided an update to its FY23 guidance, expecting revenue of around $1.9bn and underlying EBIT(A) of $113m to $118m. The company attributes the positive outlook to cost inflation recoveries, operational improvements, and the securing of new projects.
Imugene Limited (IMU) – Granted a new patent by the US Patent Office, extending the protection of its immunotherapeutic PD1-Vaxx vaccine for the treatment of non-small cell lung cancer until 2040.
Bowen Coking Coal (BCB) – Received approval from Sumitomo to proceed with Phase 2B of the Farm-In Agreement for the Hillalong Coal Project.
Weebit Nano (WBT) – Announced that its Resistive Random-Access Memory (ReRAM) IP has been fully qualified in SkyWater Technology’s S130 process. The qualification confirms the quality, reliability, and repeatability of Weebit’s embedded ReRAM module, making it suitable for volume production as embedded IP. The company has also appointed a new local director to the board following the resignation of Fred Bart.

ECONOMIC & OTHER HEADLINES

Job Vacancies – Key statistics

Seasonally adjusted estimates for May 2023:

Total job vacancies were 431,600, a decrease of 2.0% from February 2023.
Private sector vacancies were 384,600, a decrease of 2.3% from February 2023.
Public sector vacancies were 47,000, an increase of 0.3% from February 2023.

Retail Trade

The May 2023 seasonally adjusted estimate:

Rose 0.7% month-on-month.
Rose 4.2% compared with May 2022.

ASIAN MARKETS

China stepped in to support the yuan for a third time this week.

Asian chipmakers rose after Micron Technology’s third quarter earnings beat estimates on the back of higher demand for its memory chips driven by the booming AI sector.
Foreign investors became net sellers of Japanese shares after propelling the Nikkei 225 to three-decade highs following 12 consecutive weeks of purchases according to Reuters.