ASX 200 closed with a modest gain of 0.12% to 7203, up 8 points as EOFY came and went. For the week, the index is up 103 points or 1.5%. A mixed session with resources slightly firmer, BHP up 0.1% and FMG up 0.3% with lithium stocks drifting higher, PLS up 1.2% and IGO up 1.2% Gold miners were mixed and oil and gas stocks better, WDS up 0.5% and STO rising 0.8%. Coal miners mixed, WHC down 1.3% and YAL up 1.8%. In the banks, some slippage in places with the Big Bank Basket unchanged at $171.69. MQG bucked the trend up 0.8% and insurers flat. MPL slipped 0.3% on another class action and fund managers squeezed slightly higher. PNI up 1.7% and MFG up 0.3%. REITS fell today across the board as yields rose, GMG down 0.3% and GPT off 0.2%. Healthcare eased back, CSL down 0.3% and COH down 0.2%. Tech rose with the All –Tech Index up 0.5% led by WTC and XRO again. Telcos slid, TLS off 0.5% and TPG falling 1.2%. Industrials better, BXB up 0.4%, CPU rising 0.6% and retailers finding support, JBH up 0.8% and CTT pushing another 5.1% ahead. On corporate news, LNK fell 13.9% as it lost the HESTA account, BUB unchanged on a China update, DOW up 4.3% after sealing a new contract to build trains for QLD. Not substantial on the economic front, US core inflation numbers tonight. In Asia, Japan gave back some recent gains, down 0.3%, China up 0.8% and HK easing 0.1%. Dow futures up 3 points. NASDAQ futures up 43 points.

HIGHLIGHTS

  • Winners: PSI, LLL, MAD, RED, CTT, MAQ, DOW, DYL
  • Losers: LNK, AZS, LFG, KGN, TUA, PRN, TYR
  • Positive sectors: Tech. Industrials. Lithium. Oil and gas.
  • Negative sectors: Telcos. REITs.
  • High 7209 Low 7166 ASX 200 up 1.5% for the week.
  • Big Bank Basket: Unchanged at $171.69
  • All-Tech index: Up 0.5%
  • Gold Steady at $2876
  • Bitcoin: Pushes to US$30,656 as ETFs loom.
  • Aussie Dollar:  Better at 66.36c
  • 10-Year Yield: Higher at 4.01%
  • Asian markets: Japan down 0.3% HK down 0.1% and China up 0.8%
  • US Futures: Dow up 3 Nasdaq up 43.
  • European markets expected to open slightly higher around 0.3%. Inflation numbers in focus.

MAJOR MOVERS

  • IMU +2.3% good trial results.
  • LLL +7.0% first DSO produced.
  • SDR +3.6% director’s interest.
  • CTT +5.1% just keeps going.
  • CXL +3.2% bargain hunting.
  • ENR +30.0% kicks after recent carbonatites at West Arunta.
  • MI6 +22.5% finds support post-Aston lithium update.
  • LNK -13.9% HESTA contract update.
  • AZS -8.8% profit taking.
  • LRS -3.0% peaks short term.
  • A11 -10.7% disappointing DFS.
  • NMT -3.9% vanadium project update.
  • FDV -2.5% EOFY selling continues.

COMPANY NEWS

  • Medibank Private (MPL) – Confirmed that it is facing another class action claim related to a data breach that occurred last year.
  • Link Administration Holdings (LNK) – Announced that its contract to provide fund administration services to HESTA will not be renewed. HESTA represents around 4% of Link Group’s estimated Group Revenue for FY23 and plans to transition out by the second quarter of FY25.
  • Vulcan Energy Resources (VUL) – Cris Moreno, previously Deputy CEO, appointed as the new Managing Director and CEO. Dr. Francis Wedin, the founder of the project, will transition to the role of Executive Chair.
  • Neuren Pharmaceuticals (NEU) – Announced the completion of subject enrollment in its Phase 2 clinical trial of NNZ-2591 in Phelan-McDermid syndrome.
  • Downer EDI (DOW) – Secured a $4.6bn contract with the Queensland government for its train manufacturing program. The agreement entails designing and manufacturing 65 six-car passenger trains in Queensland.
  • Bell Financial Group (BFG) – AUSTRAC announced that it will not be taking any regulatory action against Bell Potter, a broker, after completing an audit on the broker’s compliance with anti-money laundering measures.
  • Azure Minerals (AZS) – Announced the continuation of high-grade lithium mineralisation at its Andover Project in Western Australia. Broad intersections of lithium mineralisation with excellent continuity over a 1,000m strike extent have been observed, and the mineralisation is open along strike and down-dip.
  • Best & Less Group (BST) – BBRC Admin 1 Pty Ltd has issued a fourth supplementary bidder’s statement and a notice of variation for its off-market takeover offer for Best & Less Group Holdings Ltd. The bidder now has a voting power of 82.83% and intends to invoke compulsory acquisition if it reaches 90%.
  • Develop Global (DVP) – Released an updated Definitive Feasibility Study for its Sulphur Springs Zinc-Copper project in Western Australia. The study showcases a technically and economically robust project, with a pre-tax internal rate of return of 34% and free cash flow of A$745m.
  • Imugene Limited (IMU) – Presented new and significant data on its HER-Vaxx immunotherapy at the World Congress of Gastrointestinal Cancer. The study demonstrated that HER-Vaxx treatment induced robust antibody responses and correlated with tumor reduction in patients with HER-2 overexpressing gastric and gastro-esophageal junction cancer.
  • Neometals Ltd (NMT) – Provided an update on its Vanadium Recovery Project, operated by Recycling RISAB. The project’s Financial Investment Decision deadline has been extended until September 30, 2023, allowing for further due diligence and negotiations with potential financiers.

There were 13.8m people employed in February 2023.

  • Job mobility remained at 9.5% for a second year in a row, the highest rate in a decade.
  • The share of job mobility remained highest for Professionals, at 24% of those who changed jobs.
  • 2.3m people left or lost a job.
  • The annual retrenchment rate was 1.4%, the lowest annual rate on record (since 1972).
  • 1.8m were not working but wanted to work (potential workers).
  • 1.0m were available to start work immediately (in the week before the survey interview)
  • 5.6m did not want to work or were permanently not able to work (not potential workers).

NAB’s economics team has stated that markets are now pricing in an 83% probability of a rate increase by the US Federal Reserve in July. This increase in market expectations follows stronger-than-expected jobs data, which indicates that the US economy is not slowing down.

ASIAN MARKETS

  • Official Chinese Manufacturing PMI for China improved to 49 for June, up from May’s five-month low of 48.8, in line with market expectations. However, the reading still indicated a contraction in factory activity for the third consecutive month. The ongoing decline was attributed to sluggish domestic and global demand, highlighting the challenges faced by the manufacturing sector.
  • The employment sub-gauge for the non-manufacturing sector fell to 46.8 from 48.4 in the previous month.

US AND EUROPEAN HEADLINES

  • Focus on US May PCE data, due out tonight The core personal consumption expenditures price index is expected to show a 0.3% increase, according to economists polled by Dow Jones. It rose 0.4% in April. On an annual basis, the gauge is expected to have increased 4.7%, the same rate at which it grew in the prior month.
  • Long weekend kicks off in US for July 4th Independence Day celebrations.
  • Eurozone CPI numbers out today. European leaders meet in Brussels.
  • Investment Bankers’ fees plunge to near-decade low owing to deal drought.
  • German inflation surges more than expected to 6.8%.
  • France deploys extra police as anger grows over teenager’s death.

And finally….Happy New Financial Year

Clarence

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