ASX 200 closed up 105 points to 7109 (+1.5%), lifted by mining and gold stocks snapping a four-day losing streak with all sectors in positive territory. Gold miners outperformed today as gold prices firmed slightly overnight, and the US dollar extended a small retreat. EVN +4.6%, NST +3.1%, and NCM +1.8%. Mining trio BHP, RIO and FMG all rose over 1% each. Energy stocks gained, tracking an uptick in oil prices amid supply concerns. BPT +4.0%, STX +4.8%, and COE +3.6%. Lithium stocks stood out with LTR up 4.0%, CXO up 4.4%, and LLL up 2.1%. Interest rate-sensitive financials advanced, with the big four banks all gaining between 1% and 2.3%. The Big Bank Basket jumped to $170.77 (+1.5%) with ANZ up 2.3% and insurers stronger, AMP up another 3.0%, recouping recent losses. Tech good. All-Tech Index up 2.4%, with SQ2 +3.9% and XRO up 2.3%. In corporate news, MP1 surged 33.8% on guidance upgrades. TLC up 1.2% after UBS lifted its price target to $6. IVC +1.7% granted TPG Capital Global a one-week extension on its due diligence period. PMT +8.0% after it rejected Night Market’s short report. BFG +11.5% on good results, and CMM reported record gold production, up 8.1%. In economics, Australia’s NAB Confidence Index rose to 0 in June from -3 in May, beating expectations of -1. Westpac-Melbourne Institute Consumer Sentiment index rose by 2.3% MoM to a three-month high of 81.3 in July, matching market expectations. Asian markets mixed, Japan down 0.3%, HK and China up 1.3% and 0.4%, respectively, after China signalled more economic stimulus. Australian bond yields dip, 2Y yield down 9bps, 10Y yield down 9bps to 4.19%. USD Index softened, down 0.2%, hitting its weakest levels in two months, while the Aussie dollar gained 0.2%to 66.85c.Dow Jones futures up 37 points, and Nasdaq futures up 35 points.

HIGHLIGHTS

  • Winners: MP1, BGL, CMM, PMT, RED, TIE, MSB
  • Losers: HCW, IDX, CXL, IFT, JLG, MYR
  • Positive sectors: Everything. Iron ore , lithium, Tech stand outs.
  • Negative sectors: Coal (just)
  • High 7109 Low 7018
  • Big Bank Basket: Higher at $170.77 (1.5%)
  • All-Tech index: Rallies 2.4%.
  • Gold unchanged at $2884
  • Bitcoin: Higher at US$30,462
  • Aussie Dollar:  Higher to 66.87c
  • 10-Year Yield: Eases to 4.20%
  • Asian markets: Japan down 0.3% China up 0.4% and HK up 1.3%
  • US Futures: Dow up 37 Nasdaq up 35
  • European markets to open around 0.5% higher.

MAJOR MOVERS

  • MP1 +33.8% shorts squeezed badly on profit upgrade.
  • PMT +8.0% plenty of games but drilling results help.
  • RED +7.9% initial director’s interest.
  • INR +6.5% chairman’s job renewed.
  • DEG +5.8% no fade for De Grey.
  • BGL +15.2% gold finding friends.
  • BFG +11.5% profit upgrade.
  • SVL +8.6% pure silver play.
  • FDV +11.1% stirring.
  • RUL +9.8% profit update.
  • DRO +7.8% assigned with NATO stock numbers. Orders to come?
  • JLG -1.9% slipping lower.
  • HCW -4.6% DRP issue price.
  • CXL 2.2-% no news is bad news.
  • Speculative Stock of the Day: MOB +163.0% ASX ‘Please Explain’. Pointed to the recent Nasdaq and ASX announcements. Interestingly DRO is also having a good move today.

COMPANY NEWS – HIGHLIGHTS (for more see the newsletter website)

  • Sayona Mining (SYA) – Announced that it has identified a significant expansion to the lithium footprint following recent drilling at its key Moblan lithium project. Results include; 41.0m @ 1.66% Li2O from 80.8m.
  • Bell Financial Group (BFG) – Anticipates a 21% increase in profit before tax for the first half of financial year 2023, reaching approximately $16.2m.
  • Patriot Battery Metals (PMT) – Responded to a short report, stating that it contains factual inaccuracies and is misleading due to the author’s short interest in the company. While the company has received interest from global mining businesses regarding its Corvette project, it has not received any takeover offers or corporate proposals yet.
  • Capricorn Metals Limited (CMM) – Announced that the Karlawinda Gold Project achieved a record annual gold production of 120,014 ounces for FY23, within the production guidance range. CMM’s cash position at the end of June was $110.3m after partially closing out its hedge book.
  • InvoCare Limited (IVC) – Granted TPG Capital Global a one-week extension of its exclusivity period under the Process Agreement. The Revised Proposal of acquiring all issued capital of InvoCare for $13.00 per share in cash is being reconfirmed by TPG on a regular basis.
  • RPMGlobal (RUL) – Announced Total contracted value from software sales increased by 25.4% to $70.5mn, with $65.8m from subscriptions. The company has $126m in pre-contracted, recurring, non-cancellable software revenue. Operating EBITDA is expected to reach $15m, surpassing the February guidance of $13.8m.
  • Cobram Estate Olives (CBO) – Reported 2023 Australian harvest of 12.5Ml vs guidance 12.6-13.2Ml and extends core debt facility by $35m.
  • Calidus Resources Ltd (CAI) – Reported drilling results at its Felix gold discovery in Pilbara, including 15m @ 2.19g/t Au.

ECONOMIC & OTHER HEADLINES

  • Westpac-Melbourne Institute Consumer Sentiment index in Australia rose by 2.3% MoM to a 3-month high of 81.3 in July, meeting market expectations. The result follows a 0.2% gain in June as inflation eased and the RBA skipped further rate hikes.
  • ANZ-Roy Morgan Consumer Confidence in Australia declined last week, even though the Reserve Bank maintained interest rates in July. The weekly consumer confidence index dropped by 0.8 points to 73.7, with the lowest level recorded for homeowners.
  • Australia and the European Union’s negotiations to conclude a free-trade agreement are at an impasse over Canberra’s concerns that the bloc is offering insufficient access to the nation’s agricultural exports. The EU does want our critical metals though.

ASIAN MARKETS

  • China to lay down AI rules with emphasis on content control.
  • Some property stimulus in the stimulus plan helping sentiment.

US AND EUROPEAN HEADLINES

  • Microsoft confirms more job cuts on top of 10,000 layoffs announced in January. The cuts are in addition to the downsizing announced in January.
  • Foxconn has pulled out of a US$19.5bnjoint venture in India that would have produced semiconductor and display components.
  • Turkey clears path for Sweden to join NATO. Summit continues.
  • India is set to sign a naval fighter deal worth nearly €3bn (US$3.3bn) with France when Prime Minister Narendra Modi visits this week
  • Top US bank watchdog outlines tougher rules for larger lenders.
  • Demand for European bond ETFs hits record high in first half.
  • More than 61,000 people died because of last year’s extreme summer heat waves across Europe, according to a study published Monday in the journal Nature Medicine.

And finally…please send me some new material….henry@marcustoday.com.au

I went to a boot sale at the weekend. I bought a bed that was made from a trampoline.

My wife wasn’t happy. She hit the ceiling.

Read a book last night on how to end sentences with Beatles song titles.

That’s two hours of my life I won’t get back.

Clarence

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