The ASX 200 dropped another 6 points today to 7025 (0.1%) after an early rally fizzled out. Retail sales were slightly worse than expected and suggest the RBA will be on hold next week. Volumes dropped ahead of holidays here and in China. Banks eased back slightly after holding firm recently. The Big Bank Basket down to $175.44 (-0.3%). MQG continued to slip again down another 0.8% with insurers better. Fundies and other financials weak as were REITs with some Ex-dividend. Industrials were sloppy, WES down 0.8%, WOW and COL eased around 0.7% to 1%. ‘Old Skool’ platforms down with REA off 1.3%, CAR down 3.4% and tech stocks easing back too. The All–Tech Index dropped 0.9%. In the big miners, BHP up 0.6% with RIO up 1.2% on higher iron ore prices. Lithium stocks lifted slightly as bargain hunters stepped in, PLS up 2.9% and MIN rallying 1.4%. Gold stocks under pressure as DEG launched a big raising, NCM down 5.0% and NST off 2.1%. Oil and gas stocks benefitting from crude strength, WDS up 2.9% and STO up 3.8%. KAR a standout up 4.7%. In corporate news, SOL reported and dropped 6.0% on private asset worries perhaps and BKW also under pressure on housing shortfalls, down 6.4%. On the economic front, Retail sales came in up only 0.2% M/M and had little effect really. Asian market partially closed, Japan down 1.4%, China up 0.2% and HK down 1.1% as Evergande gets suspended. Again. 10-year yields pushing ahead again to 4.44%.

MAJOR MOVERS

  • WHC +6.1% a merry old soul.
  • CTT +5.4% date of AGM
  • KAR +4.7% oil rally.
  • RMD +4.8% not dead yet.
  • CRN +4.2% private deal in focus.
  • PLS +2.9% slight short squeeze.
  • WBT +2.2% company out and about.
  • LPI +34.6% confirms Codelco talks.
  • CKA +14.3% receipt of Jetty operations permit.
  • LKE +9.4% advances in DLE tech.
  • M7T +4.2% holding investor day soon.
  • LRS -11.5% Colina update
  • PAC-9.6% merger talks with Regal off.
  • SOL -6.0% and BKW -6.4% results disappoint.
  • OCL -5.8% selling continues. Thin.
  • CXL -2.2% thin and no interest.
  • BCB -0.1% Bluff mine on Care and Maintenance.
  • MEI -8.0% falls back to earth.
  • Speculative Stock of the Day: First Lithium (FL1) +47.22% on reinstatement to quotation and a presentation.

HEADLINES

AUSTRALIA RETAIL TRADE – Retail sales growth rose 0.2% M/M in August, missing expectations of 0.3%. This modest increase reflects consumer caution due to high-interest rates. Sales dipped in several sectors, including clothing and food retailing, while department stores saw weaker growth. Overall, retail turnover remained modest across the country.

The August 2023 seasonally adjusted estimate:

  • Up 0.2% MonM
  • Up 1.5% compared with Aug-22.
  • Chinese Golden Week Holiday looms.
  • The China Nonferrous Metals Industry Association signed a memorandum of understanding with the Russian Aluminium Association in Beijing.
  • Evergrande Group stock has been suspended again in HK.
  • Indonesia bans purchases on social media
  • European futures looking at a mixed open.
  • Costco is selling 1-ounce gold PAMP Suisse Lady Fortuna Veriscan bars. The CFO says they are selling like hotcakes. Under the golden arches perhaps? The bars indeed are only available online.
  • Trump committed ‘repeated’ fraud by inflating real estate value, New York judge rules.
  • German Medical Device company Schott Pharma lists today. EUR 4.1bn valuation. If succesful we could see more IPOs.

And finally…..

Clarence

XXX