ASX 200 rallied 24 points to 7049(.3%) in quiet trade. Holiday in VIC today. China closed too. Miners have been in focus in the last few days, BHP up another 1.2% with RIO and FMG joining the party. Lithium shrugged off its recent depression with PLS up 1.9% and AKE up 2.1%. LTR slipped 1.3% on a KV update. Costs up 6% since January. Gold stocks also in demand as bargain hunters scratched around in the ashes, NST up 2.1% and EVN up 1.2%. Oil stocks eased slightly with some profit taking, coal down too, uranium stocks continue to push higher as DYL up 1.9% and BOE doing well too on drill results up 3.0%. Industrials firmed with tech steady, XRO up 0.4% and the All–Tech Index up slightly. Healthcare mixed, CSL still bleeding down 0.5% and RMD taking a break down 2.1%. Banks were solid yet unspectacular. The Big Bank Basket rose to $175.85 (0.2%). MQG bounced after some dismal days, up 1.6%. Other financials also finding buyers. In corporate news, CXO rallied hard on better-than-expected results and short covering, up 19.1% BOQ announced job cuts. Nothing on the economic front. Asia markets mixed with China closed and HK up 2.7%. 10-year yields pushing higher again to 4.49%.

HIGHLIGHTS

  • Winners: CXO, DVP, SYA, LRS, CHN, ACL, WAF
  • Losers: HLI, ASK, WHC, WPR, TUA, TAH, HLS
  • Positive sectors: Iron ore. Lithium. Gold. Banks.
  • Negative sectors: REITs. Insurers. Healthcare.
  • High 7065 Low 7037
  • ASX down 20 points this week.
  • Big Bank Basket: Rises to $175.85 (0.2%)
  • All-Tech index: Up 0.4%
  • Gold:  Falls to $2,887
  • Bitcoin: Better at $26,978.
  • Aussie Dollar:  Rallies to 64.57c
  • 10-Year Yield: Higher again at 4.49%.
  • Asian markets slip, Japan down 0.3%, China closed and HK up 2.7%
  • US Futures: Dow up 25 Nasdaq up 35
  • European markets set to open better. UK GDP in focus.

MAJOR MOVERS

  • CXO +19.1% good results – shorts scramble.
  • LRS +6.5% nice bounce.
  • DVP +10.2% ESS scheme update.
  • DYL +1.9% BOE +3.0% uranium stocks glowing.
  • PIQ +23.3% back trading. US reimbursement and Australian decision.
  • BCB +26.9% agreement on new debt terms.
  • PEN +16.0% mightier than the sword. Uranium in US.
  • GLN +12.0% annual report.
  • HLI -4.6% buyback update.
  • WHC -3.3% coal stocks pausing for breath.
  • WBT -2.2% profit taking.
  • ALX -1.4% that will be the French (tax)
  • DRE -9.6% capital raise.
  • FBR -6.9% R&D tax facility draw down.
  • Speculative Stock of the Day: Biotron (BIT) +33.3% Response to ASX query. Pulls the Schultz defence. I know nothing.

COMPANY NEWS

  • CXO – recorded its revenue at $50.6m, which was underpinned by the sale of first lithium products in H2 financial year 23. Net profit was recorded at $10.8m. It maintained its first production guidance of 90,000 to 100,000 tonnes of spodumene concentrate sales for the 2024 financial year.
  • BOQ – To axe 250 jobs. It will incur $25m in redundancy costs.
  • LTR – company lifted the estimate on its Kathleen Valley lithium project capital cost to $951m. The latest estimate is a 6% increase from January’s estimate.

HEADLINES

  • China kicks off an annual week-long holiday marking the country’s National Day on Oct. 1st.
  • China’s small economic rebound appears to have stalled in September according to the latest Beige Book survey.
  • But other indicators showed signs of a stronger recovery in September, according to a firm analysing the global economy using satellite data.
  • World Economics’s all sector Sales Growth Index for China increased to 53.1 in September. A six-month high.
  • Huawei’s Kirin 9000s processor supports 5G wireless speeds, TechInsights said in a blow to US ambitions to stifle Chinese technology.
  • Ray Dalio says the US is going to have a debt crisis. Now US$33 trillion with a government shutdown looming. Dalio thinks growth could fall to 0%.
  • US private equity firm takes stake in Liverpool Football Club.
  • Schott Pharma up 16% yesterday on debut.
  • European markets opening higher. UK GDP due today.

And finally….have a great weekend

Clarence

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