ASX 200 made up yesterday’s losses closing up 58 points to 7601 (+0.8%). First ‘Super Thursday’ of results. BHP lost 1.7% on a huge write-down on nickel assets (more like liabilities) and Samarco issues. RIO dropped 0.7% with FMG 1.4% to the good. S32 results were greeted by a thud, down 4.6% and lithium stocks mixed. Oil and gas were down heavily as crude fell, WDS was off 3.0% (impairments announced after hours), and STO was down 0.8%. Coal stocks not such a merry old place as WHC fell 5.7% on disappointing earnings. Financials were firm, CBA modestly but the Big Bank Basket rose to $199.60 (0.6%). MQG had a very good day up 3.3%, coattailing on GMG and data centre outlook with it AirTrunk business. GQG up 4.9% following MFG up 4.4% on new CEO news and results. Insurers mixed ahead of results. REITs enjoyed a day out, GMG leading the pack with a guidance upgrade and a 7.0% rise. Yields fell on the jobs numbers giving the RBA room to move. SGP up 2.9% and MGR rising 1.3%. Industrials were firm with a good result from Kmart helping WES to a 5.0% gain. Supermarkets were higher, Tech gained on a bid for ALU, XRO up 5.8% and WTC rising 4.8%. Retailers were in demand on rate cut chatter, JBH up 3.6% and CTT still charging up 3.1%. Good comments on TPW helping it rally 6.4%. Plenty happening in corporate news: TLS drifted 2.3% lower on a quasi-guidance cut, PME was trashed 13.0% after meeting expectations, and DTL smashed on an earnings miss down 13.1%. BLX shone on its results up 5.3%. On the economic front, the headline unemployment the rate rose to 4.1%. The RBA will be pleased, yields dropped, Asian markets firmed, HK up 0.2% and Topix up 0.1%. Dow Futures up 5 points. NASDAQ Futures down 5 points. 

HIGHLIGHTS

• Winners: ALU, GMG, TPW, 360, DOW, XRO, WBT
• Losers: DTL, PME, IEL, EVT, WHC, FBU, MGH
• Positive sectors: Banks. Financials. Healthcare. REITs. Tech.
• Negative sectors: Oil and gas. Base metals. BHP
• ASX 200 Hi 7621 Lo 7539 Bounces off 7500. Results the focus.
• Big Bank Basket: Rallies to $199.60 (0.6%)
• All-Tech Index:  Up 3.1% ALU bid helps.
• Gold: Slips to $3070
• Bitcoin: Runs to US$52283
• 10-year falls to 4.14% on jobs data.
• AUD: higher at 64.85c
• Asian markets:  Japan up 1.0%, HK up 0.4% and China still closed. India up 0.2%
• Dow Futures up 5 Nasdaq down 3

MAJOR MOVERS

• ALU +28.8% turning Japanese.$68.50 bid.
• GMG +7.0% guidance upgrade.
• WBT +5.4% chip magnet.
• DOW +5.9% broker upgrades.
• 360 +6.1% tech bounce.
• XRO +5.8% tech in demand.
• AMP +4.7% broker upgrades.
• TPW +6.4% broker research.
• ATC +19.1% traders jump on board.
• SYA +13.3% rally continues.
• MSB +9.1% orphan drug approval.
• MFG +4.4% new hire.
• DTL -13.1% support holds. Results miss.
• PME -13.0% rare down day.
• IEL -8.8% downgrades.
• WHC -5.7% misses.
• EVT -6.3% results presentation.
• BHP -1.7% huge write-downs.
• 29M-22.5% fast becoming under 20M.
• Speculative Stock of the Day:  Pharmaust (PAA) ok volume up 15.0%. MND study announcement yesterday the reason. First patient dosed.

COMPANY NEWS

ECONOMIC AND OTHER HEADLINES

• Australia’s unemployment rate rose by 0.1% to 4.1% in January, marking the first time it exceeded 4% in two years. While employment remained stable, there was an increase of 22k unemployed people. However, there was also an uptick in the number of unemployed people expecting to commence or return to work in the near future. Despite these fluctuations, the participation rate remained steady at 66.8%, and the employment-to-population ratio fell slightly to 64.1%, both remaining close to recent highs and pre-pandemic levels, indicating ongoing strength in the labour market.

• Japan unexpectedly slips into recession as its economy contracts for a second consecutive quarter, shrinking by 0.4% in the final three months of 2023, complicating the Bank of Japan’s plans to end its negative interest rate policy. Japan loses third place to Germany on economic power.

• Nikkei hits a 3-year high relative to Topix. The NT Index, as its called, is highest since 2021.
• Albo pops the question.Not tax reform after all!
• TSMC gained its most in more than three years after Morgan Stanley lifted its PT by 9%.

• Prabowo Subianto wins Presidential election in Indonesia. Strongman reputation and a little unpredictable.
• In US, Porsche, Audi and Bentley deliveries held up because they contain Chinese parts.
• Buffett sells down Apple stake.
• Russia looking for new nuclear capabilities in space.
• Musk moving SpaceX to Texas.
• Airbus results out in Europe.

And finally…..

I went to the pet shop and bought 12 bees the shopkeeper gave me 13. I said I only asked for 12. He said its ok the extra one is a freebie.

I got 17 Valentines cards this year and it’s left me quite breathless..

That security guard at the newsagent can’t half run.

I went to a fortune teller and she said if I’m not careful someone was gonna scam me out of money….Best $100 I ever spent!

Clarence

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