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ASX 200 rallies 32 points to 7769 (+0.4%) as rate-sensitive and defensives seize the day. Banks pushing onwards and upwards, CBA up 0.8% with the Big Bank Basket up to $213.81 (+0.7%). Insurers rallied for no real reason, QBE up 0.4% and SUN up 1.6%. GQG on the nose following Modi failing to win a majority in Indian elections. REITs are also in demand as 10Y remains subdued after tepid GDP helped rate-cut optimists. GMG up 1.5% with SCG up 1.3%. Healthcare also in demand, defensive maybe. CSL up 1.4%, with RMD up 2.7%. Industrials too in the green TLS up 1.4% with REA up 1.6% and CAR driving hard up 3.4%. Retail also slightly better, LOV bouncing 2.7% and SUL up 1.8%. Travel stocks finding friends and cleared for take-off., WEB up 2.4%, and CTD putting on 1.9%. It was a different story in resources as commodities were hit overnight. Iron ore majors remain under pressure, BHP down 0.9% and FMG off 0.8%. Gold miners too wallowed on bullion falls, NST down 0.3% and NEM falling 2.5%. Lithium depressed, with IGO off 3.3% and PLS down 1.1%. Energy stocks also Billy no friends. Uranium stocks were depleted, and coal stocks were not so merry. WHC down 3.7%. In corporate news, TWE rallied 5.3% on a guidance update, MPL fell slightly as civil penalty proceedings began, SEK sold its LATAM business, and XRO fell 4.5% on a convertible bond issue. On the economic front, GDP not great, Michele Bullock in Canberra. Canadian rate decision tonight. Asian markets mixed again, HK up 0.4% with Japan off 1.4% and China off 0.5%. Dow Futures up 97 points. NASDAQ Futures up 51 points. 

HIGHLIGHTS

  • Winners: ZIP, DRO, TWE, SEK, NAN, PME, ABG, A4N
  • Losers: COE, IPX, IMM, LRS, PMT, LOT, LTR
  • Positive sectors: Banks. Financials. REITs. Industrials. Retail.
  • Negative sectors: Iron ore. Coal. Uranium. Gold Miners.
  • ASX 200 Hi 7774 Lo 7729. GDP disappoints.
  • Big Bank Basket: Rallies to $213.81 (+0.7%)
  • All-Tech Index: Up 0.9%
  • Gold: Lower at $3513
  • Bitcoin: Steady at US$71,018
  • 10-year yields fall to 4.24% on GDP.
  • AUD: Steady at 66.56c.
  • Asian markets mixed again, HK up 0.4% with Japan off 1.1% and China off 0.3%

MAJOR MOVERS

  • ZIP +6.1% proposed BNPL changes.
  • TWE +5.3% guidance reaffirmed.
  • SEK +4.9% sells LATAM assets.
  • DRO +5.5% off highs.
  • PME +4.6% the only way is up.
  • GNC +4.1% broker upgrades.
  • CYC +21.1% TECHEGAS awarded pass-through status.
  • ONE +7.6% resignation of CFO.
  • ATR +5.5% positive deal yesterday on JV agreement.
  • COE -9.1% guidance. Change in substantial holding.
  • PMT -7.1% lithium depressed again.
  • DYL -4.9% uranium stocks depleted.
  • SFR -5.6% investigation into artefacts scattering.
  • VNL -8.3% scratched.
  • EL8 -4.9% uranium stocks under pressure.
  • NVX -9.2% trading halt – cap raise coming.
  • 3DA -5.8% one day up, next day down.
  • SFX -5.56% Thunderbirds fail to kick.
  • Speculative Stock of the Day:  CCO +136.4% Kava. Investor presentation.

COMPANIES

ECONOMIC AND OTHER HEADLINES

  • Australian GDP has almost stalled. Gross domestic product rose just 0.1% from an upwardly revised 0.3% in the prior quarter and below economists’ forecast of 0.2%. The annual result was the weakest at 1.1% from a year ago, outside the pandemic, since the first quarter of 1992, when Australia was emerging from a recession, and compares with a decade average of 2.4%.
  • Local household spending rose 0.4%, contributing just 0.2% to economic activity. Private business investment fell by 0.8%, driven by both mining and non-mining related spending.
  • Services imports rose 0.7%, driven by transport services, while outbound tourism saw a second quarterly fall.
  • Modi pushing to form government in India.
  • Elon Musk confirmed he diverted artificial intelligence chips away from Tesla Inc. to his X Corp. and xAI Corp. ventures. On April 28, he tweeted on X, that Tesla will spend around $10bn this year on AI.
  • Texas group plans stock exchange to compete with NYSE and Nasdaq.
  • De Beers boss looks to recut diamond miner into leading jewellery group.Diamond prices have fallen 5.7% so far this year, according to Zimnisky’s rough diamond index, declining more than 30% from their all-time high in 2022. Seems diamonds are not forever (marketing tag dreamt up in 1948!)
  • Lab-grown diamond sales have surged from just 2% of the global diamond jewelry market in 2017 to 18.4% in 2023, according to data provided by Zimnisky.
  • Sunak and Starmer clash on tax and immigration in testy TV debate. Farage wears a McFlurry. Suits him.
  • European markets set to open 0.6% higher.

And finally….

Clarence

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