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The ASX 200 ended a long week of results down 25 points at 9,059, or 0.3%. The index down 0.7% this week. It has been a long week for the market, and some of the gains from previous sessions were reversed today. The banking sector found its feet, with the Big Bank Basket rising to $267.12 (0.5%), led by CBA, up 1.0%. Insurers also bounced following yesterday’s drubbing, with QBE up 2.9%, SUN up 1.1%, and MPL also having a good day, up 5.1%. Industrials were generally weaker across the board, with WES down 2.3%, JBH falling 1.4%, and QAN also under pressure, down 1.2%. The supermarkets drifted lower too. Healthcare came under pressure, with CSL falling 1.7% and PME also down 7.0%. Technology stocks gave back some of their gains from previous sessions, with XRO down 0.3% and WTC falling 2.0%. MP1 continued to flop following its capital raise, while NXT also slipped slightly.

Resources were mixed, with BHP down 0.9%, while RIO headed in the opposite direction, rising 1.4%. Gold miners regained their footing and pushed a little higher, with GMD up 3.9% and RMS posting a modest gain. PLS also had a good day, up 5.0%, while MIN, IGO and LTR all performed well. Coal and uranium stocks were slightly firmer, while the oil and gas sector was somewhat mixed.

In corporate news, GYG delivered better-than-expected results, rallying 11.4%, while TPG also performed well following its results. On the M&A front, EQT rose 9.3% on the back of a rival bid from BGH Capital, while it looks like the SDF deal has been signed, with the stock in suspension until next week. Some notable fallers on corporate news included ING, DGT and CHC, all of which came under pressure following their results.

Nothing of note on the local economic front today. Asian markets were mixed, with Japan down 0.5%, Hong Kong up 0.7%, China up 0.6%, and US futures were narrowly firmer, with the Dow up 22 points and the Nasdaq up 48. European markets poised to open better.

HIGHLIGHTS

  • Winners: PWH, ASL, GYG, EQT, WC8, NWH, TPG
  • Losers: ZIP, TLX. DGT, RDX, AXQ, SUL, ING, PME
  • Positive Sectors: Banks. Gold miners. Lithium. Insurers.
  • Negative Sectors: Retail. Tech. Financials.
  • ASX 200 Hi 9079 Lo 9045 – Narrow range – For the week the ASX 200 fell 0.7%
  • Big Bank Basket: Rose to $267.12 (+0.5%)
  • All-Tech Index: Down 1.7%
  • Gold: Higher at $6388
  • Bitcoin: Higher at US$75371
  • 10-year yields: Rises to 5.06%
  • AUD: Higher at 71.43c
  • European futures ease on rising bond yields.

MARKET MOVERS

  • EQT +9.3% new bidder appears.
  • GYG +11.4% good results.
  • SDF – signs off on takeover.
  • MEI +5.0% resource pick up.
  • TPG +7.9% better results.
  • RRL +3.3% Investor presentation.
  • AT4 +10.1% back in the green.
  • MKR +12.5% gold production at Wonawinta.
  • ZIP -15.7% shorts back in control for now.
  • DGT -9.3% results.
  • ING -7.2% chickened out.
  • PME -7.0% profit taking.
  • CHC -6.3% results.
  • MTM -6.5% sell off continues.
  • IPO Dud of the Day – SCX – 16.7% Could have been worse.
  • Yesterday’s Hero: MAF -3.7%
  • Speculative Stock of the Day: P1E +38.7% strong gas shows in Venus 2H.

ECONOMIC AND OTHER NEWS

  • China is doubling down on a program that’s tapping fiscal resources to drive borrowing by businesses and consumers, with new measures set for launch in the rest of the year.
  • GQG Partners chief investment officer Rajiv Jain has surprised the market after revealing an aggressive pivot into semiconductor stocks over the past month despite his previous warnings.
  • The UK Premier League kicks off today.
  • UK Consumer Confidence Climbs to Two-Year High, GfK Survey Shows.
  • US risks Chinese push back in attempts to kill Iranian economy.
  • Treasury Secretary Scott Bessent said that he’s prepared to expand efforts to buy back costlier debt and that the administration will be unveiling a new fiscal initiative to address the highest borrowing costs in years.
  • JD Vance said that apply economic pressure to Iran was a “delicate dance”, but also that over the last couple of weeks “they felt a lot more pressure than we have.”
  • HSBC spends $68mn on biggest cull of senior bankers since financial crisis.
  • Japanese inflation rises as central bank weighs rate increase.
  • Grain prices are soaring. More inflation on the way.
  • Quant funds rocked as Treasury boosts buybacks and Moderna shares leap.

And finally….have a good weekend…

Clarence

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