The ASX 200 pushed slightly higher, up only 4 points at 8,686 after hitting a high of 8,736 earlier in the day. Volumes were very light, given it was a holiday in most of Australia. The banking sector topped out early, with only modest moves. At the final countdown, CBA down 0.2%, and ANZ up 0.8%. MQG had a good day again, up 1.0%, but the rest of the financials were wishy-washy, with insurance slightly easier, led by QBE down 1.0%.
REITs again under some pressure as bond yields stayed stubbornly high, although GMG managed to rise 1.5%, but the rest were down around 1%. Meanwhile, industrials also slipped away today, with retail stocks under some pressure. WES down 1.0%, and JBH down 1.1%. TLS fell 0.4%, and both WOW and COL fell in a similar fashion. Healthcare stocks were better, led by CSL, which put on another 0.9% following a Swiss pharma acquisition, and PME also rose 1.8%. A mixed session in the tech space, with WTC down 2.1% and XRO down 2.3%, with CDA making gains again. In resources, BHP and RIO were slightly firmer, but the gold miners came off a little as bullion wavered after the non-farm payrolls numbers in the U.S. Lithium stocks tried hard to push ahead, whilst rare earths slipped, with LYC down 2.5%.
In corporate news today, all eyes on the book build for Firmus (AIF), as media reports that the 7 billion IPO has been covered and early backers are being rewarded with half the IPO allocation. SXE had a good day on a Macquarie research report, and MGH is also doing well with its exposure to Firmus. We also saw news out from INA allowing the private equity bidder to conduct due diligence.
Asian markets quiet with China closed for Golden Week. South Korea closed today too. Japan up strongly.
10-year yields steady at 5.34%.US Futures drifting lower. Nasdaq up 25 and Dow down 25.
- Winners: SXE, RXL, GNP, C79, A4N, A1M, MAH
- Losers: AYA, MOT, 4DX, HSN, GLS, LRV
- Positive Sectors:
- Negative Sectors:
- ASX 200 Hi 87361 Lo 8678. Quiet day.
- Big Bank Basket: Unchanged at $261.71.
- All-Tech Index: Down 0.5%
- Gold: Slips to $5956
- Bitcoin: Steady at US$86015
- 10-year yields: Steady at 5.34%
- AUD: Steady at 69.38c.
MARKET MOVERS
- SXE +9.7% Macquarie research.
- MAH +4.5% two-year extension to Daisy Milano
- RXL +5.9% final close and first drawdown.
- SLX +4.3% solid bounce.
- GNP +5.4% data centre builders.
- DXB +4.4% first patient reaches two year milestone.
- MYG +6.2% data centre play.
- MOT -7.4% reinstatement to listing.
- AYA -12.2% big move lower.
- 4DX -6.2% profit taking.
- OFX -5.0% continues to slip.
- Speculative Stock of the Day: Nothing on any volume.
ECONOMIC AND OTHER NEWS
- Copper has risen for the second session after the U.S. jobs report. It saw its biggest weekly loss since March on Friday, hit by data showing industrial weakness in China.
- The euro falls to a 17-month low on political risks in France and Spain.
- Trump has told South Korea to get on board its Alaska LNG deal, or he’ll just charge them more.
- Election is headed to a runoff, as a projection shows Bolsonaro leading narrowly.
- Estonia is moving some of its troops closer to Russia in what it calls an ‘active defence’ push.
- Schneider Electric is nearing a deal to buy software group PTC for US$20bn
And finally….
I was walking out of the pub last night and nearly got knocked over by a dozen blokes running frantically along the pavement. I said to them. “Why are you running so fast ?”They said “A Bengal tiger has escaped from the zoo”‘ .I said “.Which way is it going ?”They said does it look like we’re chasing it!
Clarence
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