ASX 200 rallies 83 points to 5898 (1.4%) on EOFY rally. Australian Market Wrap. Headlines, Stocks, Bonds, Economic & Asian Market News

 

The ASX 200 rallies hard up 83 points to 5898 (+1.4%) as the positive vibe from US and EOFY window dressing helped.

Dow Futures up points. Banks were a big factor again today as the Big Bank Basket rose to $124.23 with CBA up 1.2% and WBC up 0.9%. Other financials also did well with MQG up 1.9% and MFG up 4.8%. AEF remained neglected after its recent run with the stock dropping 1.0%. Insurers did well with QBE up 1.0% and MPL up 1.4%.

Healthcare was mainly feeling better with FPH up 3.7% continuing the strength post results, CSL though remain under a cloud falling 0.9%.

In the miners despite iron ore falls, BHP managed a 1.2% rally together with FMG up 0.7%. Gold miners also had a good day although Macquarie is forecasting peak gold earnings, NCM up 0.4% and EVN up 1.8%.

Energy stocks had a tiger put in their tank with WPL up 5.2% and STO up 4.9%. The worse performing sector this year well at least one of them saw end of year buying.

Tech stocks were better but not across the board, once again APT rose 7.2% and even CPU up 2.9% though some of the previous IT stocks fared worse, TNE up 0.1%, DTL down 1.9% and DDR up 0.4%.

The All Tech Index rose 2.5%. REITs went nowhere with some distributions today. Infrastructure stocks rallied with TCL up 2.8% and AIA up 5.1% together with some rallies in travel stocks. WEB up 3.7% and QAN up 4.4%. QLD opens to all but Victoria in mid-July helping sentiment as ALG rose 11.4%.

In company news, WTC dropped 2.2% after founder and largest shareholder Richard Wise sold a morsel of stock leaving him with only 151m shares, CKF rose 12.7% after some finger lickin’ results and TPM changed its code to a far better one of TPG and went ex-everything rising 5.4%.

On the economic front consumer confidence dropped as CV19 outbreaks continue and “the 10-year bond yield at 0.87% and the AUD becalmed at 68.68c. In Asian markets, Japan rose 1.4% and China up 1.3%.

Today’s Highlights

  • ASX 200 rallies 83 points to 5898 (1.4%) on EOFY rally.
  • High 5955 Low 5834. Average volume.
  • Big Bank Basket rallies hard to $123.04
  • All Tech Index up 2.5%
  • 87 trading days until the US election.
  • Dow Futures up 50 points.
  • 10-year bond yields steady at 0.87%
  • AUD steady at 68.68c
  • Aussie gold steady at $2576.
  • Bitcoin steady at US$9142
  • In Asian markets, Japan rose 1.4% and China up 1.3%.

STOCKS

  • CKF +12.68% good results.
  • BKW +6.31% JV gets long term Amazon lease.
  • APT +7.19% good EOFY push.
  • JIN -3.23% broker downgrades on TAH deal.
  • AEF -1.04% still sellers as expensive.
  • OBM -11.48% completes Davyhurst DFS.
  • AEI +9.38% CV19 outbreak boosts outlook.
  • BYE +7.69% Bell Potter recommendations.
  • TPG +5.45% ex-dividend ex-bonus. New code. New world.
  • PDL +5.85% top pick from Bell Potter.
  • Speculative Stock of the Day: Etherstack (ESK) +1358.33%. WOW just WOW. The company soared today on heavy volume after signing a deal with Samsung to deliver Mission Critical Push to Talk (MCPTT) over its LTE solutions for digital carriers. ESK is the world’s leading licensor of wireless technologies for the LMR industry and the Company develops wireless products for the main digital radio communications standards known as APCO P25, TETRA and DMR.
  • Biggest Rises: CKF, NWH, APT, PRU, PGH, DHG and BKW.
  • Biggest Falls: GNE, SKC, ABP, JIN, ARF, WGX and WPR.

TODAY

  • Collins Foods (CKF) +12.68% Full-year underlying NPAT $47.3m vs consensus $40.3m. Revenue $981.7m vs consensus $962.4m. Underlying EBITDA $120.6m vs consensus $130.7m. Final dividend 10.5c, fully franked. All brands have recovered after the initial COVID-19 impact, led by KFC Australia which achieved double-digit growth for the first seven weeks of FY21. KFC Europe trends improving as restrictions have eased, though still below prior-year levels. Recent Taco Bell sales gradually returning to pre COVID-19 levels. Sizzler showing steady improvement from a low base after a significant initial impact.
  • Virgin Australia (VAH) – Administrators do not expect there will be sufficient recoveries to repay creditors in full. No likelihood that shareholders will receive any distribution for their shares.
  • Sealink Travel Group (SLK) -0.67% Appoints deputy Chair Jeffrey Ellison to act as Chair.
  • Aurizon (AZJ) +2.07% Appoints George Lippiatt as CFO. Lippiatt has been acting in the role since March this year.
  • Ampol (ALD) +4.01% Reportedly open to consolidation amid a tough outlook for the refining industry. CEO Matthew Halliday in a recent interview said that margins will need to improve before Lytton can be reopened, noting that it comes down to the economic analysis as conditions remain challenging.
  • Paladin Energy (PDN) +6.38% Calculates the Langer Heinrich mine in Namibia can be brought back into production for $81m. Assesses a low restart capital intensity of US$14/lb and competitive C1 cost of production of US$27/lb. The restart plan has confirmed a 17-year mine life for with peak production of 5.9Mlb U3O8 per annum for 7 years.
  • Freedom Food Group (FNP) – ASIC will not take any enforcement action following its investigation. MD & CEO Rory  Macleod resigns.

ECONOMIC NEWS

  • ANZ-Roy Morgan Consumer Confidence fell 4.6% last week with all sub-indices lower. Rising case numbers in Victoria the likely culprit for the dent in sentiment. Concerns about tighter restrictions and the impact of a second wave on the economy coming into focus.
  • The total number of payroll jobs increased 0.2% in the first week of June and did not rise in the second week of the month.
  • Payroll jobs are still 6.4% below mid-March, when Australia recorded its 100th confirmed case of COVID-19. Since mid-May, employment is 1% higher, according to the ABS data.
  • RBA’s Guy Debelle has warned that business and households will need support for quite some time.
  • ASX has pushed back its plans for its blockchain technology to April 2022, a year later than initially forecast.

COVID-19 NEWS

  • Victoria had 64 coronavirus cases in the past 24 hours.
  • Mexico reported 3,805 new confirmed cases of Covid-19, bringing the total to 220,657, the lowest daily increase in confirmed cases since June 15th.
  • Arizona will pause operations of bars, gyms, movie theatres and water parks tonight with hopes for reopening in 30 days.
  • LA County has seen a big increase in cases, the seven-day average rate of positive tests has jumped to 8.4% from 4.6% in late May.
  • Texas posted a 2.9% increase in new cases, which pushed the cumulative total to 153,011. 15% of people in ICUs are in their 20s and 30s.
  • Casinos in Las Vegas are being sued by labour unions for failing to provide a safe working environment.
  • Tedros Adhanom Ghebreyesus has said the ‘worst is yet to come’ at a WHO briefing in Geneva.

BONDS

ASIAN NEWS

  • China has approved HK security laws.
  • India has banned TikTok in a reprisal against Chinese tech firms on security grounds. 58 other apps fall into same banned bin.
  • Singapore elections kick off with PMs brother not running after all.
  • The Chinese military has approved the use of a vaccine for its military.
  • More HK protests to kick off against China clampdown.

EUROPEAN NEWS

  • Boris has told Brit they are ‘too fat and must lose weight’. In comparison to their EU counterparts the UK is significantly fatter than most. Harsh, Boris, harsh.
  • Gilead is charging government health systems US$2340 for its remdesivir CV treatment.
  • US has revoked HK special status. No more arms sales.
  • Goldman to maintain dividends despite Fed getting grumpy with banks.
  • USA off the safe travel list to EU. Nor unsurprising.

And finally….thanks Matt.. A dung beetle walking into bar and asks bar tender. Is this stool taken.

What’s a clairvoyant dwarf running from the cops called. A short medium at large.

I nearly became a doctor !! When I was young I decided I wanted to be a doctor so I took the entrance exam to go to medical school. One of the questions asked us to rearrange the letters PNEIS into the name of an important human body part which is most useful when erect. Those who answered SPINE are doctors today, the rest of us are sending jokes.

Clarence

XXXX

mt_tryforfree
Financial Markets and Political Commentary
 

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About the author

Henry Jennings Contact: henryjennings@mac.com // @henryj007 Has been involved in Investment Banking and Stockbroking since the early 1980's. Stockbroker - Camerons Stockbroking Macquarie Bank - Equity Capital markets Macquarie Group - Divisional Director