ASX 200 rallied hard today as it crashed through the 6000 barrier. Australian Market Wrap. Headlines, Stocks, Bonds, Economic & Asian Market News

 

The ASX 200 rallied hard today as it crashed through the 6000 barrier, to end up 98 points at 6033 (1.7%).

Dow futures up 100 points. All sectors on the market are moving hard led by the banks with the Big Bank Basket up to $127.87 with CBA up 1.75%. Other financials also doing well except AEF down 2.8% with MFG up 4.3% and MQG up 1.0%.

Insurers too better with QBE up 6.1%.

Miners positive but lagging a little, BHP up 0.5% and FMG up 2.0%. Gold miners eased with EVN down 0.3%.

Tech stocks though were the stand outs, APT hit a record on a broker upgrade from Citi rising 9.5%, TPW up 17.9% after its capital raising, JIN bounced back up 11.5% and DDR rose 9.0% on a trading update. WTC rose 6.2% and OCL up 12.5% some of the highlights.

The All Tech Index was a standout as the rush to tech continues up 3.1%. Bit like a JB HiFi half-price sale. Healthcare looks rosy with CSL up 1.9% and industrials doing well with TCL up 1.7% and TLS up 1.6%. In corporate news, KMD up 9.3%, expects FY20 adjusted EBITDA above $70m. NHF rallied 4.5% after responding to APRA’s updated capital and reporting guidance.

On the economic front, Australia’s trade surplus increased to $8.03bn in May, below market consensus of a $9bn surplus. The 10-year yield steady at 0.92% with the AUD better at 69.30c. Asian markets firmed despite more trouble in little China with Japan up 0.1% and China up 1.2%

Today’s Highlights

  • ASX 200 sprints 98 points to 6033 (1.7%) as new money floods in.
  • High 6035 Low 5942. Average volume.
  • Big Bank Basket rallies hard to $127.87
  • All Tech Index up 3.1%
  • 85 trading days until the US election.
  • Dow Futures up 100 points. Jobs data tonight. Holiday tomorrow.
  • 10-year bond yields rise to 0.92%
  • AUD firms to 69.22c
  • Aussie gold slips to $2550.
  • Bitcoin steady at US$9243
  • In Asian markets positive, Japan up 0.12% and China up 1.5% with HK even up 1.6% despite continuing protests.

STOCKS

  • TPW +17.91% capital raise proves very popular.
  • KMD +9.30% good sales update. Everybody gone surfing.
  • JIN +11.46% bounced nicely off 950c.
  • DDR +9.00% positive update.
  • APT +9.51% Citi upgrades to $64 PT.
  • BRN +27.91% Akida wafer fabrication.
  • RUL -5.66% software sales TCV and ARR FY 20 update
  • LOV +5.53% feeling it today. Was oversold.
  • 360 +14.68% membership launch.
  • BGL -4.85% gold weighs.
  • MLX +9.64% copper asset review.
  • WEB -%2.80% holds out begging bowl again.
  • WOW +0.76% Balmain workers test positive.
  • ESK +19.62% ATH -63.03% more speeding tickets than a long weekend.
  • Speculative Stock of the Day: Dorsavi (DVL) +276.92% todays mega riser. The company has signed as a strategic partner of QBE with its wearable sensor technology and data insights. Clearly the market thinks it’s a big deal. Didn’t sound that great but at a tiny market cap and limited revenue every little helps.
  • Biggest Rises: TPW, OCL, JIN, PPH, APT, KMD, DDR, HUB and WTC.
  • Biggest Falls: ZIM, PRN, BGL, NWH, IFM, SHV and OML.

TODAY

  • Kathmandu (KMD) +9.30% Expects FY20 adjusted EBITDA above $70m. Gross margin expected to be at the lower end of the 61-63% target range. Same-store sales for the 6 weeks from May 18 to June 28 are up 12.5% for Kathmandu and up 21% for Rip Curl. Cautioned that “there remains significant downside risk over future economic conditions, following the conclusion of Government assistance packages, further COVID-19 outbreaks as recently observed in Melbourne, and the impact of lower foot-traffic…”
  • nib Group (NHF) +4.54% Responds to APRA’s updated capital and reporting guidance. Confirms its capital position remains well ahead of regulatory requirements and internal targets. NHF said its FY20 full-year dividend would be considered by the board once the end of year position was finalised.
  • IRESS (IRE) +1.38% Increases SPP from $20m to $25m due to demand, priced at $1042c/share.
  • Home Consortium (HMC)+1.33% Completes placement of 48.6m stapled securities at 288c.
  • SRG Global (SRG) +28.95% Guides FY20 Underlying EBITDA between $20-21m. H1 dividend of 0.5cps brought forward to July 30. FY21 EBITDA growth expected to be up 50% vs year ago. Notes significant liquidity with available funds of $73m, with net debt reduced in 2H to $8m. To take a ~$5m provision related to COVID-19. Work in Hand of $707m and an opportunity pipeline of $6.2bn.
  • Temple & Webster Group (TPW) +17.91% Completes $40m placement at 570c/share. The placement was significantly oversubscribed with strong demand from domestic and international institutions, including both existing shareholders and new investors.

ECONOMIC NEWS

  • Our trade surplus increased to $8.03bn in May from a downwardly revised $7.83bn in April, below market consensus of a $9bn surplus.
  • About 480,000 mostly younger Australian workers have drained their super accounts accounts after the government allowed early access to superfunds.

COVID-19 NEWS

  • Manhattan home sales fell the most on record in the second quarter. U.S. daily cases rose above 50,000 for the first time ever on the first day of July.
  • Mexico’s Covid-19 deaths rose by 741 to reach 28,510.
  • Tokyo found more than 100 new cases of coronavirus on Thursday.
  • Brazil delayed this year’s municipal elections as cases rose again.

BONDS

ASIAN NEWS

  • China’s PBoC is slowing down the pace of monetary easing, Governor Yi Gang has told markets to start thinking about an “exit” from the looser financial policies seen earlier this year.
  • UK set to outline plans to allow a pathway for 3m HK citizens to UK citiizenship.

EUROPEAN NEWS

  • European markets set to open firmer as Asian markets show the way.
  • Merkel says there have been limited progress made on Brexit talks.
  • Police has raided the HQ of Wirecard in Germany. CFO and product officer now under investigation.
  • Trump has said masks are good.
  • Fed’s Bullard says risk of financial crisis ‘still remains’.
  • Irish Finance Minister warns EU not to go it alone on a digital tax.
  • Tesla is now the most valuable car company in the world.
  • US Senator prepares bill to ban Chinese companies from accessing US capital markets.
  • Ronald no longer allows you to eat in in the US. Apple closing stores too.

And finally……………….my thanks to my mate Stephen Holland for these gems..

To err is human. To arrgh is pirate.

Just reading about a company that’s producing soft furnishings with the Angel of Death pictured on them. There’s bound to be Reaper Cushions.

On the eve of the return of the English Premier League, a fascinating story from the Liverpool FC archives. Back in the 1960s Liverpool FC approached the actor Yul Brynner to advertise a brand of aftershave for them, but he turned them down – because as we all know,
Yul never wore cologne.

I wanted to swim with dolphins so I rang Sea World. They said they would record the telephone conversation for training porpoises.

Today I’m launching a campaign to ban all cookware from kitchens. Let’s see how this pans out..

When I was young I fell down a toilet. To this day I still have flushbacks.

Clarence

XXX

mt_tryforfree
Financial Markets and Political Commentary