Marcus Today Market Updates

End of Day – Tue 17 May

May 17, 2022 Marcus Today
Marcus Today Market Updates
End of Day – Tue 17 May
Show Notes Transcript
  •  The ASX 200 closed up 20 points to 7113 (0.3%) in cautious trade after RBA minutes sapped some buying. News that Shanghai is beginning to reopen was good for Asian markets and resources with BHP leading iron ore stocks higher up by 0.6%. FMG rallied 2.3% and lithium stocks back in demand with AKE up 5.5% and PLS rising 5.0%. Base metals were also good with S32 up 1.6% and IGO making a move 2.7% higher. Energy stocks in demand as oil prices remain elevated, STO up 2.0% and WPL up 2.0% with KAR up 3.7%. Banks were firm again as bond yields rose to 3.44%. The Big Bank Basket was up 1.1% at $186.67. CBA up 1.7% and NAB doing well up 0.5%. MQG bounced too today up 0.5% with insurers solid. Healthcare was in the casualty ward today with CSL down 1.2% leading RHC down 1.5% and RMD off 2.6%. Industrials were mixed and uninspiring, GMG fell 4.1% after some broker downgrades, ALL slipped 1.4%, SEK down 4.3% and REA off 4.5%. Defensives did ok with WOW and COL up. Tech was mixed with CPU up 1.6% and XRO off 1.6% with WTC down 1.7% with the All Tech Index down 1.4%. 
  • In corporate news, BXB slid 7.6% after CVC walked off into the sunset due to market volatility, OFX rose another 8.9% on a profit update, CRR ran 19.2% on some promising spodumeme shows. IHL rallied 11.0% on positive FDA meeting. 
  • In economic news, the lection continues to sap consumer confidence and RBA minutes showed the board toyed with a bigger 40bps rise in rates. Asian markets firmed with Japan up 0.4% and HK soaring 2.3% with China up 1.2%. Signs that the tech crackdown is over from Beijing. 


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SPEAKERS

Henry Jennings

 

Henry Jennings  00:00

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Henry Jennings  00:55

Get off afternoon and welcome to the markets today. End of Day report. My name is Henry Jennings, it is Tuesday 17th of may and for the day the index closed up a very modest 14 points or 0.02% to 6,945.3. We had an open today of 69 37.3, a high of 69 63.3 and a low of 69 31.3. We've got all the threes in this points today but a very narrow trading range in a very lacklustre session in some respects. But at least we had some stability and some firmness across the two major sectors. Of course, the banks and those resource stocks that we did see resource stocks doing relatively well today on the back of hopes that Shanghai is coming out of its a lockdown at least tentatively and we saw iron ore stocks doing a little bit better today. 

 

Henry Jennings  01:54

We had Fortescue up 2.3% Rio up 2.2% bhp at 0.6 of 8% and some of this optimism spread it over to mineral resources which had a 5.7% rise today. And lithium stocks back in the green up with alkem Up 5.5% Linus up 6.6% We saw IGR up 2.7 and Pilbara in the lithium space up 5%. So some good numbers across the board in those resource stocks gold's not doing very much despite gold price falling Newcrest up 0.5% Northern Star down 0.5% and energy stocks doing better today as we saw those oil prices continuing at higher levels Woodside up 2% Santos up 2% as well with some of the coal stocks doing well Whitehaven up another 5.9% Today hitting $5.20 So a good day all round in resource land a good day all round in bank land as well. 

 

Henry Jennings  03:00

The Big Four doing very well at 1.1% of the big bank basket up to 186 spots six, seven CBA at 1.7% leading the charge higher and NABS up half a percent Westpac and ANZ not doing very much at all but Macquarie bouncing nicely today about 0.5 of a percent and insurers doing better QB 8.6 and Suncorp up 1.1% But health care was a little bit of red on the screens today CSL and casualty, down 1.2% resume down 2.6% Fisher and Paykel down 1.6 and Ramsey healthcare down 1.5% But industrials, a little bit mixed GPG fell 4.1% after their reaffirmed guidance, but brokers not too impressed with that. That doesn't impress me much. And Marowak down 2.3% also old school platform stocks fell as well seek down 4.3% And Rei group down 4.5% today, and the other big industrial falling today, of course, was brambles down 7.6% as CVC said they were walking away from any bid for brambles least for the time being due to the volatility in the market. So not good news for brambles. Some stability in the defensive plays of woollies up 0.6 and Kohl's and endeavour doing well today Coles up half percent and endeavour at 1.8% as well 

 

Henry Jennings  04:35

In the tech sector, little bit mix CPU was at 1.6% computer share, but the likes of block the artist formerly known as square down 3.3% zero down 1.6 and wisetech down 1.7 with the old tech index falling at 1.4% today. In other corporate news Oh f x is having an absolute screamer. Have a run at the moment. It's been a very very solid performer and some solid numbers once again coming out of Oh FX, talk about no tech wreck for this one closing at $2.70 which is up from around $2.70 $2.40 At the beginning of the year, so pretty solid performance up 8.9% today and see are also having a good day on the corporate front, critical resources up 19.2% 178.7 cents and step one undies back up 38% higher today, eight cents only 29 cents for that one. So a bit of a bounce after yesterday's absolute trouncing around 45 cents to 21 bouncing back to 29 today as a few punters taking a little bit of a view on that one. 

 

Henry Jennings  05:56

And then economic news. Consumer confidence continues to be sapped on the election and RBA moves on interest rates and we didn't see the RBA minutes as well today showing the board toyed with a bigger 40 basis point rise in rates but decided against it was a saw Asian markets firming today with Japan up 0.4 Hong Kong, up 2.3 and China at 1.2 JP Morgan saying that Chinese Tech was actually a buyer now having any said as a couple of months ago that Chinese Tech was an investable. So there we go. That's what makes a market changing nines. 

 

Henry Jennings  06:36

And we are seeing the signs in Beijing that maybe the tech Crackdown is being a little bit over for the time being winners today in the winner's circle. We had the likes of ih l i can X healthcare. It had a positive FDA pre meeting guide for the eihl 42x development called lithium also doing well today six Oh 9.3% They had an update on the finished project. With the development they're going pretty well it looks like INR ionair doing well today up 9.3% o f x group was up 8.9% Today they had their results out today. Good results and certainly good updates to their business. So everything's going swimmingly at Oh FX which does foreign exchange transaction strike energy also doing well today STX up 6.9 Linus LIC 6.6 beach up 6.1 bpt and Red Five production kicking off at king of the hill up 6.1% today so some good news there from the market. 

 

Henry Jennings  07:55

In the losers corner today we had Australian strategic materials which was down 12.7% had a pretty good run at yesterday on that deal they did with strategic placement at $8.90. I think it was stock close to that $5.02 brambles or BX be 7.6% down on the back of a CVC walking off into the sunset as a result of market volatility, panoramic resources as well 5.7% down nickel very much under pressure at the moment but I have to say the nickel price is only coming back to where it should be Phineas Corp FRC l down 5.4% Jumbo interactive not doing so well they either down 4.7 g i n the stock code points back down 4.6% today and the notice today for state Street's ceasing to be to be a substantial shareholder RBA 4.5% down as well. 

 

Henry Jennings  08:58

Positive sectors today resources pretty much across the board with the exception of the gold sector oil and gas banks, negative sectors healthcare, old school platforms the likes of seeking raa I don't know how car sales went they were down nearly 2% as well. And we had tech off although CPU was slightly better at 1.6% We had a high of 6963 or lower 6931. So a tight range again. We seem to be waiting for Godot waiting for something anyway. Big Bank basket up 1.1% today to 180 6.67 the gold price has slipped to 2608 mainly on the back of the Ozzie dollar, which has rallied substantially on the back of those RBA minutes to 70 cents. Bitcoin steady at 30,316 US dollars a fun token and the US 10 year yields rather here rallying to 3.42% on Minutes Asian markets Japan up 0.6 China up 0.8 China up 1.2 rather in Hong Kong up 2.3%. There at the moment we have Nasdaq futures up at seven points and Dow futures up around 100 Odd points Stocks On The Move today. Well we've talked our FX results today good results 8.9% better. We had mineral resources also doing well 5.7% Better iron ore and lithium attracting buyers there. Barb's also doing well 16.2% better maybe the infant formula squeeze in the US is giving Bubs a bit of an opportunity certainly a to milk did absolutely nothing today up two cents, point four 8%. So nothing very exciting in a two minute but this is a big opportunity for both of these companies to push into the US market with their products. We did see G six M which is building a mine in King Island subject of an ABC mining programme that I highlighted a couple of or a week or so ago. And the stock has not looked back since that programme. It was around 17 or 20 Odd cents now it's trading at 26 and a half. So not doing too bad there G six M group six metals is the code there. Gal Galileo is down a little bit today down 7.6%. And then a little bit of profit taking creeping in there after the big big rise that we've seen in GALILEO following Mark Creasy taking an increase stake and that big, big discovery at Norseman well it looks like a big discovery anyway. Sizzle not doing well today is the sizzle definitely leaving leaving sizzle. Down 8.7% They're now trading at 63 cents.

 

Henry Jennings  12:01

Hard to believe a one stage they were nearly $10 Now 63 cents as Zed l should be our IP and we did see today Magellan falling of 4.4% today and they were down on the back of nothing really but there was some press in the AFR today talking about how some stability was returning to Magellan and the funds and the money coming in and coming out but hasn't helped the share price zip down 3.2% Today, speculative stock of the day is a stock called have a lot resources ha V the stock code there 9.2 million odd shares traded today up at 4.85% oz minerals o said l has acquired an option to acquire the Cal Kuru copper project in South Australia. 

 

Henry Jennings  12:59

In the news today not huge amounts around a little bit of interest. James Hardy had their q4 adjusted net income of 177.5 million US versus consensus of 180 4 million. The stock dropped three and a half percent on the back of that declared interim dividend of 30 cents US and James Hardy is pushing through another round of price rises in his big North American business on June the 20th. This will take total price increases and the last two price rises to 9%. And we have seen have a lot HIV as we said they signed a project they signed a binding term sheet to sell the Cal Carew Gold Cup of Gold Project for 205 million bucks. IGR has won support for his wsa that's western areas bid from a high profile proxy advisors still below the independent target range, but 387 Looks like it's gonna get it and Pilbara minerals with his project partner calyx has been awarded a $20 million grant from the Australian government under the modern manufacturing initiative Kalex Ivan on the 4.2%. Today they won a similar grant yesterday for $30 million with their project partner baarle. 

 

Henry Jennings  14:14

And OFX has forecast net operating income or NOI for financial year 2023 of 200 million to 212 and underlying EBIT of 55 to 60 million. In economic news consumer confidence dropped 1.3% last week to its lowest level since mid August 2020 those dark days of COVID. So we also saw the RBA minutes revealing a 40 basis point hike was considered three options were muted. Rather than meeting 15 basis points, 25 basis points or 40 basis points. The RBA concluded the 25 basis point move would signal a return to a more typical policy setting. JP Morgan said the minutes at Wait, the expectations are more 25 basis point hikes and a and Zed has cut its outlook for housing price growth, growth reversing optimism and showed earlier this year. Saying faster than expected rate rises will lead to dwelling prices falling by 3%. This year and a further 8% Next year.

 

Henry Jennings  15:19

In Asia markets. Japan is starting to open up its economy to small groups of tourists and Thailand cutting edge GDP estimates and we are seeing Shanghai taking tentative steps to reopen but elsewhere in the northern port city at 10 tinjauan. A new flower has emerged. And that is proving a bit of a problem. There's 14 million people live in tinjauan. And they have detected 28 infections during a mass testing drive. They don't bother it seems to actually get people vaccinated in China they just test them and then they lock them up. 

 

Henry Jennings  15:57

In European headlines today, European stocks expected to open higher on Tuesday. Today, we are seeing some optimism burst forth in Europe, UK unemployment figures for March also during the second estimate of the euro area growth rate for the first quarter. We also saw some European or some UK average weekly average earnings figures coming out which were quite bullish if you're employed in the UK, but 7% not particularly good. If you're looking to fight inflation. And Warren Buffett bought a $3 billion stake in value hunting stocks splurge in City and we are seeing the FDA trying to relax import rules for baby formula that boost supplies, and Jeff Bezos is picking a fight on Twitter, with President Biden over his handling of the inflation issue. 

 

Henry Jennings  16:49

That's it for me today. Thanks very much for listening. Don't forget on Friday, we have an ask the analyst session 530 You can sign up for that. And that's your chance to ask me anything you'd like on any stock you like or what I think of the market or anything really, in general, always love to have your questions on that. So as always a bit of fun. It goes for about an hour. And of course there was a recording afterwards. So you can always watch it if you can't make it on Friday at 530. But otherwise, settle back with a glass of wine, your best friends on the couch and listen to the session. That's it for me today. Have a great evening.