The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. US inflation rate came in at 3% Vs 3.1% expected.
2. I can't believe that Incitec (IPL) is entertaining the idea of selling its unique fertilizer division. The fact that a number of parties are keen, surely demonstrates what a cracking long term business it is - so giving it up for a short term sugar hit (management collect big fat bonuses, shareholders get a special one off dividend) would be outrageous.....BUY last sale $2.92
3. Xi Man has given his IT sector the GREEN light after cracking down heavily back in 2020.....ASIA TECH TIGERS ETF stands to make a big recovery from here. BUY last sale $7.37
4. I am adding Kingsgate (KCN) to my BUY list : last sale $1.43...KCN will be back into full production next year at it's high grade, low cost Chatree GOLD mine in Thailand....There is a very, very good chance it gets taken over. See Random observation for more details.
5. KMD Brands (KMD) was the latest in a long line of retailers to report of a weaker consumer....I maintain my avoid on the sector.
ASX Market Update
ASX 200 up 26 points to 7135
KMD Brands (KMD) which owns Kathmandu and Ripcurl was one of the worst performers dropping 9% to close @ $0.88. Even though they are on track to deliver record sales it was the prospect of a weaker consumer that rattled investors....
- KCN has completely sorted it's long running dispute with the Thai Government.
- By next year they will be mining 110K ounces of GOLD per year at a cost of $US1,255.
- With it's low cost mine, KCN is cheap - market cap of just $380 million.
- GOLD M&A is going to continue at a rapid pace with KCN an obvious target.
The Day Ahead
- Our SPI is up 61 points.
- Bitcoin down 0.8% to $30,312
Movements affecting our resource stocks today (USD)
- BHP in the US up 3.3%
- Newmont up 4.39%
- Gold up 1.3% to $1963
- Paper Silver up 4.53% to $24.33
- Platinum up 2.79% to $958
- Copper up 2.3% to $3.85
- Brent Crude up 1% to $80.22
- Iron ore up 2.1% to $111.10
Asian Market Update
Japan down 0.81%, China off 0.78% and Hong Kong put on 1.08%
Xi man cracked down big time on the TECH sector back in 2020 as many players were getting too big for their boots - stocks crashed as a result.....Well it now looks like he is giving them the GREEN light.....ASIA TECH TIGERS ETF is a BUY last sale $7.37....I initially recommended this ETF way too early, so those of you with higher entry levels should consider averaging down.
Chinese tech giants rallied in HK, sending Hang Seng Tech Index up nearly 3% at one point, after state planner NDRC vowed to support platform companies to play a more active role in the economy.https://t.co/haGgRmRP6L https://t.co/ITv2H3nnME pic.twitter.com/bSDSjgyLS9
— YUAN TALKS (@YuanTalks) July 12, 2023
Global Market Update
DOW up 86 points to 34,347
Life changing gains are on the cards for those that are positioned correctly...well worth the risk to make sacrifices NOW by accumulating what you can.
Only people with WEALTH get to AVOID the GREAT RESET.
Better than expected #inflation data is crushing the dollar, sending the Dollar Index to its lowest level since April 2022. A major dollar collapse will send commodity & import prices soaring, pushing U.S. trade deficits to record highs, causing future #CPI gains to spike higher!
— Peter Schiff (@PeterSchiff) July 12, 2023
Germans up 1.47%, Brits added 1.83% and Frenchies put on 1.57%
European investors poured into stocks on the lower than expected inflation number out of the US.
Key Market Summary