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The Good Morning Report – 19th December

Posted on December 19, 2023

The latest market news, commentary and strategy by Adrian Rowney 

Today's Report proudly sponsored by:

 

*Doing your own research is not recommended.

5 Things that Grabbed my Attention

1. The major shipping companies have announced they are going to AVOID the red sea so will be taking the long way around....If the SUEZ CANAL is out of action for an extended period we will see all sorts of chaos in the global supply chain.

2. The New York Federal Reserve president said they aren't really talking about rate cuts....Talk about creating confusion in the markets - last week we were told the FED had pencilled in 3 cuts!

3. Santos (STO) has received approval to start drilling again at it's Barossa gas project; STO still needs production approvals which i think they will now get.  BUY

4. Adbri Limited (ABC) surged 31% after receiving a takeover bid from the major shareholder Barro Group who is partnering up with CRH.

5. The badly beaten up Link Administration (LNK) has agreed to be taken over by Mitsubishi UFJ Trust and Banking Corp for $2.26....The huge jump in volume and price on Friday was not suss at all - LOL!

ASX Market Update

ASX 200 down 16 points to 7426

Quite a bit of M&A action going on with Adbri (ABC), Link (LNK) and Pacific Smiles (PSQ) getting bid for.

I did have a BUY on ABC. In hindsight I should have really pushed harder when the stock was trading at bargain basement levels.

Here is a snippet from my report back on  October 22nd 2022 when ABC tanked to $1.43...Barro Group making a play definitely didn't come as a surprise for me.

Random Observation

Check out BONK coin - it has skyrocketed this month and now has a market value of US$1.4bn. It's white paper says maximum supply of BONKs be 100 trillion.

 

Humans have gone absolutely BONKERS buying a coin like this that is literally worth ZERO - NADA - ZILCH.  And the turnover yesterday was over $600mil....BONK'S market value is similar to that of Super Cheap Auto (SUL) which owns BCF, Rebel Sport and Super Cheap. So if it was listed on the ASX it would be in the top 200!....CLOWN WORLD

The Day Ahead

  • Our SPI is up 12 points
  • Bitcoin down 1% to $41,658
  • BHP in US up 0.59%
  • Newmont in US up 0.7%
  • Block Inc in US up 0.24%

Movements affecting our resource stocks today (USD)

  • Gold up 0.22% to $2040
  • Paper Silver down 0.24% to $24.09
  • Platinum FLAT @ $952
  • Copper down 1.1% to $3.84
  • Brent Crude up 2% to $78.06
  • Iron ore down 1% to $132.40

Asian Market Update

Japan down 0.64%, Hong Kong down 0.97% and China dipped 0.4%

Shipping stocks up - the industry would be licking their chops I bet!...If the SUEZ Canal is a no go zone, then  a stack of ships will be out at sea for longer, so availability will fall and prices will rise. BadaBoom!

Global Market Update

US Market

DOW FLAT @ 37,306

US market didn't give a stuff about the chaos in the red sea and also fobbed off talk from the NY FED President that rates are not headed south. The Volatility Index or the FEAR INDEX continues to trade at historically low levels which means traders don't have a care in the world!

European Markets

Germans off 0.6%, Brits added 0.5%, Frenchies fell 0.37%

BP shares added 1% in London - I'm surprised it didn't rally harder.

Key Market Summary

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