The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. US Government bonds are continuing to sell off at the same time that debt is snowballing - can't see this being sustainable.
2. Director of KMD Brands (KMD) just bought $114K worth...KMD shares (owner of Ripcurl & Kathmandu) have tanked 50% since the end of 2021...Value fund manager Allan Gray has also been buying....Whilst I have an AVOID rating on retailers - there could be a good trade in this one from here.
3. Star Group (SGR) is in a trading halt pending a $750 mil capital raise to fix it's busted balance sheet...Who knows - I may even remove my long held AVOID rating as this capital raising could even mark the final capitulation.
4. QANTAS dipped again after announcing plans they will be spending a heap of money upgrading services and warning of a big jump with its fuel bill. While the stock is better value after the 23% pullback, I am keeping my AVOID rating on it for the time being.
5. The world's two largest URANIUM miners have no free supply until at lease 2027....Any dips in URNM will be a BUY.
ASX Market Update
ASX 200 up 7 points to 7076
On Friday the Costa (CGC) board agreed to Paine Schwartz's low ball takeover bid of $3.20...Very disappointing outcome for shareholders who will be giving up a heap of value up to this Wall Street private equity firm....SWITCH TO AAC.
'Scheme Implementation' is the perfect term because they are a bunch of SCHEMERS!
Newmont's giant Penasquito SILVER mine in Mexico is still shut due to strike action which began in June.....BUY ETPMAG
The Day Ahead
- Our SPI is down 18 points
- Bitcoin down 0.9% to $26,332
Movements affecting our resource stocks today (USD)
- BHP in the US down 1.3%
- Newmont down 1.15%
- Gold down 0.56% to $1934
- Paper Silver down 1.99% to $23.37
- Platinum down 1.95% to $915
- Copper down 0.7% to $3.66
- Brent Crude FLAT @ $93.30
- Iron ore down 4.2% to $116.05
Asian Market Update
Japan up 0.85%, China off 0.54% and Hong Kong fell 1.8%
There were major outflows of SILVER (about 10%) from the Shanghai Futures Exchange last week.
After the day trading closing on Sep. 22, the Shanghai Futures Exchange issued the report of silver vaults. There is another significant outflow of 16380 kg of silver, leaving only 1216131 kg of inventory. The total outflow was 115.8T this week. https://t.co/dbBbebSXQ7 pic.twitter.com/FIIY35j4wh
— Bai Xiaojun (@oriental_ghost) September 22, 2023
Global Market Update
DOW FLAT @ 33,962 (half hour to go)
US government bonds were sold off yet again which pushed yields higher....The all important 10 year government bond hit the highest yield since 2007....The financial system is not going to be able to cope with BOND losses mounting on bank balance sheets.
Germans fell 0.98%, Brits off 0.78% and Frogs fell 0.85%
The inner commie/socialist is really starting to show with these EU leaders....Scary stuff as supply would dry up if something like this was to be mandated.
🔸FRENCH PRESIDENT EMMANUEL MACRON SAYS FRANCE TO ASK OIL INDUSTRY TO SELL FUELS AT COST
— *Walter Bloomberg (@DeItaone) September 24, 2023
Key Market Summary