Roy Keenan from Yarra Capital Management shares insights with James Dunn from The Inside Network on the role of active management. The Inside Adviser
After the Hayne Royal Commission many advisers decided to steer away from large dealer groups in favour of becoming self-licensed. In the last six months, however, that trend has taken an abrupt turn.
Market up ahead of Inflation Day
The Australian share market bounced back from four straight days of losses on Tuesday, as investors prepare for a crucial inflation figure. The benchmark S&P/ASX200 index finished up 39.5 points, or 0.6 per cent, to 7,084.2, while the broader All Ordinaries rose 35.9 points, or 0.5per cent, to 7,300.
The market is awaiting today’s consumer price index data release, which could influence what the Reserve Bank does on interest rates at its next board meeting, on July 4. Economists feel that a CPI figure above 6.5 per cent would probably see the RBA lift interest rates again.
A stronger Chinese outlook helped the firming iron price, which has put on 16 per cent. over the last month. On the back of that, BHP gained 66 cents, or 1.5 per cent, to $45.11; Rio Tinto advanced $1.90, or 1.7 per cent, to $114.64; and Fortescue Metals rose 61 cents, or 2.9 per cent, to $21.95. Copper leader Sandfire Resources lost 5 cents, or 0.8 per cent, to $5.88, while rare earths producer Lynas Rare Earths added 6 cents, or 0.9 per cent, to $7.04.
In the lithium space, producer Allkem gained 19 cents, or 1.2 per cent, to $15.90; IGO, which mines nickel and lithium, strengthened 18 cents, or 1.2 per cent, to $14.85; and Mineral Resources, which produces iron ore as well as lithium, rebounded $1.36, or, 2 per cent, to $70.78. Battery minerals company Cobalt Blue surged 2 cents, or 8.5 per cent, to 25.5 cents after announcing a co-operation agreement with Canadian mining giant Hudbay Minerals.
In coal, Whitehaven Coal added 1 cent to $6.57; New Hope Corporation lost 13 cents, or 2.7 per cent, to $4.76; Yancoal Australia eased 2 cents, or 0.4 per cent, to $4.40; and Terracom lifted 2 cents, or 4.9 per cent, to 42.5 cents.
In energy, Woodside Energy jumped 19 cents, or 0.6 per cent, to $33.96; Beach Energy softened 1.5 cents, or 1.1 per cent, to $1.315; and West African-based project developer FAR advanced 1.5 cents, or 1.8 per cent, to 83 cents. Gas producer Tamboran Resources gave up 2 cents, or 9.8 per cent, to 18.5 cents, after finalising a $71 million capital raising to support drilling in the Beetaloo Basin in the Northern Territory.
Finger-lickin’ good news for Collins Foods
On the industrial screens, the highlight was Collins Foods spiking $1.39, or 17.7 per cent, to $9.25 after its KFC Australia brand passed $1 billion in full-year sales for the first time.
Collins Foods operates or franchises KFC, Sizzler and Taco Bell in Australia, Germany, the Netherlands, Thailand and Japan.
Tech stocks, however, were mostly lower, with the sub-index down 0.6 per cent, led by semi-conductor company Weebit Nano slumping $1.24, or 17.9 per cent, to $5.70, as independent director Fred Bart announced his resignation from the role.
The big four banks all rose, with Commonwealth Bank up 50 cents, or 0.5 per cent, to $98.43; Westpac gaining 33 cents, or 1.6 per cent, to $21.01; ANZ climbed 35 cents, or 1.5 per cent, to $23.12; and National Australia Bank moved 18 cents, or 0.7 per cent higher, to $25.75. “Mini-major” Bendigo Bank added 3 cents, or 0.4 per cent, to $8.37, while global investment bank and wealth manager Macquarie Group was up $1.35, or 0.8 per cent, to $174.00.
Biotech CSL lost 95 cents, or 0.3 per cent, to $279.05, and insurer Medibank Private retreated 14 cents, or 3.9 per cent, to $3.44, after banking regulator APRA hit it with fresh sanctions following a data breach in October 2022.
Magnificent Seven Ride Again
In the US, the tech-heavy Nasdaq Composite Index led the major gauges higher, powered the popular technology and artificial intelligence stocks such as Nvidia (up 12.4 per cent), Meta (up 8.6 per cent) and Microsoft (up 6 per cent). The trio are all part of the so-called “magnificent seven” stocks leading the tech charge in 2023, with the others being Tesla, Apple, Amazon and Alphabet. The Nasdaq gained 219.9 points, or 1.7 per cent, to 13,555.67; while the 30-stock Dow Jones Industrial Average rose for the first time in seven days, up 212.03 points, or 0.6 per cent, to 33,926.74, and the broader S&P 500 advanced 49.59 points, or 1.1 per cent, to 4,378.41.
On the bond market, the US 10-year yield gained 4.3 basis points, to 3.767 per cent, while the 2-year yield finished 21.9 basis points higher, at 4.887 per cent.
Gold eased US$7.48, or 0.4 per cent, to US$1,915,03 an ounce, while the global benchmark Brent crude oil grade shed US$1.92, or 2.6 per cent, to US$72.26, despite OPEC stating that “oil is irreplaceable for the foreseeable future,” with the cartel saying it expects demand to climb to 110 million barrels a day over the next 20 years, from about 102 million barrels a day at present. US West Texas Intermediate oil gained 20 cents, to US$67.90.
The Australian dollar is buying 66.82 US cents this morning, down from 67.11 cents at Tuesday’s ASX close.
BIS calls for more hikes. Stocks were down Monday on fears that interest rate hikes will stymie international markets, with the Bank for International Settlements (BIS), the umbrella body for the world’s central banks, calling for yet more raises. US Treasury yields were down and the Stoxx Europe 600 Index dropped for the sixth day in a row, its most protracted decline since October. OPEC has claimed that “oil is irreplaceable for the foreseeable future”, and said it expects demand to climb to 110 million barrels a day over the next 20 years. Lastly, smartphone shipments in China rose 22.6% in May, a significant jump on previous months and encouraging news for the nation’s floundering mobile industry.
