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.
Traders stay on sideline ahead of October rates call
It was relatively quiet on the ASX on Monday with traders eyeing the Reserve Bank of Australia’s latest interest-rate decision, to be announced today (and a public holiday in most states dampening activity further). The market slipped close to three-month lows with the benchmark S&P/ASX 200 index down 15.4 points, or 0.2 per cent, at the close to 7033.2, and the broader All Ordinaries index also off 0.2 per cent, in its case 14.2 points, to 7,235.5.
It’s the first cash-rate decision under new RBA governor Michele Bullock, and the consensus view of economists is that the RBA will keep the official rate where it is, for the fourth consecutive month.
Among the big banks, National Australia Bank retreated 11 cents, or 0.4 per cent, to $28.96; Westpac eased 2 cents to $21.13; ANZ lost 17 cents, or 0.7 per cent, to $25.49
Commonwealth Bank gave up 12 cents to $99.85.
Biotech leader CSL walked back $4.44, or 1.8 per cent, to $246.36, part of general weakness in the healthcare sector, which was weighed down by a decline in global sleep breathing device heavyweight ResMed, which fell 67 cents, or 2.8 per cent, to $22.93 after its shares were downgraded by influential analyst Wolfe Research.
Consumer staples stocks – considered sensitive to interest-rate changes – were also under pressure, led by Woolworths, which fell 45 cents, or 1.2 per cent, to $36.87, and Coles, which slid 9 cents, or 0.6 per cent, to $15.47.
On the bulk mining front, BHP gained 35 cents, or 0.8 per cent, to $44.60; Rio Tinto lifted $1.29, or 1.1 per cent, to $114.84; and Fortescue Metals appreciated 14 cents, or 0.7 per cent, to $21.06.
In energy, Woodside Energy lost 24 cents, or 0.7 per cent, to $36.25; Santos eased 3 cents, or 0.4 per cent, to $7.87; and Brazilian-based producer Karoon Energy advanced 6 cents, or 2.3 per cent, to $2.70.
Shine comes off coal
Coal shipments fell more than 20 per cent in August, recording their lowest monthly level out of the Port of Newcastle, the world’s busiest coal export terminal, in at least five years. Australia is on track for total coal exports to be about 2 per cent lower in 2023, compared to 2022.
In stock news, US/Australian thermal and metallurgical producer Coronado sank 8.5 cents, or 4.4 per cent, to $1.86 after revising its full-year production guidance lower following disruptions at its Buchanan mine in Virginia, US.
Elsewhere in coal, Whitehaven Coal gained 8 cents, or 1.1 per cent, to $7.19; New Hope Corporation added 6 cents, or 1 per cent, to $6.41; Yancoal Australia lifted 6 cents, or 1.2 per cent; and Stanmore Resources gained 5 cents, or 1.4 per cent, to $3.75.
In lithium, Allkem slipped 5 cents, or 0.4 per cent, to $11.71, while fellow producer Pilbara Minerals retreated 9 cents, or 2.1 per cent, to $4.21. IGO, which mines nickel as well as lithium, rose 7 cents, or 0.6 per cent, to $12.73; and Mineral Resources, which produces iron ore and lithium, slid 10 cents, or 0.2 per cent, to $67.53.
Lithium project developer Core Lithium surged 2.5 cents, or 6.2 per cent, to 43 cents, while US-based Piedmont Lithium jumped 3.5 cents, or 5.7 per cent, to 65.5 cents.
Graphite producer Syrah Resources advanced 4 cents, or 7.8 per cent, to 55 cents, after flagging improved demand for graphite from its Balama project in Mozambique in the most recent quarter.
In industrials, communications platform Symbio surged 39 cents, or 14.8 per cent, to $3.03 after Aussie Broadband made a $3.15 takeover bid late on Friday. In the wake of that news, telco Superloop allowed its own bid for Symbio to lapse, and saw a gain of 0.5 cents, or 0.8 per cent, to 67 cents on Monday. Aussie Broadband eased 3 cents, or 0.7 per cent, to $4.08.
Bond yields near 16-year high
In the US, the 30-stock Dow Jones Industrial Average declined 74.15 points, or 0.2 per cent, to 33,433.35, while the broader S&P 500 index inched 0.3 of a point higher to 4,288.39 and the tech-heavy Nasdaq Composite index gained 88.45 points, or 0.7 per cent, to close at 13,307.77, marking its fourth consecutive positive day.
But the bigger news in the US markets is in bonds, where yields continued their rise. The 10-year Treasury note yield rose 12 basis points to close at 4.69 per cent, approaching a 16-year high, while the 2-year yield added 7 basis points to 5.12 per cent, narrowing the two/ten curve inversion to 42 basis points.
In commodities, gold is down US$19.52, or 1.1 per cent, to US$1,828.97 a barrel; the global benchmark Brent crude oil grade is US$1.49, or 1.6 per cent, weaker at US$90.71 a barrel; and US West Texas Intermediate crude slipped 17 cents, or 0.2 per cent, to US$88.65 a barrel.
The Australian dollar is buying 63.65 US cents this morning, down from 64 cents at the weekend.
