ASX 200 rises despite tech falls; BHP, Infratil down; milder US inflation signals Sept rate cut; Tesla snaps winning streak in Nasdaq falls

CBA's new intraday record: $131.70. Glencore 'monitoring' WA nickel operations as Lynas, Alliance Aviation assess ripple impact of BHP suspension. ACCC sifts through Brookfield's $10bn Neoen play. Turmoil on board at Rex Airlines. Cettire jumps.

Rates and economic outlook commentary continues after US inflation eased substantially in June, clearing the way for a September rate cut. Picture: Nikki Short

Welcome to the Trading Day blog for Friday, July 12. The ASX 200 index closed 0.9 per cent higher to 7959.30 points with consumer discretionary and property stocks the strongest and only the tech sector in the red.

The Aussie dollar is trading around US67.62c at 5.05pm AEST.

Updates

4:59 pm July 12, 2024

ASX 200 ends up 0.9pc at record high

David Rogers

Australia's share market soared to a record high as most US stocks rose after lower than expected US inflation data, even as the S&P 500 fell on big tech losses.

The S&P/ASX 200 index closed up 70 points or 0.9 per cent at a record high daily and weekly close of 7959.3 points after an all-time high of 7989.

The index was rose 1.8 per cent for the week, scoring its best week in five.

All sectors except tech rose with property, discretionary, health care and financial outperforming. CBA rose 1.3 per cent to a record high close of $131.66 and exceeded BHP's market value for the first time on record. BHP slipped 0.4 per cent.

NAB rose 2.1 per cent to a nine-year high close of $36.95.

CSL rose 1.5 per cent, Newmont gained 2.8 per cent, Block rose 3.4 per cent, ReMed added 4.4 per cent and James Hardie and Charter Hall both rose 5.2 per cent.

The decisive break of the previous record high at 7910.5 triggers an Ascending Triangle pattern with a theoretical target near 8300.

US PPI data and reports from several US banks are due for release overnight.

Focus turns to China's third plenum meeting and Aussie jobs data next week.

4:06 pm July 12, 2024

New bitcoin ETF down on debut

Joseph Carbone

The new DigitalX bitcoin ETF which today debuted on the ASX is down 0.8 per cent to $18.80.

Run by mini-cap K2 Asset Management — which in late trading Friday was unchanged at 5c per share –, the ETF promises to invest in and hold bitcoin with a long eye for its holders.

It is the second bitcoin ETF to debut on the ASX after VanEck's debuted last month.

VanEck's bitcoin ETF was down 2 per cent to $17.19 before Friday close.

3:21 pm July 12, 2024

Altium shareholders vote in favour of $9bn takeover

Joseph Lam

An overwhelming 99.81 per cent of Altium shareholders have voted in favour of a $9bn takeover deal by Japanese Renesas Electronics.

The shareholder vote on Friday arrives several months after the deal was proposed in February and is set to deliver a major payday for several of the company's directors, including chief executive Aram Mirkazemi who is set to earn $652m from the deal.

Altium Chairman Sam Weiss thanked his fellow board members and Altium staff.

"Consistent with the recommendation of the Altium Board of Directors, our shareholders have acknowledged the value of the Renesas proposal and the underlying endorsement of our strategic direction," he said.

2:38 pm July 12, 2024

CBA exceeds BHP market value for first time

David Rogers

CBA exceeds BHP's market capitalisation for the first time on record.

CBA is now worth about $220.11bn. BHP is now worth about $219.57bn.

CBA hit a record high of $131.70 and BHP hit an eight-day low of $43.10 Friday.

CBA is up 1.2 per cent at $131.48. BHP is down 0.6 per cent at $43.315.

1:45 pm July 12, 2024 Highlight

Glencore closely monitoring Murrin Murrin nickel

David Rogers

Glencore is closely monitoring the nickel market and its Murrin Murrin operations in the context of structural change causing downward pressure on prices.

"The increasing volumes of alternative low cost nickel supply coming out of Asia has led to structural changes in the global nickel market and downward pressure on nickel prices," a Glencore spokesperson tells The Australian via email.

"We will continue to closely monitor the situation and our Murrin Murrin operations in the context of the current market environment."

It comes after BHP decided to suspend its Western Australia Nickel operations.

"Murrin Murrin has an extensive ore body which could support a very long mine life, however it is very dependent on not only market conditions but also input costs associated with energy, labour, logistical synergies and critical rail and port infrastructure access," Glencore's spokesperson says.

"Murrin Murrin Operations produces acid from sulphur imported via the Fremantle Ports Kwinana Bulk Cargo Terminal for our operations. We currently source small volumes from BHPs operations that supplement our own acid production."

Glencore and ASX-listed IGO Limited, which supplies BHP, are the last nickel producers left in Australia after a string of mine closures and thousands of job losses blamed on a glut of supply from Chinese-backed producers in Indonesia.

1:25 pm July 12, 2024

CBA historically benefits from rising A$: Citi

David Rogers

CBA continues to defy the bearish consensus among analysts, rising as much as 1.3 per cent to a fresh record high of $131.70 so far Friday.

With CBA hitting record highs and AUD/USD hitting six-month highs after lower than expected US CPI data it's interesting to note that CBA features in Citi's list of large ASX-listed stocks that have historically benefited the most from a rising AUD/USD.

"With the banks sector, historical performance has not been due to high USD exposure but our analysts offer the view that when the AUD rallies, money flows into Australia and the bank stocks due to their interest rate exposure," says Citi equity strategist Liz Dinh.

However, like most brokers, Citi has a Sell on CBA due to valuation concerns.

CBA was last up 1.2 per cent at $131.49.

1:20 pm July 12, 2024

Maggie Beer Holdings seeks new CEO

Valerina Changarathil

After just over a year at Maggie Beer Holdings, its chief executive and Goodman Fielder veteran Kinda Grange is ready to bid adieu to the business most investors associate with the popular cook and chef Maggie Beer.

Ms Grange, took on the CEO role in March 2023 after Chantale Millard, an eight-year veteran of MBH, quit in December 2022. That was after 18 years with Goodman Fielder, including her final position as joint managing director Australia.

MBH told investors on Friday Ms Grange has "indicated her intention to resign from the company to progress her career externally" and will assist in transitioning to a new CEO.

Despite the short tenure, Ms Grange will receive a one-time sign-on incentive of 1.75 million performance rights given she has met the vesting threshold date of February 28. She is however restrained for up to 12 months after her exit from being engaged in competition with the MBH and cannot solicit MBH employees or persuade people who do business with MBH to cease to do so for up to 12 months. Shares in the micro-cap last at 5.9c.

12:42 pm July 12, 2024

Alliance Aviation guidance implies strong FY25

David Rogers

Alliance Aviation has effectively provided FY25 flight hours guidance in its BHP Nickel West Operations update that was well above consensus, according to Pac Partners institutional equity sales trader, James Nicolaou.

“Alliance’s services for BHP Nickel West occupy two Fokker 100 aircraft, effectively full time, operating 3,140 flight hours per annum in aggregate," the company said.

"During FY24 those hours represented 3 per cent of total company flight hours and with the growth in other areas of the business forecast for FY25 hours would have fallen to 2.5 per cent of total flying hours.”

Backsolving this implies about 146,000 flight hours in FY25.

"This is 40 per cent growth on the previous corresponding period, or 15 per cent above consensus expectations of about 127,000 hours," Mr Nicolaou says.

AQZ shares last up 1.1 per cent at $3.115.

12:10 pm July 12, 2024 Highlight

Cettire's share price up 25pc

Valerina Changarathil

A fresh wave of optimism seems to be driving under-pressure luxury online retailer Cettire's 25 per cent jump so far on Friday.

Shares are near $1.77 at 12.15 pm AEST, days after the Dean Mintz-led group tapped investment banker Jon Gidney as a non-executive director, amid a tough operating climate and jump in short-selling interest in the stock.

The stock is still down 43 per cent on where it started 2024 as a result of earnings downgrades and queries about its ASX disclosures.

11:30 am July 12, 2024

ASX 200 rises 1pc to record high

David Rogers

Australia's share market continues to hit record highs after a strong open.

The Australian market has gone from strength to strength after most US stocks rose but the S&P 500 fell as tech giants dived amid a rotation to value stocks that will benefit more from US rate cuts as inflation cools.

The S&P/ASX 200 is up 78.6 points or 1 per cent at a record high of 7968.7.

All sectors except tech are up with the property, discretionary and health care sectors outperforming.

Lower than expected US CPI data reinforces US rate cut expectations with a September rate cut now 99 per cent priced and 57 bps of cuts priced by year end.