Iron ore miners BHP, Fortescue cheer record trade surplus
The ASX slipped by 0.4pc but was supported slightly by strength in Fortescue and BHP, while Rio told shareholders China was back to ‘business as usual’.
- Mining support no match for bank drag
- ‘Our order books are full’: Rio Tinto
- Perpetual not like pure play funds: Adams
- Broker lifts Afterpay target by 90pc
That’s all from the Trading Day blog for Thursday, May 7. The ASX fell for a second day, with losses led by energy stocks and the major banks as NAB unveiled a shake-up of its management.
Locally, Rio Tinto told its Australian shareholder meeting China was ‘back to business as usual’ while QBE told shareholders it would emerge stronger at the other side of the pandemic. On the economic front, the ABS reported a doubling of the trade surplus thanks to a jump in mineral exports, figures reinforced by China’s 5.4pc jump in iron ore imports.
US futures are pointing to gains of 1.2pc to come tonight.
David Rogers 8.46pm: Perpetual’s $10m early super call
Perpetual Investments said the wealth manager was able to process the “small” amount of early super withdrawals that have so far come in at below $10m.
Perpetual chief executive Rob Adams said the government’s estimates of about $30bn being paid out in total for early super withdrawal were in line with what he was seeing across the sector.
This is well short of the $50bn estimates initially being forecast by the industry super sector.
Max Maddison 7.59pm: Online shopping takes off
Mothers day gift buying has seen online spending skyrocket, as hundreds of thousands of Australians flock to digital stores for the first time.
Data from Australia Post has revealed the rapidly transformed retail landscape, as COVID-19 restrictions keep consumers out of bricks-and-mortar retailers and into uncharted cyberspace territory.
Compared with March last year, online spending has increased by more than a third to $3.2bn. But those figures appear poised to increase substantially, with 200,000 households shopping online for the first time in April, and online sales last week up 86 per cent year on year.
As more households became comfortable purchasing online, AusPost general manager Ben Franzi expected significant online sales growth to become the “new norm for ecommerce”.
“We’ve had an influx of consumers into the ecommerce market, with an additional one million households compared to last year. Much of the growth has been sustained for over five weeks,” Mr Franzi said.
Richard Gluyas 7.35pm: Banks get a year to assess changes
The prudential regulator has clarified that banks should not wait longer than a year to conduct a full serviceability assessment for customers who have changed their loan conditions.
“Where changes to loan conditions are made that result in an interest-only period being granted without a normal serviceability assessment, APRA expects that a reasonable period for such an arrangement would not exceed 12 months,” the regulator said, answering a number of frequently asked questions on its website.
APRA issued the guidance in relation to the expectations of its supervisors during the disruption caused by the COVID-19 pandemic.
Ben Wilmot 7.05pm: Goodman Group expands $55bn global empire
Logistics property giant Goodman Group is charging through the COVID-19 crisis, expanding its $55bn global empire as consumers switch to e-commerce while under lockdown.
The company said its developments were growing towards $5bn globally, and it is one of the few property companies to reaffirm its earnings and distribution guidance, as most others are weighed down by struggling shopping centres.
“Despite the challenging global environment, customer demand in the online, logistics, food, consumer goods and digital economy is supporting portfolio fundamentals and development activity,” chief executive Greg Goodman said.
Cliona O’Dowd 6.23pm: ‘Dodgy’ investment products warning
The corporate regulator has raised the alarm over dodgy advertising of fixed-term investment products, warning consumers to be wary of investments that claim to be similar to term deposits but which are, in reality, much higher up the risk curve.
The warning from ASIC comes after the regulator last month took legal action against investment house Mayfair 101, alleging that ads for its debenture products were misleading and deceptive.
ASIC on Thursday said it was closely monitoring advertising that compares fixed-term investment products to bank term deposits, and the entities promoting such products.
David Ross 6.05pm: Vodafone, TPG merger clears final hurdle
The Foreign Investment Review Board has given the OK to the merger of Vodafone and TPG removing one last hurdle to the deal between the two telco challengers.
Approval from the FIRB opens the way for a meeting for TPG shareholders to vote on the merger with the deal expected to be finalised and the new company listed on the ASX in the first half of 2020.
Vodafone CEO Inaki Berreota said the approval from the FIRB would see the union of the two companies now take place.
“The merger is now another significant step closer to reality, and we’re progressing our plans to bring the two companies together mid-year,” he said in a statement.
“Australia will soon have a third fully-integrated telecommunications company for the first time.”
“Using our increased strength and scale our priorities will be accelerating our 5G plans, delivering the benefit to consumers and investors, and challenging the status quo.”
The sign-off from the FIRB follows a tumultuous fight between Vodafone and TPG and the ACCC which saw the deal announced back in August 2018 put on hold.
The ACCC objected to the deal in 2019, with the decision then taken to the Federal Court which found in the telcos’ favour.
The ACCC then chose not to appeal the decision and allowed the merger to go ahead.
At the time ACCC chair Rod Sims said he was disappointed by the outcome which would close the door to increased competition in the mobile telco market.
“The future state of competition without a merger is uncertain. But we know that competition is lost when incumbents acquire innovative new competitors,” he said.
“Despite this outcome, we will continue to oppose mergers that we believe will substantially lessen competition, because it’s our job to protect competition to the benefit of Australian consumers,” Mr Sims said.
Shares in TPG closed down 1.77 per cent for the day, while shares in Hutchison Telecom, which operates the Vodafone brand in Australia closed up 7.143 per cent.
Eli Greenblat 5.05pm: FIRB clears Asahi’s $16bn CUB takeover
The Foreign Investment Review Board has approved Japan’s Asahi Beverages’ $16bn acquisition of Australia’s biggest brewer, Carlton & United Breweries, with the nation’s owner of some of the most popular brands in the country to change hands again.
Asahi said on Thursday afternoon that it welcomes the Foreign Investment Review Board’s approval of Asahi’s acquisition of CUB.
“This approval represents the conclusion of the regulatory review process and all of the regulatory conditions to closing the transaction have now been satisfied,’’ Asahi said in a statement.
Chairman Asahi Beverages, Peter Margin, said; “Both parties will move to complete this acquisition on 1 June, with CUB joining the Asahi Beverages family on that day. CUB will become a business division of the Asahi Beverages Regional Hub within Oceania, along with Asahi Lifestyle Beverages, Asahi Premium Beverages and Asahi Beverages New Zealand.”
The FIRB approval will mean that Australia’s two leading brewers, CUB and Lion, are now both owned by Japanese conglomerates with Kirin owning Lion.
Read more: Asahi offers to divest cider, beer brands to seal takeover
Nick Evans 5.01pm: ‘Our order books are full’: Rio Tinto
China is back to “business as usual”, according to Rio Tinto boss Jean Sebastien Jacques.
Speaking at Rio’s Australian annual shareholder meeting on Thursday, Mr Jacques said all of the company’s global operations remained in production, despite the impact of the coronavirus, and were “particularly valuable in the current volatile environment.”
Mr Jacques told Rio’s London annual shareholder meeting in April that “our iron ore order books are full”, flagging a return to normality for the company’s key customers, Chinese steel mills.
On Thursday, he said China was back to normal, with Rio’s teams in both Beijing and Shanghai having returned to work.
“We have also connected with our customers in China and it is reassuring to hear it is business as usual for them,” he said.
Read more: China ‘back in business’ says Rio boss
4.49pm: PolyNovo leads, Bingo lags
Banks were the key detractor in the local session – led by NAB as it unveiled a shake-up of its management. Shares in the bank finished lower by 2.2 per cent to $16.22.
Westpac slipped by 2.3 per cent to $15.60 while ANZ gave up 2.2 per cent to $15.85 and Commonwealth Bank dipped by 1.8 per cent to $59.26.
Macquarie meanwhile eked a minor gain of 0.1 per cent to $99.55 ahead of its results to be released tomorrow and Virgin Money put on 6.3 per cent to $1.45 after releasing its results overnight.
PolyNovo was the most improved in the top 100 – adding 7.9 per cent to $2.60 after reassuring investors of its supply chain yesterday. While on the flip side, Bingo Industries led the losers with a 5.5 per cent loss to $2.05 as it was downgraded by brokers after its trading update yesterday.
Here’s the biggest movers at the close of trade:
4.12pm: Mining support no match for bank drag
A rare blip of positive economic data spurred a lift in heavyweight mining stocks on Thursday, providing some support even as the broader market fell lower.
The benchmark ASX200 largely followed the weak lead of US stocks – falling as much as 0.7pc but settling to losses of 20 points or 0.38 per cent at 5364.2.
Meanwhile, the All Ords closed lower by 15 points or 0.27 per cent at 5449.9.
Perry Williams 4.10pm: Fuel demand rebounding as restrictions ease
Fuel retailer Viva Energy has indicated a pick-up in demand for petrol as COVID-19 restrictions are eased but expects a jet fuel slump to linger with planes grounded and consumers’ travel habits changed.
Petrol sales fell 34 per cent in April from a year earlier across its 1290 Coles Express service stations, but Viva said volumes had picked up in early part of May as lockdown measures moderated.
“It’s pretty early days but there are some encouraging signs that volumes are starting to improve as we see more traffic on the roads,” Viva Energy chief executive Scott Wyatt told the Macquarie Australia conference.
“But I think we have a long way to go on that and it really depends on what the government does over the next few weeks to relax measures and whether we can therefore expect to see further improvement.”
Jet fuel sold to airlines plummeted 75 per cent in April from a year ago.
While slightly better than its forecast for an 80-90 per cent slide, Viva said it was uncertain whether the aviation sector would return to pre-pandemic levels as customers’ habits change. It noted Qantas had cancelled domestic flights until the end of June and international through the end of July.
4.02pm: Arndt named new Future Fund chief
The $160bn Future Fund has named Raphael Arndt as its new chief executive officer.
Dr Arndt joined the Future Fund in 2008 and has served as its chief investment officer since 2014.
“Raphael is an effective leader who has proved his ability to build high performing teams and organisations. He has been integral to developing the way the organisation works as well as driving the development and implementation of its investment strategy,” Future Fund chairman Peter Costello said.
Dr Arndt replaces David Neal who recently left the Future Fund to lead investment management giant IFM Investors.
David Swan 3.48pm: Vodafone, TPG merger gets FIRB tick
Vodafone’s blockbuster merger with TPG has cleared its final regulatory hurdle, receiving a tick from the Foreign Investment Review Board.
Vodafone chief executive Iñaki Berroeta welcomed FIRB’s approval, and said that the upcoming merger will be implemented via a Scheme of Arrangement to be voted on by shareholders in coming weeks.
“The merger is now another significant step closer to reality, and we’re progressing our plans to bring the two companies together mid-year,” Mr Berroeta said, adding the scheme booklet would be released in coming weeks for shareholder approval.
“Using our increased strength and scale, our priorities will be accelerating our 5G plans, delivering the benefits to consumers and investors, and challenging the status quo.”
In March the ACCC said it would not appeal the Federal Court’s decision to allow the TPG-Vodafone merger to go ahead.
ACCC boss Rod Sims said the watchdog had concluded it had no grounds to appeal the merger, which will create a $15bn rival to telco giant Telstra.
“The ACCC remains disappointed by this outcome, which has closed the door on what we consider was a once in a generation chance for increased competition in the highly concentrated mobile telecommunications market,” Mr Sims said in a statement in March.
The companies expect to complete the merger by mid-2020.
Read more: ACCC won’t appeal TPG-Vodafone decision
3.37pm: Upside risk as US futures lift
S&P 500 futures are up 0.6pc after initially falling 0.4pc today, which together with a lack of weakness in Asia, gives upside risk to Australia’s sharemarket into the close.
Volume is 23pc below the 20-day moving average, but this could make for sharp moves in the closing match.
Strategists are still focusing on how not enough downside risk to the economy and corporate earnings has been factored into market pricing. But what matters more is what the central banks and the Federal Reserve in particular are doing.
The market knows the playbook now. If bad news threatens the sharemarket rally, the central banks will boost their asset buying and liquidity injections.
Australia’s S&P/ASX 200 is down 0.6pc at 5359. Major banks remain weak, but the Materials and IT are strong, with standouts including James Hardie, BHP and Xero.
Joyce Moullakis 3.15pm: Management cuts spur NAB slip
NAB shares are trading lower by 2.3pc in afternoon trade – underperforming its major bank peers after a shake-up of its second-tier management.
Sources told The Australian the overhaul of key management roles one level down from Mr McEwan’s executive team was outlined on Thursday. It saw as many as 70 roles spilt, meaning managers had to reapply for their positions, with about 50 appointments subsequently locked in.
NAB shares had been trading in line with peers – but pulled lower on the news – last down 2.3pc to $16.02 as the rest of the majors were down around 1.8pc.
Read more: McEwan drives huge NAB shake-up
3.04pm: Shaw warns of Bingo ‘double whammy’
Shaw and Partners has warned of a “double whammy” of weak volumes and lower prices for Bingo Industries in the wake of the coronavirus pandemic.
After the group’s update to the Macquarie conference yesterday, the broker cuts its rating to Hold, saying the extent of volume degradation in the fourth quarter and into the first half of next year “is unknown but likely to be material”.
Analyst Danny Younis writes that while Bingo delivered a price rise during the challenging market, its “stickiness” was unlikely to hold if volumes fall further and capacity utilisation falls.
“The current situation is clouded and uncertain with ‘normalised’ earnings rebasing pushed
back another 12 months now from FY21 to FY22 (given potential and renewed pressure on
volumes and price degradation on both skip bins and 70pc of EBITDA exposed to recycling’s
fixed assets where volume throughput is critical to drive utilisation) and current hefty
multiples no longer make the company as attractive as it was pre-COVID-19 pandemic,” Mr Younis says.
BIN last down 3.7pc to $2.09.
2.32pm: Is Bubs the next target after Bellamy’s?
Analysts at Citi say goat milk infant formula maker Bubs could follow path of larger peer Bellamy’s as a takeover target.
After the group yesterday reported a new supply contract with Coles and Baby Bunting, Citi’s Sam Teeger writes it “continues to be a promising brand with the right strategic partners, foundations for success, and positive catalysts on the horizon”.
“However, the company is still small, and will need to effectively execute on the opportunity set in front of it. We view Bubs as a likely takeover target for large players seeking exposure to the fast-growing goat IMF category,” Mr Teeger says.
Bellamy’s was bought by China Mengniu Dairy for $1.5bn last year, the first Chinese takeover of an infant milk formula group and biggest Chinese agri takeover in dairy since the Van Diemens Land dairy deal in 2016.
He rates the stock at a Buy with a price target of $1.10.
BUB last traded up 2.1pc to 97c.
2.17pm: China demand to sustain surplus: ANZ
Demand from China was the key driver of a record trade surplus, and will likely continue to see solid trade surpluses, albeit not at the same elevated levels, according to ANZ.
Economist Hayden Dimes writes that iron ore exports and non-monetary gold were the primary drivers – though some was catch up demand after limited shipping activity in the previous month due to Cyclone Damien.
“Service exports continued to decline in March, driven by travel exports which fell 14.4pc m/m. More than offsetting this fall were travel service imports, which declined 35.6pc m/m,” he writes.
“We suspect both travel exports and imports will approach zero in April due to the international travel ban.”
NAB describes the surplus as “greatly exceeding expectations” and tips the data to make only a modest contribution to first quarter GDP. It is tipping a small fall of 0.3pc in Q1 GDP as the pandemic pushed activity sharply lower.
AUDUSD last up 0.3pc to US64.19c.
Read more: China iron ore surge pumps trade record
Australia's trade surplus on tourism rose to a record high in March. Devil though is in the detail: tourism exports fell by 15.4% but imports fell by 35% #ausbiz pic.twitter.com/rl6gFNXgZk
— Callam Pickering (@CallamPickering) May 7, 2020
Eli Greenblat 2.12pm: Wesfarmers to ramp up online presence
Wesfarmers chief executive Rob Scott said the conglomerate’s hardware chain Bunnings started from scratch with an online shopping platform just two years ago but was now “leading the way” in retail as customers gravitate to online in the wake of the coronavirus pandemic.
Addressing the Macquarie 2020 Conference, Mr Scott said Wesfarmers decision last year to pay $230m for online marketplace Catch Group was also paying dividends for the company as it experienced strong demand.
Wesfarmers has found some great opportunities to invest in the online space, with greater investment potentially targeted for Bunnings, Kmart and Catch where the online marketplace was already finding capacity constraints at its distribution centres, Mr Scott said.
WES last traded down 0.9pc to $36.32.
Read more: Wesfarmers flags more investment in online
Bridget Carter 1.40pm: Goldmans Aus markets head exits
DataRoom | Goldman Sach’s head of equity capital markets in Australia Sarah Rennie has left the US-based bank, say sources.
It comes after she was appointed head of equity capital markets in 2016 at Goldman’s.
She joined the bank in 2013 as a managing director from UBS, where she was also a managing director and worked at the Swiss bank for 5 years.
Ms Rennie worked at Deutsche Bank during 2005 and 2006.
The veteran investment banker is highly regarded in the equity capital markets arena and her departure comes after senior Goldman’s investment banker Sean Walsh, who was co-head of the bank’s financing group for Australia and New Zealand, left last year.
1.25pm: China trade data good news for miners
Good news from China’s monthly trade data is helping the Australian dollar and the sharemarket, particularly iron ore miners.
China’s April year-on-year imports in yuan terms fell 10.2pc vs 12.2pc expected while exports rose 8.2pc vs -14.1pc expected.
More importantly for Australia, China’s April-Jan iron ore imports year-on-year rose 5.4pc to 360mt.
No wonder BHP said last week that it’s considering increasing its iron ore output.
AUD/USD rose 0.4pc to 0.6422 to an intraday high of 0.6424 as USD-CNH fell 0.2pc
The S&P/ASX 200 bounced from 5350 to be down 0.3pc at 5372.
The Materials sector is strongest, with BHP up 1.8pc and Fortescue up 2.3pc, though RIO is down 0.4pc.
Gerard Cockburn 1.17pm: Xinja succumbs to rate cut pressure
Neobank Xinja will lower its market leading savings rate, saying it can no longer ignore the low-rate environment triggered by the coronavirus pandemic.
In a letter sent to customers on Wednesday, the digital bank said it will drop its Stash savings account rate from 2.25 per cent to 1.8 per cent, as of May 11.
Xinja noted two consecutive cuts to the official cash rate by the Reserve Bank has meant it can no longer sustain the ongoing rate it had promised to customers in early March.
“Our new rate still smashes the big banks and is without the usual conditions that some banks impose,” Xinja said in a customer wide email.
“We hope the two months of extra interest has been helpful and maybe eased a few worries over these strange times.”
On March 5, Xinja said it would retain a savings rate of 2.25 per cent on existing deposit accounts, but would not allow new customers to open a savings product.
The bank currently holds approximately 47,000 accounts, with over $500m in deposits.
1.02pm: Shares decline in broad slip
Local shares are trading near their daily lows after a brief spike, as all sectors bar technology pull back.
At 1pm, the ASX200 is off by 32 points or 0.6 per cent to 5352.6 – from lows of 5347 – even as US futures push higher by 0.6pc.
A 1.4pc lift in BHP is helping to support the market but that’s not enough to stop the drag from the major banks – all down between 1pc to 1.5pc.
Xero is also outperforming – up 2.8pc – while Goodman Group is gaining by 3.9pc.
Here’s the biggest movers at 1pm:
Bridget Carter 12.54pm: PRP Diagnostic sale close
DataRoom | A sale of PRP Diagnostic Imaging is believed to be close, with a private equity firm said to be in detailed talks to buy the business.
Earlier, Allegro Funds Management was believed to be weighing an acquisition. However, that private equity firm is understood to have walked away.
BGH Capital was earlier mentioned as a suitor. But it remains unclear whether it is currently around the hoop.
One of the buyout funds that has been active in the healthcare space of late is Crescent Capital, yet any interest in the business is unknown.
Former Macquarie Group and CLSA investment banker Mark Dorney has been running a sales process for the business.
Read more: Possible PRP Diagnostic sale gets more exposure
12.37pm: Magellan flows ‘impressive’: CS
Credit Suisse analysts have lifted their target price for Magellan by nearly 30 per cent after yesterday’s funds under management update, describing its fund flows as “impressive”.
The broker had forecast flat flows for the month but Magellan posted a lift of $818m, alongside positive market movements.
“MFG’s strong fund performance is clearly limiting redemptions while attracting flows from those reallocating to equities. While we expect industry flows to have improved from March, we expect the strength of these flows to be somewhat unique to MFG,” the broker writes.
Still, it keeps an underperform rating on the stock – saying it was expensive at 22x FY21E.
“We remain cautious on the asset management sector in the current environment given heightened risks to flows and equity market volatility,” it added.
MFG last traded higher by 0.4pc at $52.60.
Ben Wilmot 12.26pm: Logistics focus pays off for Goodman
Logistics property giant the Goodman Group is charging through the COVID-19 crisis and has expanded its $55bn global empire as consumers switch to e-commerce while under lock down.
The company said its developments have grown to $5bn and it is one of the few property companies to reaffirm its earnings and distribution guidance, as most others are weighed down by struggling shopping centres.
“Despite the challenging global environment, customer demand in the online, logistics, food, consumer goods and digital economy, is supporting portfolio fundamentals and development activity,” chief executive Greg Goodman said.
The company had grown assets under management to $55.1bn and had 3 per cent like-for-like net property income growth in its network of partnerships tat go from Australia, to the US and Europe, and it had 97.5 per cent occupancy across the group.
It had $4.8bn of development work in progress with 76 per cent undertaken in partnerships and it kicked off $2.5bn of development starts.
GMG shares last traded up 3.4pc to $14.06.
11.58am: Trade surplus doubles
Australia’s trade surplus more than doubled in March to a seasonally adjusted $10.6 billion, beating market expectations.
Exports of goods and services rose 15 per cent to $42.4 billion led by mineral exports, data from the Australian Bureau of Statistics showed on Thursday.
Imports of goods and services were, however, down 4.0 per cent to $31.8 billion due mainly to a fall in industrial supplies and merchandise goods.
AAP
Huge trade surplus recorded in March, dare I say "unprecedented" as exports surge and imports soften, large swings in services as travel restrictions hit. Back of the envelope this adds around 0.4pp to GDP #ausbiz pic.twitter.com/hDGiFTwaqh
— Alex Joiner (@IFM_Economist) May 7, 2020
Gerard Cockburn 11.52am: CBA approves $555m of pandemic loans
Commonwealth Bank has approved more than $555m in small and medium business loans to customers facing ongoing financial hardship caused by coronavirus.
An estimated 6500 SME business customers have lodged applications with the country’s largest retail bank for the government backed loan scheme, designed to financially aid businesses that have been adversely impacted by the pandemic.
CBA SME customers, classed as those with annual turnover up to $50m, have been able to access loans up to $250,000 since March 23 – 50 per cent of which is backed by the government.
The implemented loan scheme is for a three-year period at an unsecured interest rate of 4.5 per cent. Repayments are deferred for the first six-months and all fees are waived for the life of the loan.
Close to 42 per cent of applications approved are from businesses located in New South Wales, followed by 27 per cent in Victoria and 16 per cent in Queensland.
CBA Group Executive Business Banking, Mike Vacy-Lyle, said the demand for the scheme had been high and meant teams were “working around the clock”.
One in five of loans has been to retail businesses, while 16 per cent were from the construction industry and 14 per cent from hospitality traders.
Read more: Banks offer $8bn small business loans lifeline
11.28am: Liberty launches first RMBS for 2020
Signs are that money markets are returning to a more normal footing as Liberty Financial launches its first residential mortgage-backed security for the year.
Liberty will test the market with a $500m issue, the Liberty Series 2020-1. The RMBS portfolio has a scheduled loan-to-value ratio of 66 per cent with 5.1 per cent of the book having a loan-to-value ratio above 90 per cent.
The book is made up of mostly prime loans while 3.7 per cent of the portfolio is made up of loans to borrowers with prior credit impairment.
As at December 2019, Liberty had a portfolio of Australian mortgage assets over $8.2bn, of which 75 per cent was securitised.
Some $387m worth of the loans are rated “AAA” by ratings agency Moody’s and will be sold in Japanese yen. The Australian part of the book is being marketed by lead manager Commonwealth Bank. The Japanese tranche is being sold by SMBC Nikko. The deal is to be priced on May 8.
11.10am: Defensive stocks still outperform: Citi
Global defensive equities should continue to fare better than cyclicals in the current economic downturn, according to Citi’s head of global equity strategy, Robert Buckland
He notes that in the last five global downturns, the average performance gap between Cyclicals and Defensives has been 20 per cent.
But the performance cap since the COVID-19 sell-off began has been 11 per cent. He thinks that could double.
“In the meantime, global investors should consider overlooked Defensives,” Mr Buckland says.
“These include European Telecoms, EM Consumer Staples and Utilities everywhere.”
Cliona O’Dowd 11.05am: QBE will emerge stronger: chairman
QBE chairman Mike Wilkins has told shareholders the company will emerge strongly on the other side of the COVID-19 crisis following its move to shore up its capital position and bolster its financial resilience.
Speaking at the insurer’s virtual annual general meeting on Thursday, Mr Wilkins warned that no business would be immune from the crisis but said QBE was well placed to withstand the challenges ahead and thrive in the future.
“Our capital plan takes us to well above our own target for capital and comfortably within ‘AA’ S&P capital levels.
“It will make QBE even stronger in the face of the challenging environment in which we all find ourselves and will position the business to be able to take advantage of opportunities that might arise as the world recovers,” Mr Wilkins told shareholders.
The insurer will also accelerate its digital transformation strategy to build “best in class data and digital capabilities” to meet the challenges of the crisis, group chief executive Pat Regan said.
QBE last down 0.8pc to $7.62.
10.58am: Mosaic Brands shares jump 30pc
Shares in fashion retailer Mosaic Brands have jumped by as much as 30 per cent in early trade, after the group said this morning it was reopening stores from Monday.
In the first hour of trade, MOZ shares hit 74c and last traded up 25pc to 71c.
Mosaic cancelled its deferred interim divend, pledged to return to profit in 2021 and said it was reopen stores after a successful trial.
The retailer also confirmed on Thursday that with its 1400 stores shut since late March, and 6800 staff stood down, the business had experienced a leap in online sales, which were up 80 per cent.
Read more: Mosaic flags loss as stores reopen
Jared Lynch 10.51am: Ramsay inks QLD public health deal
Australia’s biggest private hospital operator Ramsay Health Care will opened its doors to public patients for the duration of the coronavirus pandemic in the Sunshine state after striking a deal with the Queensland Government.
Under the agreement, Ramsay will make its facilities and services to the state on a cost recovery basis until a month after the pandemic passes.
“In return for its commitment to maintain full workforce capacity at its facilities, Ramsay will receive net recoverable costs for its services, being its recoverable costs less its revenue amounts, calculated on an accruals basis,” Ramsay said in a statement to the ASX.
“The term of the Agreement began on March 31 and will end the earlier of 30 days after the State determines that activation of the Australian Health Sector Emergency Response Plan for Novel coronavirus 2019 has ceased or such other end date as agreed between the parties,” Ramsay said in a statement to the ASX.
The hospital group is hopeful of striking similar agreements soon with the NSW and West Australian governments after already inking a similar deal with Victoria.
RHC last traded down 1.7pc to $61.53.
Olivia Caisley 10.34am: 150 defrauded in early super scheme
AFP commissioner Reece Kershaw has confirmed reports of fraudulent activity in relation to the early access to superannuation, declaring the federal police believes there could be up to 150 victims of the alleged fraud with a total loss of $120,000.
Mr Kershaw told the Senate COVID-19 committee this morning five search warrants had been executed in relation to the matter and the ATO, Austrac and the AFP had been working closely together since being notified of the issue on May 1.
Australian Taxation Office commissioner Chris Jordan said the “limited fraudulent activity” had been acted upon immediately with the AFP notified within 24 hours.
As part of the government’s multibillion-dollar economic assistance package, Australians that are struggling financially can now access $10,000 from their super this financial year and the same again next year.
Mr Jordan said it was not correct to say the tax office had been hacked and stressed that Australians should keep their personal information private, including not sharing their tax file numbers with others.
Read more at our coronavirus live blog
10.27am: Broker ups Afterpay target by 90pc
Morgan Stanley analyst Andrei Stadnik has near-doubled his target price for Afterpay, saying the stock’s recent re-rating was justified by faster customer payment terms and perceived outperformance against its peers.
In a note to clients, Mr Stadnik lifts his target price on the stock to $36 from $19, adding that the recent partnership with Chinese giant Tencent would help in the longer term.
“A strategic investor helps to stabilise the share price and there are also benefits that could emerge in the longer-term from product development with Tencent. But in the near-term, we have seen weak sales in APT’s largest retail segment (apparel/fashion),” he writes.
He adds the change in customer repayments to six weeks from eight weeks will help to control the company’s credit risk, fraud risk and reduce funding costs while the app was the most downloaded in the US based on the firm’s tracking.
Morgan Stanley keeps APT at equal weight however – saying the next 12 months will be volatile given the weak economy, a likely slowing in revenue, falling consumer discretionary spend and regulatory risks.
APT last traded down 1.7pc at $39.14.
Bridget Carter 10.24am: Talk of Integrated Research share sale, raise
DataRoom | Global software provider Integrated Research is being discussed in the market as the next group to offer up shares in the company.
Some sources say that a major shareholder had been offering to sell down its stake at about $3.20 per share, while others say an equity raising would not be a surprising move by the business.
Integrated Research is 39 per cent owned by founder and chairman Stephen Killelea, according to Bloomberg data.
The company describes itself as one that provides insights, monitoring and support to payment hubs, unified communications ecosystems and contact centres.
Bell Potter in the past is said to have been close to the company, which has a market value of $546m.
Its shares were trading on Thursday morning at about $3.18.
10.11am: Shares falter in opening trade
Australian shares are lower to start the session, albeit somewhat less than expected, but with key drag from energy and financials.
At the open, the benchmark ASX200 is lower by 28 points or 0.53 per cent to 5356.2. Futures had projected a much larger fall early, but the market looks to be supported by a slight tick higher in US futures.
By sector, energy is off by 1.6pc while WTI futures trade flat but health care stocks are outperforming with a 1.2pc lift.
10.08am: NIB sales drop 22pc
NIB suffered a 22 per cent drop in sales of health insurance in April compared with the same period last year, although this may be offset by fewer claims.
The insurer sold 2,179 fewer of these policies (7,684 total) than in April 2019 as many Australians cut their spending due to the COVID-19 crisis and economic downturn.
NIB told the ASX that 10,993 policies lapsed last month. This was 3,058 more than in the same month last year.
Management described the figures as unfavourable but manageable and NIB hopes to recover some of its losses from fewer claims during the pandemic. Elective surgery was postponed to help hospitals deal with an influx of COVID-19 patients and has recently resumed.
AAP
Gerard Cockburn 9.52am: Sezzle sales jump in lockdown
Buy now, pay later provider Sezzle says sales have sizzled in the coronavirus lockdown, with the company tripling its merchant sales compared to this time last year.
In a trading update to the market, the US-based fintech posted a 321 per cent first quarter rise in underlying merchant sales compared to the same period last year, to $US119.4m. In addition to that, the sales for April set a new monthly record of $US57.9m – with a surge in sales for leisure, electronics, hobby and medical items.
April was also a record month for active customers – up 114,400 while 1,100 merchants were also added over the month.
Sezzle said its cash liquidity position as at March 31, stands at $US36.6m while its total debt position is $US25.9m.
Hardship measures have been implemented, with the company expanding fee forgiveness and payment flexibility programs.
Its shares last traded at $1.82 each.
Bridget Carter 9.51am: Dicker Data raising $50m
DataRoom | Computer hardware and software distributor Dicker Data is raising $50m through investment bank JPMorgan.
The raise is by way of an institutional placement and will be accompanied by a share purchase plan worth $5m.
Shares are being sold at $6.70 each, a 6.7 per cent discount to their last close of $7.18.
The proceeds are being used to provide balance sheet flexibility and support growth objectives, including partially funding the construction of Dicker Data’s new distribution centres and continuing investment in Dicker Data Financial Services.
The raise will also provide the opportunity to broaden and diversify Dicker Data’s share register, increase free-float to above 30 per cent and improve trading liquidity.
9.36am: Risk aversion to fuel ASX fall
Australia’s sharemarket looks set to fall about 1pc today based on offshore moves after ASX200 futures fell 0.9pc overnight while S&P 500 futures are slightly weaker this morning.
US criticism of China’s handling of the pandemic seems to have fuelled risk aversion.
Still, BHP ADR’s equivalent close at $30.76 was 1.2pc above BHP’s close in Sydney.
The US is looking to curb supply chains and investment flows, according to the FT.
A Bloomberg report that China is considering scrapping its numerical GDP growth target for 2020 has weighed on AUD/USD.
Australia’s trade data for March are due at 11.30am AEST, China’s Caixin Services PMI data for April are due at 11.45am AEST and China’s April trade data are due later today.
US weekly initial jobless claims data are due tonight while the major focus this week will be US non-farm payrolls data for April on Friday.
9.26am: Store closures, lower roaming hits Vodafone
Vodafone has reported a reduction in sales and revenues as its stores are shuttered to comply with coronavirus restrictions, along with a hit from with fewer overseas visitors and lower international roaming fees.
In a speech to shareholders at the Hutchinson Telecom AGM, chairman Fok Kin Ning said the group’s Vodafone stores had seen increased mobile and fixed usage as customers work from home and change their usage, but that the negative impact from COVID-19 was likely to persist until restrictions are lifted.
“VHA’s business, like many others, is being adversely impacted by the pandemic. VHA has seen a reduction in sales and revenues resulting from customer inability to access retail stores, fewer overseas visitors, lower international roaming revenues and reduced capacity to service customer resulting from contact centre shutdowns,” he said.
In addition, Mr Kin Ning touted the benefits of the group’s merger with TPG, describing it as “a more formidable force in the Enterprise and public sector segments” and tipping the last regulatory hurdles for the deal to be passed “shortly”.
Eli Greenblat 9.11am: Mosaic flags full year loss
Fashion retailer Mosaic Brands, whose chains include Millers, Rockmans, Noni B, Rivers, Katies, Autograph and W. Lane, said it will post a full-year loss for 2020 as a result of store closures and trading disruptions caused by the coronavirus pandemic but that its stores will begin to reopen from Monday after a successful trial opening of some stores.
It has also cancelled its deferred interim dividend but has pledged a return to profit in 2021.
The retailer also confirmed Thursday morning that with its 1400 stores shut since late March, with its 6800 staff stood down, the business had experienced like other retail chains a leap in online sales which were up 80 per cent.
9.07am: CSL secures $US750m in debt issue
CSL has told the market it has priced a new $US750m private debt placement to strengthen its debt profile and for general corporate purposes.
In a filing, CSL said it had priced a placement of four maturities, starting at seven years and up to 15 years, with an average weighted interest rate of 2.68 per cent and an average life of 11.5 years.
“The US Private Placement market continues to provide CSL with good flexibility in terms of maturities and we are grateful for the ongoing support of this important debt market,” chief financial officer David Lamont said.
“The transaction is a continuation of the Company’s strategy to strengthen its debt maturity profile.”
8.59am: What’s on the broker radar?
- Afterpay target price raised 89pc to $36 – Morgan Stanley
- Bingo Industries cut to Hold – Shaw and Partners
- Bingo Industries target price cut 28pc to $2.45 – Credit Suisse
- Growthpoint raised to Outperform – Credit Suisse
- JB Hi-Fi cut to Hold – Morgans
- JB Hi-Fi cut to Neutral – JP Morgan
- Magellan target price raised 29pc to $47 – Credit Suisse
- Medibank Private raised to Neutral – JP Morgan
- Mirvac cut to Neutral – Macquarie
- Pushpay raised to Outperform – Credit Suisse
- Regis Resources cut to Sell – Morningstar
- Sigma Healthcare rated new Buy – Blue Ocean
- Sydney Airport raised to Buy – Morningstar
8.46am: Perpetual not like pure play funds: Adams
Perpetual chief executive Rob Adams to speak at the Macquarie Investment conference later this morning and has provided a preview of what’s to come in a filing to the ASX.
Mr Adams is keen to stress that unlike ‘pure play’ asset managers, approximately 40 per cent of Perpetual’s total revenues are not directly linked to investment markets.
The comments likely a means to reinforce the fund manager has some insulation from the extreme market downturn in March.
Non-market linked revenue drivers include real asset values, new clients, credit system growth, debt markets and investment flows into real assets from domestic and global fund managers, Mr Adams is to say in his speech.
Still he says Perpetual Investments and Perpetual Private market revenues “were impacted by the steep COVID-19 related market declines in March”. But notes we have seen “some of these declines reverse as markets rebounded in April”.
He reiterates Perpetual’s current dividend policy is to pay within a range of 80-100 per cent of annualised NPAT.
At the same time he says gearing levels remain low and “well within” Perpetual’s risk appetite of 30 per cent.
8.30am: G8 chief’s pay slashed
G8 Education says CEO Gary Carroll’s base fixed remuneration will be cut by 20 per cent for six months, as part of cost cuts in the pandemic.
Other members of the executive leadership team will also take pay cuts.
From May 1 to October 31, Mr Carroll’s base fixed remuneration will drop from $840,000 to $672,000 (annualised).
8.05am: Gold falls as dollar strengthens
Gold fell more than 1 per cent overnight, pressured by a stronger dollar and expectations that gold supplies will grow as bullion refineries resume operations, and on gradual improvement in investor risk appetite as countries have begun to ease coronavirus restrictions.
Spot gold dipped 1.1 per cent to $US1,686.50 per ounce. US gold futures settled 1.3 per cent lower at $US1,688.50, narrowing their lead over the London spot prices to just around $US2 after two of the world’s biggest gold refiners said they are restoring almost all operations.
This ended six weeks of closures that disrupted global gold supply and helped drive prices in New York and London further apart than they have been in decades.
Gold has risen about 11 per cent so far this year as the global economy has slumped during the pandemic.
Reuters
7.30am: ASX set for early losses
hare traders on the Australian market appear set for a second consecutive morning of early losses after US markets fell overnight.
At 7am (AEST) the benchmark SPI 200 futures contract was down 48 points, or 0.89 per cent, to 5,348.0 points, indicating a weak opening.
The S&P 500 and the Dow fell overnight as declines in financials and defensive groups countered gains in tech shares. Data showed US private employers laid off 20 million workers in April, underscoring the economic fallout of the coronavirus outbreak.
In Australia on Wednesday the benchmark S&P/ASX200 index closed up 22.5 points, or 0.42 per cent, at 5,384.6 points. The All Ordinaries closed down 13.3 points, or 0.24 per cent, at 5,464.8 points.
At 7am (AEST) one Australian dollar was buying US64.02 cents, down from US64.45 cents on Wednesday’s close.
AAP
7.20am: Uber cuts 3700 jobs
Uber Technologies is cutting about 14 per cent of its workforce and, along with smaller rival Lyft, is looking for more ways to save money as their ride-hailing businesses have dropped dramatically amid the coronavirus pandemic.
The pandemic has challenged the very business model that supercharged Uber and Lyft into some of the world’s most valuable start-ups. The San Francisco-based ride-sharing companies face questions about consumers’ willingness to use their services at a time when health experts and government officials are recommending sheltering in place and avoiding contact.
Lyft posted its first sequential drop in quarterly ridership since becoming a public company last year. The business threat comes as both companies, before the pandemic, had been trying to improve their profitability to appease investors that had grown increasingly worried about the hefty losses they were incurring in their rush to grow.
Uber said that it was cutting about 3,700 workers and that chief executive Dara Khosrowshahi agreed to waive his base salary for the rest of the year. Last week, Lyft said it was cutting 17pc of its workforce and putting some employees on unpaid furloughs as well as trimming salaries.
Mr. Khosrowshahi, in a memo to employees, hinted at more cuts to come, telling workers that Wednesday’s job reductions were part of a broader exercise to adjust the company’s cost structure and that he expected a further and final update on that effort within the next two weeks.
Dow Jones
6.50am: Fox revenue rises
Fox Corp said revenue rose in the latest quarter, lifted by an increase in advertising and affiliate fees.
Fox’s third-quarter revenue rose 25 per cent from a year earlier to $US3.44 billion, ahead of analysts’ estimates of $US3.33 billion, according to FactSet.
The company, whose businesses include Fox News, the Fox Broadcast Network, Fox Sports and local television stations, was spun off from 21st Century Fox and began trading as a separate public company in March last year.
Cable-network programming revenue rose 6.1 per cent to $US1.47 billion. Television revenue rose 41 per cent from a year ago to $US1.93 billion, due to increases in affiliate revenue from programming fees for third-party Fox affiliates and higher average rates per subscriber. However, the company said it saw a drop in subscribers in the quarter.
Fox posted a quarterly profit of $US78 million, or 13 cents a share, compared with $US529 million, or 85 cents a share, for the comparable quarter a year earlier. Excluding special items, earnings were 93 cents a share. Analysts were expecting adjusted earnings of 71 cents a share.
Dow Jones
6.15am: Wall Street wavers
US stocks swung between small gains and losses as investors continue to try to untangle data and corporate earnings to determine what the economy might look like in the months ahead.
The S&P 500 lost 0.7 per cent as of the close of trading in New York. The Dow Jones Industrial Average was down about 218 points, or 0.9 per cent. Both indexes had opened modestly higher.
The Nasdaq Composite was up 0.5 per cent, supported by a continued rally in technology stocks.
Following losses on the local market on Wednesday, the ASX is tipped to slip again at the open. At 6am (AEST) the SPI futures index was down 57 points, or 1.1 per cent.
Despite the volatility, US stocks have risen in recent days as investors look toward the continued lifting of stay-at-home orders. Several states have already begun to reopen their economies and others are formulating plans to do the same. President Trump in particular has been eager to energise the economy, saying that the White House coronavirus task force would focus on reopening the country and developing a vaccine.
Still, however, much about the country’s future remains unknown. The number of confirmed coronavirus cases in the US has climbed beyond 1.2 million, and many fear there could be a resurgence of cases as life begins to return to normal. Executive commentary, meanwhile, hasn’t offered investors reassurance either, as companies have continued to report massive profit declines, dividend cuts and lay-offs during first-quarter earnings.
Economic data look similarly grim. The non-farm private sector in the US lost about 20.2 million jobs from March to mid-April, the ADP National Employment Report revealed. Losses were the steepest among large businesses with 500 or more employees, raising new questions about whether more pain in the markets could be ahead.
“We’re seeing data that’s just off the charts,” said Philip Lawlor, managing director of global markets research at FTSE Russell. “Has the market fully discounted [all of this]? My suspicion is that we haven’t yet reached that point.”
Since the U.S. equities market bottomed on March 23, stocks have continued to charge upward, puzzling many economists about what an eventual economic recovery might look like. All three major US indexes are up week-to-date, and the Nasdaq Composite is down just 0.7pc for the year. The Dow, in contrast, remains down 17 per cent in 2020.
In Europe, the Stoxx Europe 600 benchmark closed down 0.3 per cent. China’s Shanghai Composite Index closed up 0.6 per cent after a five-day holiday and Hong Kong’s Hang Seng Index rallied 1.1 per cent.
Dow Jones Newswires
5.55am: Oil relief rally stalls
Energy producers are throttling back their output, drivers are returning to the road and US oil prices are roughly twice what they were a week ago, raising hopes – but not confidence – that the mounting fuel glut won’t overwhelm the world’s capacity to store oil.
Since reaching a record in mid-March, daily U.S. crude production has declined by more than a million barrels and big producers are promising to push it lower yet by shutting in old wells, waiting to bring online the newly drilled and dialling down flows where they can.
Meanwhile, demand for transportation fuels has begun to climb back from what was at least a 30-year low in early April. Executives at the largest US refiner say that the worst of the historic drop in fuel demand caused by the coronavirus pandemic appears to be in the rearview mirror.
West Texas Intermediate for June delivery fell 2.3pc to close at $US23.99 a barrel Wednesday, its first decline after five days of gains. That is down 61pc from the start of the year but a marked improvement from April, when supply and demand were so out of whack that it appeared there would be no place to store the excess and May futures contracts traded below $0 for the first time ever.
Brent crude, the global benchmark, dropped 4pc to $29.72 a barrel, extending its recent volatile stretch.
Dow Jones Newswires
5.45am: Facebook names oversight board
A year and a half after announcing its creation, Facebook has named the initial 20 members of its oversight board, a quasi-independent panel that is to make decisions on thorny issues.
The board’s members were named by Facebook and hail from a broad swath of regions around the world. They include Tawakkol Karman, a Nobel Peace Prize laureate from Yemen, Alan Rusbridger, the former editor-in-chief of British newspaper The Guardian, and Helle Thorning-Schmidt, the former prime minister of Denmark.
The oversight panel is intended to rule on difficult content issues, such as whether Facebook or Instagram posts constitute hate speech. It will be empowered to make binding rulings on whether posts or ads violate the company’s standards. Any other findings it makes will be considered “guidance” by Facebook. Critics call the oversight board a bid by Facebook to forestall regulation or even an eventual break-up.
AP
5.40am: Markets resist grim data
The world’s main stock markets brushed off data showing the extent of the economic damage wrought by measures to slow the spread of the new coronavirus.
Top among that data: more than 20.2 million US private sector jobs were destroyed in April according to payrolls firm ADP.
Nevertheless, US stocks pushed higher at the open, but the Dow had dipped into the red by the close of European trading.
The ADP figures are seen as an indicator of the all-important government non-farm jobs report due out Friday, which economists expect to show 28 million jobs lost in the month due to the widespread business shutdowns to contain the virus.
“The stock market isn’t trading from a standpoint of ‘what have you done for me lately’. It’s trading from a standpoint of ‘what will you do for me later’, and in its mind, what comes later is going to look a lot better than what has come lately,” said market analyst Patrick J. O’Hare at Briefing.com.
“That’s why it continues to hold its ground in the face of ugly economic data and downbeat earnings news,” he added.
European stock markets nursed modest losses while Asian indices mostly rose, and oil prices slid.
In other downbeat economic news, the European Commission predicted the eurozone economy would contract by a staggering 7.7 per cent in 2020.
Calling it a “recession of historic proportions”, the EU’s executive said the 19-member single currency zone would then rebound by 6.3 per cent in 2021, in an uncertain recovery that would be felt unevenly across the continent.
It came after official data showed German manufacturers’ new orders plunged by a record 15.6 per cent in March.
London closed up less than 0.1pc, Frankfurt lost 1.2pc and Paris ended 1.1pc down.
AFP
5.35am: Bond is part of $US2.99tr borrowing
The Treasury Department is detailing how it plans to borrow a record-breaking $US2.99 trillion in debt this quarter which will include issuing for the first time since 1986 a 20-year bond.
The Treasury faces an unprecedented need for credit because of the trillions of dollars the government is spending to deal with the impact of the coronavirus pandemic, which has resulted in the loss of millions of jobs. And the nation is likely headed for a deep recession.
Treasury officials said Wednesday that the 20-year bond will be auctioned on May 20 with the goal of raising $US20 billion. That will be followed by $US17 billion auctions in June and July.
AP
5.30am: GM profit slumps 88pc
General Motors’ first-quarter net income fell 88pc, but it still managed to make $US247 million despite the arrival of the global coronavirus pandemic.
U.S. automakers suspended production in much of the world in late March. For GM, that clipped revenue for the quarter by 6pc, to $US32.7 billion, but that’s not as bad as industry analysts had been expecting.
Shares jumped 8pc shortly before the opening bell Wednesday.
The company essentially has been without revenue since early March, meaning that the second quarter almost certainly will be worse.
However, GM plans to reopen most of its U.S. and Canadian factories starting May 18, and Chief Financial Officer Dhivya Suryadevara said there are signs that demand for cars and trucks exists despite the pandemic.
AP
5.25am: UK construction at record low
Britain’s construction sector suffered a record drop in activity during April as the coronavirus pandemic shut sites, data showed alongside news of surging food sales at online supermarket Ocado.
The latest data showing the UK’s biggest sector winners and losers from the COVID-19 outbreak comes as the Bank of England holds a regular meeting Wednesday at which it is expected to keep its main interest rate at a record-low 0.1 per cent.
The BoE’s policy announcements and new UK growth forecasts will be announced Thursday, ahead of Prime Minister Boris Johnson telling the country on Sunday how he plans to ease its lockdown measures.
It comes amid reports that finance minister Rishi Sunak is looking into tapering the government’s furlough scheme that is paying UK workers stuck at home.
Latest government figures showed 6.3 million people are being paid up to 80 per cent of their salaries, costing the taxpayer £8.0 billion ($US9.8 billion, 9.0 billion euros).
On Wednesday, the closely-watched IHS Markit/CIPS UK construction purchasing managers’ index showed a reading of only 8.2 in April, down from 39.3 in March and the lowest since records began in 1997. A score below 50 indicates a contraction in output.
AFP
5.20am: US private hiring collapses
More than 20.2 million US private sector jobs were destroyed in April, and that almost certainly underestimates the damage from the efforts to contain the coronavirus, payrolls firm ADP said.
More than 16 million jobs were eliminated in the services sector, half of those in leisure and hospitality.
However the data only reflect payrolls through April 12 so the report “does not reflect the full impact of COVID-19 on the overall employment situation.”
AFP
ASX 200 lifts as CBA, Macquarie test new peaks
CBA hits all-time intraday high. Macquarie up 2.3pc on the day. First Super's CFMEU-linked co-chair steps down after APRA action. Pacific Smiles CEO Andrew Vidler resigns.
ASX ends higher on tech, property, banks as energy stocks hit
RBA governor says higher rates not off the table. Data centre operator NextDC's top gainer after AirTrunk sale. Coronado dives on guidance. Downgrades add to oil price woes for ex-div Woodside and Santos. Apollo selldown hit for Challenger.