End of Day Report - Tue14 Dec

Marcus Today Market Updates

• The ASX 200 claws its way back into positive territory briefly but closed down 1 point to 7378. Early broad -based losses not helped by negative US leads and compounded by WOW news. Both WOW and COL down substantially with 14 index points knocked off on these two alone. WOW dropped 7.7%, COL down 2.7% as Covid came to town. WES fell in sympathy dropping 2.3% but MTS shrugged off pressures up 0.7%, EDV down 3.4%.
• Industrials were mixed, CSL in a trading halt as it firms up a huge $5.6bn capital raise and acquisition. Instos digging deep to fund this international expansion. Tech patchy, APT dropped 4.1% as Block dropped in US, WTC perked up 3.6% and the All-Tech Index fell slightly. Banks and financials were better. The Big Bank Basket fell to $174.41 with CBA weighing, Insurers picked up as bond yields dropped (go figure) and MQG up 0.8% with MFG finding some buyers up 1.4%. Bond proxy stocks rallied hard TCL up 0.8% and REITs doing well. GMG up another 2.0%. Meanwhile iron ore miners pushed ahead with BHP up 0.6% and FMG up 1.3% with gold miners steady and energy stocks down slightly, WPL down 0.2% and STO off 1.1%. Lithium stocks continue to rally with PLS up 1.9% and AKE up 1.1%.
• In corporate news, BGH bid 710c for VRT with the stock up 34.6%. MSB disappointed as per SOP with Novartis pulling the plug falling 17.4%. WOW down 7.7% on its CV19 issues, PNV rallied 15.4% on better US sales. Bond yields tumbled to 1.53%, so much for worries on interest rates and inflation. Safe heaven sucking in money.
• Late breaking CSL announce huge deal to buy Vifor Pharma for consideration of US$12.3bn / A$17.2bn funded via US$4.5bn / A$6.3bn underwritten Placement US$6.0bn / A$8.4bn new debt and existing cash / undrawn facilities.

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