ASX 200 Almost Reaches All Time High

January 31, 2024

Good Morning,

National asking price for a property in December was $864,350, down 3.7% from December 2022. Auckland Zoo forced to euthanize 4-week-old tiger cub after it suffered head damage after a fall. Elon Musk’s Neuralink takes flight after first chip has been implanted into a human head. Godfrey’s appliances enters voluntary administration.

Let's jump in.

Before The Bell

Markets

  • The Reserve Bank’s Paul Conway had a ‘hawkish’ tone today, suggesting official cash rate cuts were still some way off, according to economists. (NBR)

  • The Federal Reserve’s first meeting for the year takes place this Thursday, a pivotal moment that could signal the end of rate hikes and the onset of cuts. (NBR)

  • The S&P/ASX 200 closed just a couple of points short of its all-time high for the second time this month, but with earnings season just around the corner, new forecasts for the benchmark suggest current levels may prove too optimistic. (AFR)

  • Australian shares are poised to open higher, in line with a late surge in New York after the US Treasury unexpectedly reduced its estimate for federal borrowing for the current quarter. The S&P 500 closed at a record high, its sixth in the last seven trading days. (AFR)

  • The Australian dollar is trading higher despite a sharp decline in local retail sales, buoyed by euphoria for risk assets that pushed the Australian and US sharemarkets to fresh records. (AFR)

Earnings and Data

  • The latest property price index shows the national average asking price for a property was $864,350 in December, down 3.7% compared to the same month in 2022. (Stuff)

  • The Mike Cannon-Brookes-backed renewables lender Brighte cut its losses by 31 per cent and upped its revenue by a quarter to $41 million but still burnt through $30.8 million last year. (AFR)

  • Megaport shares jumped 28 per cent to $12.48, after the Brisbane-based company beat its quarterly earnings target and flagged the addition of a large US-based healthcare customer worth $4.2 million over three years. (AFR)

News Summary

  • Kāinga Ora tenants cause rise in crime, Parnell businesses claim: The local business association says it recorded 40 incidents of criminal and disorderly behaviour in November and December alone, including a brazen robbery. (NBR)

  • Godfreys has entered voluntary administration with its New Zealand operations following suit, but the appointed administrators are hopeful a sale can be orchestrated. (NBR)

  • Legislation scrapping the Productivity Commission is being debated in Parliament this week, with the commission due to stop operating at the end of February. (NBR)

  • A Hong Kong court has ordered the liquidation of Chinese property giant Evergrande Group, after the group repeatedly failed to come up with a plan to restructure debt of more than US$300 billion. (NBR)

  • Advertisements have been placed in Chinese newspapers notifying former Mainzeal managing director Richard Yan of bankruptcy proceedings brought by liquidators seeking payment of $60.9 million. (NBR)

  • Auckland Zoo has been forced to euthanise a four-week-old Sumatran tiger cub after it sustained a head injury on Saturday. (Stuff)

  • A Pakistani court has sentenced former Prime Minister Imran Khan and one of his party deputies to 10 years in prison each, after finding them guilty of revealing official secrets. (Stuff)

  • Woman’s resthome fall, falsified care records reveal ‘pattern of suboptimal care’ at Tamahere Eventide (Stuff)

  • Australian Border Force has seized $4.5 million worth of disposable vapes in its first major interception since the federal government cracked down on importation of the products in January. (AFR)

  • Elon Musk says the first human patient has received a brain implant from his start-up Neuralink, a significant step forward for the company that aims to one day let humans control computers with their minds. (AFR)

Deal Flow

Investments / M&A

  • Canterbury-based private equity firm, South Island Office, has secured an exit from its investment in iconic dessert brand Sara Lee with the company rescued from administration through a sale to Australian investors. (NBR)

  • Advent Partners has inked a software deal to kick off 2024. The $1 billion private equity firm, led by dealmakers Symon Vegter, Rob Hooke and Isabella Blakiston, has made a strategic investment in software as a service community and stakeholder engagement business MySite. (AFR)

  • Hong Kong buyout fund TA Associates and Swedish private equity firm EQT are seeking to pull apart 138-year-old financial services giant Perpetual. (AFR)

  • The country’s second-largest telecommunication group is understood to be exploring options to unlock value for long-standing shareholder Singtel, which ticked past 23 years of ownership in October. (AFR)

  • Private chefs, equine therapy and a concierge service. Street Talk understands fast-growing luxury Victorian rehabilitation centre Hills & Ranges Private is courting buyers. (AFR)

VC & Fundraising

  • ANZ is expected to target a $1 billion-plus deal size for its latest hybrid issue, which would include a reinvestment slice for holders of ANZ Capital Notes 4. (AFR)

  • The country’s No.2 funeral services player Propel Funeral Partners’s bosses have launched a $90 million equity raising to reduce the funeral provider’s net leverage and restock its acquisition kitty. (AFR)

  • Genmin, a West African iron ore developer which hasn’t traded on the ASX since August, is telling investors it is 18 months away from producing cash flows as it drums up interest in an equity raising to pay down debts. (AFR)

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