ADVANCED SHARE REGISTRY A meltdown was seen across Wall St as investors scrambled to book their profits as they climbed the wall of worries. The last time we saw the S&P 500 and the Nasdaq tumble to their worst percentage fall was in May last year and July for the Dow. There was not one shortage of a reason why investors were concerned ahead of the two day Fed meeting slated for tomorrow. Fears are mounting on China's giant property group Evergrande defaulting on their debt obligations of around $414 billion. If the property giant does collapse, investors are concerned that they might see a ripple effect in China's economy and the broader market. The thought of contagion is triggering the time when Lehman Brothers went belly under in 2008. China is known to err on the more aggressive side of risk-taking so if the property giant does fall, it would send a pretty firm message to the market that they are taking debt control quite seriously. Investors are hoping that Beijing will step in to avoid the shake-up through their economy.
Investors are anticipating that a roadmap will be laid on the Fed's asset program. A more hawkish view at scaling back the asset purchases program that has been helping with the economic recovery and recent corporate earnings. They are wondering if inflation is transitory and if Fed Chair Jerome Powell will keep his job when his term expires in February next year. Covid-19 hospitalizations are climbing and consumer confidence isn't looking positive. Investors are concerned more so around what restrictions would be placed on businesses if the delta-variant continues to spread. There is rising geopolitical risk after U.S. troops left Afghanistan amid China's regulatory crackdown. Then there is the debate around raising the debt ceiling to fund President Biden's US$3.5 trillion bill and potentially delaying the plans.
Across the Atlantic, European markets closed lower, Paris lost 1.7 per cent, Frankfurt dropped 2.3 per cent and London's FTSE fell 0.9 per cent. In U.K. trade, banks fell over 4.0 per cent as investors fled to government bonds on concern over China's Evergrande. Miners continued to tumble with Rio Tinto down 2.2 per cent and BHP shed 1.6 per cent. Meanwhile travel stocks continued to take-off on hopes that other countries will track the footsteps of the U.S. in relaxing travel restrictions.
Yesterday, the Australian sharemarket closed 2.1 per cent lower at 7,248 as iron ore prices continued to plunge. The local bourse continued its decline for the second straight day. The sell-off was across the board with materials, down 3.7 per cent followed by energy at 3 per cent, then technology. We had one bright spot which was utilities, up 1 per cent. Within that sector, we had one company doing the heavy lifting which happened to have been the best-performing stock in the ASX 200.
AusNet Services (ASX:AST) catapulted 19.2 per cent higher at $2.36 on a proposed takeover bid from private equity firm Brookfield Asset Management. The sweetened deal is for $2.50 per share. This comes after they rebuffed earlier offers in August. It was followed by shares in Endeavour (ASX:EDV) and Nufarm (ASX:NUF). The worst-performing stock was Champion Iron (ASX:CIA), closing 12.3 per cent lower at $4.48, followed by shares in Lynas Rare Earths (ASX:LYC) and Pilbara Minerals (ASX:PLS). Mergers and acquisitions were in the air yesterday. Transurban (ASX:TCL) went into a trading halt as it is set to raise funds to takeover the remaining 49 per cent stake of the WestConnex motorway currently owned by the NSW Government for $11.1 billion.
Today the RBA meeting minutes are slated along with the weekly consumer confidence from ANZ-Roy Morgan. Also today mining giant BHP and energy firms Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO) are paying their dividends today. So we might see a rotation of funds back into the market.
| Dow Jones | 33,970.47 | -614.41 | -1.78% |
|---|---|---|---|
| US S&P500 | 4,357.73 | -75.26 | -1.70% |
| US Nasdaq | 14,713.90 | -330.06 | -2.19% |
| UK FTSE 100 | 6,903.91 | -59.73 | -0.86% |
RECENT INDIAN OCEAN SECURITIES TRANSACTIONS
| Balkan Mining Minerals Limited (ASX:BMM) | Mining Exploration Sector | IPO at $0.20 | Price Change from IPO Investment: + $0.175 / 85.50% |
|---|---|---|---|
| Smart Auto Australia Limited (NSX:SAL) | Electric Commercial Vehicles Sector | IPO at $0.10 | Price Change from IPO Investment: + $0.10 / 100% |
| Azure Health Technology Limited (NSX:VTL) | Health Technology | IPO at $0.20 | Price Change from latest Investment entry: - 0.05 / 25% |
| Albion Resources Limited (ASX:ALB) | Diversified Metals & Mining | IPO at $0.20 | Price Change from latest Investment entry: - $0.015 / 7.5% |
| Sprintex Limited (ASX:SIX) | Auto Parts & Equipment | IPO at $0.086 | Price Change from latest Investment entry: - $0.013 / 15.12% |
| Jadar Resources Limited (ASX:JDR) | Diversified Metals & Mining | Private Placement at $0.03 | Price Change from latest Investment entry : - $0.007 / 23.33% |
| Krakatoa Resources Limited (ASX:KTA/KTAOC) | Gold Sector | Private Placement at $0.06 | Price Change from latest Investment entry : - $0.008 / 13.33% |
| PYX Resources Limited (NSX:PYX) | Diversified Metals & Mining | IPO at $0.40 | Price Change from latest Investment entry: + $0.76 / 190% |
| Cokal Limited (ASX:CKA) | Steel Sector | Funding at $0.04 | Price Change from latest Investment entry: + $0.036 / 90% |
| Cyclone Metals Limited (ASX:CLE) | Steel Sector | Placement: at $0.0017 | Price Change from latest Investment entry: + $0.0073 / 429.41% |
| Food Revolution Limited (ASX:FOD) | Packaged Foods & Meat | Placement at $0.035 | Price Change from latest Investment entry : - $0.0007 / 20% |
| Synertec Corporation Limited (ASX:SOP) | Technology Sector | Placement at $0.023 | Price Change from latest Investment entry: + $0.077 / 334.78% |
| Douugh Limited (ASX:DOU) | Wireless Telecommunications Services | Placement at $0.020 | Price Change from latest Investment entry: + $0.074 / 370% |
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The information provided was based on information available at the time of publishing. We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither Advanced Share registry (ABN 14 127 175 946) nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report. The report has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on the information in this report, consider the appropriateness of the information, having regard to the individual's objectives, financial situation and needs and, if necessary, seek appropriate professional advice. This report does not purport to be a complete statement or summary.
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Advanced Share Registry Limited published this content on 21 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 September 2021 07:21:07 UTC.
