In one of the most incredible share returns, Myer’s shares erupted from their own trading ground and rose 45% on Friday to lead the overall market higher.
News of the reopening of Myer stores (ASX: MYR) as the federal government announced a three-point plan to gradually reduce the closing of the pandemic saw Myer’s actions jump from 9c to 29c.
Myer was not alone among retail stocks with Harvey Norman (ASX: HVN) “GO” shares also jumping 6.7% or 19c to $ 3.03 as investors rejoiced that buyers are recovering more electronics and furniture as Australia emerges from the shuttered coronavirus virus.
The completion of the Adairs retail image (ASX: ADH) increased by 6.2% and JB Hi-Fi (ASX: JBH) added 3.7%.
Shopping center owners also came out of hibernation in better shape, with Vicinity (ASX: VCX) up 5.15% to $ 1.43 and owner of Westfield Scentre (ASX: SCG) shopping center ending the day up 3.7% to $ 2.20.
Ready for the week but still recovering
Overall, the ASX 200 rose 0.5% on Friday, jumping 26.9 points to 5391.1, mostly boosted by higher prices for financials and retail values.
For the week, the stock market rose 2.77%, recovering about half of the 5% drop from the previous Friday.
Appropriately for a day of positivity, the millionaire factory Macquarie Group (ASX: MQG) added an eye-catching 5.7% to reach $ 105.19 while the troubled financial power AMP (ASX: AMP) also had a rare positive day with a 3.3% to $ 1.41.
Traveler stocks take interim measures
Even stocks of broken down trips were supported by the return to domestic trips with Flight Center (ASX: FLT) and Webjet (ASX: WEB) up 8.1% and 9.3% respectively – although they had both have a very long way to go before they even approach their pre-pandemic levels.
All the news was not good, the Reserve Bank of Australia monetary policy statement predicting that unemployment would peak at 10% in Australia before improving.
This is in line with most analysts’ estimates, although most have warned that the recovery will be slow and take years rather than months.
“It can take a while to reverse, especially if there are lingering concerns about virus control. In addition, some laid-off workers will take time to find other employment, especially if their previous jobs were in sectors facing lower continued demand, “said the RBA.
Predictably, the RBA said the tourism, entertainment and education sectors would bear the brunt of the economic downturn and it was not clear how long it would take to restore.
“Uncertainty about the prospects for future demand will also reduce business investment intentions,” said the RBA.
Small market cap stock
The Small Ords index rebounded 4.94% to end the week at 2,429.5 points.
Small cap companies hit the headlines this week:
Alt Resources (ASX: ARS)
The private investment group Aurenne has made forays into the resources sector by making an offer for the advanced gold explorer Alt Resources.
Aurenne made a cash offer valuing Alt at $ 0.0505 per share. The private equity firm also agreed to lend Alt $ 3.68 million through a convertible note, allowing Alt to meet its financing commitments and deliver its first reserve and feasibility study without dilution for the shareholders.
Alt’s board of directors supported the offer, with President William Ellis describing it as “compelling” and “strong approval” of the company’s WA Ida and Bottle Creek gold project.
However, he advised shareholders not to take any action at this stage while the company assesses the details of the offer, including all of the conditions.
The Alt Ida project at Mt Ida and Bottle Creek is 85 km northwest of Menzies in the gold fields north of WA. The project has a combined resource of 11.55 Mt at 1.54 g / t gold for 571,000 oz of gold and 6.66 Mt at 20.5 g / t silver for 4.38 M oz silver.
Aurenne has interests in a number of projects in the region of gold deposits.
XCD Energy (ASX: XCD) and 88 Energy (ASX: 88E)
The Alaskan North Slope oil explorers, XCD Energy and 88 Energy, will merge to create a larger oil deposit focused on the region.
Under the agreement, 88 Energy will issue 2.4 shares for each XCD share held, plus 0.7 88 Energy shares for each XCD listed option.
The offer values XCD at $ 0.012 – a 71% premium over its closing price of $ 0.007 on Wednesday. The offer also represents a 140% increase in XCD’s closing price by $ 0.005 on Friday April 24 before the initial offer by 88 Energy on Monday April 27.
Once the merger is completed, the shareholders of XCD will own 20% of the company resulting from the combination.
The two companies unanimously recommended the merger, saying the new entity would have increased scale, market presence, financing capacity and liquidity on the ASX and London AIM.
“In addition to a significant bonus, the transaction provides XCD shareholders with the opportunity to become shareholders in a significantly larger scale business with demonstrated operational capabilities that focus on the world class potential of the North Slope ‘Alaska,’ said XCD president Peter Stickland. Explain.
Tesoro Resources (ASX: TSO)
Chilean gold explorer Tesoro Resources’ El Zorro project offered more positive news this week, with the latest tests returning “exceptional” thick high-grade intersections.
Highlight results were 34.73 m at 2.94 g / t gold over 187.27 m, of which 15 m at 5.99 g / t gold and 2.7 m at 22.21 g / t gold.
Another interception returned 68.52 m at 0.47 g / t gold over 21 m and 41.17 m at 1.38 g / t gold over 78 m, including 14.17 m at 3.25 g / t gold and 5.32 m at 6.54 g / t gold.
Tesoro has now completed 11 holes for 2,855.3 m during its last drilling program at El Zorro, with analyzes for the last five holes planned in the next four to six weeks.
“The El Zorro drilling results continue to impress and we have now delineated a significant high grade gold zone associated with the CC500 fault,” said Tesoro general manager Zeff Reeves.
“The team has identified several replicates of these fault zones, which provides considerable leeway to add additional high grade gold mineralization to any potential resource.”
Nanoveu (ASX: NVU)
Singapore-based Nanoveu smartphone antivirus screen protector has been found to reduce coronavirus particles by 90% in 10 minutes after independent testing.
The Department of Microbiology and Immunology at the National University of Singapore performed tests that included a mouse-based murine hepatitis virus (believed to be a substitute for human coronavirus 229E).
The virus was placed on a thin film of Nanoveu’s antiviral technology, the results revealing a 90% reduction in coronavirus particles in 10 minutes.
In addition, previous tests of the technology have proven to be effective against the H3N2 influenza virus, feline calicivirus (strain F9) and bacteria such as Escherichia coli (E. coli).
“From a structural point of view, all coronaviruses have a large viral envelope, which is a layer of proteins derived from old host cells that protect the viral genome outside of host environments,” explained the president and CEO. Nanoveu CEO Alfred Chong.
“Our technology is capable of breaking this envelope, effectively killing the virus.”
Other tests on the shell of the smartphone are underway in an American laboratory.
Nanoveu plans to release the smartphone’s antiviral screen and a classic protective phone case with the same technology early next year.
Archer Materials (ASX: AX)
Archer Materials will work with the American computer giant IBM to advance quantum computing as part of an agreement reached this week.
The agreement paves the way for Archer to become a member of the IBM Q Network and the associated IBM Quantum Experience for Business program.
One of the main drivers of the agreement is to develop a quantum computer processor capable of performing a large number of calculations at faster speeds while using less energy than existing technology.
Archer and IBM will also explore mutually beneficial collaboration opportunities, including the development of real and conceptual quantum processors, hardware, algorithms, applications and business use cases.
“Ultimately, we want Australian businesses and consumers to be one of the first beneficiaries of this exciting technology, and now that we are working with IBM, this greatly increases our chances of success,” said Dr. Mohammad Choucair , CEO of Archer.
E2 metals (ASX: E2M)
A short reconnaissance drilling program at the E2 Metals ’Conserrat project in Argentina revealed high-grade gold and silver in the Mia prospect.
The mineralization was discovered after a five-hole reverse circulation program in the prospect, which is 15 km along the trend of the AngloGold Ashanti Cerro Vanguardia mine in the Argentine province of Santa Cruz.
A hole rose 8 m to 7.64 g / t gold and 216 g / t silver from 76 m, including 1 m to 36.8 g / t gold and 1,108 g / t silver at 78 m.
The hole also ended in mineralization with the final drilling sample grading 4 g / t gold and 22 g / t silver.
Following the program and previous exploration, the mineralization at Mia was defined over 280 m of deposit and remains open to the northwest.
Alliance Resources (ASX: AGS)
Another gold explorer to impress investors this week was Alliance Resources, which discovered up to 166 g / t gold during infill drilling at the Weednanna deposit as part of its Wilcherry project on the Eyre Peninsula in Australia from South.
The company had completed a reverse circulation program of 32 holes over 3,737 m and targeting shoots 5, 5E, 6, 9 and 10.
In Shoot 10, best results were 4 m at 6 g / t gold over 3 m, including 1 m at 20.2 g / t gold; and 5 m at 63.8 g / t gold from 14 m, including 2 m at 154 g / t gold.
Deeper mineralization was intercepted at shoots 5 and 5E, which yielded 1 m at 40.5 g / t of gold from 78 m (shoot 5); and 11 m at 17.3 g / t gold from 101 m, including 1 m at 166 g / t gold at 102 m.
Alliance has already started other drilling on the project which will include 41 holes over 5,100 m and will focus on shoots 2 and 10.
The coming week
Unusually, what is normally a boring, short and easily missed third quarter update for Commonwealth Bank (ASX: CBA) has taken on real significance this time around.
As Australia’s largest bank, the CBA is now expected to provide guidance on the high cost of bad and doubtful debts resulting from the COVID-19 pandemic on Wednesday.
Some analysts have guessed that the CBA would put out the spotlight with a $ 1.3 billion allowance for bad and doubtful debts, which would bring the bank’s provisions to levels never seen since the GFC.
It can also give prospective indications on its approach to dividends, which have been either savagely cut, or deferred by its three other large banks, whose closing date is different.
There may also be indications of half-yearly profits and whether CBA is likely to ask shareholders for more capital.
Frydenberg Economic Update
In addition, the impact of the COVID-19 pandemic will be illustrated by Federal Treasurer Josh Frydenberg’s economic update on Tuesday, which will likely be some kind of horror show.
The crisis has delayed the federal budget until October 6, so this statement will be the first to truly describe the extent of the blow to the end result of the federal government’s shutdown and the associated wave of stimulus spending and revenue collapse. fiscal.
Other things to watch out for during this busy week include some consumer confidence surveys, employment data for April, business surveys, and wages and tourism data.
There is also a lot to watch overseas, the highlights being consumer and producer price data in the United States, which will be monitored for signs of deflation and retail spending data in the USA.
The monthly data on activities in April in China should provide us with some sort of guide on how an economy recovers when it reopens.
The best stocks of the week