It was choppy on the ASX today, but the bourse managed to finish the day in the green.
The S&P/ASX200 gained 19.60 points or 0.27% to 7,397.50, setting a new 20-day high. Over the last five days, the index has gained 2.02%, but is virtually unchanged over the last year to date.
The top performing stocks in this index are Whitehaven Coal Ltd up 6.14% and Brickworks Ltd up 5.19%.
Casinos under fire
Crown Resorts Ltd now has two years to fix its Perth casino issues after the Perth Royal Commission found it unfit to hold a state gaming licence.
Investors may have seen that as a positive, with the stock finishing the day 0.56% higher.
The Commission tabled a 991-page report with 57 recommendations, similar to those of inquiries into the Sydney and Melbourne operations.
Crown’s Managing Director and Chief Executive Officer, Steve McCann, said: “Significant progress has been made with Crown’s transformation program, the implementation of company-wide reforms, and establishing the highest standards of governance. This includes investment in people, systems, processes, culture and a sharp focus on responsible gaming and the prevention of financial crime.
“Crown remains committed to continuous improvement across all facets of the business and is prioritising the delivery of safe and responsible gaming across all of our resorts, including Crown Perth,” Mr McCann said.
The casino’s progress against the recommended measures will be followed by an as yet unappointed independent monitor.
The recommendations include measures to address problem gambling, including new betting limits and time restrictions.
The Star Entertainment Group Limited has been facing similar scrutiny, but won’t respond to accusations until the report is finalised.
An inquiry into Star Entertainment Group’s suitability to continue holding its casino license revealed some National Australia Bank executives were involved in creating a loophole for money transfers, where international gaming clients were able to transfer money out of China and withdraw it in Australia.
The bank also overlooked numerous concerns raised that these transactions were being used to fund gambling.
The casino provided the cards that were reportedly owned by Chinese financial services company China Union. However, when Chinese Union caught wind, it raised concerns with NAB and threatened to stop its cards being used at Crown.
NAB was contracted by the China-based company to supply merchant terminals at various Star hotels, placing them in areas away from casino floors as the use of these card was prohibited for gambling purposes.
It was revealed that over $900 million dollars spent on a debit card for gambling was disguised as hotel expenditure.
Two Star officials have admitted to misleading NAB staff, saying they were acting under executive orders.
Westpac does its own interest rate thing
Westpac Banking Corp now has the lowest home loan variable rate of any of the big four banks as it looks to pre-empt and moves by the Reserve Bank of Australia, which are now expected in June.
Westpac has cut its variable rate to 2.09%. However, fixed rates at Westpac are up across its 1 to 5 year lock-in options for owner-occupiers and investors by up to 0.3%.
Westpac's 4-year fixed rate is now at 3.99 per cent, up from 1.89 per cent in April last year.
the fixed rate rise of over two percentage points in the last 12 months is "
"Westpac and other banks are responding to rising costs of funding and expected RBA hikes," RateCity.com.au research director Sally Tindall said, while calling the two percentage point rate rise “astonishing" when the cash rate "hasn’t moved a muscle".
"While now is a great time for variable-rate customers to be moving to a lower rate, people need to be acutely aware the RBA is poised to hike this year."
On the small cap front
- FAR Ltd finished 15.00% higher.
- Meeka Gold Limited finished 12.77% higher.
- Nova Minerals Ltd finished 6.43% higher.
- White Rock Minerals Ltd finished 2.38% higher.
- Imugene Ltd finished 0.70% higher.
- Aurumin Ltd finished 5.56% higher.
- Boadicea Resources Ltd finished 15.79% higher.
- Lithium Australia NL finished 1.82% higher.
- Nickelsearch Ltd finished 4.76% higher.