ASX 200: Henry Jennings, Australian Market Rap. Stocks & Sectors, Bonds & Economic News – END of DAY REPORT.

 

Today’s Headlines

  • ASX 200 closes down 31 at 6023.5
  • High 6053 Low 6011.
  • RBA Governor talks up wages growth.
  • Across the board losses with banks and BHP leading.
  • Energy stocks weaken as staples fall away finally.
  • Infrastructure stocks catch a bid from APA takeover.
  • AUD eases to 75.71c
  • Bitcoin under serious pressure at US$6578
  • AUD Gold steady at $1295.
  • US futures up 41.
  • Asian markets mixed with Japan up 0.41% and China CSI 300 down 0.85%

STOCK STUFF

Movers and Shakers

  • KGN -6.88% after Kogan and Shafer sell 6m at 700c.
  • BLA -1.98% more woes on cash position.
  • AGO -trading halt- getting weirder as Gina joins the Atlas Club.
  • APA +20.92% takeover from CKI.
  • WGN +5.28% finding good support.
  • IRI +3.55% broker upgrade.
  • BAL -6.57% ceasing to be substantial shareholder.
  • NAN -3.23% broker downgrade.
  • GTY +14.75% takeover approach at 210c cash.
  • LIC +2.68% follows Gateway higher.
  • MIN -5.15% acquisition and plans scuppered.
  • WTC -4.83% gloss wearing off.
  • GXY -4.75% KDR -4.13% US car makers after local supply.
  • AU1 -23.08% large trade triggers steep sell off.
  • WBC -0.29% restructuring loan book.
  • AGL +2.52% broker upgrades.
  • Speculative stock of the day: Nothing special.
  • Biggest risers – APA, GTY, WGN, OMH, YAL and IRI.
  • Biggest fallers – CUV, KGN, BAL, MIN, WTC and GXY.

TODAY

  • APA Group (APA) +20.92% Has reported this morning they have received an unsolicited takeover offer worth $13B from Consortium led by Hong Kong’s CKI Group. Cash deal $11 per share.
  • Investa Office Fund (IOF) +0.19% Has entered into an agreement with Blackstone to acquire all units in IOF for $3.08B.
  • Challenger (CGF) – 1.32%Has lifted FY18 guidance 8-12%, normalised net profit before tax is now expected to be around $545-565m.
  • Kogan (KGN) -6.88 The two directors Ruslan Kogan and David Shafer have reluctantly accepted a lower bid for 6m shares this morning and have committed to no more share sales until at least September 2018.

ECONOMIC NEWS

  • Consumer confidence lifted 5.6% last week. All sub-indices posted gains. The jump in confidence is likely driven by the strong 1Q GDP result last Wednesday.
  • The Westpac Melbourne Institute consumer-sentiment index edged up to 102.1 from 101.8 in May.

  • Philip Lowe (the Gov) has warned the current pace of wages growth is not compatible with his goal of keeping inflation at 2.5%, and is eroding the nation’s “sense of shared prosperity,” and makes much-needed productivity enhancing economic reforms more difficult to achieve. Whistling in the dark.

BOND MARKETS

ASIAN MARKETS NEWS

  • North Korea says Trump will lift sanctions. China claims victory in negotiations. Lost in translation.
  • ZTE hit hard after US fine down 38% to a 1-year low.
  • Toyota will invest US$1bn in Grab a ride sharing app.

EUROPE AND US MORNING HEADLINES

  • US Judge says yes to AT&T/Time Warner deal. Administration warned not to challenge the decision.
  • Glencore has written off US$5.6bn with its JV in the Congo. Cobalt country.
  • Tesla is sacking 9% of its workforce in major restructuring.
  • More Brexit unrest in the UK with stories of three ministers talking about a second referendum.
  • Stuffed crust as UK Domino’s finance chief quits suddenly. Another one who cannot cope with the fast pace of fast food. The UK business has a number of JVs with the Australian arm.
  • Today’s Headlines

    • ASX 200 closes down 31 at 6023.5
    • High 6053 Low 6011.
    • RBA Governor talks up wages growth.
    • Across the board losses with banks and BHP leading.
    • Energy stocks weaken as staples fall away finally.
    • Infrastructure stocks catch a bid from APA takeover.
    • AUD eases to 75.71c
    • Bitcoin under serious pressure at US$6578
    • AUD Gold steady at $1295.
    • US futures up 41.
    • Asian markets mixed with Japan up 0.41% and China CSI 300 down 0.85%

    STOCK STUFF

    Movers and Shakers

    • KGN -6.88% after Kogan and Shafer sell 6m at 700c.
    • BLA -1.98% more woes on cash position.
    • AGO -trading halt- getting weirder as Gina joins the Atlas Club.
    • APA +20.92% takeover from CKI.
    • WGN +5.28% finding good support.
    • IRI +3.55% broker upgrade.
    • BAL -6.57% ceasing to be substantial shareholder.
    • NAN -3.23% broker downgrade.
    • GTY +14.75% takeover approach at 210c cash.
    • LIC +2.68% follows Gateway higher.
    • MIN -5.15% acquisition and plans scuppered.
    • WTC -4.83% gloss wearing off.
    • GXY -4.75% KDR -4.13% US car makers after local supply.
    • AU1 -23.08% large trade triggers steep sell off.
    • WBC -0.29% restructuring loan book.
    • AGL +2.52% broker upgrades.
    • Speculative stock of the day: Nothing special.
    • Biggest risers – APA, GTY, WGN, OMH, YAL and IRI.
    • Biggest fallers – CUV, KGN, BAL, MIN, WTC and GXY.

    TODAY

    • APA Group (APA) +20.92% Has reported this morning they have received an unsolicited takeover offer worth $13B from Consortium led by Hong Kong’s CKI Group. Cash deal $11 per share.
    • Investa Office Fund (IOF) +0.19% Has entered into an agreement with Blackstone to acquire all units in IOF for $3.08B.
    • Challenger (CGF) – 1.32%Has lifted FY18 guidance 8-12%, normalised net profit before tax is now expected to be around $545-565m.
    • Kogan (KGN) -6.88 The two directors Ruslan Kogan and David Shafer have reluctantly accepted a lower bid for 6m shares this morning and have committed to no more share sales until at least September 2018.

    ECONOMIC NEWS

    • Consumer confidence lifted 5.6% last week. All sub-indices posted gains. The jump in confidence is likely driven by the strong 1Q GDP result last Wednesday.
    • The Westpac Melbourne Institute consumer-sentiment index edged up to 102.1 from 101.8 in May.

    • Philip Lowe (the Gov) has warned the current pace of wages growth is not compatible with his goal of keeping inflation at 2.5%, and is eroding the nation’s “sense of shared prosperity,” and makes much-needed productivity enhancing economic reforms more difficult to achieve. Whistling in the dark.

    BOND MARKETS

    ASIAN MARKETS NEWS

    • North Korea says Trump will lift sanctions. China claims victory in negotiations. Lost in translation.
    • ZTE hit hard after US fine down 38% to a 1-year low.
    • Toyota will invest US$1bn in Grab a ride sharing app.

    EUROPE AND US MORNING HEADLINES

    • US Judge says yes to AT&T/Time Warner deal. Administration warned not to challenge the decision.
    • Glencore has written off US$5.6bn with its JV in the Congo. Cobalt country.
    • Tesla is sacking 9% of its workforce in major restructuring.
    • More Brexit unrest in the UK with stories of three ministers talking about a second referendum.
    • Stuffed crust as UK Domino’s finance chief quits suddenly. Another one who cannot cope with the fast pace of fast food. The UK business has a number of JVs with the Australian arm.

    And finally………………

    IMG_2825.JPG

 

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About the author

Henry Jennings Contact: henryjennings@mac.com // @henryj007 Has been involved in Investment Banking and Stockbroking since the early 1980's. Stockbroker - Camerons Stockbroking Macquarie Bank - Equity Capital markets Macquarie Group - Divisional Director