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

 

Today’s Headlines

  • ASX 200 finally shows positives up 9 to 6050.
  • High 6057 Low 6023. Better volumes. Conviction lacking.
  • Big miners lead turnaround.
  • Banks find a friend and healthcare looking rosy.
  • AUD better at 71.15c
  • Bitcoin steady at US$6537
  • Aussie Gold falls to $1672
  • US futures down 29.
  • Asian markets mildly mixed with Japan up 0.06% and China down 0.46%

STOCK STUFF

  • FLT +3.19% Morgans conference presentation.
  • NVT +21.84% potential private equity bid.
  • DMP +5.02% shorts covering a little.
  • CTD +3.65% trading update.
  • NXT +3.02% market likes AJD deal.
  • LYC -4.27% optimism fades.
  • ORE -5.54% South American problems.
  • SYR -3.88% broker downgrades on fire implications.
  • CYB -2.87% currency factors.
  • BAL -2.98% China slowdown.
  • APT -3.13% high PE sell off continues.
  • IPD -6.38% first patient enrolled in heart trial.
  • MNF -5.42% earnings guidance.
  • EDE +28.17% speeding ticket from ASX.
  • GXL +17.87% media speculation on a bid.
  • COH +3.25% new implant technology research.
  • ALL +2.61% Investor presentation.
  • BVS -5.53% topping out.
  • AAD +1.75% restructure proposal.
  • CBA +0.32% Slater and Gordon file a $100m class action.
  • Speculative stock of the day: Dragontail Systems (DTS) +% the company has secured a strategic investment form Tiger Global Investments Fund of $6m. The investment is at a near 11% premium to the closing price last night.
  • Biggest risers – NXT, FXL, DMP, CTD, GEM, MYX
  • Biggest fallers – ORE, BVS, LYC, SYR, ILU, APT

TODAY

  • Navitas Limited (NVT) +21.84% received an unsolicited, preliminary and non-binding takeover offer from BGH capital led-consortium. NVT said the consortium is offering 550c per share which represents a 26% premium to the closing price on the 9th of October. As an alternative, Navitas shareholders could choose to receive a consideration of 275c cash per share and one ordinary share in a newly formed unlisted company that will initially own Navitas (Rollco) for every two shares of NVT held.
  • Cochlear (COH) +3.25% Announced the next phase of its long-term R&D program towards a totally implantable cochlear implant, with the start of a further clinical feasibility study.
  • MNF group (MNF) –5.42% FY19 & FY20 guidance update with the company incorporating the upcoming acquisition of the wholesale and enablement business from Inabox group (IAB). MNF expects a $12.8m net profit in FY19, a 19% rise in EBITDA to $29.1m and sees EPS at 17.5c. FY20 forecasts for EPS are in the range of 20.4 to 22.4c. Net profit expected to be around $15 to 16.5m and EBITDA is expected to be in the range of $33m to $36m.
  • Greencross Limited (GXL) +17.87% Confirms that it has received and is engaging with several parties regarding proposals. The announcement comes after press speculation about potential takeover interest in the company. The stock jumped as much as 13% at the open.
  • Ardent Leisure (AAD) +1.75% Is looking to reorganise its structure from a stapled trust entity to a single entity, Ardent Leisure Group, that will trade under the new code ALG. The proposal will be voted on at its AGM on the 20th of November.

ECONOMIC NEWS

  • Australian consumer sentiment rebounds in October. Westpac/Melbourne Institute consumer confidence rose 1% to 101.5 following sharp losses in the past two months.

  • Moody’s Investor Service found that, on average, mortgage delinquency rates were lowest within five kilometres of Australia’s CBDs and highest in neighbourhoods 30 to 40 kilometres away from city centres. Could have just asked any Sydney or Melbourne commuter.
  • National Bank has cut its house price forecasts following a seven-year low in the confidence of NSW and Victorian property professionals surveyed pushed it to cut forecast prices to a decline this year of 3.7% compared with the 1.8% fall at the time of its last forecast in July, and also predicts a 3% decline in unit prices, more than the 1.7% previously expected.

BOND MARKETS

ASIAN MARKET NEWS

  • Hong Kong has banned E- Cigarettes.
  • Tencent is no longer one of the top ten global stocks after its extraordinary falls this year. Still it is up 67,000% after its IPO.

EUROPEAN AND US HEADLINES

  • New evidence of Chinese chip hacking emerges in UYS companies. Doh! If you manufacture overseas it is a risk.
  • HSBC is finalising a US$765m settlement for past misdemeanours.
  • For Brexit followers, one issue is now becoming a focus for markets. Cross border derivative deals. It is a US$41tr market. London acts as a hub for these contracts for many EU financial institutions. However, UK clearing houses will have to ask EU-based parties, to contracts due to mature after Brexit, to move them elsewhere at least three months before the exit day, March 29. 90% of EU based companies use the UK for interest rate swaps. A little esoteric but a serious issue.
  • This is a reason for the Germans to come to the Brexit table. The economic institute is warning of a EUR3bn risk to car companies. BMWs big export to UK.

And finally…………

A man walking along a California beach was deep in prayer. All of a sudden, he said out loud, “Lord, grant me one wish.”

Suddenly the sky clouded above his head and in a booming voice, the Lord said, “Because you have TRIED to be faithful to me in all ways, I will grant you one wish.”

The man said, “Build a bridge to Hawaii, so I can drive over anytime I want to.”

The Lord said, “Your request is very materialistic. Think of the logistics of that kind of undertaking. The supports required to reach the bottom of the Pacific! The concrete and steel it would take! I can do it, but is hard for me to justify your desire for worldly things. Take a little more time and think of another wish. A wish you think would honor and glorify me.”

The man thought about it for a long time. Finally, he said, “Lord, I wish that I could understand women. I want to know how they feel inside, what they are thinking when they give me the silent treatment, why they cry, what they mean when they say ‘nothing,’ and how I can make a woman truly happy.”

After a few minutes, God said, “You want two lanes or four on that bridge?”

~~~~~~~~~~~~~~~~~~

A plane was taking off from Sydney Airport After it reached a comfortable cruising altitude, the captain made an announcement over the intercom.
“Ladies and gentlemen, this is your captain speaking. Welcome to Flight 293, nonstop from Sydney to Los Angeles. The weather ahead is good and therefore we should have a smooth and uneventful flight. Now, please sit back and relax… AAHHHHH! ….DAMMIT!”
The passengers sat in silence, waiting for terrible news.
Then, the captain came back on the intercom and said, “Ladies and Gentlemen, I am so sorry if I scared you earlier, but while I was talking, the flight- attendant brought me a cup of coffee and spilled the hot coffee in my lap. You should see the front of my pants!”
A passenger in economy said, “That’s nothing. You should see the back of mine!”

Clarence

XXXX

mt_tryforfree

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