rate rises

Todays Highlights

  • ASX 200 down 3 to 5725. Sideways fence sitting.
  • High 5738 Low 5707 Average volume.
  • Healthcare shines.
  • Miners struggle on commodity prices. Iron ore under pressure.
  • Banks flip flop as ANZ in the dock.
  • Insurers better despite Sydney rain.
  • REITS steady. COL tumbles.
  • AUD steady at 72.36c
  • Bitcoin finding a base at US$3841
  • Aussie Gold steadyat $1678
  • US futures up 41
  • Asian markets stronger with Japan up 0.99% and China up 1.24%

STOCKS IN FOCUS

  • APT -1.62% AGM comments and ASIC review.
  • OML +6.71% wins Brisbane contract.
  • PPH +6.32% Xmas giving season upon us.
  • CKF +5.62% AGM trading update. KFC going well.
  • FMG +2.34% holding up well after investor day.
  • COE -2.30% conference presentation.
  • AX1 -4.10% profit taking,
  • AMA -2.88% rain in Sydney fails to produce more opportunities.
  • AMP -3.29% Royal Commission takes it toll.
  • ING +3.26% capital return looms.
  • SM1 +3.14% AGM presentation gets applauded.
  • PVS +6.98% Shaw bullish on outlook.
  • BUB +8.79% market update.
  • FNP +0.62% AGM yesterday cheers.
  • BIT -21.95% presentation of HIV -1 data.
  • RBL -15.91% bursts.
  • CSR +2.03% sells glass. Finally.
  • NUH +11.39% NHS contract in UK.
  • FXJ -2.33% last day today.
  • MYR -3.57% AGM looms. Showdown.
  • Speculative stock of the day: Cohiba Minerals (CHK) +110.00% accelerates expansion following BHP discovery at Olympic Dam.
  • Biggest risers – OML, PPH, EVT, CKF, MIN, XRO and BKW
  • Biggest fallers – SAR, ASL, SWM, YAL AX1 and FXL

TODAY

  • Cooper Energy (COE) –2.30% Reiterates FY19 production guidance of 1.4mmboe. Fourth quarter production came in at 0.35mmboe vs 0.33mmboe in the third quarter. Sales revenue was up 24% in Q4 to $19.6m.
  • CSR (CSR) +2.03% To offload its Viridian glass business to Crescent Capital for $155m. Following the sale, CSR expects to realise a pre-tax loss of between $20m and $30m mostly due to the disposal of the Viridian-related deferred tax assets.
  • Retail Food Group (RFG) – Newswires this morning talking about RFG selling its Hudson Pacific bakery arm which it purchased in 2016 for $88m. KordaMentha has been hired to conduct the sale and examine the company ’s balance sheet.
  • Collins Foods (CKF) +5.62% First half update. Underlying NPAT and adjusted EBITDA beat estimates coming in at $21.9m and $53.7m respectively. Revenue fell just short of expectations at $411m. A fully franked interim dividend of 9c per share was declared, up 12.5% on year.
  • Afterpay (APT) 1.62% Responded to ASIC review by saying that they look forward to working with the regulator as they continue to monitor the industry. ASIC has confirmed that it recommends regulating Afterpay through the product intervention powers, if parliament extends those powers to capture the buy now pay later sector. Afterpay has previously made clear that it supports such amendments.
  • Cromwell Property Group (CMW) – Confirms a 2 for 13 accelerated rights issue to raise around $300m at a fixed issue price of 98c per security. Proceeds will be used to fund a $129m equity commitment and repay debt. CMW also reaffirmed FY19 guidance, operating earnings per share are expected to be no less than 8c and distributions are expected to be no less than 7.25c per security.
  • AMP Limited (AMP) –3.29% Confirms the $415m pre-tax additional advice remediation provision recognised in its first-half results. The figure of $1.185bn referenced in the Royal Commission was an early estimate of the total program costs, now estimated to be around $778m.
  • Iluka Resources (ILU) –0.64% Update on strike action at Sierra Rutile. ILU expects production to be around the low end of guidance between 125 and 130kt. Previous guidance was ~135kt. Iluka expects mining operations to resume in the next few days.
  • Ooh!media (OML) +6.71% Has been up as much as 6% today on reports the Brisbane City Council has announced a 10-year street furniture contract with Adshel, the street furniture and transport Out of Home company Ooh! recently acquired.
  • Senetas (SEN) –6.67% FY19 update at its AGM. First-half profit and revenue expected to be weaker compared to 1H18. R&D costs are forecast to be materially higher in 1H19.

ECONOMIC NEWS

TOTAL CONSTRUCTION

  • The trend estimate for total construction was flat in the September quarter 2018.
  • The seasonally adjusted estimate for total construction work done fell 2.8% to $53,143.6m in the September quarter.

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ENGINEERING WORK DONE

  • The trend estimate for engineering work done fell 0.8% in the September quarter.
  • The seasonally adjusted estimate for engineering work done fell 4.5% to $23,027.5m in the September quarter.

BOND MARKETS

  • 2-Year bonds unchanged to yield 2.01%
  • 5-Year yields down 1bps to yield 2.21%
  • 10-Year yields down 1bps to yield 2.62%

ASIAN MARKETS

  • NZ has blocked Huawei from providing 5G technology on security issues.
  • South Korea has become the first east Asian country to legalise medical cannabis in a move to expand the treatment options for patients with epilepsy and other rare diseases.
  • Taiwan has cancelled its policy to phase out nuclear power by 2025.

EUROPEAN AND US HEADLINES

  • Kudlow says talks with China have stalled ahead of the dinner date on Saturday. Trump on best behaviour?
  • Trump has used an interview in the Washington Post to criticise Jerome Powell. Not so happy with his appointment. He was always going to be his own man.
  • GM stoush gets nasty as Trump warns on cutting all subsidies.
  • Microsoft is the world’s most valuable brand. Knocked off the Wiggles.
  • Unilever in talks to buy Horlicks unit for US$4bn.
  • Google facing fines in Europe for the deceptive way it tracks its users.

And finally the best summary of the Theresa May”s Brexit Deal

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Clarence

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