ASX 200 Henry Jennings, Australian Market Wrap. Headlines, Stocks, Bonds, Economic & Asian Market News – END of DAY REPORT.

 

ASX 200 kicks off the week down 26 to 6360 as some optimism fades. US futures kicking higher failed to dispel concerns over bank results later this week. Banks were the big drag on the market as CBA fell 0.45% and NAB fell 0.9%. Most sectors were in the red although miners managed to eek out some gains. BHP up 0.6% and FMG up 0.8% bounced back from heavy selling last week. Gold producers continued to shine led by NCM up 1.1%. Energy stocks were not impressed by the latest from the ‘Tweeter in Chief’ and sold off heavily with WPL down 0.9% and SOL down 3.5% as coal copped a pasting. Bond proxies and infrastructure/ REITs slipped too on some profit taking and bond movements. The Macquarie Conference is making a few headlines with BAP up 1.24% reversing early losses on its presentation. Japan has entered its 10-day Golden Week with China up 1.61%

Today’s Highlights

  • ASX 200 down 26 to 6360. Off lows at close.
  • High 6385 Low 6348. Average volumes.
  • Banks splutter ahead of results.
  • REITs and bond proxies under pressure.
  • Healthcare drifted but CSL rose.
  • Gold index at two-week high.
  • AUD rises slightly to 70.57c
  • Aussie Gold slips to $1821 on lower dollar.
  • Bitcoin steady at $5184.
  • US futures up 75
  • Asian markets quiet as Japan enters 10-day Golden Week holiday. China up 1.6% on growth revisions.

STOCKS

  • PNC +27.92% response to media reports confirms approaches.
  • GEM +3.37% proposed Labor changes to childcare.
  • BAP +1.24% reaffirms guidance.
  • FLN +21.43% positive quarterly
  • CRD +15.32% AGM address and presentation.
  • SPT +25.41% positive quarterly
  • GRR -11.48% iron ore prices.
  • ADT -6.90% quarterly.
  • BGL +8.82% response to media speculation on possible change of ownership.
  • HUB +4.95% powering ahead again.
  • SYD -0.39% airport outage causes chaos.
  • SYR -5.86% quarterly results underwhelm but misses cyclone.
  • BUB +7.44% retail buyers pile in.
  • AWC -2.16% presentation.
  • AKP +7.69% institutional roadshow on low volume.
  • PNV +5.24% distributor appointed.
  • MGX +4.89% quarterly activities.
  • GPT -2.83% March update.
  • TLS -0.30% NBN at 62nd in the world. Result.
  • COL +0.32% three month high on its toy promotion.
  • VEA -3.39% third downgrade in five months.
  • Speculative Stock of the Day: MCS Security MSG +84.62% after the company responded to an ASX speeding ticket. It has recently won three new contracts for building security and a substantial shareholder.
  • Biggest Risers: Z1P, AMI, BUB, PNV, HUB and CUV.
  • Biggest Falls: PLS, DHG, KGN, SOL, FXL and MOE.

TODAY

  • Coles (COL) +0.32% Third quarter sales update. Quarterly sales came in at $8.8bn vs consensus estimates of $7.99bn. Supermarkets sales revenue was up 3.2% on the prior corresponding period (pcp) to $7,272m. Liquor sales revenue was up 4.3% to $735 million. Express sales revenue was down 32.4%, driven by changes to the terms of the Alliance Agreement with Viva Energy.
  • SEEK (SEK) –1.56% To acquire a 50% stake in FutureLearn for $92m and a minority interest in Coursera for $50m. SEK expects to see $2m in NPAT losses in FY19 as a result of the transactions.
  • Oricia (ORI) -1.00% Expects $191m in write-downs to its first-half results, due to faulty plant components at its Burrup operations in the Pilbara along with IT & other assets. Results are expected to be released next Thursday.
  • GPT Group (GPT) –2.83% March quarter update. Growth appears to be slowing. Total Centre comparable MAT growth of 1.3% vs 2.4% at December 31 2018. GPT remains on track to meet its 2019 guidance of 4% growth for both Funds From Operations per security and Distributions per security for the full year.
  • WorleyParsons (WOR) –0.14% Announced it has completed the US$3.2 billion acquisition of Jacobs ECR division.
  • Cooper Energy (COE) –0.93% Third quarter production of 0.33mmboe vs 0.29mmboe in the December quarter. Full-year production guidance lowered to 1.3mmboe from 1.4mmboe.
  • Zip Co. (Z1P) +16.53% March quarterly update. Revenue up 20% to $23m q/q. Receivables increased to $565.3m, up 16%. Transaction volume up 107% to $281m. Customer numbers increased to 1.2m, up 143k in the quarter, an increase of 14%. Looks like a solid set of numbers, the stock has jumped around 10c in response. Henry has written up buy now pay later players in ‘Henry’s Take’, click here for a look.
  • Meridian Energy (MEZ) -0.77% Appoints Mike Roan as CFO, previously General Manager Wholesale Markets.
  • Viva Energy (VEA) –3.39% March refining update. High oil prices have negatively impacted Viva Energy Retail segment’s underlying EBITDA in the range of $30 to $35m through to the end of April 2019. Crude intake 3.8M BBLs. Geelong Refining Margin $6.5 per barrel.
  • Freelancer (FLN) +21.43% The crowd funding website operator has reported quarterly cash receipts of $14m, up 16% on year. Gross payment volumes were up 25.6% to $204.3m.

ECONOMIC NEWS

  • Nothing new today.

BOND MARKETS

  • 2-Year bond yields up 1bps to 1.33%
  • 5-Year yields unchanged at 1.39%
  • 10-Year yields up 1bps to yield 1.79%

ASIAN NEWS

  • Golden Week kicks off. 10- day holiday in Japan.
  • A record 5.46m Japanese houses are sitting empty as the population ages and shrinks. It is now 13.6% of housing according to government figures. In China similar figures have come from government with 20% of urban housing apparently vacant. 65m homes. And yet they keep building them.
  • Economists are upgrading their Chinese forecasts. According to the latest Bloomberg survey the economy will grow by 6.3% this year up 0.1% and inflation will hit 2.1% in line with previous estimates despite the African Swine fever outbreak.

EUROPEAN AND US NEWS

  • Bayer shareholders have rounded on the CEO and top executives in light of the company’s acquisition of Monsanto and its subsequent issues with RoundUp. The board has defended the move though and stood behind the CEO. As they say to knife someone you need to get behind them.
  • Socialists have finally won the Spanish election as a split in the far -right emerged.Catalan looks to have been sidelined.
  • ‘Avengers: Endgame’ has broken all box office records taking US$1.2bn over the weekend.
  • The former head of RBS may forfeit a GBP2m bonus if he joins NAB as expected.

And finally……………..

Two Scotsmen, brothers, Finlay and Jim Calder, were sitting in the pub discussing Jim’s big wedding day.

‘Aye, it’s going to be grand,’ said Jim. ‘I’ve got everything organised already, the flowers, the church, the cars, the reception, the rings, the minister, even ma stag night.’

Finlay smiled and nodded, approvingly.

‘Heavens, I’ve even got a kilt to be married in,’ continued Jim with a look of satisfaction. ‘A kilt… that’s guid. You’ll look smart in that,’ exclaimed Finlay, ‘and what’s the tartan?’

‘Och,’ uttered Jim, ‘I imagine she’ll be in white.’

And as its my 25th Wedding anniversary tomorrow…some of you were even at the wedding!!!!

The best way to get most husbands to do something is to suggest that perhaps they’re too old to do it. (Ann Bancroft)

I think men who have a pierced ear are better prepared for marriage. They’ve experienced pain and bought jewellery. (Rita Rudner)

Keep your eyes wide open before the wedding, half shut afterwards. (Benjamin Franklin)

By all means marry; if you get a good wife, you’ll be happy.  If you get a bad one, you’ll become a philosopher.  (Socrates)

A husband is like a fire, he goes out when unattended. (Evan Esar)

My wife dresses to kill. She cooks the same way. (Henny Youngman)

My wife and I were happy for twenty years. Then we met. (Rodney Dangerfield)

A good wife always forgives her husband when she’s wrong. (Milton Berle)

I was married by a judge. I should have asked for a jury. (George Burns)

Clarence

XXXX

mt_tryforfree
Financial Markets and Political Commentary
 

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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