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

 

ASX 200 up 50 to 6376 as ANZ results cheered the banking sector and funds cover shorts. US futures up 94 following strong Apple results. Banks led the charge with ANZ up 2.76% on solid numbers and even WBC rose 2.29% despite latest write down. NAB results tomorrow will reveal scale of dividend cut. ‘BNPL’ stocks continue to roar ahead with Z1P up 11.76% and APT up 6.68%. Just like 2001 for this sector. Miners had a solid day with BHP up 0.21% and FMG bouncing well up 2.1%. Bond proxy stocks too back in the spotlight ahead of expected rate cuts and a slowing economy. Healthcare mixed as RHC fell 2.80% after copping a downgrade and CSL back in demand up 0.91%. The Macquarie conference continues to throw up the good and bad of confessional presentations. Asian markets were quiet with Japan still closed and May Day holidays looming for some European markets. AUD was steady at around 70.50c.Fed tonight.

Today’s Highlights

  • ASX 200 up 50 to 6376
  • High 6380 Low 6329. Modest volume on initial jump.
  • Banks lead the charge on ANZ results.
  • Infrastructure stocks bounce back.
  • Big Miners muted despite broad optimism.
  • Energy stocks find some support.
  • Macquarie Conference continues to dominate.
  • BNPL remains the hot sector.
  • AUD steady at 70.52c
  • Aussie Gold slips to $1815 on lower dollar.
  • Bitcoin stronger at $5314.
  • US futures up 94 on Apple results.
  • Asian markets muted as Japan still closed. China up 0.33%.

STOCKS

  • Z1P +11.76% just keeps going. Takeover potential?
  • APT +6.68% UK launch of ClearPay.
  • PNV -0.97% DoD grants access to US contracts.
  • BGA +5.14% you can keep the lid on.
  • JIN +2.97% director’s interest.
  • AVH -12.99% broker downgrades.
  • SUL -8.78% second thoughts.
  • A2M -3.32% marketing costs hurt.
  • RHC -2.80% broker downgrade.
  • NEA +3.46% investor presentation.
  • EML +6.63% it’s a payment system after all.
  • RAP +2.86% broker upgrade.
  • RBL +5.32% conference call helps answer questions.
  • NEC +6.00% conference presentation.
  • KGN +5.54% going well today.
  • HM1 +3.18% winning them.
  • NUF -2.57% conference highlights drought conditions.
  • Speculative Stock of the Day: Vmoto (VMT) +77.22% signs a licensing agreement with Ducati for electric motorbikes under  worldwide licencing agreement. The bikes will be distributed via the Vmoto network under the CUX Special Ducati edition.
  • Biggest Risers: Z1P, BVS, APT, NEC, SGF, KGN and BIN
  • Biggest Falls: AVH, SUL, SKC, JMS , A2M and PME

TODAY

  • 3PL Learning (3PL) –4.67% Has reaffirmed its FY19 outlook at the Macquarie conference this morning and said it is on track for accelerated growth.
  • Genworth Mortgage Insurance (GMA) +3.35% CEO & MD Georgette Nicholas to retire. Nicholas will continue in her current role of CEO & MD until a successor commences. Reports first quarter underlying profit growth of 12% to $22.3m. GMA continues to target an ordinary dividend payout ratio range of 50% to 80% of Underlying NPAT. Net Earned Premium (NEP) increased 8.2% to $72.9m in the first quarter of FY19. NEP is expected to be within the range of -5% to +5% for FY19.
  • Steadfast Group (SDF) +5.71% Confirms FY19 guidance at Macquarie presentation. Underlying EBITA expected to be between $190m and $200m. Underlying profit expected to be between $85m and $90m.
  • Qantas (QAN) +1.60% CFO Tino La Spina to step down to become CEO of Qantas International. La Spina will be replaced by Chief Customer Officer Vanessa Hudson.
  • Bega (BGA) +5.14% Federal Court of Australia confirms BGA’s right to continue to use the current packaging of its Smooth and Crunchy Peanut Butter products. Following legal proceedings brought against the company by Kraft Heinz.
  • Dexus (DXS) – In trading halt pending an announcement regarding a capital raising. The funds will be used to purchase the $1.3bn office development at 80 Collins Street, Melbourne.
  • Wynn Resorts has had it Boston gaming licence renewed despite copping a US$35m fine and new CEO Maddox has been hit with a US$500k fine personally.

ECONOMIC NEWS

  • The AIG Australian Performance of Manufacturing Index jumped 3.8 points to 54.8 in April, marking the fastest expansion in factory activity in 7-months and the fourth straight month of expansion.
  • CoreLogic Australia Home Prices for April; national and combined capitals down 0.5% over the month. According to CoreLogic house prices in Sydney dropped 0.8% in April to be down by 11.8% over the past 12 months. The situation is worse in Melbourne where values fell by 0.7% last month to be down 12.6% over the past year. Every capital city except Canberra suffered a fall in house prices last month with Hobart, which had been the nation’s strongest market, seeing a 1.2% drop in April.

BOND MARKETS

  • 2-Year bond yields unchanged at 1.31%
  • 5-Year yields unchanged at 1.37%
  • 10-Year yields unchanged at 1.78%

ASIAN NEWS

  • The economies of Southeast Asia, China, Japan and South Korea are expected to remain “resilient” with growth around 5% down from 5.3% in 2018. Asean+3 Macroeconomic Research Office (AMRO) saw a rising middle class, rapid urbanisation and prospects for digitalisation as further evidence of the region’s sound fundamentals.

EUROPEAN AND US NEWS

  • It’s May Day, so plenty of Euro holidays today.
  • Venezuelan crisis looks to be easing as the military seems uninterested in joining in. Guaido’s gamble looks to have flopped with Maduro still in power.
  • Looks like a trade deal with China is inching closer as the US has dropped its strong stance on security pledges from Beijing. White House says it is ready to walk though if no deal soon.

And finally….

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Financial Markets and Political Commentary
 

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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