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

 

ASX 200 finishes up 26 points to 6295 in nervous trade..Banks once again the solid sector ahead of dividends. US futures down 135 and Asian market weaker on worries ahead of the trade talks. Banks shone with CBA up % and NAB up %. Consumer and defensive stocks were in demand. TCL up % and SYD +% with the telco sector very interesting on the TPM news. TLS provided some support up % and TPM bounced and fell to close finally up %. Miners though fared negatively with commodity prices lower. BHP down % and Rio down %. Energy stocks were in demand led by WPL up % and STO up %. AUD slips slightly to below 70c on Asian woes. Asian market slipped with China down 1.2% and Japan down 0.9%.

Today’s Highlights

  • ASX 200 up 26 to 6295
  • High 6300 Low 6259.
  • Banks still attractive for dividends.
  • TLS bounces on TPG merger news.
  • Infrastructure stocks in favour as defensives.
  • Miners slip as commodities fall. Lithium miners in demand though
  • Energy finds friends.
  • AUD slips to 69.74c
  • Aussie Gold rises to $1837 on lower dollar.
  • Bitcoin firms to $6059.
  • US futures down 132 on trade fears.
  • Asian markets flop with Japan down 0.81% and China down 1.00%

STOCKS

  • HTA+13.04% TPM -0.33% long road ahead.
  • ORI +5.63% explodes on good results.
  • ABC -10.26% profit downgrade.
  • FXL +5.36% still basking in glory.
  • PLS +3.31% takeover speculation.
  • SIQ +4.04% presentation.
  • ABC -10.26% profit warning.
  • GNC -4.27% profit numbers.
  • APT -0.49% finds it has a twin brand in Holland and UK.Doh.
  • Z1P -2.37% profit taking.
  • CTX +0.19% trading update.
  • STO +1.90%/CVN +2.44% Dorado kicks off. MS upgrades outlook.
  • KDR -2.56% chair says not aware of any other suitors.
  • ORE +4.64% GXY +7.49% Lithium has its day.
  • Speculative stock of the Day: Liontown Resources LTR) +63.27% big volume as company announces think high-grade zone at Kathleen Valley.
  • Biggest Risers: HTA, GXY, VGL, ORI, FXL and SLR
  • Biggest Falls: AMI, ABC, WPP, AVH, GNC and NWL.

TODAY

  • Orica (ORI) +5.63% First-half results; net profit came in ahead of estimates at $166.7m vs consensus of $141.9m. Revenue beat at $2.83bn, underlying EBITDA missed expectations at $436.8m vs consensus of $438.6m. FY19 guidance remains unchanged. An interim dividend of 22c per share was declared.
  • GrainCorp (CNC) –4.27% First-half results; underlying net profit missed expectations at ($48m) vs consensus of ($21.6m). Underlying EBITDA slid to $27m, down 77% on year. An interim dividend will not be paid. Challenging conditions expected to persist in the second half, winter crop planting has begun although GNC points out it is too early to forecast grain production levels.
  • Qantas (QAN) +2.21% Third quarter trading update; total revenue was up 2.3% to $4.4bn compared to the previous corresponding period. QAN also agreed to sell its Melbourne domestic terminal for $335m. The board said it would consider further capital management initiatives as part of the FY19 results announcement in August.
  • Adelaide Brighton (ABC) -10.26% Expects underlying net profit for FY19 to be 10–15% lower than the prior year of $190.1m. The decline in earnings driven by softening demand for construction materials, increased competitive pressures and higher raw material costs.
  • QBE Insurance Group (QBE) +0.55% Has reiterated full-year guidance at its AGM today. Combined operating ratio expected to be between 94.5 and 96.5%. Investment return expected to be between 3-3.5%

ECONOMIC NEWS

  • Nothing today

BOND MARKETS

  • 2-Year bond yields down 1bps to 1.31%
  • 5-Year yields fall 1bps to 1.34%
  • 10-Year yields fall 1bps to 1.72%

ASIAN NEWS

  • China’s consumer price index rose to 2.5% year-on-year in April, meeting market consensus. Pork price rises hurting inflation numbers.
  • The producer price index beat expectations at 0.9% on year vs consensus of 0.6%.
  • First patent revealed for Dyson’s electric car to be built in Singapore. Looks like a car.
  • Economic growth in the Philippines slowed to its weakest pace in four years in the first three months of 2019.
  • Takeda has agreed to sell a dry eye drug to Novartis for up to US$5.3bn.

EUROPEAN AND US NEWS

  • Trump says that China ‘broke’ the trade talk deal.
  • Officials say tariffs will apply from Friday but goods in transit would be exempt.
  • The US has hit Iran with increasd sanctions on its metal sectors.
  • Trump is pressuring US drug companies to disclose prices on TV ads.
  • Germany’s economic slowdown is set to blow a EUR100bn hole in its budget.

And finally………….

“It’s a boy,” I shouted, as tears began to roll down my cheeks.

“I can’t believe it, it really is a boy.”

That’s when I swore never to return to Thailand.

Blonde walks into a doctors office and says: “Doctor, what’s the problem with me? When I touch my arm, ouch! It hurts… When I touch my leg, ouch! it hurts… When I touch my head, ouch! It hurts… When I touch my chest, ouch! it really hurts!”

The Doctor replies: “Your finger is broken.”

Two croupiers are sitting bored at the roulette of THE CASINO.

Suddenly a very attractive blonde woman enters and bets $20,000 on a roll, saying: “I hope you do not mind, but I feel very lucky when I play naked.”

With that, she unbuttons the zipper, takes her dress and underwear off, throw the dice and yells: “Come on baby, mama needs new clothes!”

She looks with agony and as soon as the dice stops, starts jumping up and down screaming: “YES, YES, YES I WON!”

She embraces one to one of the dealers, taking her profits and clothes and disappears. The guys are looking dumbfounded at each other.

Eventually, one asks: “Did you see what dice she rolled?” “I do not know, I thought you were watching!”

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