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

 

Posted by Henry in Daily Reports

ASX 200 slips 4 to 6452 on thin trade. With the US and the UK on holiday tonight, it was inevitable that volumes would be lower. Dow Futures up 9 as Trump tees off with press conference in Japan. Golf and Sumo and now talks. It was a tale of two sectors as banks weakened and resources rallied. Iron ore players back in focus as prices hit a 5 -year high. FMG up 2.7% and BHP up 1.4%. In contrast, banks slipped led by CBA down 0.75% and WBC down 0.8%. SUN has lost its CEO today and is 2.3% weaker. Energy companies were unchanged after early gains although OSH slipped 1.1% as the PNG PM resigned after a scandal. In corporate news, VOC rose 17% after Swedish private equity group, EQT, made an indicative offer of 525c cash.TLS slid 2.8% on the news. FPH fell 3.5% on disappointing results. WOW announced it has completed its buyback of 58.7m shares. HSO has now officially been delisted following the takeover. In economic news, Chinese industrial company profits have fallen by 3.7% YoY. AUD 69.37. Asian Markets better with Japan up 0.33% and China up 0.88%

Todays Highlights

  • ASX 200 falls 4 to 6452 in slow trade.
  • High 6465 Low 6448. Narrow range low volume.
  • Banks slip after recent gains.
  • Resources still finding buyers on commodity gains.
  • VOC in focus on Swedish bid.
  • TLS hits a high then splutters.
  • AUD steady at 69.37c on weaker USD.
  • Aussie Gold steady at $1855.
  • Bitcoin roaring still US$8753
  • US futures up 9. Closed for Memorial Day
  • Asian markets better with Japan up 0.33% and China up 0.88%

STOCKS

  • ISX +10.92% run continues.
  • VOC +16.97% the Swedes are coming.
  • HTA unchanged TPM +4.00% files Federal court proceedings.
  • PNV +7.41% gathering momentum.
  • CGC +3.84% becoming a substantial holder.
  • KGN +4.76% tech stocks back in favour.
  • EHL -4.53% profit taking.
  • AMI +8.20% exploration update.
  • PME +5.22% NEA +3.61% APX +4.58% tech is back.
  • FNP +4.17% completes placement.
  • FPH 3.16 results disappoint on DRP cancel.
  • PLS -2.67% lithium fall out continues.
  • SUN -2.16% sunsets for CEO.
  • WZR -10.53% presentation fails to satisfy.
  • NXS +21.58% presentation.
  • BRU +6.45% weekly drilling report.
  • PET +11.30% continued optimism on a recent contract win.
  • Speculative stock of the Day: Rafaella Resources (RFR) +100.00% the company has announced it will buy 100% interest in a Spanish Tungsten and Tin project in the northwest. It is a scrip based acquisition and wil incorporate a $2.6m placement at 20c.
  • Biggest Risers: VOC, ISX, SGF, AMI, PNV and PSI
  • Biggest Falls: SWM , ELD, EHL, EHE, FXL and WBA

TODAY

  • Fisher & Paykel Healthcare (FPH) –3.16% Full-year results; Net profit came in at NZ$209.2m, above consensus of NZ$208.7m. Operating revenue was NZ$1.07bn, missing estimates of NZ$1.08bn, operating income also fell short of expectations at NZ$292.6m. A final dividend of NZ13.5c was declared. FY20 guidance; NPAT expected to be between NZ$240m-NZ$250m, revenue around NZ$1.15bn and capital expenditure around NZ$150m.
  • Woolworths (WOW) -1.22% Completes $1.7bn off-market Buy-Back. Due to the strong demand, an 84.68% scale back of offers was required. Morgan Stanley sees the stock underperforming over the next few weeks. In 2010, when WOW did a similar buyback, shares outperformed the market by 2.8% while buyback was ongoing and underperformed by 4% in the 30 days after the buyback was completed.
  • Suncorp (SUN) –2.16% CEO Michael Cameron to step down, group CFO Steven Johnston has been appointed as acting CEO. Confirms its FY19 cash earnings are in line with market expectations, full-year results due August 7.
  • Air New Zealand (AIZ) – Has spent around $2.7bn on eight new Boeing 787-10 Dreamliner aircraft. The highly fuel-efficient planes will join the Air New Zealand fleet in 2022 and together will have the potential to save 190,000 tonnes of carbon per year.
  • Vocus (VOC) +16.97% Has received a takeover proposal from EQT Infrastructure to acquire all shares at a price of 525c per share. The offer price represents a 35% premium to Friday’s closing price of 389c.
  • GPT Group (GPT) -1.32% To purchase five properties worth $212m, settlements expected early July. The assets are all located in Sydney, with a total lettable area of 88,200sqm, combined WALE of 8.6 years and initial passing yield of 5.4%.

ECONOMIC NEWS

  • AustralianSuper is planning to open offices in NY and London as it expands overseas. It has $150bn under management.

BOND MARKETS

  • 2-Year bond yields up 4bps to 1.14%
  • 5-Year yields up 4bps to 1.21%
  • 10-Year yields up 3bps to 1.55%

ASIAN NEWS

  • Chinese industrial company profits have fallen by 3.7% YoY. Fastest rate in 3.5 years.
  • China warns that speculators will be punished if they ‘short the yuan’.

EUROPEAN AND US HEADLINES

  • EU election results dominate – Macron loses out but not as bad as some thought. Farage the big winner in the UK. Tories a woeful result . Up next Boris. Tories got 3 seats Farage 28. Greens do well across France.
  • Fiat Chrysler has submitted a proposal for a merger with Renault. 50% each. Will create the world’s largest car maker. No plant closures. 9m cars more than Hyundai and GM. EUR$5bn of synergies supposedly.
  • The Bitcoin bubble reinflates.
  • In the US, Trump’s tax cuts to the top end of town have set a fire under second hand private jet prices.

And finally…………..

Clarence

XXX

On the ABC Breakfast News at 8.20am tomorrow.

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