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

 

ASX 200 fell 23 points to 6531 after a brief lunch rally failed to hold momentum. US Futures up 29. Banks were the strength today, as miners struggled a little. CBA rose 0.5% and WBC up 0.4% was the best with MQG up 1.1%. In the big miners, BHP fell 0.35% and FMG fell 3.75% as momentum fades. In the telco sector, the news that AGL had pulled out of the VOC sent the share price spiraling downwards. VOC fell the most on record by 24.5%, whilst AGL rose slightly up 1.6%. Energy stocks slipped a little despite oil perking up led by STO down 1.4%. In healthcare, CSL fell 0.7% and growth central APT dropped another 6.1% bringing the recent loss since the placement to nearly 29%. In corporate news, the head of the ANZ in NZ has departed after some issues with expenses. Asian markets were slightly better with China up 0.04% and Japan up 0.21% Hong Kong turned positive as calm descended following the controversial bill being dropped for now anyway.

Today’s Highlights

  • ASX 200 fell 23 points to 6531 as rally fails to follow through.
  • High 6554 Low 6527.Narrow range. Low volume day.
  • Banks save blushes ahead of busy central bank week.
  • Telcos under pressure as AGL pulls pin.
  • Miners see profit taking.
  • Energy stocks wane. REITs fall.
  • AUD drifts lower to 68.78c.
  • Aussie gold steady at $1947.
  • Bitcoin jumps to US$9190 after Facebook crypto move.
  • US futures up 21.
  • Asian markets slightly better with Japan up 0.21% and China up 0.04%

STOCKS

  • EHL +12.46% takeover speculation.
  • CRN +1.56% coal price rebound.
  • EML +3.11% pushing new highs.
  • NAN 8.72 broker upgrade.
  • VOC -24.54% curse of the runaway bride strikes again.
  • APT -6.11% AUSTRAC woes weigh.
  • PLS -9.93% production update.
  • MMS -4.85% market update.
  • FMG -3.75% profit taking.
  • Z1P -2.71% follows APT down.
  • ALC -7.41% release of securities from escrow.
  • PPS -6.10% profit taking after the recent run.
  • FGR -1.61% fire retardancy test results.
  • BLY unchanged- change in substantial holding.
  • PET +10.00% good pick up.
  • FMS +32.69% board changes and strategic path forward.
  • Speculative stock of the Day: Dacian Gold (DCN) +23.60% Another good day following strong rises last week, as the rebound takes hold. Looks like the low has been locked in.
  • Biggest Risers: EHL, NAN, SLR, CUV, OMH, IRI and CWY
  • Biggest Falls: VOC, PLS, RMS, APT, BSL, MMS and CVN

TODAY

  • NZ New Zealand CEO David Hisco has stepped down after an internal board review into his personal expenses. Antonia Watson has been appointed as acting CEO.
  • Cochlear Limited (COH) -1.18% Has received FDA approval for the Nucleus Profile Plus Series cochlear implant and will commence an immediate US launch.
  • McMilan Shakespeare (MMS) –4.85% Expects to report an underlying net profit after tax in the range of $87 to $89m, current broker forecasts are for $92m. MMS will also undergo an off-market buyback during the second half of the year of up to $100m.
  • Senex Energy (SYX) +3.64% To sell Roma North natural gas processing facility and pipeline to Jemena for $50m and enter into a long-term gas tolling agreement.
  • AGL Energy (AGL) +1.58% Pulls its bid for Vocus, saying it is no longer confident that an acquisition would represent value for AGL shareholders.
  • Vocus Communications (VOC) –24.54% Reiterates full-year underlying EBITDA guidance of $350-$370m following AGL’s decision to pull its bid. Chief executive Kevin Russell says the company will continue with its three-year turnaround and is confident the strategy will deliver ‘significant’ value to shareholders.
  • Stockland (SGP) –0.92% Estimated distribution for the six months to June 30 of 14.1c per security, equating to a full-year distribution of 27.6c, in line with guidance.

ECONOMIC NEWS

  • Nothing today

BOND MARKETS

  • 2-Year bond yields up 3bps to 1.02%
  • 5-Year yields up 3bps to 1.06%
  • 10-Year yields up 2bps to 1.39%

ASIAN NEWS

  • Hong Kong stocks rally as controversial extradition bill dropped. Mass protests continue. Calls for Carrie Lam , the HK CEO to resign.
  • Google has appointed Stanley Chen as new head of China.
  • Alibaba is proposing a 1 for 8 stock split ahead of a Hong Kong listing.
  • Singaporean exports have fallen sharply especially in the electronics arena.

EUROPEAN AND US HEADLINES

  • Deutsche Bank is preparing a significant overhaul to create a ‘Bad Bank’.
  • The UBS economist at the centre of the row over his comments on the Chinese pork vbusiness has been stood down as UBS misses out on a bond deal in HK.
  • Wilbur Ross talks down prospects of a trade deal or even a meeting between Xi and Trump at the G20.
  • Paris Airshow kicks off today. Watch for a Boeing 737 Max order. Anyone?

And finally……………thanks Hans…love this one..

A nun is sitting with her Mother Superior chatting.

“I used some horrible language this week and feel absolutely terrible about it”

When did you use this awful language?” asks the elder.

Well, I was golfing and hit an incredible drive that looked like it was going to go over 280 yards, but it struck a phone line that is hanging over the fairway and fell straight down to the ground after going only about 100 yards.”

“Is that when you swore?”

“No, Mother,” says the nun.

“After that, a squirrel ran out of the bushes and grabbed my ball in its mouth and began to run away.”

“Is THAT when you swore?” asks the Mother Superior again.

“Well, no.” says the nun.

“You see, as the squirrel was running,an eagle came down out of the sky, grabbed the squirrel in his talons and began to fly away!”

“Is THAT when you swore?” asks the amazed elder nun ?

“No, not yet. As the eagle carried the squirrel away in its claws,it flew near the green and the squirrel dropped my ball.”

“Did you swear THEN?” asked Mother Superior, becoming impatient.

“No, because the ball fell on a big rock, bounced over the sand trap, rolled onto the green and stopped about six inches from the hole.

The two nuns were silent for a moment……………….

Then Mother Superior sighed and said, “You missed the fucking putt, didn’t you?

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