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

 

ASX 200 down 9 to 6691 in a day of convictionless trade. US futures up 13. A quiet start to the week with banks under pressure with insurers falling too. CBA the worst of the four down 0.3% with the ASX seeing some profit taking down 4.8%. REITs also saw losses today led by GMG down 1.4% and healthcare was down across the board with CSL off 1.3% on revised flu numbers perhaps. Miners were a bright spot with strong demand for the iron ore players as BHP rose 0.7% and FMG up 2.3%. Gold miners too did well despite Australian gold prices steady at best. NCM rose 2.3% and NST up 3.3%. Energy stocks mildly positive with WPL up 0.1% on a broker report and the continuing tensions in the Middle East. Utilities and bond proxies fell today with TLS down 1% and TCL down 0.5%. Bonds had a quiet day with 10-years down 3bps to yield 1.32%. AUD slightly higher at 70.41c and the Asian markets weaker with Japan down 0.29% and China down 0.22%.

Today’s Highlights

  • ASX 200 fell 9 to 6691
  • High 6711 Low 6673. Quiet cautious trade to start the week.
  • Banks slightly lower with REITs and TLS.
  • Miners and gold producers doing nicely.
  • Healthcare under pressure led by CSL.
  • 10-year bond 1.32%
  • AUD better at 70.41c
  • Aussie gold steady at $2028.
  • Bitcoin rallies to $10563.
  • US futures up 13.
  • Asian markets weaker China down 0.22% and Japan down 0.29%

STOCKS

  • IVC -6.48% Macquarie downgrades flu deaths.
  • DCN +22.58% recovery continues.
  • FXL +10.57% rattle and Humm.
  • DDR +3.98% abnormal trading.
  • JIN -3.45% profit taking.
  • CIM -2.49% broker downgrades post earnings warning.
  • ASB -2.42% change in substantial holding.
  • LYC -1.42% Malaysian woes.
  • WSA -2.46% nickel weakness.
  • ASX -4.79% technical selling.
  • SDA +6.67% becoming a substantial shareholder.
  • BYE +8.70% optimism builds.
  • WKT -17.65% response to ASX query.
  • ANO -6.68% low volume.
  • Speculative stock of the Day: Spectrum Metals (SPX) +25.00% good volume following investor presentation. High grade gold results from Penny North driving share price.
  • Biggest Risers: FXL, PRU, RMS, MP1, BPT, CUV and NIC.
  • Biggest Falls: IVC, AD8, ASX, OMH, EQT, JIN, AVH and HSN

TODAY

  • Qantas (QAN) -0.89% has been granted final approval for its proposed joint venture with American Airlines by the US Department of Transportation. The JV is expected to lead to the launch of several new routes including Brisbane-Chicago and Brisbane-San Francisco.
  • Saracen Minerals (SAR) +2.41% June quarter saw gold production of 88.1Koz at AISC $1,026/oz, slightly down on last quarters numbers. The company has reported unaudited 1H19 NPAT of $47-50m with $154.5m in cash and equivalents. FY20 production guidance is for 350-370Koz at AISC $1,025-1,075/oz.

ECONOMIC NEWS

  • The Australian wine industry announced that volumes in 2019 had dropped 16% whilst value had fallen 7% to $1.2bn. Wine Australia said US-bound exports reversed a two-year downward trend to generate a 2% rise in exports by value to $432m. In the UK, where exports slipped 3% to $373m and volumes fell 4% to 236m litres. Not a squeak from TWE.
  • The total value of Australian wine exports increased by 4% to $2.86bn for the year ended June 30. But total export volumes dropped 6% to 801m litres

BOND MARKETS

  • 2-Year bond yields down 1bps to 0.934%
  • 5-Year yields down 1bps to 0.99%
  • 10-Year yields down 2bps to 1.33%

ASIAN NEWS

  • Shares in Shanghai’s answer to NASDAQ, the Star Market ,which caters for stat ups and tech stocks, have soared. The first 25 IPOs were up an average of 148% in heavy trading. One chip maker was valued at 730 times earnings. The 25 firms raised a combined US$5.4bn about 20% more than planned. Demand was ridiculous with an average of 1800 times oversubscribed. Regulators, who have waived rules on valuations and first-day price limits for the first time since 2014.
  • Hyundai Motor reported a 30.2% rise in second-quarter operating profit on the back of improving sales at home and in the US.
  • Shares in Asahi fell the most in three years following its decision to buy Anheuser-Busch InBev’s Australian operations. Debt levels seem to be a concern.

EUROPEAN AND US NEWS

  • Europe expected to open a little weaker.
  • Boris! Boris! Although it appears, he will be looking for a new Chancellor after Hammond has said he will resign if he wins. Tuesday he will be anointed officially. Hos article today compares putting a man on the moon to solving the Irish border issue.
  • Rule Britannia no longer rules the waves it seems. The UK seems impotent after its tanker was seized by the Iranians in the Gulf. The UK has only 10 ships available currently and even if they were all serviceable it has only 19 surface combat ships including 13 frigates and 6 destroyers. Has got a shiny new aircraft carrier coming in soon but these cost around US$10bn a pop.

And finally…………..

A group of women were at a seminar on how to live in a loving relationship with their husbands.
The women were asked, “How many of you love your husband?”
All the women raised their hands.
Then they were asked, “When was the last time you told your husband you loved him?”
Some women answered today, a few yesterday, and some couldn’t remember.
The women were then told to take out their mobile phones and text their husband:
“I love you, sweetheart.”

Next, the women were instructed to exchange phones with another woman and read
aloud the text message they received in response to their message.

Below, are some of the hilarious replies. If you have been married for quite awhile, you understand that these replies are a sign of true love….who else would reply in such a succinct and honest way?

  1. Who the hell is this?
  2. Eh, mother of my children, are you sick or what?
  3. Yeah, and I love you too.  What’s wrong?
  4. What now?  Did you wreck the car again?
  5. I don’t understand what you mean?
  6. What the hell did you do now?
  7. Don’t beat about the bush, just tell me how much you need?
  8. Am I dreaming?
  9. If you don’t tell me who this message is actually for, someone will die.
  10. I thought we agreed you wouldn’t drink during the day.
  11. Your mother is coming to stay with us, isn’t she.

A man boarded an aircraft at London’s Heathrow Airport for New York, and taking his seat as he settled in, he noticed a very beautiful woman boarding the plane. He realised she was heading straight toward his seat and bingo – she took the seat right beside him.

“Hello”, he blurted out, “Business trip or vacation?”

She turned, smiled enchantingly and said, “Business. I’m going to the annual nymphomaniac convention in the United States …….”

He swallowed hard. Here was the most gorgeous woman he had ever seen sitting next to him, and she was going to a meeting for nymphomaniacs!

Struggling to maintain his composure, he calmly asked, “What’s your business role at this convention?”

“Lecturer,” she responded,” I use my experience to debunk some of the popular myths about sexuality..”

“Really”, he smiled, “what myths are those?”

“Well,” she explained, “one popular myth is that African-American men are the most well endowed when, in fact, it’s the Native American Indian who is most likely to possess that trait.
Another popular myth is that French men are the best lovers, when actually it is the men of Greek descent…
We have also found that the best potential lovers in all categories are the Irish.”

Suddenly the woman became uncomfortable and blushed. “I’m sorry,” she said. “I really shouldn’t be discussing this with you, I don’t even know your name!”

“Tonto,” the man said. “Tonto Papadopoulos, but my friends call me Paddy.”

Clarence

XXX

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