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

 
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ASX 200 jumped on the opening following a strong Friday session in US. ASX 200 rose 62 to 6467. Closes on highs. US futures up 140 as green returns to the screens. Miners and banks led the charge higher although it was relatively quiet and volatility free. Banks were the solid performers with CBA up 1.6% and WBC ahead by 0.6%. Gold miners were the only fly in the ointment, NCM down 3% and NST down 2.5%. Consumer stocks up today too led by WOW up 0.9% and WES up 1%. In corporate news, LLC delighted the market with its plan to jettison the engineering division lifting 10.9%. BPT did well rising 10.8% after its numbers but BSL slipped on a ‘Made in America’ banana skin on the outlook on falling steel prices, finishing down 8.4%.NHF fell 6.3% after warning investors of abnormally low claims and a declining industry. IFM fails to excite down 3.4% on results and SAR fell 5.1% as it moves to reinstate the dividend if cash reserves of $150m permit. Nothing on the economic front today but a big week for the US central bank. Local 10-year bonds yielding 0.88%, unchanged, and the AUD going nowhere in the hurry. Asian markets formed despite the protests in HK which appear to have been peaceful. Japan up % and China up %.

Today’s Highlights

  • ASX 200 flat lines after initial jump up 62 to 6467
  • High 6468 Low 6415. Quiet trade. Tight range.
  • Broad rally but relatively quiet.
  • Banks cheer with miners awaiting BHP.
  • REITs and Infrastructure sine.
  • AUD steady at 67.86c
  • Aussie gold steady at $2224
  • Bitcoin rallies to $10375
  • US futures up 140
  • Asian markets firm with Japan up 0.6% and China up 1.5%

STOCKS

  • SIQ +21.68% broker upgrade on good numbers.
  • LLC +10.86% engineering to be sold.
  • CVN +4.00% SPP closed.
  • PET 4.89 moving water patent.
  • CIA +2.67% completion of refinancing.
  • OML -7.85% kicked when it’s down.
  • BSL -8.36% warns of tough times ahead.
  • NHF -6.29% abnormal low claims.
  • NST -2.46% SLR -3.45% golds down.
  • DHG +9.22% broker upgrades.
  • ANO +17.18% bounce back on thin volume.
  • IMD +7.88% weekend at Bernie’s no more.
  • FGR +6.82% newGen increases orders.
  • OPT +3.53% change in substantial shareholding.
  • URF +18.06% distressed hedge fund interested.
  • HIL +2.86% pulls plug on aerials.
  • WBC +0.75% higher arrears and repos.
  • ADT -4.35% profit taking.
  • SAR -5.12% starts dividends as long as it has $150m in the bank.
  • AOG unchanged big boys come out to play in arbitrage trade.
  • JIN +10.23% kicks on new director.
  • Speculative stock of the day: Nova Minerals (NVA) +29.27% following a logistics assessment for a lithium play.
  • Biggest Risers: SIQ, LLC, BPT, JIN, DHG, MOE and Z1P.
  • Biggest Falls: BSL, OML, PRU, NHF, SAR, RRL.

TODAY

  • Imdex (IMD) +7.88% MD Bernie Ridgeway to retire effective July 1 next year. IMD has started a search for a replacement.
  • ANZ +1.25% Has completed the sale of its 55% stake in Cambodian JV to Japanese firm J Trust as it looks to reduce its Asian footprint.
  • Beach Energy (BPT) +10.80% reports FY underlying NPAT $560.2m vs $566.6m expected. Revenue $1.93bn vs $2.00bn expected. Operating cash flow $1.04bn vs $662.9m a year ago. Underlying EBITDA $1.38bn vs guidance of upper end of $1.25 – 1.35bn range. Final dividend 1ps (fully franked). Record 30-Aug; payable 30-Sep.
  • Bluescope Steel (BSL) –8.36% Full-year results; NPAT came in ahead of estimates at $966.3m vs consensus of $955.4m. Revenue was a slight miss at $12.53bn vs consensus of $12.56bn. Underlying EBIT was in line with forecasts at $1.35bn. A final dividend of 8c per share was declared. BSL said they expect to see weaker commodity steel spreads in North Star and ASP, leading to an underlying EBIT around 45% lower than 2H FY2019
  • GWA Group (GWA) +1.80% reports FY normalised NPAT of $51.8m vs $53.0m expected. Revenue came in at $381.7m vs $387.7m expected. Normalised EBIT $77.4m vs $78.2, expected. Final dividend 9.5 cps (fully franked). Record 27-Aug; Payable 4-Sep.
  • Infomedia (IFM) -3.42% reports FY NPAT $16.1m vs $14.9m expected. Revenue $84.6m vs $83.5m expected. EBITDA $38.0m vs $36.1 expected. Unfranked final dividend of 2.15 cps, up 26% on last year. The total annual dividend was 3.90 cps.
  • Lendlease Group (LLC) +10.86% reports FY PAT $467m vs $468.9m expected. Core Business PAT $804m vs $960 a year ago. Revenue $16.54bn vs $16.34bn. EBITDA $867.0m vs $792.7m expected. Construction backlog revenue of $15.6bn. Final dividend 30 cps (unfranked). Record 26-Aug; Payable 16-Sep.
  • NIB Holdings (NHF) -6.23% reports FY Underlying operating profit $201.8m vs guidance of at least $195 and year-ago $184.8m. Revenue $2.46bn vs $2.16bn a year ago. NPAT $149.3m vs $133.5m a year ago. Underwriting result $197m vs $178 a year ago. Final dividend of 13cps (fully franked).
  • Netwealth Group (NWL) +3.60% reports FY underlying NPAT $36.0m vs $35.2m expected. Revenue $98.8m vs $99.5m. Adjusted EBITDA $52.0m vs $51.2 expected. Final dividend 6.6 cps (100% franked) vs year-ago 5.38 cps.
  • Regis Resources (RRL) -4.62% reports FY NPAT $163.1m vs $171.2m expected. Revenue $654.8m vs $655.7m expected. EBITDA $306.8m vs FactSet $311.2m. Gold production of 363.4Koz at ASIC $1,029 per ounce. Final fully franked dividend 8 cps, payable 16-Sep.

ECONOMIC NEWS

  • According to CoreLogic, the national auction clearance rate surged to a two-year high of 76.6% this week. Sydney had a preliminary clearance figure of 81.7% from 444 auctions, up from a final 76.2% last week, while Melbourne returned 78.3% from 588 auctions, up from a final 72.3% last week.
  • Of the 43 companies that have reported full-year results so far this month, 64% missed earnings estimates, according to data compiled by Bloomberg.

BOND MARKETS

  • 2- year bond yields unchanged at 0.72%
  • 3 – year bond yields unchanged at 0.66%
  • 10- year bond yields unchanged at 0.88%

ASIAN NEWS

  • Thailand GDP growth slows to 5-year low in Q2.
  • Exports from Japan fell at a slower rate than forecast in July, marking an improvement on the previous month.

EUROPEAN AND US NEWS

  • UK obsessed with Brexit and a new plan called ‘Yellowhammer’ to handle a crash out scenario. Boris heads to Europe this week. About time.
  • Trump has cast doubt on a reprieve for Huawei, he said  he did ‘not want to do business at all’ with the Chinese group.
  • Type 64 fails to sell at auction. The so called ‘first Porsche’ and the only one driven by Ferdinand Porsche failed to attract any bids beyond US$17m in a bizarre sale process at Sotheby’s.

And finally…

Searching for a new laptop online is basically forcing your current computer to dig its own grave.

Why the hell is there an S in the word ‘lisp’?!

How does the non-stick coating stick to the pan?!

The goal of golf is to play as little golf as possible.

What is the worst combination of two sicknesses?

Diarrhea and Alzheimer. You’re running, but you don’t know where.

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