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

 

ASX 200 rallies 37 points to 6710 in modest trade with AGM season continuing. US Futures up 32. All eyes continue to be trained on WBC as the company holds a board meeting with ‘everything and anything on the table’. Apparently sorry seems to be the easiest word. It’s sad. The bank continues to suffer, down another 1.5% whilst the other three were mixed with NAB in the naughty corner with WBC, falling 0.2%. MFG had a good day up nearly 3%. Hamish at SOHM helped clearly. Miners saw buyers return as oil rose and iron ore resumed its slow climb back. BHP up 1.2% and RIO up 0.8% on news from Mongolia. WPL rose 1.2% and STO up 1.3%. Consumer staples again the drivers with ALL up 0.8% and WOW up 1.4%. MTS dropped 6.9% on news that 7-Eleven was pulling the pin and bond proxies rallied slightly, TCL up 1.3% and SYD up 0.4%. REITs were mixed although healthcare continues to enjoy rude health led by the vampire stock CSL up another 1%. In corporate news, AGMs continue to take centre stage and the SOHM conference circus hit town with some stock picks for the ‘true believers’ (Paul Keating was amongst the crowd) although most seemed to be international focused recommendations. The 10-year bond yield rose slightly to 1.10% and the AUD seems becalmed around 68.87c still. Asian markets were mixed as trade talks continue to and fro. China down % and Japan up %.

  • ASX 200 rallies 37 to 6710. Average trade.
  • High 6725 Low 6679.
  • For the week the ASX 200 lost 83 points or 1.22%
  • WBC in the spotlight. Says sorry.
  • Miners and oils rally.
  • Consumer stocks bounce with bond proxies.
  • AGMs again dominate and SOHM Conference.
  • 10-year bond yields weaker at 1.07%
  • AUD steady at 67.87c
  • Aussie gold steady at $2158
  • Bitcoin falls to US$7617
  • US futures up 32
  • Asian markets mixed with Japan up 0.3% and China down 0.8%.

STOCKS                                               

  • PPK +7.95% good bounce back
  • AVH +7.69% SOHM names as a buy.
  • AAC +4.27% wheres the beef?
  • EOS +5.30% sucessful capital raising.
  • PNV +3.51% named as top short at SOHM.
  • MYX -11.01% AGM comments
  • MTS -6.91% loses 7-Eleven contract.
  • SLR -2.86% AGM comments
  • WBC -1.55% Sorry seems to be the easiest word. Its sad.
  • JIN +5.21% comes up cherries.
  • FSA +12.62% AGM comments
  • CAT +13.56% purring away.
  • MVP +15.81% Penthrox approved in China.
  • WZR +7.41% $150m milestone achieved.
  • PAN +6.85% opens its books to IGO.
  • TNY +6.93% rally resumes.
  • PGL +3.81% director buying,
  • Speculative stock of the day: Buddy Tech (BUD) +29.17% as it signed an agreement for 500,000 Smart light licences with Estfield Lighting. The agreement provides for an up-front non-refundable payment of US$250,000 to initiate the arrangement, and further provides for a license fee per piece of product manufactured, per quarter.
  • Biggest Risers: NIC, PPK, AVH, EOS, IPH, JIN and PLS.
  • Biggest Falls: MYX, MTS, OML, NAN, RMS, OPT and SLR

TODAY

  • Westpac (WBC) -1.55% ‘apologies unreservedly’. But everyone keeps ther job except the ‘coder’ who is to blame. Probably not what the market wanted to hear. Accountability seems lacking.
  • Mayne Pharma (MYX) -11.01% provides a trading update at AGM. FY-to-date revenue is up 16% on this time last year $145m. Gross margin has been impacted by a change in the product sales mix and inventory obsolescence in generics. The company has seen a 7% reduction in costs and expects operating expenses will continue to decline.
  • Metcash (MTS) -6.91% 7-Eleven told Metcash that it will not be renewing the current supply agreement following its conclusion in August 2020 after the pair were unable to reach agreement over requirements for its east coast operations. MTS said 7-Elevens requirements would make it uneconomic to continue to supply WA. Total sales around $800m of mostly lower margin products from MTS. Big hole though.

ECONOMIC NEWS

  • Nothing today

BOND MARKET

  • 2 – year bond yields up 2bps to 0.76%
  • 5 – year bond yields up 2bps to 0.78%
  • 10 – year bond yields up 3bps to 1.10%

ASIAN NEWS

  • China’s “everything app” Meituan Dianping beat expectations with a 44% rise in sales during the third quarter.
  • Alibaba shares see bids at a 3.4% premium to IPO price in the HK ‘grey market’. It raised around US$11bn in the HK listing process.
  • According to Goldman Sachs, the Chinese economy will grow by 5.8% next year, and will be helped by resilient consumer spending. The consensus among economists surveyed by Bloomberg for 2020 output growth is 5.9%. It said the continuation of cautious policy support will aid the stabilisation in China’s economy next year.

EUROPEAN AND US NEWS

  • Benjamin Netanyahu charged with corruption in Israel.
  • Fiona Hill( a Trump appointee specialist on Russia and security) not helping Trump’s cause on impeachment charges.
  • Charles Schwab nears a US$25bn deal to buy rival TD Ameritrade.
  • Michael Bloomberg lodges application to be US President.
  • Xerox threatens to go hostile with HP bid.
  • SQM, Chilean-focused lithium producer, reported a drop in third-quarter earnings overnight and warned investors that lower prices would continue into 2020.

And finally…

“I like an escalator because an escalator can never break. It can only become stairs. There would never be an ‘Escalator Temporarily Out of Order’ sign, only ‘Escalator Temporarily Stairs’.”

“If God had written the Bible, the first line should have been ‘It’s round.’

“Apparently smoking cannabis can affect your short term memory. Well if that’s true, what do you think smoking cannabis does?”

I said to the gym instructor: “Can you teach me to do the splits?”He said: “How flexible are you?”I said: “I can’t make Tuesdays.” 

“Here’s a picture of me with REM. That’s me in the corner.”

Clarence

XXX

mt_tryforfree

Financial Markets and Political Commentary

 

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About the author

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