ASX 200 up 13 to 6864, another new closing high..Australian Market Wrap. Headlines, Stocks, Bonds, Economic & Asian Market News. END of DAY REPORT.

 

ASX 200 up 13 to 6864, another new closing high. Index came off intra day, as Trump signs HK bill into L.A.W. and stirs the dragon. Dow Futures down 81 points. Banks again under pressure as the woes for WBC mount. The stock fell another 0.44% with ANZ down too by 0.76%. NAB was flat and CBA seems to have escaped so far, down 0.11% today, although it copped a $700k fine for hawking. And not the Stephen kind. Elsewhere TLS found favour after brokers upgraded, following an investor day and rose 4.04%. CSL continues to power towards $300 with another 1.07% rise today. Bond proxies surprisingly weakened together with consumer staples. In corporate news, AGMs continue to trickle through, NWH confirmed it would acquire BCG Contracting for $116m. The 10-year bond continues to be pressured with yields falling under 1%. AUD slipping slightly to 67.64c as Asian markets came off the boil, though mixed, Japan down 0.22% and China dropped 0.45%. The markets now wait and see whether China will respond to HK human rights act.

TODAY’S HIGHLIGHTS

  • High 6879 Low 6754. Low volumes.
  • Options expiry day.
  • Banks remain under pressure.
  • CSL kicks again TLS up on broker upgrades.
  • BHP higher. RIO higher.
  • 10-year bond yields ease to 1.00%.
  • AUD weaker at 67.64c.
  • Aussie gold steady at $2152.
  • Bitcoin rallies to US$7519.
  • Dow futures down 81.
  • Asian markets lower with Japan down 0.22% and China down 0.45%.

STOCKS                                               

  • WBC -0.44% never rains but it pours. ASIC now investigating placement.
  • AFG +3.27% bounce after director sell down.
  • TLS +4.04% broker upgrades following investor day.
  • PET -4.79% sell-off hits again.
  • EVN -3.41% AGM address and acquisition weighs.
  • HM1 -0.29% capital raising.
  • PME -2.43% profit-taking after showcase at RSNA.
  • EHL -1.45% amendment to notes.
  • WZR +10.34% fintechs attracting buyers.
  • LOV +5.68% solid bounce.
  • RAP +1.85% AGM presentation.
  • FBU -0.80% AGM comments. Sees the bottom in housing.
  • PCK -16.98% change of director’s interest.
  • BOC -26.76% thin trade.
  • CBA -0.11% fined $700k for hawking through Comminsure.
  • CKF +1.54% UBS ups price target.
  • CWY +1.49% Goldman says buy.
  • Speculative stock of the day: Smartpay (SMP) +76.92% sells NZ business for $70m to invest in Australian business. Cash distribution of 27c too.
  • Biggest Risers: PAR, LOV, PBH, NIC, SSM , AMA and ECX.
  • Biggest Falls: DDR, GUD, PET, AD8, EVN and SM1.

TODAY

  • Westpac (WBC) -0.44% announce they will provide a withdrawal option for SPP applicants who applied for shares prior to the AUSTRAC announcement. Eligible applicants must request the withdrawal of their application by Friday December 6th.
  • Bellamy’s (BAL) -UNCH- set to settle the two previously announced shareholder class actions for $49.7m. The proceedings related to historical market disclosures from 2016 and were filed in the Australian Federal Court in early 2017. The settlements amount is fully insured and will have no impact on the company’s financials.
  • Cromwell Property (CMW) -UNCH- reaffirms FY20 operating profit guidance will be no less than 8.3 cents per share and FY20 distribution guidance will be no less than 7.5 cents per share.
  • Oz Minerals (OZL) +1.33% construction of the Pedra Branca mine has commenced. The target for first ore development is mid-2020.

ECONOMIC NEWS

  • ABS figures showed actual business investment was down -0.2% in the September quarter in seasonally-adjusted terms, lower than market expectations of no change. The trend estimate for total new capital expenditure fell by 0.6% in the September quarter 2019. This follows a fall of 0.8% in the June quarter 2019.

Persons in Jail
Nationally the average daily number of prisoners decreased to 42,987, compared with:

  • 43,306 in the June quarter 2019.
  • 43,018 in the September quarter 2018.

The largest contributors to the national prisoner population were:

  • New South Wales (32% or 13,613)
  • Queensland (20% or 8,773)
  • Victoria (19% or 8,083)

BOND MARKET

  • 2 – year bond yields drop 9bps to 0.65%
  • 5 – year bond yields drop 8bps to 0.66%
  • 10 – year bond yields drop another 5bps to 1.00%

ASIAN NEWS

  • Trump has signed the HK bill into force. HK not happy could affect trade negotiations. Is this a trade deal breaker?
  • Japan retail sales fall 7.1% v 4.4% forecast. The latest tax hike seems to be the issue.
  • Drug-makers keen to tap into the lucrative Chinese market have cut prices by around 61% as the government has expanded treatments under National Insurance coverage. Some 70 new therapies were added for coverage by China’s state-run medical insurance fund. The 2.34 trillion yuan (US$333 billion) national medical insurance fund, which covers 95% of 1.4bn Chinese, is demanding deep price cuts to avoid bankrupting the safety net.

EUROPEAN AND US NEWS

  • Thanksgiving. Don’t be a turkey. Black Friday to come. US markets closed tonight. Half day Friday. Let the season begin.
  • Aramco retail offer closes tonight with almost all the demand coming from its Arab neighbours.
  • The bidding war for Saks Fifth Avenue is heating up. One of the largest shareholders, from Canada has upped the chairman led bid and called it ‘inadequate’.
  • In the UK YouGov has forecast that Boris will win a greater margin of victory than Maggie Thatcher. Conservative Party could win 359 seats out of 650, up from 317 in the 2017 general election. The Labour Party is on track to secure 211 seats, down from 262, according to the model. The SNP were on 43, the Lib Dems on 13 and the Brexit Party winning no seats. This is a comprehensive survey using highly sophisticated data analytics to come to the forecasts.

 

And finally…

 

A blonde drops off her dress to the dry cleaners

The lady says, “Come Again!”

The blonde says, “No, it’s toothpaste this time.”

 

A lady comes home from her doctor’s appointment grinning from ear to ear. Her husband asks, “Why are you so happy?” The wife says, “The doctor told me that for a forty-five year old woman, I have the breasts of a eighteen year old.” “Oh yeah?” quipped her husband, “What did he say about your forty-five year old ass?” She said, “Your name never came up in the conversation.”

Clarence

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