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

 

ASX 200 slides into the weekend with an 18-point loss to 6846 as the banks weigh on sentiment again. Early gains evaporated with Asian markets weaker and the US markets set for a half day. For the week the ASX 200 has risen 2%, despite the WBC scandal ‘rollercoastering’ out of the company’s control. WBC fell another 0.7% as the VWAP pricing period for the SPP continues. The rest of the sector joined in the fun with CBA finally succumbing to gravity and falling 1%. MQG stable despite a grilling in Canberra today. Miners were under a little pressure led by BHP and FMG down 0.7% and 0.6% respectively. Elsewhere not much shaking except the trees. REITS were stable, CSL rallied 0.2% again on yet another broker upgrade and the staples continue to be in demand. WOW up 0.3% though WES slipped into the red at the death down 0.1%. In corporate news, AGMs continue at pace together with capital raisings squeezing in ahead of the Xmas silly season. Z1P tapped the market for $60m, M7T held out its hand for $20m and new kid on the block CBR joined the ASX with an impressive debut up 33%. 10-year yields rose slightly to 1.04% after an interesting week on Phil Lowes comments on Tuesday. Meanwhile in Asian markets, Hong Kong markets took a surprise 2% dip on no new news and China dropped % together with a weaker Japan down %.

  • ASX 200 down 18 to 6846 rally runs out of puff in afternoon.
  • High 6894 Low 6846. Option expiry boosts volume.
  • ASX 200 up 2% for the week.
  • Banks continue to weigh.
  • CSL up slightly again on broker note.
  • Miners ease. Rate sensitive stocks firm again.
  • 10-year bond yields rise to 1.04%.
  • AUD firms to 67.75c
  • Aussie gold steady at $2152
  • Bitcoin steady at US$7489
  • Asian markets easier with Japan down 0.2% and China down 1%. Hong Kong though was hit hard and lost 2%.

STOCKS                                               

  • VUK +24.54% results NIM 1.66% and costs down 6%.
  • EML +5.11% agreement with Simon Malls.
  • KAR +5.,19% AGM presentation.
  • NWH +5.30% completes placement.
  • SHV +6.91% results cheer.
  • PNV -4.28% sell off continues.
  • APT -2.74% completion of placement.
  • PPK -3.86% profit taking, thin volume.
  • LTR +10.59% change of director’s interest.
  • RFG +4.26% AGM presentation.
  • CAT +4.27% another all-time high.
  • WZR +3.12% buyers chasing.
  • SM1 +2.43% $150m bond offering.
  • CSL +0.17% Credit Suisse ups price target to $305
  • BOQ -1.88% insto offer below retail offer.
  • MAQ +0.43% forecasts FY20 earnings at $27m-$28m
  • ADT +5.20% positive comments on Rupice drilling.
  • SAR -unchanged- completes Super pit acquisition.
  • BUB -1.37% sees growth pathway.
  • WGN +5.77% Credit Suisse ups PT to 230c.
  • IMF -trading halt- court finds in favour of plaintiffs.
  • Speculative stock of the day: Carbon Revolution (CGR) +32.67% listed today at 260c. Makes carbon fibre wheels for sports cars. Lighter and more durable.
  • Biggest Risers: VUK, SHV, MYX, NWH,, KAR and CIA
  • Biggest Falls: OPT, BWX, FXL, WSA, PMV and PPK.

TODAY

  • Zip Co (Z1P) has declared they are confident of meeting their FY20 targets of 2.5m customers with an active Zip account and $2.2bn annualized transaction volume at their AGM. The company also announced it is raising $60m in a placement and SPP. Bank of America and Shaw will be conducting the raising. Looks like the price will be 370c a share as many companies get in before the Xmas break. Proceeds are to be used for international growth and balance sheet strength.
  • Healius (HLS) -2.54% advises the Federal Court has ruled in its favour regarding the 2003-2007 tax case. Subject to any appeal, the company can now pursue a refund of tax payments and associated interest which is estimated to be around $60m.
  • Mach7 Tech (MVT) – Placement at 62c to raise $20m.

ECONOMIC NEWS

  • Total credit growth for October was 0.1%, which fell below the market’s expectation of a 0.3% rise, the same time last year the annual growth rate was 4.6 per cent. Business credit contracted by 0.1% last month, which may be of a particular concern to the RBA.

In 2018 there were 4.4m Australians with disability, 17.7% of the population, down from 18.3% in 2015.

  • There were 2.65m carers, representing 10.8% of all Australians (down from 11.6% in 2015).
  • Two-thirds (68.1%) of older Australians (who reported income) lived in a low-income household (a household earning less than $756 per week).

  • Half (49.6%) of all older Australians had disability (similar to 2015).
  • Almost one-quarter (23.2%) of all people with disability reported a mental or behavioural disorder as their main condition, up from 21.5% in 2015.

BOND MARKET

ASIAN NEWS

  • In its annual Financial Stability Report released this week, China’s central bank described 586 of the country’s almost 4,400 lenders as “high risk,” slightly more than last year. Household debt as a percentage of disposable income jumped to 99.9% in 2018 from 93.4% a year earlier.
  • The Hong Kong market took a pounding down 2% as drugmakers led the falls on fears that China will drive down drug prices.

EUROPEAN AND US NEWS

  • Manchester City has acquired 65% of Mumbai football club,
  • Donald Trump has made a surprise visit to Afghanistan and said talks with Taliban are ongoing.
  • 200 US corporate bonds are trading at junk levels implying serious financial strain,
  • Thanks for everyone’s support during Movember. The great shave on Sunday!

And finally…

So a man dies, goes to Heaven, and sees St. Peter. There are many clocks surrounding him so the man asks, “What are these clocks for?” St. Peter replies, “These are lie clocks, they tick once for every lie you tell. Here we have Mother Teresa’s clock. She has never lied so the clock has not moved. Honest Abe has only lied twice in his life, so it has only ticked twice.” The man then asks, “So where is Donald Trump’s clock?” St. Peter replies, “Oh, that is in Jesus’ office, he is using it as a ceiling fan!”

 

Thanks everyone for your support during Movember.

 

image mo

 

Gets shaved off this weekend…thankfully

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