The ASX 200 fell 18 points to 6833 in thin pre-Xmas trade. Australian Market Wrap. Headlines, Stocks, Bonds, Economic & Asian Market News. END of DAY REPORT.

 

The ASX 200 fell 18 points to 6833 in thin pre-Xmas trade. Dow futures down 18 points. Banks weakened again today led by WBC down 0.6% and NAB down 1.2%. Insurers all fell after QBE was downgraded following US crop issues announced yesterday. QBE up 0.1% though IAG down 2.4%. Elsewhere miners were mixed as BHP came off the boil and fell 0.45%, whilst FMG pushed another 1.1% higher. In the industrials, modest broad losses led by TLS down 1.1% and CSL falling slightly on profit taking down 1.4%. Consumer staples also saw a little pressure with WES down 0.55% and WOW down 0.2%. In corporate news, VRL rose 21.6% after a private equity approach at 390c. CBA fell 0.3% after settling with the ATO and CIM settled a class action falling 0.2%. SSM rose 11.1% after winning a new contract with Sydney Water. In economic news, rate cuts are cancelled after positive jobs numbers showed a 5.2% headline rate. The 10-year bond yield charged ahead hitting 1.26% on the jobs number. The AUD was firmer too at 68.77c. Asian markets eased with China down 0.3% and Japan down 0.25%

  • The ASX 200 rose 18 points to 6833.
  • High 6872 Low 6820. SPI Expiry boosts volume.
  • Banks and healthcare weigh.
  • Staples and miners slip. TCL moves higher.
  • Jobs number takes rate cut off the table.
  • 10-year bond yields 1.26%. Big Rally.
  • AUD firms to 68.77c
  • Dow futures drop 18 on impeachment.
  • Aussie gold steady around $2149
  • Bitcoin rallies hard to US$7151
  • Asian markets slip with Japan down 0.25% and China down 0.32%

STOCKS                                               

  • VRL +21.56% Pacific Equity Partners makes approach at 390c.
  • JMS +7.41% Manganese price rise.
  • QBE +0.15% Macquarie drops PT.% Big rally.
  • ALX -0.13% broker upgrade.
  • CBA -0.21% settles GST issue with ATO.
  • NST +4.71% Super pit super upgrade.
  • AVH +4.10% momentum continues.
  • SSM +11.07% Sydney water contract
  • SIG +5.26% Change in directors’ interest and substantial holding
  • MSB +3.09% rally continues on more good news.
  • WOW -0.11% court approval for restructure scheme.
  • BPT -4.83% Frontier Farm in.
  • NEA – Citi drops PT by more than 10%. Still a buy though.
  • JIN -4.96% sell off resumes.
  • PNV -1.76% profit taking.
  • CLV +5.04% newsletter write up.
  • CSL -1.55% profit taking after huge run.
  • PO3 -1.86% Volume abysmal.
  • PPS -5.61% selling continues.
  • FLC -1.27% water stocks under pressure.
  • CAT -2.84% change of directors’ interest.
  • PCK +5.41% change of directors’ interest.
  • FMG +0.64% continues to push higher.
  • Speculative stock of the day: Australis Oil and Gas (ATS) +22.22% good volume as buyers emerge after last weeks update to production.
  • Biggest Risers: VRL, SSM, PAR, AHY, JMS, REG and KGN
  • Biggest Falls: JIN, BPT, APX, RSG, CRN, SXL and GMA

TODAY

  • Beach Energy (BPT) –4.83% will acquire a 30% participating interest in a NZ exploration permit, in exchange for funding a 30% share of the Tawhaki-1 well costs, estimated to be $25m (NZ$27m) net to Beach. Following completion, Beach’s interest in the permit will be 30%, with operator OMV holding a 52.93% interest and Mitsui E&P Australia Pty Ltd holding 17.07%. Tawhaki-1 is expected to be drilled in early calendar 2020.
  • Service Stream (SSM) –4.83% has enjoyed a big contract win, with a consortium containing SSM’s Comdain Infrastructure, awarded a 10-year contract from Sydney Water. The consortium will provide the utility with a ‘TOTEX’ service covering the design, construction, maintenance and facility management of all treatment and network assets. The contract comprises a six-month mobilisation period commencing January 2020 followed by two five-year service delivery terms with a performance review at the end of the first five years. Based on forecasts provided by Sydney Water, the consortium’s (Comdain comprises 30% of the consortium) revenue from service delivery is expected to be in the order of $200m per annum.
  • Mirvac (MGR) +0.62% Along with John Holland has won a contract to deliver the Waterloo Sydney Metro station. The contract estimated end value is $800m and is expected to be completed in 2025.
  • Village Roadshow (VRL) +21.56% after receiving a 390c offer from Pacific Equity Partners. PEP has a call option over 19% of VRL. It has said it was willing to pay either cash or a mixture of cash and shares.

ECONOMIC NEWS

  • November Employment Data: Total Jobs added 39k vs consensus 15k. Unemployment rate falls to 5.2% vs consensus 5.3%. Say farewell to February rate cut. The ABS said bushfires had resulted in “minor disruption to data collection” in New South Wales, Queensland and the ACT.

BOND MARKET

ASIAN NEWS

  • Japanese gaming has been the holy grail for some Asian casino operators as the US$20bn market attracted the biggest and the best. But three years on from approvals, it’s still tough to get clarity on tax and gaming policies.
  • China has added the most liquidity since January in the open market with a US$40bn yuan injection today. Overnight repurchase rates have fallen to the lowest in a month.

EUROPEAN AND US NEWS

  • Donald Trump becomes only the third President to be impeached as the Democrat/Republican divide continues. Zero change of being forced from office unless Republicans cross the floor but not a great look. Trump calls it ‘suicide’ for the Democrats. The next step is a trial next early next year where the Republican majority will ensure Donald stays.
  • Uber will pay $4.4m to settle discrimination claims.
  • Canadian inflation is accelerating after energy price rises.
  • Diamonds are forever. Just seems sales don’t last a similar Amount of time as 2019 is shaping up as a terrible year for the De Beers diamond industry.
  • Bank of England has admitted that high speed traders have hacked their press briefings.
  • Fiat Chrysler and Peugeot agree to merge to create fourth biggest car company.
  • Siri, Alexa and Ok Google have formed a ménage à trois to build secure compatible smart home gadgets.

And finally…………….

 

Jill goes home one night with a guy she met at a club. He’s tall, super hot, and seems different than most guys she meets. They arrive at his place and head straight to his room. Jill can’t help but notice a shelf full of teddy bears. On the bottom are small teddy bears, on the middle are medium-sized teddy bears, and finally, on the top are large teddy bears, all lined up beside each other. She begins to think that he is sentimental and sweet, and isn’t afraid to show it. Her heart melts and she want to give him the best night of his life.In the morning, she slowly gets dressed, and smiles at him and asks, “How was that?” He nods and says, “Not too bad at all. Help yourself to a prize on the second shelf!”

 

Helen Keller walks into a bar, then a table, then a chair.

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