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

 

The ASX 200 lifts 58 points to 6962 as bulls emerge ahead of Phase one signing. US futures up points. Volume again remains light as many away still but broad based gains in the big four banks and miners lifted to record territory. CBA up 0.8% and ANZ up 0.8% although WBC eased 0.08%. CSL presented at a conference today and bounced 0.7%, bond proxies rose with TCL up 0.9% and SYD up 2.5% whilst miners enjoyed a resumption of the commodity rally with BHP up 1.3%, RIO up 1.85% and S32 up 3.6%. Gold miners though missed out as bullion slipped, NCM down 1.2% and NST down 0.9%. Oil and gas stocks rose surprisingly despite falls in  WTI overnight, STO up 0.9% and WPL up 0.65%. Lithium stocks continue to be a standoput sector for 2020 and its only the 14th. ORE up 7.4%, GXY up 7.2% and Graphite producer SYR had another stellar day up 15.45%. In company news, BHP announced that Lindsay Maxstead would not seek reelection. EML rose 7.2% after a NSW Health contract win and MOZ fell heavily down 17.3% as one in five stores have been affected by the bushfires. In economic news, Consumer confidence rose slightly and China revealed some better than expected trade data. The 10-year yield stable at 1.26%. In Asia, China wekened by % and Japan gained % on a weaker yen.

  • ASX 200 up 58 to 6962.
  • High 6963 Low 6911. Low volume.
  • Banks rally. CSL hits high.
  • Miners in focus nut energy and gold misses out.
  • Lithium stocks rallying hard.
  • 10-year bond yields 1.26%. Big Rally.
  • AUD fades to 69.01c
  • Dow futures up 46 points
  • Aussie gold down to $2230
  • Bitcoin back up to US$8495 in strong rally.
  • Asian markets: China down 0.32%. Japan at a 4-week high up 0.6% on weaker yen boost.

STOCKS                                               

  • EOS +7.02% new directors for US board.
  • ELD +8.29% smoke clears as stimulus hopes build.
  • PBH +10.38% Superbowl coming?
  • SYR +15.45% another strong day of short covering.
  • IMU +14.71% Patent granted in US.
  • PLS +11.43% lithium is back baby.
  • APT +2.06% Goldman Sachs remains bullish on earning surprise potential.
  • AVH +7.41% change of substantial holding.
  • PDL -5.12% FUM disappoints.
  • IRI -1.90% broker downgrades.
  • SPT +9.16% funding and regulatory update.
  • MOZ -17.26% bushfire impact.
  • SPX -10.31% exploration update.
  • MQG +1.17% all -time high.
  • TCL +0.90% new director.
  • TLS -0.26% fails to launch.
  • EML +7.17% NSW Health contract win.
  • WZR – capital raise.
  • SFR -0.67% Goldman Sachs cuts to sell.
  • CSL +0.68% conference presentation
  • A2M -1.48% management concerns remain.
  • BHP +1.32% Lindsay Maxstead will not stand for re-election.
  • MIR unchanged maintains dividend as revenue falls.
  • Speculative stock of the day:TNT +35.09% after a write up this morning in the newsletter the company resumed trading following an ASX price query and exploded. The Geoff Lord effect as he is appointed Chairman.
  • Biggest Risers: PLS, PBH, ELD, AVH, ORE, EML and EOS.
  • Biggest Falls: AGG, PDL, RMS, EHL, PWH and CGC.

TODAY

  • iCar Asia (ICQ) +12.33% On track to have a strong year. Revenue is expected to grow 50% or more on a year to year basis. The Group is expected to become cash-flow positive in the second half of 2020 as per its previous guidance, and be EBITDA positive in aggregate for the entire year.
  • Pendal Group (PDL) -5.12% reports FUM $101.4bn at 31-Dec vs $100.4bn at 31-Sep.
  • Webjet (WEB) +3.50% is in close talks with its advisers as inbound interest in buying the group seems to be on the rise. The company is shoring up its defences as big buyout companies and private equity lurk in the shadows.
  • Perenti Global (PRN) +1.83% is thought to be interested in Downer’s (DOW) mining services division. Perenti has a market cap of around $1.1bn and is based in Perth. Downer is looking to exit its mining services division because it is too capital-intensive, with mining contributing about 12% of profit in 2019. The business is expected to sell for around $550m.
  • Pengana Capital Group (PCG) -3.03% reports FUM $3.08bn at 31-Dec vs $3.17bn at 30-Nov.
  • Resolute Mining (RSG) +4.00% has confirmed media speculation that it is in talks to sell its Qld Ravenswood mine to PE firm EMR Capital for roughly $300m. The company said no agreement has been reached as yet.

ECONOMIC NEWS

BOND MARKET

ASIAN NEWS

  • China is no longer an official “currency manipulator”.
  • China’s yuan-denominated exports in December rose 9% from a year earlier, customs data showed on Tuesday, while imports rose 17.7%. For the full year of 2019, China’s yuan-denominated exports rose 5% while imports rose 1.6%, producing a trade surplus of 2.92 trillion yuan. China’s total trade in yuan terms with the United States dropped 10.7% from a year earlier. The EU continued to be China’s largest trading partner, and the U.S. fell to third place behind ASEAN.

EUROPEAN AND US NEWS

  • It is official 47.2 is peak unhappiness. In the developed world that is. In the developing world, it is 48.2. That is according to one research body in teh UK which has done the numbers.
  • Visa agreed to acquire Plaid, a group that connects fintech companies with their customers’ bank accounts, for US$5.3bn.
  • The USA’s largest natural gas producer EQT has taken a US$1.8bn hit  after price slides continue.
  • More bad news for Boeing as new CEO vows to rebuild trust after new revelations on Lion Air training requests.
  • 93 year old grandmother has agreed to let her 35-year old grandson and his new wife leave home.Grandson must find a new job though to support his family. His CV should be interesting.

And finally…

 

An elderly Aussie gentleman of 83 arrived in Paris by plane.

At the French customs desk, the man took a few minutes to locate his passport in his carry-on bag. “You have been to France before, monsieur?” the customs officer asked, sarcastically. The elderly gentleman admitted he had been to France previously.

“Then you should know enough to have your passport ready.”

The Aussie said, “The last time I was here, I didn’t have to show it.”

“Impossible, Australians always have to show your passports on arrival in France!”

The Aussie senior gave the Frenchman a long hard look, then he quietly explained, “Well, when I came ashore at Juno Beach on D Day in 1944 to help liberate this country, I couldn’t find any Frenchmen to show it to.”

 

This little old lady goes to the doctor and says, “Doctor I have this problem with passing gas, but it really doesn’t bother me too much. It never smells and it’s always silent. As a matter of fact I’ve passed gas at least 20 times since I’ve been here in your office. You didn’t know I was passing gas because it doesn’t smell and it’s silent.”

The doctor says “I see. Take these pills and come back to see me next week.”

The next week the lady goes back. “Doctor,” she says, “I don’t know what you gave me, but now my passing gas… although still silent, it stinks terribly.”

“Good”, the doctor said, “now that we’ve cleared up your sinuses, we’ll start to work on your hearing.”

Clarence

XXXX

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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