ASX 200 falls another 112 points to 6867 in a volatile day. Australian Market Wrap. Headlines, Stocks, Bonds, Economic & Asian Market News. END of DAY REPORT with Henry Jennings.

 

ASX 200 falls another 112 points to 6867 in a volatile day. Dow futures showing some gains up 160 points. Another ugly open saw buyers step in and follow the playbook of buying the dips. Trump tweeted that he saw value and traders followed him in. A rally off lows failed to follow through in the afternoon as caution remains. All sectors remain under pressure. Big Bank Basket has fallen from just over $172 to $164. Results continue to drop with some good, some bad and some ugly. Amongst the positive results were APX +6.5%, OML up 4.2% and AUB rallying 4.3%. JIN also hit the jackpot although a small one putting on 3.2% post results. On the ugly side of the ledger, MOZ dropped 21% after suspending the dividend on cautious approach to cardie sales, WGN -17.4% after a bad result and MNF down 10.6% following some disappointment. In afternoon news, TWE updated the earnings outlook due to the virus and fell 4%. Disappointingly the gold miners were sold off and some showed some big losses, maybe they have done their dash as the AUD firmed slightly. NCM down 3.6%, NST down 3.1% and EVN down 3.3%. In economic news the ANZ Consumer Sentiment index fell again and the 10-year yield continues to fall to 0.92%. AUD firmed slightly to 66.19c. Asian markets showed some promising signs with South Korea up 1.9% though Japan down 3.4% after a holiday yesterday. China down another 1.6%.

  • ASX 200 drops 112 points to 6867. Solid volumes.
  • High 6948 Low 6800. Big range. Off lows and highs.
  • Broad deep losses. Big Bank Basket down to $165.27 from recent $172 plus high.
  • Goldminers fail to fire. Get sold off aggressively.
  • Results cheer some. Kill others.
  • 10-year bond yields slip to 0.92%. US bond yields lower than July 2016.
  • AUD steady at 66.19c.
  • Dow futures up 160 points
  • Aussie gold drifts to $2501
  • Bitcoin rallies to US$9578
  • Asian markets stabilise though Japan down 3.4% after Monday’s holiday. China down 1.6% and South Korea KOSPI rebounds up 1.9%.

STOCKS                                               

  • PNV +4.86% buyers return.
  • APX +6.50% results cheer. Siri and Alexa happy.
  • AMS +10.09% positive results.
  • SIQ 2.98 change of director’s interest.
  • NEA +3.31% change of director’s interest.
  • LTR +12.50% bargain hunters.
  • MOZ -20.89% cardigans get cancelled as is dividend.
  • WGN -17.42% concrete shoes. Results set in.
  • NCM -3.58% gold stocks join in selling.
  • RWC +1.75% MS drops price target.
  • SBM -9.67% crushed.
  • SAR -7.33% gold stocks under pressure.
  • Speculative stock of the day: Not much volume in speculative land. Stavely Minerals (SVY) +13.43% one of the few stand outs. SVY revealed exceptional grades of up to 26.8% Cu and 8.48g/t AU at Cayley Lode discovery.
  • Biggest Risers: APX, TAL, DTL, WAF, PNV, NHC and AUB.
  • Biggest Falls: SBM, SAR, CCL, WEB, SLK, CDA and ALG.

TODAY

  • SEEK (SEK) +1.78% reports H1 reported NPAT $75.6m vs consensus $73.0m. Revenue $875.5m vs consensus $847.1m. Reported EBITDA $247.4m vs consensus $242.6m. Interim dividend 13.0c/share, down 46%. fully franked. Warns on coronavirus impact, while not yet material it could be a significant issue if March and April billings in Asia are 30% lower than originally assumed.
  • Qube Holdings (QUB) -2.13% reports H1 underlying NPAT $76.3m ex-items vs consensus $73.0m. Underlying revenue $970.1m vs consensus $937.0m. Underlying EBITDA $158.2m vs consensus $154.1m. Interim dividend 2.9c/share, fully franked. Expects some weakness in its H2 underlying earnings on the back of bushfires, adverse weather, as well as the coronavirus.
  • HUB24 (HUB) -2.25% reports H1 underlying NPAT $5.4m vs consensus $6.2m. Revenue $53.9m vs consensus $55.5m. Adjusted EBITDA $11.7m vs consensus $11.0m. Declared an interim dividend of 3.5cps, unfranked. Repeats FY21 FUA target of $22-26bn.
  • Estia Health (EHE) -3.91% reports H1 NPAT $14.3m vs consensus $16.8m. Operational revenue $289.4m vs consensus $309.6m. Adjusted EBITDA $40.9m vs consensus $54.4m. Interim dividend 5.4c/share, fully franked. Maintains FY20 guidance, expects EBITDA on Mature Homes on a pre-AASB16 “like for like” basis of $78-82m. Dividend payment ratio to remain in the 70%-100% of NPAT range. Capex in H2FY20 expected between $58-64m.
  • Appen (APX) +6.50% Revenue up 47%. Underlying EBITDA up 42% to $101m. Underlying NPAT up 32% to $64.7m. Figure Eight rebounds to high growth with yearend ARR of $33.7m. Speech and Image delivers an unprecedented revenue result of $67.7m, up 32% on 2018. The Company’s full-year underlying EBITDA for the year ending Dec 31st 2020 is expected to be in the range $125m – $130m. APX expects a negligible impact from the Coronavirus on FY20 group revenue and earnings based on currently available information. Dividend of 5c, 50% franked. Looks like a slight revenue miss but the rest looks ok. EBIT and NPAT above forecasts.
  • Alumina (AWC) -1.39% reports FY underlying NPAT $326.6m against expectations of $335.3m. Record annual alumina production for the current AWAC operated portfolio. Final dividend 3.6cps. Record 2-Mar, payable 17-Mar.
  • Johns Lyng Group (JLG) +1.15% Normalised EBITDA up to $20m from $11.2m a year ago. EBITDA (AASB16) $35.6m vs prior $32m (AASB117) vs forecasts of $33.8m. NPAT attributable to the owners of JLG: $7.9m (1.2% increase vs. 1H19). Guidance upgraded in January remain the same. Sales Revenue: $420m (25.3% increase vs. FY19) EBITDA: $35.6m (53.3% increase vs. FY19). Bushfires and hailstorm events helping drive growth. Too early to decipher impact but looks positive.
  • Flexigroup (FXL) -0.27% 1.87m active customers, up 12% on pcp. 69,000 retail partners, up 15% on pcp. Statutory NPAT of $33.3m, up 6%. Cash NPAT of $34.5m, up 8%. fully franked interim dividend of 3.85c. No short-term earnings guidance as eth company is investing for future growth under its three- year transformation plan. Expects transaction volume to grow between 10% and 15%. Revenue looks a little underestimates and the lack of specific guidance may hurt. Generally, inline but softer retail environment will hinder margin growth.
  • Oil Search (OSH) -2.28% reports FY NPAT US$312.4m vs coronavirus US$339.7m. Revenue US$1.58bn vs consensus US$1.58bn. Final US4.5cps, unfranked. FY dividend cut from US10.5¢ to US9.5¢. Capital expenditure for 2020 highly dependent on whether a P’nyang Gas agreement is signed. Production and operating cost guidance remains unchanged from that provided in the 2019 Q4 report, released on 28-Jan-20.
  • Treasury Wine Estates (TWE) –3.96% Late afternoon earnings update. TWE no longer believes that it will achieve the previously provided guidance for F20 reported EBITS growth of between 5% and 10% due to coronavirus in China impacting sales and the supply chain.

ECONOMIC NEWS

  • Scott Morrison rules out stimulus package. Says coronavirus impact will be worse than bushfires. Hints that the surplus is gone. We all knew that anyway.

BOND MARKET

ASIAN NEWS

  • Hong Kong schools extend closure until after Easter.
  • Malaysia’s PM Mahathir has resigned but will continue as an interim PM. Given he is 94, I would have thought that was already implied. Malaysian stock market falls entering official bear territory.
  • The US and South Korea are still yet to agree to the US plan for the Koreans to contribute more to their own safety. Six rounds of talks have failed to break the deadlock. South Korean consumer sentiment 96.8 lowest in five years.

EUROPEAN AND US NEWS

  • Equinor a Norwegian oil major has abandoned plans to drill in the Great Australian Bight. Not commercially viable it seems.
  • Moderna has become the first biotech to offer a vaccine for coronavirus as it has sent a sample to the US National Institute of Health for human testing.
  • Mastercard has cut its financial outlook, citing the impact of the coronavirus on cross-border travel and commerce.
  • Anglo Pacific Group will no longer invest in thermal coal as the mining investor tilts its portfolio towards greener metals and minerals.
  • Intuit agrees to a US$7.1bn deal to buy Credit Karma as groups seek to control more financial data.
  • Buffet says he is not selling.
  • Trumps tour of India continues.

And finally…

A blonde dies and arrives at the Pearly Gates, where she is greeted by St.Peter. “Welcome!” he says. “Because we are currently operating at 99% capacity, we can only let a limited number of souls into heaven.Therefore, you must answer my questions correctly to gain entrance.”
“Okay,” says the blonde.
“Here’s your question: name two days of the week that begin with the letter T.”
“That’s easy. Today and tomorrow!”
“Well, that’s not the answer I was thinking of, but I’ll give you another question. How many seconds are there in a year?”
“That’s easy. Twelve!”
“Twelve?”
“January second, February second, March second–”
“Okay, okay. I can see you misunderstood this question as well. Okay, one more chance.What’s God’s name?”
“That’s easy. Howard!”
“Howard?”
“You know — ‘Our Father, who art in heaven, Howard be thy name…”

What do you call a blonde in an institution of higher learning?
A: A visitor.
Q: What do you call a blonde with half a brain?
A: Gifted!
Q: What do you call a brunette with a blonde on either side?
A: An interpreter.
Q: What do you call a fly buzzing inside a blonde’s head?
A: A Space Invader.

with thanks to jokesoftheday.net

Clarence

XXX

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