ASX 200 rallies off early lows to close down 10 at 7012 as fears recede. Australian Market Wrap. Headlines, Stocks, Bonds, Economic & Asian Market News. END of DAY REPORT with Henry Jennings.

 

ASX 200 rallies off early lows to close down 10 at 7012 as fears recede. Dow futures rise points. A mixed day dominated by results as JBH rose 11.5% on a pleasing number and BLD got Kaned down 10.7% on its windows exposure and earnings downgrade. Miners slipped with BHP down 0.9% and S32 down 3%. Gold miners picked up as the AUD was under pressure and a slight rise in bullion helped. NCM up 2.2% and EVN up 7.7%. CSL continue to power ahead showing no signs of stopping, up 0.9%. Industrials were mixed generally though with SYD down 1.3% and WES up 0.4% together with WOW up 0.9% and COL up 0.8% as the defensive theme continues. Insurers down on the east coast storms and claims to come, IAG down 2.7% and SUN down 1.1%. Banks easier but not by much, CBA down 0.6%. Even TLS rose a little up 0.8% though tech stocks saw some profit taking led by REA down 2.0% and XRO down 1.1%. In other corporate news, HZN was hit with media reports of corruption, falling 30%, DDR rose 7.7% after an increase in dividends and GPT rose 2.8% on its better than expected results. BKL was in a trading halt as it is expected to enter the downgrade club in the coming days. The 10-year yield lower at 1.01% and the AUD around 67c, off its lows. Asian markets fractionally lower with China down 0.4% and Japan down 0.5%. Coronavirus hits 908 and hopes that a peak will be reached in the coming weeks.

  • ASX 200 down 10 points to 7012 in cautious trade.
  • High 7024 Low 6983. Good rally as China reopens a little.
  • Death toll hits 900. Workers staying home.
  • Miners and banks off slightly.
  • Industrials mixed. Tech slips.
  • Results focus. JBH ticks the boxes.
  • BLD kaned.
  • 10-year bond yields fall to 1.01%
  • AUD rises to 66.99c.
  • Dow futures up points.
  • Aussie gold rises to $2344
  • Bitcoin rallies hard to US$10095
  • Asian markets weaker with Japan down 0.5% and China down 0.4%.

STOCKS                                               

  • ALK +15.73% New MD for subsidiary.
  • AVH +4.79% run continues.
  • JLG +6.18% storm winners.
  • DDR +7.67% doubles dividend
  • BLD -10.68% market hates the sound of breaking glass.
  • NCK -4.82% some profit taking
  • KMD -3.67% caution creeps back in.
  • HZN -30.00% media corruption reports.
  • PET -5.23% Wuhan an issue.
  • LTR +11.11% lithium exposure.
  • ZNO +35.18% new Chinese contracts.
  • LVT +5.88% partnership with Canva.
  • REA -2.00% UBS turns neutral.
  • ABC -5.93% CSR -2.20% catches BLD disease.
  • MAH – no discussions underway with CIM.
  • COE -2.68% gas supply deal.
  • SZL – 1m active customers.
  • FXL – launches new BNPL product called Bundll. Has to be misspelt to be trendy.
  • GPT +2.76% profit falls.
  • WAM -2.22% keeps dividend flat.
  • PPS -2.02% not good enough. Must try harder.
  • VVR -0.73% media reports on Charter Hall eyeing up the company.
  • TWE -1.67% Capital Group sells down holding to below 5% from 9.6%.
  • FLT -4.91% travel stocks under pressure. Macquarie downgrades PT.
  • SYD -1.27% remains under pressure from tourist slowdown.
  • EVN +7.69% ceasing to be substantial shareholder.
  • BKL – trading halt. Not good.
  • ING +3.05% drought breaks. Feed may be cheaper.
  • Speculative stock of the day: De Grey Mining +14.81% up again. The point of the speculative stock of the day is to identify stocks that could keep moving and are worth having on your watch list. They are speculative but they are filtered by volume and stocks that have a specific reason to do well. It is not just random.
  • Biggest Risers: ALK, JBH, EVN, DDR, JLG, AX1 and AVH
  • Biggest Falls: BLD, SSM, ABC, FLT, NCK, AWC, RMS and AFG

TODAY

  • Aurizon (AZJ) +2.63% Underlying NPAT for the first half came in at $269m, up 19% (consensus $251.1m). Revenue from continuing operations lifted 5% to $1.53bn (consensus $1.48bn). Underlying EBIT was up 12% to $465m (consensus $440.5m). An interim dividend 13.7cps was declared. Share buyback increased by $100m now $400m. FY20 underlying EBIT guidance maintained, $880-930m. Above rail coal volumes now forecast between 210-220Mt vs previously guided 220-230Mt. Outlook remains contingent on no major weather impacts during H2 and any potential impact from coronavirus.
  • Praemium (PPS) -2.02% reports H1 NPAT $1.4m vs consensus $2.9m. Revenue $24.2m vs consensus $24.6m. Underlying EBITDA $7.0m vs consensus $6.4m.
  • JB Hi-Fi (JBH) +11.50% reports H1 NPAT $174.4m vs consensus $167.4m. Revenue $4.0bn vs consensus $3.96bn. EBITDA $281.9m vs consensus $273.2m. An interim dividend of 99c per share was declared. Total sales growth for JB Hi-Fi Australia +6.5%, comparable sales growth +6.0%. In FY20 JBH expects NPAT in the range of $265m and $270m. Chairman Greg Richards to retire on 30-June-2020.
  • Viva Energy REIT (VVR) -0.73% responds to media speculation; hasn’t received any approach by Charter Hall in relation to an acquisition of a stake in the company.
  • Boral (BLD) -10.68% Reported a $36.6m hit to earnings from financial irregularities. Reports provisional H1 NPAT (ex-items and excluding impact of AASB16) $159m vs year-ago $192m. Revenue from continuing operations $2.96bn vs year-ago $2.90bn. EBITDA from continuing operations $493m ex-items vs year-ago $470m. Declares an interim dividend of 9.5c per share. Expects FY20 EBITDA to be down relative to FY19 with lower reported EBITDA in all three divisions. Expected NPAT of $320-340. H1 results broadly in line with guidance but have seen challenging start to H2. CEO Mike Kane intends to retire following the FY20 results.
  • Blackmores (BLK) – In a trading halt pending an announcement by the company regarding its first-half profit results & outlook. Results expected February 25.
  • Macmahon Holdings (MAH) -unchanged- Clarifies that discussions are not currently underway between Macmahon and CIMIC.
  • GPT Group (GPT) +2.76% Full-year funds from operations (FFO) up 6.8% to $613.7m vs consensus of $596.1m. NPAT $880.0m vs year-ago $1.45bn. In FY20 expects earnings and DPS growth of 3.5%.

ECONOMIC NEWS

  • Nothing today.

BOND MARKET

ASIAN NEWS

  • Some health experts say that coronavirus could ultimately infect up to 500,000 people in Wuhan.
  • WHO chief warns on the current outbreak of coronavirus just the tip of the iceberg.
  • China is set to restart its economy despite the coronavirus.

EUROPEAN AND US NEWS

  • Parasite wins best picture. Brad gets a gong. Margot misses out. Joaquin wins too.
  • New Hampshire primaries this week. Seat warming for AOC in 2024. Ironically you have to be over a certain age to be POTUS but no upper limit.
  • Mitsubishi has bought a 30% stake in a Chilean copper mine.
  • Seconds away Round One. In the EU, poor states have asked rich states to pay more to fill the void left by the UK Brexit. And so, it begins. When a club loses its second biggest contributor there will be trouble.
  • US economy slows to the lowest since Trump took office at 2.3% UK car industry in the doldrums at 9-year low.

 

And finally….love this one…thanks Hans..quality as usual…

 

A GREEK AND AN IRISHMAN WERE SITTING IN A STARBUCKS ONE DAY COMPARING  THEIR TWO CULTURES.  OVER A DOUBLE LATTE, THE GREEK MENTIONS “WE BUILT THE PANTHEON, YOU  MAY RECALL, ALONG WITH THE TEMPLE OF APOLLO.”
“WELL, IT WAS THE IRISH THAT DISCOVERED THE SUMMER AND WINTER SOLSTICES.”

“BUT IT WAS THE GREEKS WHO GAVE BIRTH TO ADVANCED MATHEMATICS.”

“GRANTED, BUT IT WAS THE IRISH WHO BUILT THE FIRST TIMEPIECES.”

KNOWING THAT HE’S ABOUT TO DELIVER THE COUP DE GRACE, THE SON OF ATHENS POINTS OUT WITH A NOTE OF FINALITY:

“KEEP IN MIND THAT IT WAS THE ANCIENT GREEKS WHO INVENTED THE NOTION OF SEX AS A PLEASURABLE ACTIVITY!”

“TRUE ENOUGH, BUT IT WAS THE IRISH WHO GOT WOMEN INVOLVED.”

Clarence

XXX

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Financial Markets and Political Commentary