ASX turned lower closing down 24 points (0.4%) at 6020.5 after a breach of the 6100 level early failed to stick. Australian Market Wrap. Headlines, Stocks, Bonds, Economic & Asian Market News

 

The ASX turned lower closing down 24 points (0.4%) at 6020.5 after a breach of the 6100 level early failed to stick.

The Dow Futures eased too up only 7 points, with volumes better than we have seen for a while. Banks turned down as the Big Bank Basket dropped to $125.64 and CBA slipped 0.4%.

Other financials also weaker with MQG down 1.6% and QBE down 1.3%. Healthcare was easier dominated by a fall of 1.2% in CSL and FPH gave back 1.8%. 

Industrials were mixed with TCL up 0.7% and TLS to the good up 0.3% whilst WES fell 0.6% and ALL down 3%. USD earners in the seller’s spotlight. On tech we saw some froth being blown off the top of the BNPL sector as WZR fell 2.0% after its quarterly, APT dropped 2.4% and SZL down 4.5%.

The All Tech Index fell 1.2%. Miners were an early bright spot but got bushwhacked around noon, BHP up 1.7% RIO up 1.2% and FMG up 3.2%, now bigger than ANZ.

Gold miners barely shifted after solid gains recently, AUD is suffering as the USD falls, NST down 1.1% and EVN down 1.0%.

Energy stocks going nowhere but down as WPL fell 1.4%. In corporate news, CCP improved 8.8% on its full-year results, and expects to resume dividend payments in 2021. GUD rose 4.0%, FY underlying EBIT $80.7m vs consensus $82.5m. Final dividend 12c. PBH dropped 7.5%, Q4 turnover of $349.4m vs year-ago $221.3m. RRL is up 0.7% on its quarterly production report. TPW up 5.8% on pre-audited FY20 numbers.

ANZ Roy Morgan weekly consumer confidence fell 1.9% to a 13-week low of 89.

The 10-year yield popped a little higher at 0.93% and the AUD steady at higher levels.

Asian markets mixed again with Japan down 0.3% and China up 0.4%

Today’s Highlights

  • ASX 200 down 24 to 6020.5 (0.39%)
  • High 6114 Low 6020. Better volume today.
  • Big Bank Basket $125.64.
  • Gold price hits a record but backs off.Miners suffer as USD falls.
  • All Tech Index down 1.2%
  • 68 trading days until the US election.
  • Dow Futures up 120 points.
  • 10-year bond yields firm to 0.93%.
  • AUD off highs at 71.38c
  • Aussie gold better at $2719 but off highs.
  • Bitcoin rallies to US$11011.
  • Asian markets mixed again with Japan down 0.3% and China up 0.4%

STOCKS

  • CCP +8.76% results cheer.
  • VUK +0.57% third quarter trading update.
  • TPW +5.78% from ugly duckling to swan. Good results.
  • AGG +7.61% trading statement.
  • WPR -4.76% ceasing to be substantial shareholder.
  • Z1P -3.77% some profit taking in sector.
  • PBH -7.50% results and US sports weigh.
  • PPT -5.06% back from halt after capital raising.
  • RXL -16.00% exploration update.
  • WBC -1.47% in the doghouse again over money laundering.
  • 3DP -9.30% profit taking.
  • EOS -4.63% profit taking again.
  • FMG +3.18% bigger market cap than ANZ now.
  • SZL -4.52% partners with Plaid.
  • VRL +14.07% extends exclusivity with BGH.
  • SVL +10.00% drill program at Bowden.
  • EHL +7.58% broker upgrades.
  • Speculative Stock of the Day: Chesser Resources (CHZ) +152.38% Gold fever after multiple spectacular high-grade gold hits including 48m @6.7g/t from Diamba Sud.
  • Biggest Rises: PNI, CCP, NUF, AGG, PAR, TPW, ALQ and PLS.
  • Biggest Falls: PBH, AMI, NIC, DEG, PPT, RSG and WPR.

TODAY

  • GUD Holdings (GUD) +3.99% Full-year underlying NPAT $48.2m vs consensus $51.7m. Revenue $438m vs consensus $431.2m. Underlying EBIT $80.7m vs consensus $82.5m. Final dividend 12c/share. Automotive sales in June and the first part of July are above the prior comparable period and show strong double-digit demand growth. Expects this demand to moderate as the year progresses as pent up demand reduces and the consequences of changes in government stimulus impact through FY21.
  • PointsBet Holdings (PBH) -7.50% Q4 turnover of $349.4m vs year-ago $221.3m. Active clients 111,361 vs year-ago 80,008. Net Win Margin 9.6% vs year-ago 3.3%. Australian trading business achieved record monthly net win in April, May and June.
  • Temple & Webster Group (TPW) +5.78% Full-year adjusted EBITDA $9.4m vs consensus $8.3m. Revenue $176.3m vs consensus $174.2m. Active customers ~480k, up 77% vs year ago. FY21 has started strongly with July’s revenue growth rates in line with those experienced throughout Q4.
  • Westpac (WBC) -1.47% Appoints Scott Collary as COO. Executive, Gary Thursby, has decided to leave the bank early next year.
  • Credit Corp (CCP) +8.76% Full-year NPAT (pre COVID-19 adjustments) $79.5m vs guidance $75-80m and consensus $76.1m. Revenue (post COVID-19) $313.4m. Will not pay a final dividend for FY20 but does expect to resume dividend payments in 2021. FY21 guidance, NPAT $60-75m, EPS 89c-112c, PDL acquisitions $120-180m, net lending volumes -$5m-$5m and DPS 45-55c.
  • Charter Hall Group (CHC) +0.39% Confirms sale of holding in Waypoint REIT at 261c/security, totalling $101.6m. Charter Hall will receive a distribution of 7.41c per WPR security for the half-year ended June 30, which together with the sale price, provides Charter Hall with a positive total return on its February 2020 entry price.
  • Regis Resources (RRL) +0.67% Q4 gold production 87,260oz vs quarter-ago 86,300oz. AISC $1,358/oz vs quarter-ago $1,174/oz. Cash and bullion $209m, +24% vs quarter ago. Expects FY21 production between 355k-380koz and AISC in the range of $1,230-1,300/oz.
  • Rio Tinto (RIO) +1.19% Confirms copper deposits at its Winu site in WA with the potential of a gold discovery nearby. Targeting first production at Winu in 2023.
  • Village Roadshow (VRL) +14.07% Extends exclusivity period for discussions with BGH Capital until August 4.

ECONOMIC NEWS

  • ANZ Roy Morgan weekly consumer confidence fell 1.9% to a 13-week low of 89.
  • In the week to July 11, 1.4% of all Victorian jobs were cut, more than any other state or territory and well above the national average of 0.6%.  The wages bill in Victoria has also been cut by 3% in the week to July 11. Victoria has lost 7.3% of jobs in the state. or roughly 252,000.

COVID-19 NEWS

  • Tokyo confirmed about 270 new cases of coronavirus Tuesday.
  • Coronavirus cases in the U.S. increased 1.3% as compared with the same time Sunday to 4.27m.
  • The European Union appears set to keep its external borders closed to travelers from most countries for at least two more weeks and that includes the US.
  • Beijing has reported one new coronavirus case on Tuesday, its first in 21 days

BONDS

  • The Australian Office of Financial management has confirmed a $15bn long term debt issue with a June 2051 expiry. The yield will be set around 1.92%. The oreder book reached a total of $36.8bn.

ASIAN NEWS

  • In Malaysia Najib Razak guilty in the first of a series of trials linked to 1MDB. Appeal is a certainty.

EUROPEAN NEWS

  • Fed meeting kicks off. ECB recommends banks do not consider dividend and/or buybacks until January 2021. Importantly though it will not require further capital buffers.
  • ING announces write downs in Europe.
  • A trillion-dollar stimulus plan is going to fall well short of what is needed. The GOP is divided, and the Democrats want more.
  • Donald Trump changes his tune again and says a number of governors are moving too slowly to open their states’ economies amid the coronavirus pandemic.
  • Cinemas may be open but there are few blockbusters to be released though Christopher Nolan’s Tenet is set to open outside of the US on August 26th.
  • European earnings disappointing LVMH sees profit drop 68%.
  • PSA Citroen sees H1 Revenue down 34.5% to EUR 25.12bn.
  • House prices in the U.K. are set to grow by as much as 3% for the rest of this year according to property portal Zoopla.
  • Spain lashes out at UK over travel ban.
  • Remington files for bankruptcy despite strong US gun sales.

And finally…………

How many letters in the alphabet ?

24, ET went home.

Albert Einstein was a genius …on the other hand his brother Frank was an absolute monster.

Bought my wife a new fridge for her birthday, cant wait to see her face light up when she opens it..

enough? maybe

Clarence

XXXX

mt_tryforfree
Financial Markets and Political Commentary