Wednesday 26th September – Australian Market Wrap

Today’s Headlines

  • ASX 200 up 6 to 6192 after rally fades a little.
  • High 6210 Low 6182.
  • It is all about the Fed. And oil.
  • Better volume but tight range again.
  • Banks under pressure ahead of RC Friday.
  • Miners drawing strength. Energy back in focus.
  • TLS and telcos rising with staples.
  • AUD firms to 72.65c ahead of Fed move.
  • Bitcoin slightly weaker at US$6438
  • Aussie Gold steady at $1654.
  • US futures up modestly by 51 points
  • Asian markets rally with Japan up 0.30% and China doing nicley up 1.70%.

STOCK STUFF

  • APT +6.06% all smiles as dentist jumps on board.
  • AGL +1.87% AGM today.
  • CUV +6.23% biotech doing well.
  • CGC +3.51% a berry good day on tech buying.
  • PME +2.77% the buying continues.
  • MSB +9.63% does blast on growing optimism.
  • API -9.76% broker downgrade.
  • UPD -3.93% losing its shine.
  • AIZ -2.11% company update.
  • CVN +8.00% STO investor day with focus on Dorado.
  • MQG -0.60% finally eases with other banks.
  • CLV +0.32% Entrepreneurs summit.
  • AGO +4.76% Gina ups bid to get votes.
  • BWX -3.87% ceasing to be a substantial shareholder.
  • MYX +3.19% rally continues.
  • STO -1.09% investor day and forecasts of 100m barrels by 2025.
  • AVH -18.52% yesterday a rooster today a duster as gets a $1m research tax credit.
  • Speculative stock of the day: 1414 Degrees (14D) +30.00% the company has recently listed and designs, develops and manufactures thermal energy storage systems.
  • Biggest risers –MSB, FAR, CUV, APT, VOC and QUB.
  • Biggest fallers – API, SYR, EHL, UPD, SM1 and ILU.

TODAY

  • Nufarm (NUF) – FY18 result. Net loss of $15.6m compared to a $114m profit in FY17, the result was hit by drought conditions in Eastern and Southern States. Revenue up 6% to $3.31bn and underlying EBITDA down 1% to $386m. NUF expects a combination of revenue growth, recovery in the Australian business and the full-year impact of European acquisitions to drive earnings in FY19. EBITDA is anticipated to be in the range of $500 to $530m. A final dividend of 6c per share was declared. NUF has announced a $303m capital raising to strengthen its balance sheet and help fund growth opportunities. Eligible shareholders will be able to subscribe for 3 new shares for every 19 existing shares held. The offer will be issued at a price of 585c, representing an 11.9% discount to the closing price on Monday the 24thof September.
  • Santos (STO) – 1.09% Investor day presentation. STO is targeting production of around 100 million barrels of oil equivalent by 2025, almost doubling current levels of production. The move follows STO’s purchase of Quadrant Energy in late August. Kevin Gallagher, company CEO said the deal is expected to cut STO’s break-even oil price and add a portfolio of low-cost, long-life natural gas assets.

ECONOMIC NEWS

  • Australian home prices have fallen for 11 consecutive months,and will likely decline again in September based on weekly figures released by CoreLogic. UBS’ Australian economics team has long thought that prices will remain under pressure for some time to come. However, it now thinks the housing downturn could end up being more severe than what it initially thought.
  • Home building across Australia’s housing markets have peaked as the total number of homes commenced by the nation’s top builders start winding down, a report by the Housing Industry Association shows. “The number of homes built by the top 100 builders in Australia has fallen for the first time in five years,” HIA said. Tiny though only 7 houses different. The best performing state is Victoria which despite a cooling effect had a 17% rise in building starts.

BOND MARKETS

ASIAN MARKET NEWS

  • China blocks US warship from HK harbour.
  • Chinese restaurant group Haidilao Hotpot kicked off today with a small premium on listing.
  • MSCI will consult on whether to raise the weighting it gives onshore Chinese equities to 20%of free float-adjusted market capitalisation for its global indices, including its flagship emerging markets index.

EUROPEAN AND US HEADLINES

  • European futures expected to open mixed with UK -3, DAX +25 and CAC +28.
  • Trump turns to stand up at the UN. Tweets on OPEC will continue. Praises India for cutting ties to Iran.
  • The French hate the British and vice versa. Frances finance minister has deemed May’s euro plan as unacceptable, it would break up Europe.
  • Theresa May pledges to slash corporate tax to the lowest in Europe.
  • New UK research has revealed that 10% of UK business would go bankrupt if goods were delayed by under 30 minutes as a result of Brexit. Seems a bit excessive. Clearly some are truly living on the edge.
  • PwC has done a study that forecasts that business will derive huge benefits form self-driving lorries and digital technology by 2030. According to the consultancy, costs will fall by 47% by the end of the next decade, largely as labour costs are reduced. In the UK there are 2.5m people working haulage and logistics, with 600,000 having HGV licences.

And finally…………..

“If you arrive fashionably late in Crocs, you’re just late.”

People who like trance music are very persistent. They don’t techno for an answer.”

“My wife told me: ‘Sex is better on holiday.’ That wasn’t a nice postcard to receive.”

“My wife wanted a new fridge. And because I like sex, I said yeah.”

“My therapist says I have a preoccupation with vengeance. We’ll see about that.”

“I was in my car driving back from work. A police officer pulled me over and knocked on my window. I said, ‘One minute I’m on the phone.'”

“Here’s a picture of me with REM. That’s me in the corner.” – Milton Jones

Clarence 

XXX

mt_tryforfree

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