Wednesday 12th December – Australian Market Wrap

Todays Highlights

  • ASX 200 bounces 60 to 5636 as Trump may intervene.
  • High 5634 Low 5581. Modest volumes as sellers back off.
  • Banks lead charge despite strike at WBC.
  • Big Bank Basket $144.70. Solid bounce.
  • BHP buyback price period 2 days in.
  • Big miners in demand with healthcare.
  • Energy stocks do well with REITs firming.
  • Gold stocks under pressure.
  • SHL buys Florida diagnostic business needs $600m.
  • AUD firms to 72.21c. NAB says no rise until 2020. Easy with perfect vision.
  • Bitcoin slips to $3346
  • Aussie Gold weakens to $1724
  • US futures up 133 as Meng Wanzhou makes bail.
  • Asian markets recover with Japan up 1.92% and China up 0.16%

STOCKS IN FOCUS

  • COL -1.45% misses out.
  • TME +4.64% private equity agrees takeover.
  • WBC +1.64% strike one on bonuses.
  • GXY +5.83% positive update from Mt Cattlin.
  • TPM -0.51% decision tomorrow.
  • CGF +4.63% new Chief executive of distribution.
  • MYX +6.15% US drug approval.
  • ALU +5.56% bounces back after large loss yesterday broker upgrade helps.
  • SPL +4.20% eye drops get approval in US.
  • SYR +4.69% commodity price increases.
  • TLS -1.30% ACCC inquiry.
  • GOR -3.20% NST -2.46% SBM -3.66% gold producers under pressure.
  • PO3 -5.73% thin volume.
  • SXY +6.06 % bringing it back.
  • PET +5.80%% confidence helps.
  • Speculative stock of the day: Celsius Resources (CLA) –8.57% the company responds to an ASX speeding ticket, referring to recent board appointments. No drill results yet though.
  • Biggest Risers – SDA, SHV, MYX, PNI, GXY , ALU and FNP
  • Biggest Fallers – SKT, AHY, SBM, CRN, GOR and RRL

TODAY

  • Sonic Healthcare (SHL) – To acquire Aurora Diagnostics for $750m. SHL has announced a fully underwritten institutional placement to raise $600m and a non-underwritten share purchase plan (SSP) to retail shareholders to raise up to $100m. The issue price for the underwritten placement represents an 8.8% discount to the last closing price of 2139c. The acquisition is expected to be 3% EPS accretive post placement on a pro-forma FY2019 basis.
  • Trade Me (TME) +4.64% Enters into scheme implementation agreement with Apax Partners, at NZ$6.45 per share. Agreement is subject to an Independent report determining that NZ$6.45 per share is within or above its valuation range. In the absence of a superior proposal, the Trade Me board unanimously recommends that shareholders vote in favour of the scheme.
  • Brambles (BXB) –0.30% ASIC is investigating a block trade that was done in Brambles, by UBS, as per the AFR. The article claims that sources have claimed that ASIC is investigating for front-running, in the trade completed in May 2018. It is reportedly quite common for ASIC to look into large share sales.
  • Mayne Pharma (MYX) +6.15% Has received FDA approval of Tolsura capsules (for treatment of certain fungal infections). Estimates market at US$200m.
  • Helloworld (HLO) +1.69% Reaffirms full-year guidance at investor day presentation, EBITDA is expected to be between $76 and $80m.
  • Westpac (WBC) +1.64% Chair Lindsay Maxsted said the bank expects to receive its first strike as more than 50% of shareholders vote against remuneration report.

ECONOMIC NEWS

  • Consumer confidence improves slightly. The Melbourne Institute and Westpac Bank Consumer Sentiment Index moved up 0.1% to 104.4 in December from 104.3 in the previous month.

HOUSING FINANCE FOR OWNER OCCUPATION

  • The total value of owner-occupied housing commitments excluding alterations and additions fell 1.0% in trend terms, while the seasonally adjusted series rose 3.5%.

HEALTH DATA

  • The typical Australian is a non-smoker and has never smoked, does 42 minutes of exercise every day, is overweight or obese and does not eat enough vegetables.
  • The typical Australian male weighed 87kg and stood 175cm tall and was therefore overweight while the typical female weighed 72kg and was 161cm tall and was also overweight.
  • 79% of Australians consumed alcohol in the last year, we did so at safe levels.
  • 47% of Australians had at least one chronic health condition.
  • Around 4.8m Australians (20%) had a mental or behavioural condition in 2017-18 up from 4m (17.5%) in 2014-15.

BOND MARKETS

  • 2-Year bonds unchanged to yield 1.94%
  • 5-Year yields down 1bps to yield 2.04%
  • 10-Year yields down 1bps to yield 2.44%

ASIAN MARKETS

  • China has arrested a former Canadian diplomat. Have boycotted Justin Bieber songs too. It’s getting real.

EUROPEAN AND US HEADLINES

  • Trump is willing to intervene in Huawei CFO case. Not a surprise given his ‘pragmatic’ approach to Saudi Arabia.
  • Will the UK Tory party have the 48 letters calling for leadership change? The ‘omnishambles’ continues.
  • UK wage rises are at highest pace in a decade on record employment numbers. EU citizens streaming out.
  • Macron has turned into Santa Claus this Xmas after weeks of protests. Trouble is that Macron’s plan could push France to 3.5% deficit to GDP, according to initial estimates.He has proposed a 100-euro ($114) a month hike in the minimum wage and abolishing a tax on pensions. Italy doesn’t look so bad now.

And finally……………

Crime in multi-storey car parks. That is wrong on so many different levels

My Dad said, always leave them wanting more. Ironically, that’s how he lost his job in disaster relief

As a kid I was made to walk the plank. We couldn’t afford a dog

When I was little my mother used to feed me alphabetti spaghetti. I didn’t realise she was putting words in my mouth.

Clarence

XXX

mt_tryforfree

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