Wednesday 23rd May – Australian Market Wrap

Today’s Headlines

  • ASX 200 -9 TO 6032
  • High 6057 Low 6026.
  • Banks mixed as CBA breaks $70.
  • CSL profit taking. MQG shines. TLS rallies.
  • Resources weaker except BHP.
  • Energy stocks reel from STO decision.
  • AUD slightly weaker at 75.45c
  • Bitcoin falls again to US$7924
  • AUD Gold rallies to $1291.
  • US futures down 78.
  • Asian markets weaker with Japan down 1.16% and China CSI 300 down 0.95%

STOCK STUFF

Movers and Shakers

  • SLK +10.24% unsolicited proposal for control change.
  • MSB +1.94% good to see.
  • SXY -4.35% monthly drill report.
  • NWL +4.94% AFR rich list
  • KDR +2.10% finding friends.
  • STO -8.39% courageous board rejects Harbour.
  • FSF -7.24% higher farmgate prices.
  • UPD -2.52% AGM update.
  • BWX -2.18% doubts on bid from management.
  • LYC -3.48% sell off continues.
  • SRX -2.78% rejects another bid.
  • WHA -10.33% ex entitlement.
  • PDN +12.50% uranium starting to attract interest.
  • Speculative stock of the day: Blast from the past with Highlands Gold (HIG) +29.03% refinancing its Ramu project and doing a placement. HIG is now a cobalt explorer. A look at this one tomorrow.
  • Biggest risers – NWL, ECX, ELD, VCX, MGR and WGN.
  • Biggest fallers – STO, FSF, A2M, SXY, BAL and SGF.

TODAY

  • RIO+0.19% Has confirmed it is in discussions with Inalum & Freeport, regarding the potential sale of its interest in Grasberg mine in Indonesia for $3.5bn. No deal has been signed and an agreement may still not be reached. Shares in Freeport jumped on the news, while Rio pared a loss in New York.
  • Sirtex Medical(SRX) -2.78%  CDH Gentech has beaten Varian’s offer for the company by 20% at 3360c per share. SRX added that Varian would not be submitting a counterproposal to the offer made by CDH Genetech.
  • Australian Agricultural Company(AAC) -2.21% Full-year results for 2018, operating EBITDA down 230% to $13.6m and a statutory EBITDA loss of $35.3m. Held back by increased competition, reduced volumes & increased input costs. AAC said the results are broadly in line with the preliminary result ranges outlined in April.

ECONOMIC NEWS

  • March quarter Construction Work Done data came in weaker than expected at +0.2% vs consensus +1.3%.

BOND MARKETS

 bond prices 23.5..png

ASIAN MARKETS NEWS

  • The flash Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 52.5 in May.

jaoan pmi.png

  • The flash index for new orders fell to 52.3 in May from a final 53.8 in the previous month in a sign that domestic consumption in the world’s third-biggest economy weakened slightly.
  • SoftBank has confirmed it will sell its almost 20% stake in Indian online retailer Flipkart to Walmart.
  • SK Hynix shares surged to their highest in 17 years on Wednesday with reports saying the company had started a major new supply deal.
  • Commonwealth Bank of Australia will sell its 37.5% stake in a Chinese life insurer to Japan’s Mitsui Sumitomo Insurance for Rmb3.2bn (US$502.3m)

EUROPE AND US MORNING HEADLINES

  • Big news in Banking land as rumours surface that Barclays are exploring a merger with Standard Chartered.
  • That is the number of days til Brexit. Bank of England Governor Carney said that every UK household is GBP900 worse off because of it.
  • Tesco throws in the towel admitting defeat against Amazon in the UK with the closure of Tesco Direct. Marks and Sparks closes 14 more shops taking the total to 100.

And finally………………

One afternoon a banker was riding in his limo when he saw two men along the roadside eating grass.

Disturbed, he ordered his driver to stop and he got out to investigate.

He asked one man, “Why are you eating grass ?”

“We don’t have any money for food,” the poor man replied. “We have to eat grass.”

“Well then, you can come with me to my house and I’ll feed you,” the banker said.

“But sir, I have a wife and two children with me. They are over there eating grass under that tree.”

“Bring them along,” the banker replied.

Turning to the second poor man he stated, “You may come with us, also.”

The other man, in a pitiful voice, then said, “But sir, I also have a wife and six children with me!”

“Bring them all as well,” the banker answered.

They all entered the car, which was no easy task, even for a car as large as the limousine.

Once under way, one of the poor fellows turned to the banker and said, “Sir, you are  too kind. Thank you for taking all of us with you.”

The banker replied, “Glad to do it. You’ll really love my place. The grass is almost a foot high.”

Clarence

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