ASX 200 rally fizzles as market retreats from a high of 5392 to close at 5371 up a meagre 10 points. Energy and big miners lead the way as banks and industrials mixed. Consumer stocks ease. RBA keep rates on hold as forecast AUD leaps to 74.30 cents and Asian markets mixed Japan up 0.5% and China down 0.02%. US Futures markets up 16.
Stocks and Sector Highlights:
- Gold stocks took a breather today but other miners back in the spotlight Western Areas (WSA)+6.86%, Sandfire Resources (SFR)+3.01% and Independence Group (IGO) +2.65%.
- Banks tried hard but insurers continued to struggle as the big NSW clean up continues.
- Consumer stocks suffered as rate cuts appear off the agenda. Woolworths (WOW)-0.87% and Wesfarmers (WES)-0.97%.
- Speculative stock of the Day: Another Lithium hopeful today. PepinNini Minerals (PNN)+83.33% after an update on their Argentinian lithium project.
- Surfstitch (SRF) is in a trading halt ahead of an update. Probably will not be a positive.
- Greencross (GXL)-7.77% following a sell down from private equity of around 12m shares through Credit Suisse at 730 cents.
- Orocobre (ORE)+6.44% after a FNN interview with the CEO Richard Seville.
- Pilbara Minerals (PLS)+10.85% after the appointment of a new CFO Brian Lynn.
- Estia Healthcare (EHE)-% got walloped early as media reports suggested that EHE were being singled out for a special audit which the company has denied this afternoon ensuring a huge rally off its low of 461 cents.
- Mayne Pharma (MYX)+2.24% has hit a record high after receiving FDA approval for a generic version of Tikosyn.
- LNG +13.1% after the company responded to an ASX speeding ticket. The recovery continues.
- McAleese (MCS) will undertake a $26 million capital raising, delist and sell its Cootes business after striking a restructuring deal with Hong Kong’s SC Lowy that will dilute existing shareholders.
- Is it one and done from the RBA as they kept rates on hold today? For the MT take on
- Most analysts were forecasting no change and Glenn did not disappoint. AUD back above 74 cents on the news. No cut here no rise there.
- Consumer confidence has jumped to its highest levels in two-and-a-half years, delivering some good news for the Coalition government ahead of the federal election.
- Sentiment rose 3.2 per cent last week to 116.8, the highest since January 2014 and more than offsetting the 2.2 per cent decline of the previous week, according to the ANZ-Roy Morgan weekly indicator.
- Building activity has fallen, led by a steep contraction in apartment construction, with more pain on the way. The Performance of Construction Index dropped 4.1 points to 46.7 in May, slipping back below the 50-point level separating expansion from contraction.
- India’s central bank Governor Raghuram Rajan left interest rates unchanged while investors await clarity on whether he’ll get an extension when his term ends in September.
- RBI to stay accommodative as inflation uncertainties abound. Indian April inflation projections are retained with upside bias
Posco, South Korea’s largest steelmaker, jumped more than 6% in Seoul although the Bloomberg commodity index eased as oil retreated slightly.
Europe and the US
Knife edge for Brexit? The eyes may not have it.
A Technical Analyst and a Fundamental Analyst are chatting about the markets in the kitchen.
Accidentally one of them knocks a kitchen knife off the table landing right in the fundamental analyst’s foot!
The fundamental analyst yells at the technician, asking him why he didn’t catch the knife?
“You know Technicians don’t catch falling knives!” , the technician responded.
He in turn asks the fundamental analyst why he didn’t move his foot out of the way?
The Fundamental analyst responds, “ I didn’t think it could go that low”.