End of Day
ASX 200 down 3.5 points to 5271 on low volume and a tight range. Banks the swing vote ahead of the Brexit vote. Gold stocks sold off as bullion suffers. Asian markets mixed with the Nikkei down 0.47% and China up 0.48%. AUD firmer at 74.61 and US Futures up 19.
Stocks and Sector Highlights:
- Gold stocks thumped today as bullion prices fell to $1691 on risks diminishing. Newcrest (NCM)-2.86%, Evolution Mining (EVN)-5.73% and St Barbara (SBM)-3.39%. Saracen Minerals (SAR)-11.15% the biggest loser.
- Iron ore has moved higher in Asian trad helping miners recover early losses. BHP+0.11% and RIO +0.84% followed by Fortescue Metals (FMG) unchanged.
- IPO of the Day: Droneshield (DRO) +50% a new IPO listing today that provides a n acoustic barrier to unwanted drone activity.
- Speculative stock of the Day: Rectifier Technology (RFT) +25% following a big move yesterday after an announcement on its battery charging technology for electric cars.
- RIO +0.84% incoming CEO has announced an executive shakeup and a de facto separation of good assets and bad assets or at least ones the market fells he could hive off in a similar fashion to BHP with South32. The North 32 division will consist of coal, uranium mines, salt, borates and titanium-oxide business together with their Canadian iron ore business. The assets generate around US$1.2bn in earnings and could be valued at US$9.3bn
- Wesfarmers (WES)-0.64% held a strategy day today with CEO Richard Goyder saying the company aimed to deliver long term shareholder value. He also said they were looking to invest between $1.3bn -$1.4bn in the Coles business to ramp up its attack on Woolworths (WOW)-%.
- Vita Group (VTG) +1.0% after a presentation at a Morgans conference.
- Emefcy Group (EMC) +3.25% signed its first African contract for a membrane aerated biofilm reactor. To treat waste water in Ethiopia.
- Mortgage Choice (MOC) +1.25% at 202 cent4 today after a solid run topping out at 215 cents before a speeding ticket from the ASX to explain the recent run from 170 cents.
- In news that may feed through into the CPI next month. The head of Coles John Durkan, has warned consumers that low prices may not last although he said presently there is a raft of fruit and vegetables comes onto the market at the same time.
- House prices could fall as much as 15 per cent during the four years it will take for the market to absorb the Labor Party’s planned negative gearing changes, SQM Research says.
- That figure, however, was the worst-case scenario and the average loss could be as little as 4 % over the same period.
- 14-day repurchase rate climbed 14 basis points to 2.93% the most since March 31st or last quarter end. The benchmark seven-day repo rate increased by the most in a month to 2.33%.
- Central bank injections overwhelmed by quarter-end demand.
- Online search engine Baidu is using its 600m users to create their own indicators of economic activity in China. Baidu will focus on the anonymous data of users collected from 3,000 business and shopping centres and districts as well as 2,000 industrial parks across China. The Baidu Consumer Index will track visits to everything from shops to cinemas and restaurants.
Europe and US
- Looks like it’s all over. At least according to the bookies. One gambler placed over 300,000 pounds with a bet on Brexit rejection. Ladbrokes said that the odds on a “Remain” vote had shortened to a 2/9 chance, indicating an 82% probability.
- A YouGov poll of 1,652 voters for the Times newspaper published late on Monday showed “Leave” at 44 percent and 42 percent for “Remain.”
- The key will be how quickly the protagonists of either side will be able to move on and repair fences in the aftermath.
In non-Brexit news Elon Musk has used Tesla to try to buy his SolarCity company for US$2.8bn. Tesla shares were hit hard in late US trading, down around 14% with Solarcity up 29%, where Musk is the owner of 22% and has a 21% holding in Tesla.
Spain goes to the polls on Sunday after months of no government. Only 3% believe that they need one apparently. 21% unemployment the main concern.