opera house

Thoughts and prayers are with the people of Nice and France

ASX 200 up 18 points to 5430 as it builds on six previous days of gains. Banks and industrials the performers today. Base metal stocks outpace golds and big miners. Asian markets higher in Japan +1.09% as China misses out after data dump, down 0.09%. AUD slightly firmer at 73.34c and US Futures down 17.

A muted start to the day on stronger overseas leads but we wanted to see the China numbers before we abandoned all caution. Post, the better than expected numbers, we pushed higher to 5452 before some profit taking, apathy and school holiday caution crept back in and at one stage we looked as if we would slide into the close. Residual buying though kept things relatively buoyant and we head into next week having finally broken through the 2016 high and resistance level.

Seven days straight for a near 4% gain in the last week driven by resources and gold stocks.

STOCKS AND SECTORS

  • Base metals stocks roaring again led by the Bluescope Steel (BSL) +5.1% following an upgrade. South32 (S32) +3.49%, Oz Minerals (OZL) +2.64% and Sandfire Resources (SFR) +3.58%. Incitec Pivot (IPL) +1.75% after the drubbing yesterday on broker downgrades.
  • Golds sold off, Newcrest (NCM) -3.28%, Evolution Mining (EVN) -2.05%, Regis Resources (RRL) -3.37% and Dacian Gold (DCN) -3.92%
  • Banks and financials rose between 0.4%-1% with wealth managers enjoying bigger gains on the rallying effects of financial markets. Platinum Asset (PTM) +1.77%, Macquarie Group (MQG) +1.04% and BT Investment (BTT) +2.40%. REITS slipped led by Stockland (SGP) -2.44% and Vicinity Centres (VCX) -1.72%.
  • Consumer stocks rose again with Blackmores (BKL) +4.24%, Metcash (MTS) +2.11%, Myer (MYR) +5.22%, Billabong (BBG) +8.22% and AMA Group (AMA) +2.7%.
  • Speculative stock of the day: Kidman Resources (KDR) +74.19% after announcing that their Mt Holland discovery will be a significant lithium deposit. Exceptional grades have been returned from RC drill holes with 52m@1.53% Lithium Oxide from 206m end of hole and a broad zone of 50m true width.

CORPORATE NEWS

  • Whitehaven Coal (WHC) +12.54% production numbers today. They delivered on their bullish guidance. Record ROM coal production of 20.5Mt up 30% on pcp. Whitehaven received an average of $US51.94 a tonne for its thermal coal in the June quarter, which was less than 0.7% better than the average benchmark price of $US51.61 a tonne.
  • Surfstitch (SRF) +2.7% chairman Howard McDonald will retire on August 1, he will be replaced by fashion industry veteran Sam Weiss.
  • Myer (MYR) +5.22% will team with John Lewis, a homewares specialist from the UK, for a “department store within a department store”. Myer introduced the successful international apparel retailer Topshop in its stores last year.
  • Catapult Group (CAT) +22.61% returned to trading today having raised $100m to buy two US sports analytics businesses.

ECONOMIC NEWS

  • National Bank has raised its forecasts for Sydney and Melbourne house prices in 2016 after a surprisingly strong first half, but it believes the market will slow to a near standstill next year.
  • The bank’s economists published forecasts for an 8.6% gain in Sydney house prices over this calendar year, and a 6.1% lift in Melbourne.

ASIAN NEWS

In China

  • Annual GDP expanded by 6.7%, in line with the previous month’s figure and ahead of consensus forecasts of 6.6%.
  • Annual growth in retail sales accelerated to 10.6% in June from 10% the month before.
  • Industrial production growth came in at 6.2% from 6%.
  • Government spending in China jumped 19.9% in June from a year earlier, while revenue rose 1.7%, the Ministry of Finance announced.
  • Chinese investors will invest more than 40bn rand (US$2.8bn) in an energy and metals-related industrial park in South Africa. The money will go into projects to process chrome, manganese, coking coal and lime and is expected to create almost 21,000 jobs.

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In Japan

  • Line Corp. surged more than 48% in its Japanese trading debut after the messaging company raised more than $1 billion in the biggest technology IPO of the year. Line, owned by South Korea’s Naver Corp., raised $1.3bn after pricing its offering at the high end of an increased range.

EUROPE AND THE US

  • Bayer lifts bid for Monsanto to US$64bn.
  • US trade officials have stared early talks on a UK trade deal.
  • BP said the final bill for the 2010 Gulf of Mexico oil spill will be US$61.6bn.
  • Early European indications are for some weakness today.

And finally it has been a big week for Japanese stocks, the yen and the Pound. The yen is down 5.3%, the Nikkei up 9.1% and the pound up 3.5%.

 

And finally…………….

A lady went into a bar in Waco and saw a cowboy with his feet propped up on a table. He had the biggest boots she’d ever seen.
The woman asked the cowboy if it’s true what they say about men with big feet are well endowed.
The cowboy grinned and said, “Shore is, little lady. Why don’t you come on out to the bunkhouse and let me prove it to you?”
The woman wanted to find out for herself, so she spent the night with him.
The next morning she handed him a $100 bill.
Blushing, he said, “Well, thankee, ma’am. Ah’m real flattered. Ain’t nobody ever paid me fer mah services before.”
“Don’t be flattered. Take the money and buy yourself some boots that fit.”

Clarence

XXXX

 

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NT Markets

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