ASX 200 up 29 to 5458 for an eighth day of gains. Banks, energy and industrials posted modest across the board gains. Asian markets muted with Japan closed today whilst China was unchanged. AUD little changed at 75.98c and US futures up 38.
A new high for the market in thin back-to-school trading.
STOCKS AND SECTORS
- Gold stocks continued to bubble away with Evolution Mining (EVN) +0.7% and Ramelius Resources (RMS) +5.04% although OceanaGold Corp (OGC) -1.80% and Alacer Gold (AQG) 3.44-%.
- Miners slid a little with profit taking in base metal stocks and iron ore miners. Fortescue Metals (FMG) -2.60%, Oz Minerals (OZL) -1.86% and Sandfire Resources (SFR) -5.11%. Whitehaven Coal (WHC) +1.81% continued higher although we saw profit taking in New Hope (NHC) -1.45%.
- Consumer stocks were back in focus with good gains in Aristocrat Leisure (ALL) +3.13%, Woolworths (WOW) +1.95% and Domino’s Pizza (DMP) +2.37%. Other retail stocks also enjoyed good gains led by JB Hi Fi (JBH) +2.67%, Lovisa Holdings (LOV) +4.17%, and Vita Group (VTG) +2.31%.
- Tech stocks also better Nearmap (NEA) +4.90%, Audio Pixels (AKP) +4.27% and Touchcorp (TCH) +11.14%
- Banks were modestly higher by around 0.2% to 0.5% with Insurers up around 1%, Clearview (CVW) +% a standout. REITS firmed 1% -1.5% with Hotel Property (HPI) +4.09%
- Speculative stock of the day: Magnetite Mines (MGT) +44.23% following a signing of a letter intent with Shandong Steel International to develop a magnetite resource in South Australia in the Mawson Iron Province.
- Oil Search (OSH) +87% after ExxonMobil bid $45 a share for InterOil giving Oil Search three days to respond with a higher offer or collect a $60m break fee.
- Lynas Corp (LYC) +10.53% released its quarterly production report showing record production of NdPr up 30% with sales volumes up 30% and invoiced sales up 27% to $55.9m. The record sales reflected increased production volumes and strong relationships with strategic customers. Prices though have remained low and a small rally in the quarter was not sustained.
- Palladin (PDN) +10.26% with a quarterly report hitting after hours. Sales of 1.895m lb of uranium oxide at a selling price of around US$34.91lb. Cash and cash equivalents of around US$59.2m with FY17 guidance being reviewed due to changes to the Langer Heinrich mine plan to reduce cost levels below prior guidance.
Nothing domestic today
- NZ CPI was released today with a less than expected 0.4% to June 30th. Economists now see it as inevitable than the RBNZ will cut rates further to 2% on August 11th.
- Consumers price index rose 0.4% from year earlier less than 0.5% median forecast.
- Petrol prices rose 5.3% in the quarter. Excluding fuel, the CPI rose 0.2%
- Non-tradable inflation rose 0.3% from the first quarter led by construction, electricity and rents, while domestic airfares and rental car charges declined
- New home prices rose in fewer cities in June compared with a month earlier, official data showed Monday.
- New-home prices climbed in 55 cities in June, down from 60 in May, among the 70 tracked.
- Economic output by real-estate brokers surged 8.8% from a year earlier in the April-to-June period, while construction activities jumped 7.3% data showed Saturday.
- Iron ore stock piles in China have risen suggesting the current run in the price is unsustainable.
- Chinese Rebar prices down 4.6% in Asian trade.
EUROPE AND THE US
- European markets look set to open slightly higher.
- More trouble from the Brexit fallout as new Chancellor Philip Hammond has called a $1 trillion poaching attempt from the City as ‘disgraceful’. The EU is trying to prise euro-based transactions out of London and into the Eurozone.
- Softbank has reached a deal to buy UK chip designer ARM Holdings in a deal worth US32bn in an all cash deal taking advantage of the recent fall in the pound. SoftBank, an internet and telecommunications conglomerate that invests in online startups from India to China and owns mobile carriers in Japan and the US.
A businessman was confused about a bill he had received, so he asked his secretary for some mathematical help. “If I were to give you $20,000, minus 14%, how much would you take off?” he asked her. The secretary replied, “Everything but my earrings.”
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