ASX 200 falls away from days’ high of 5549 to close up 40 at 5538 Banks and iron ore stocks rally hard. Gold stocks hit on bullion falls. Asian markets better with Japan up 2.44% and China up 0.73%. AUD 76.13c and US futures up 18.
STOCKS AND SECTORS
- Banks back in demand today with a rise in the big four basket back to $159.75 with a rise on average of 1.5%. The Bendigo and Adelaide Bank (BEN) +4.32% result cheered the sector and insurers too also improved Suncorp (SUN) +1.70%, QBE Holdings (QBE) +2.62% and Insurance Australia (IAG) +0.84%.
- Golds inevitably suffered today following the fall in the bullion price to AUD$1757. Newcrest (NCM) -4.20%, Northern Star (NST) -5.90%, Evolution Mining (EVN) -5.70% and Perseus Mining (PRU) -8.13%.
- Materials better with BHP +2.25% and RIO +1.21% along with South32 (S32) +2.62%. Bluescope Steel (BSL) +4.71% a stunner as Dalian iron ore prices rose to a two year high in China.
- Energy stocks in demand with Whitehaven Coal (WHC) +4.31% as coking coal futures firmed in Asia, Senex (SXY) +3.77% and Beach Energy (BPT) +2.75%.
- Mining services another sector in demand as the sector follows Downer EDI (DOW) +5.26%, Bradken (BKN) +3.24% and ALS Ltd (ALQ) +4.85%. Decmil (DCG) +2.97% a standout.
- Industrials led higher by Ansell (ANN) +3.87%, consumer stocks like Harvey Norman (HVN) +2.34%, JB Hi Fi (JBH) +3.18% and Kathmandu (KMD) +4.90%. Audio Pixels (AKP) -4.22% continues to unravel on low volume.
- Speculative stock of the day: Gulf Manganese Corp (GMC) +20.00% following last week’s announcement of a $10m cornerstone investor the company has now announced a purchase of two Ferromanganese smelting furnaces.
- Bendigo and Adelaide Bank (BEN) +4.32% reported underlying cash earnings of $439.3 million up 1.6 % on the previous year. Small increase in the net interest margin rising 1bps point to 2.17%. Bendigo will pay a fully franked dividend of 34c per share; the full-year dividend of 68c is 2c higher.
- Dexus (DXS) +% after it announced a sale of two investment properties in Adelaide and Melbourne with the Southgate Complex sold for $578m a 12% premium to book value.
- Speedcast (SDA) in a trading halt after a European acquisition and a $62m capital raising. WINS is a leading European provider of broadband and satellite communications.
- Flight Centre (FLT) +5.46% and Flexigroup (FXL) +4.31% have announced a JV to offer interest free loans on travel products offered through Flight Centre.
- iCar Asia (ICQ) -16.92% down after a profit downgrade of revenue of $6.5m-7.5m and an EBITDA loss of around $15m after the company has decided to invest aggressively to consolidate its leadership in its key markets.
- Job ads slipped in July to end two months of gains, pointing to more moderate growth in employment ahead. A monthly survey by ANZ showed total job ads fell 0.8% in July, from last month when they rose 0.4%. That left the annual pace of job ads growth at 6.9%. The number of internet job ads fell 0.7%, while the more volatile newspaper component fell 12.6%.
In China: Exports fell 4.4% from a year earlier. Imports fell 12.5% from a year earlier, the biggest decline since February. That resulted in a trade surplus of $US52.31bn in July, versus a $US47.6 bn forecast and June’s $US48.11bn.
- Exports to U.S. slipped 2%, fell 3.2% to the European Union
- Imports from Australia slumped 22%, dropped 12% from South Korea.
Data today showed steel exports held above 10m tons in July. Exports in the first seven months expanded 8.5% to 67.4m tons. Seems the calls to end steel dumping has fallen on deaf ears in Beijing.
- Crude imports slow third month to 7.35m b/d in July. China imported 31.07m metric tons of crude in July
- Net oil-product exports jump to record 2.49m tons
In Japan: Japan’s Emperor Akihito has addressed the nation for only the second time ever and has announced he will abdicate as his health fails. He will be succeeded by his eldest son, Crown Prince Naruhito.
EUROPE AND THE US
Slight gains seen from Europe on the opening.
- Fed board member Jerome Powell has said there is an increasing risk the US economy has become trapped in a prolonged period of subdued growth.
- That would need lower official rates than was previously expected. No hurry to lift rates.
- The UK Serious Fraud Office (SFO) Has launched an investigation into Airbus.
- A Chinese consortium has agreed to buy UK football club West Bromwich Albion.
And finally……………thanks Hans!
My wife and I went to a hotel where we got a waterbed . My wife calls it the Dead Sea.
We always hold hands. If I let go, she shops.
A man got this text from a neighbour…
I am so sorry mate. I’ve been riddled with guilt and I have to confess.
I have been helping myself to your wife, day and night when you’re not
around, in fact more than you. I do not get it at home, but that’s no
excuse. I can no longer live with the guilt and I hope you will accept
my sincerest apology with my promise that it won’t ever happen again.
The man, anguished and betrayed, went into his bedroom, grabbed his gun,
and without a word, shot his wife and killed her.
A few moments later, a second text came in:
Damn this auto-correct! I meant “wifi”