ASX 200 down a mere 8 points to 5532 in a quiet day dominated by results. High flyers disappointed, energy and resources show gains, others mixed. Asian markets slipped as stronger yen hurt Japan -1.62% and China – 0.38%. AUD stronger on RBA minutes to 77.063c and US Futures down 15.
STOCKS AND SECTOR
- Energy stocks were in demand as rumours of talks between Saudi and Russia helped crude. Santos (STO) +2.51%, Whitehaven Coal (WHC) +4.26% and Origin Energy (ORG) +2.50%.
- Base metals were better South32 (S32) +2.54%, Pilbara Minerals (PLS) +12.77%, CI Resources (CII) +4.64% and Syrah Resources (SYR) +3.97%. BHP +0.45% numbers after hours tonight.
- Banks slid again with the basket dropping to $159.33. Genworth Mortgage (GMA) -10.09% after going XD today.
- In the industrials Audio Pixels (AKP) +10.35% resumed their uptrend and Nick Scali (NCK) +3.45% still finding buyers after the recent good profit report.
- Some profit taking creeping into other Emperor stocks with Transurban (TCL) -1.34%, Sydney Airport (SYD) -0.54% and JB HiFi (JBH) -3.62% and Harvey Norman (HVN) -1.89%.
- In healthcare stocks recent star performer came crashing back to earth with Mesoblast (MSB) -16.16%. Other biotechs also soured with Viralytics (VLA) -5.21%
- Speculative stock of the day: Gladiator Resources (GLA) +40.00% after announcing negotiations to sell down their Zapucay project in Uruguay are nearing completion.
- IPO of the Day: Aurora Labs (A3D) +150.00% after raising $2.8m for their 3-D Metal printer business. The company is completing the beta testing of its two small-format printer models with a view to moving into production by the end of this year. The small-format printers retail for under $US50,000.
- Domino’s Pizza (DMP) -3.73% net profit surged 28.7% to $82.4m in 2016 but fell short of forecasts. Underlying earnings before interest, tax, depreciation and amortisation rose 40.9% to $180m. The group plans to open between 175 to 195 stores, compared to 484 in 2016. The company is also looking to move into other fast foods and drive thrus.
- Challenger (CGF) +1.52% full year profit jumped nearly 10% to $327.7 million, driven by a record $3.4 billion in annuity sales. A 9.6% jump in annual net profit to $327.7m. Full year revenue grew 7.4% to $1.81bn.
- ANZ -0.11% is raising around $1 billion in perpetual Tier 1 capital securities offering a margin of 470 to 490 basis points over 90-day bank bill swaps. This would be the equivalent to around 6.5 per cent on a gross basis.
- Mirvac (MGR) +3.26% full-year profit has shot above $1 billion. The real estate group reported a 42% jump in revenue to $3.05 billion for the 12 months to June 30 from a year earlier. Office and industrial assets contributed $796m to a total profit of $1.033bn, a 69% increase on earnings the year before. Final dividend of 5.2c.
- Government owned NBN Co now has over one million customers and has doubled its revenue to $421m for the past financial year. However, it also reported a $2.4bn loss with a much bigger loss expected next year with revenues expected to climb to $900m.
- Invocare (IVC) -4.25% NPAT up 51% to $27.8m for the first half. A fully-franked interim dividend of 17¢ per share on October 7, up from 15.75¢ a year earlier. A lower number of deaths due to better flu vaccines and milder autumn weather sent the outlook negative.
- AMP China Growth Fund (AGF) +3.37% has accelerated the closing of the fund with 70% of the assets returned to shareholders by the end of the year. About $40m of profits and cash currently held in Hong Kong would be released as an initial distribution of $0.08478 per unit “as soon as possible” and by September 30 at the latest.
The Reserve Bank expects inflation to remain low but says the economy could grow faster, while house-price concerns have cooled. The RBA reiterated that “an appreciating exchange rate could complicate” necessary adjustments in the economy following the mining boom.
- Once again the strength of yen was to blame for the falling Japanese market.
- Bank of Guiyang reported 32% profit increase in 2015 and surged 44% in its Shanghai debut today. The company raised US$633m in the IPO.
- China’s market for IPOs is the hottest on record, with an average return of 420% in a month for 62 stocks that listed this year.
EUROPE AND THE US
- Berkshire Hathaway sharply increased its bet on Apple during the second quarter, bringing its stake in the iPhone maker to roughly $US1.5bn. Buffet’s Hathaway added 5.42 million Apple shares to its position in the second quarter, bringing the firm’s total stake to 15.2 million shares.
- Other high profile investor George Soros has cut his stake in Barrack Gold after taking his stake to US#263.7m in the first quarter. He has sold 94% of his holding now as the godl company has slipped from its three year high.
The financial Olympic medal table
- Elderly Germans may have to keep working until the age of 69 if a Bundesbank proposal is adopted. It says Berlin should consider raising the retirement age to that level by 2060, from around 65 at the moment.
- UK inflation numbers tonight.
It all starts innocently, mixing chocolate and Rice Krispies. But before you know it, you’re adding raisins and marshmallows – it’s a rocky road.
Apparently the worst ways to propose are: in a public place, right after sex and in front of your parents. I’m assuming those are three different ones …