ASX 200 ends up 19 points at 5527 in another tight range day dominated by results. Materials, telecoms and consumer stocks lead the way. Asian markets once again mixed with Japan up 0.28% and China down 0.26%. AUD 76.43c and US futures down 4.
STOCKS AND SECTORS
- Materials continued higher led by BHP +2.06% and Fortescue Metals (FMG) +3.79% banging on the door of $5. Base metal stocks also joined the party with Western Area (WSA) +8.78%, Independence Group (IGO) +2.54% and Sandfire Resources (SFR) +1.43%. South32 (S32)-1.92% slipped a little as did Galaxy Resources (GXY) -2.47%.
- Energy put in a solid day with results in focus but recent high flying coal Whitehaven Coal (WHC) -10.38% lost their lustre on profit taking after the results and a falling coal price. Mining services stocks near 52 week highs Worley Parsons (WOR) +5.87%, Cardno (CDD) +4.32% and RCR Tomlinson (RCR) +2.70%.
- Financials continued to hold the headline back with insurers finding few friends as IAG -0.51% reported, AMP -1.45% and QBE Insurance (QBE) -0.20% after closer broker inspections. Commonwealth Bank (CBA) +0.6% the only move of note in the big four.
- Industrials generally better Telstra (TLS) +1.29% gaining a following again plus Olympic data downloads must be helping. China facing stocks took their cue from the Bellamy’s (BAL) +0,97% result although a long way off its high, and moved higher in sympathy. A2Milk (A2M) +2.76% and Select Harvest (SHV) +4.29% benefitting from US bush fires too.
- Stand out mover was Audio Pixels (AKP) +5.57% on a mighty 16,000 shares. Not sure which has the highest valuation Domino’s Pizza (DMP) -0.86% or the revolutionary loudspeaker company.
- Never work with Children and animals they say but the stocks are doing well, Greencross (GXL) +2.23%, Apiam Animal Health (APX) +1.17% and Baby Bunting (BBN) +3.68% continuing higher.
- Speculative stock of the day: Yonder and Beyond (YNB) +49.25% after announcing a 3D/2D movie platform for Lenovo. The platform will be compatible with Mobile Virtual Reality devices.
- Woodside Petroleum (WPL) +1.23% first-half profit fell 50% to $US340m. Total output this year is now expected to reach 90m-95m barrels of oil equivalent, an increase of more than 3% from an earlier estimate. The market took this positively.
- Ardent Leisure (AAD) +10.87% has sold its gym business to Quadrant Private Equity for $260m.
- Medibank Private (MPL) -4.70% reported a 46.4% rise in net profit to $417.6m, which was short of analyst forecasts of $426m. Revenue rose 2.4 % to $6.2bn and it declared a final dividend of 6c a share. The company warned that it was likely to continue to lose market share in 2017 and would be impacted by a smaller rise in insurance premiums.
- Bellamy’s Australia (BAL) +0.97% more than tripled its full year profit to $38.3m. Gross profit margins rose from 32.9% in 2015 to 45.7% after a price increase in December. No guidance given though but it did announce a investment of $15m-20m in people marketing and promotions.
- IAG -0.51% Net profit after tax was $702m, down from $830m The company also announced a $300m off-market share buy-back. Revenue from ordinary activities rose 11.8% to $16.77bn as insurance profit rose 6.8% to $1.18bn.
- Santos (STO) -2.02% announced a net loss of $US1.1bn after earlier write downs on the value of the Gladstone LNG project. No interim dividend was declared.
- Lendlease (LLC) +1.70% announced a 13% rise in net profits due to a lift in development earnings. The company settled 4790 units during the year, including 1200 apartments with a non-settlement of less than 1%. Final distribution of 30c, takes the full year payout to 60c up 11%.
- Tassal Group (TGR) +5.57% annual profit fell 3% to $48.5m, due to a smaller increase in the value of its fish stocks than in the previous year.
- Mantra Group (MTR) -3.51% delivered full-year results in line or better than its guidance with EBITDAI coming in at $89.8m, up 23% and near the top of its recent guidance range.
No local news
- Bank of East Asia Ltd., the Hong Kong lender facing pressure from a high profile US funds manager said first-half profit dropped 38% as China’s slowing economy dragged on lending and caused loan impairments to surge
- It is not just about Chinese growth. Morgan Stanley analysts have said the emerging markets are going to drive the next leg of Asian growth. Combined GDP in the ASEAN-5 nations, Indonesia, Thailand, Malaysia, the Philippines and Vietnam, will rise about a third to $3 trillion in the five years to 2020.
EUROPE AND THE US
- European markets set to open a touch weaker.
- The three way with Rank Group,888 and William Hill has been shelved after not being able to meaningfully engage with William Hill.
- Cheery soul Mr Greenspan in his old age. The ex-Fed Chairman says low rates won’t last ’very much longer’ also forecasts that euro zone ‘will break down’. He also suggested that the US was headed for ‘Stagflation’. A familiar theme for him.
And finally………….I was going to post some really sick jokes but they were just too sick..funny but sick..so here’s one that wont offend that much..hopefully!
What has four legs and one arm… A doberman in a playground!
“Cats have nine lives. Makes them ideal for experimentation.” Jimmy Carr
Sorry warned you…
Have a great weekend