are we there yet

ASX 200 slips to 5515.5 down around 26.4 points as banks and bulk commodity stocks weigh. Quiet condition ahead of Jackson tonight. Asian stocks weaker slightly with Japan -1.18% and China down-0.05% .AUD 76.33c and US futures up 4.

For the week the index has gone absolutely nowhere with results stealing volatility. Individual stocks have displayed massive volatility but on the surface nothing. ‘Duck like’ all round.

Volume has been woeful today given that we had option expiry last night. August though not a huge expiry for stock options but none the less it’s been a long week with information overload due to result roulette.

STOCKS AND SECTORS

  • Banks weighed today after some signs of strength this week. Modest losses with Commonwealth Bank (CBA) -1.00% and the big bank basket closing out the week at $157.50
  • Energy stocks slipped back into profit taking mode with Woodside (WPL) -0.60% and Caltex (CTX) -2.23%.
  • Gold stocks surprisingly firm led by St Barbara (SBM) +5.12% and Northern Star (NST) +2.88%.
  • Industrials were mixed with building and construction slipping CSR -3.61% and Boral (BLD) -0.73% with a very positive day for Recce (REH) -10.89% a stand out on thin volume.
  • Emperor stocks waned a little with Sydney Airport (SYD) -2.12% Transurban (TCL) -0.93%, Bellamy’s (BAL) -6.31% and A2Milk (A2M) -2.71%. Retailers also weak with Vita Group (VTG) -5.38%, Apiam Animal Health (AHX) -11.85% and Cash Converters (CCV) -11.46%. Honey I shrank the price as Capilano (CZZ) -3.38% suffered following an article on Bloomberg about the current stoush with the origins and labelling of Manuka Honey, the big bet for company growth.
  • IT stocks mixed with Altium (ALU) +6.18% and Objective Corp (OCL) +16.46% though Xero (XRO) -% and Netcomm Wireless (NTC) -4.18% and Aconex (ACX) -5.92% continuing to feel the wrath of disappointed investors and broker downgrades. Couple of quiet achievers today with Mitula Group (MUA) +6.42%, Megaport (MP1) +3.86% and our fave, Speedcast (SDA) +3.26%
  • Speculative stock of the day: Compumedics (CMP) +32.18% after a business update showing NPAT up 66% to $3.3m. The company is involved in diagnostic technology for sleep, brain and ultrasonic monitoring applications.

CORPORATE NEWS

  • Decmil (DCG) +4.86% reported a net loss for the full year of $58.2 m. Fully-franked final dividend of 2c a share, down from the 8.5c it paid a year ago.
  • Regis Healthcare (RGC) +1.85% after a 20% slide in its statutory profit to $46.1m, after incurring $13.2m in acquisition expenses. t has forecast 15% growth in its 2017 pre-tax earnings, compared to its normalised 2016 earnings.
  • Coca-Cola Amatil (CCL) -4.38% is on its way to achieving mid-single profit growth targets, lifting net profit by 7.8% to $198.2m. Trading revenues rose 2.8% to $2.5bn, beating forecasts around $2.46 bn. CCL increased its interim dividend 1c to 21c a share.
  • Corporate Travel Management (CTD) +4.98% has forecast earnings growth of 23% to 30% for 2017, after delivering a 60% jump in profit to $42.1 m. CTM provided guidance for underlying EBITDA growth of 23% to 30%, which would take earnings to $85 m to $90 m.
  • Mayne Pharma (MYX) +3.39% following a profit rise to $37.4m up 379% after it bought the Teva generic drug business in the US. Underlying net profit, which removed one-off costs associated with the acquisitions, some tax effects, rose 237% to $45.2m.
  • Cabcharge (CAB) -10.66% reported net profits fell 45% to $25.62m. The company declared an unchanged, fully franked 10c final dividend.
  • APN News (APN) -4.81% announced a net loss of $256.9m in the first half of 2016, compared with a $7.5m profit in the same period last year.
  • The Star Group (SGR) unchanged, posted a near 15% rise in net profits to $194m. Normalised profit was up 23.4% to $241m. The Sydney casino earnings increased 17.4% whilst Queensland lifted 7.5% to $174m. Sydney casino now competing more effectively for both the mass market and high-roller gamblers from China.
  • Super Retail Group (SUL) +6.01% profits have fallen 22.6% to $62.8m after the restructure of Ray’s Outdoors. SRG maintained its final dividend at 21.5c.
  • Apparently Alan Joyce is not the only one capable of delivering a record airline result as Air NZ (AIZ) -0.47% has reported a 42% increase in net profits to NZ$463m. Air NZ declared a final divided of NZ10c and a special dividend of $NZ25c.
  • Vale expects Samarco, its iron ore joint venture with BHP Billiton, to restart operations in the middle of 2017.

ECONOMIC NEWS

Nothing today- all tonight

ASIAN NEWS

  • Japan’s core consumer prices fell for a fifth straight month and marked the biggest annual drop in more than three years in July, government data showed, July CPI -0.4% yoy, but key is that core inflation fell further to just 0.3% (from 0.5%).
  • China is preparing for a G20 Leaders meeting on September 4th-5th. Seems the new battleground is not currency wars but investment wars. It seems that we are not the only country knocking back Chinese investment as the reciprocation seems sadly lacking. Security and access to investment in China will be hotly debated.
  • Citic H1 profit fell 46% with their excursion into WA as an iron ore producer yet to bear any fruit at all. Testing times continue apparently.
  • Buyers are lacking as export volumes drop around Asia. Malaysian exports rose 3.4 % in June from a year earlier, while merchandise shipments from Thailand gained 1.9 %. That’s in contrast to elsewhere in the region, where exports are still posting declines of more than 10 %.

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EUROPE AND THE US

European opening seen little changed.

  • All eyes on Jackson Hole Have to be careful with that as Yellen speaks and markets are looking for any kind of clue to the pace and timing of rate rises.
  • For night owls Yellen begins talking at Enjoy.
  • The subject of her talk is “Designing Resilient Monetary Policy Frameworks for the Future.”

Here are the three questions that need answering according to Matthew Lynn from the UK Telegraph Newspaper. Good luck with these.

  1. Why isn’t QE working the way it was meant to?
  2. Are we destroying the banking system?
  3. Isn’t it time for some fresh thinking?

Implied probability in futures markets of 32% is double what it was two weeks ago, and up from ‘not a hope in hell’ after the U.K Brexit vote.

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Scary thought for the day: It is 11 weeks to go until the US chooses Trump or Clinton.

 

And finally …its Friday…a long results driven week..thanks for stocking around!

Here’s your reward!

I’ve accidentally swallowed some Scrabble tiles.
My next crap could spell disaster. 

 

“Jesus Loves You.”
Nice to hear in church but not in a Mexican prison. 

 

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Clarence

XXX

NT Markets

Get a Global take on things at http://www.ntmarkets.com

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