ASX 200 closes modestly lower at 5434 down1.5 points in very quiet trade. Resources subdued as industrials and telcos eke out small gains. Banks becalmed before late sell down. Asian markets mildly mixed with Japan up 0.25% and China down 0.46%. AUD higher at 75.84 and US Futures up 2 points.

A tepid finish to a quiet week with a loss since last Friday of around 30 points or 0.54%.BHP has been the big casualty this week falling from 2330c to 2254c. or around 3%.

STOCKS AND SECTORS

  • Resources slid slightly again but managed to find some support after the rout yesterday. BHP -0.92%, RIO -1.01% and Fortescue Metals (FMG) -0.41% although South32 (S32) +2.48% managed to put in a solid day. Gold stocks tried to rally before falling over late in the day. Newcrest (NCM) -1.96% slid as did others, St Barbara (SBM) -4.1%. In base metals Independence Group (IGO) -4.00% slipped on a mineral resource and ore reserve update.
  • In energy coal, coal was once again the black gold as Whitehaven (WHC) +3.99%, New Hope (NHC) +4.15% and Stanmore (SMR) +13.19% all putting in good gains as the December quarterly price of soft coking coal to US$130 up 56% Hard coking coal was rumoured to have been fixed at US$200 a tonne. Malabar (MBC) +15.00%, which has been linked with a purchase in the Hunter Valley. Yancoal (YAL) +41.67% soared on the pricing news.
  • Banks and financials slightly higher with the big four finishing at $160.11 having finished last week at $161.15. Some buyers reappearing in the wealth managers led by Equity HL (EQT) +2.04%, Magellan Financial (MFG) +3.13% and Macquarie Group (MQG) +0.01%
  • In industrials we saw some gains in the defensive utility sectors as the Emperor stocks like Sydney Airport (SYD) 0.0% and Transurban (TCL) +1.03% now starting to look more attractive. Gaming and tourism stocks also mixed with Ardent Leisure (AAD) -0.74%, Aristocrat Leisure (ALL) +1.77% and the Star Group (SGR) -1.38% after getting approval for the Queen Street Brisbane Casino.
  • Healthcare stocks led higher by CSL +0.65% and Telcos also put in a day in the green though Vocus Comms (VOC) -1.55% on a late sell off. Telstra (TLS) +0.40%.
  • In IPO news today Broo (BEE) +40.00% kicked off life as a listed brewer having raised $10.5m and now trading at a significant premium to the 20c issue price.
  • Speculative stock of the day: Once again, and we have mentioned this one three times this week, LBT Innovations (LBT) +14.47% continues to be rerated after its success with its APAS breakthrough. The market cap is now over $100m and the stock is up from 19c to 100c in a week.

CORPORATE NEWS

  • Fantastic Holdings (FAN) +40.00% following a agreed scheme of arrangement that will see Steinhoff buy the company for 350c in cash with a valuation of$361.4m. Steinhoff Asia Pacific already owns furniture and homeware brands Freedom, Snooze, POCO and Bay Leather Republic in Australia, as well as mattress manufacturing business, Selectopedic.
  • Iluka Resources (ILU) -5.96% took on water following its announcement yesterday on an expected 10% drop in mineral sand output. Deutsche Bank sealed the deal this morning with a research note cutting its price target to 500c.

ECONOMIC NEWS

  • The RBA in its semi-annual health check of the financial system, says the financial system is in good shape overall, particularly with home price growth slower than a year ago, tighter lending standards and slower credit growth to households.
  • However, the central bank says the risks from apartment oversupply in some markets are now starting to show.

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Signs of life?

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ASIAN NEWS

  • In China consumer prices rose 1.9%in September from a year earlier, stronger than the 1.6%rise economists were expecting.
  • Producer prices edged up 0.1% from a year earlier compared with the previous month’s fall 0.8%. It marked the first growth in PPI since January 2012.
  • Food prices climbed 0.3% and clothing increased 0.7%.

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  • SinoChem, the state-run chemicals group, have leapt by the daily trading limit of nearly 10% in China amid reports the company will be merged with its peer ChemChina,

Meanwhile in Singapore

  • Manufacturing plunges 17.4%, services industry declines 1.9%
  • Gross domestic product shrank an annualized 4.1% in the third quarter.
  • Monetary Authority of Singapore (MAS) said inflation has “troughed” and expected to come in at 0.5% to 1.5% in 2017.

EUROPE AND THE US

  • Softbank and the Saudis are planning a $100bn tech fund.
  • ‘Marmitegate’ news as the UK version of Vegemite has gone back on sale in Tesco, following a dispute regarding price rises on the falling pound. Given that Marmite is made in eth UK with UK inputs it is hard to see how they had a Marmite soldier to stand on. Unilever had wanted to raise its prices by about 10% to compensate for the steep drop in the value of the pound. Is Marmitegate the canary in the coalmine?
  • Standard & Poor’s has warned the UK that its reserve currency status may be affected by Brexit.
  • This is one of the major issues the UK faces as it prepares to divorce Europe.

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  • The UK does not really export that much. All those Euro car manufacturers though need a market place. It will get messy.

Here is the latest poll tracker from the FT on the US Presidential election- Amazingly Trump still has support.

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And finally…………

 

Pregnancy, Oestrogen, and Women 

PREGNANCY Q & A & more! 

Q: Should I have a baby after 35? 
A: No, 35 children is enough. 

Q : I’m two months pregnant now. When will my baby move? 
A: With any luck, right after he finishes university. 

Q : What is the most reliable method to determine a baby’s sex? 
A: Childbirth.
 

Q: My wife is five months pregnant and so moody that sometimes she’s borderline irrational. 
A: So what’s your question?
 

Q : My childbirth instructor says it’s not pain I’ll feel during labour, but pressure. Is she right? 
A: Yes, in the same way that a cyclone might be called an air current.
 

Q: When is the best time to get an epidural?   
A: Right after you find out you’re pregnant.   
   

Q : Is there any reason I have to be in the delivery room while my wife is in labour? 
A: Not unless the word ‘child support payment’ means anything to you. 

Q: Is there anything I should avoid while recovering from childbirth? 
A: Yes, pregnancy.
 

Q : Do I have to have a baby shower? 
A: Not if you change the baby’s nappy very quickly
 

Q : Our baby was born last week. When will my wife begin to feel and act normal again? 
A: When the kids are in university.

Any jokes always gratefully received no matter how rude or un PC. Very 1980s here at Beeks..

 

Have a great weekend

Clarence

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