End of Day
ASX 200 drops another 45 points to shatter 5400 in across the board selling as banks try to hold things together. Once again low volumes though. Asian markets positive to unchanged with Japan up 0.30% and China up 0.01%. AUD 76 cents again with US futures down 50.
STOCKS AND SECTORS
- Gaming stocks were hit hard today after the news from Crown (CWN) -13.90% on a Chinese casino crackdown closing non its lows for the day. Star Group (SGR) -3.66% and Sky City Entertainment (SKC) -3.91%. Other gaming stocks also took a hit with Vietnamese casino operator Donaco International (DNA) -4.65% together with Tatts Group (TTS) -1.37% and Tabcorp (TAH) -1.41%
- REITs again in the cross hairs of the sellers, as rising rates and profit taking take their toll Scentre Group (SCG) -3.12%, Westfield Corp (WFD) -2.12% and GPT Group (GPT) -2.88% and Dexus Property Group (DXS) -2.69%.
- Telecom stocks also failed to kick today Telstra (TLS) -0.98%, TPG Telecom (TPM) -3.86% and Vocus Comm (VOC) -2.46%. IT stocks also continued to sell off with Wisetech (WTC) -2.00%, iSentia Group (ISD) -1.84% Nextdc (NXT) -3.58% and Hansen Technologies (HSN) -3.15%. Significant damage being done in the sector as Codan International (CDA) -8.49% and Aconex (ACX) -3.93%. Seems the PE expansion we have seen was unsustainable.
- Healthcare stocks sold off as defensives came under pressure. CSL -1.32%, Sonic Healthcare (SHL) -1.15% and Sigma Pharma (SIP) -4.30%
- Resource stocks tried to buck the sell off with BHP +0.67%, RIO -0.84% and Fortescue Metals (FMG) +2.66%.
- Energy stocks fell again with crude prices as Santos (STO) -2.43%, and Woodside Petroleum (WPL) -% Coal stocks though continue to do well New Hope Corp (NHC) +1.49% and Yancoal (YAL) +16.18%
- Gold stocks continue to fall as the rate increase keeps pressure on the bullion price. Saracen Minerals (SAR) -4.58%, Resolute Mining (RSG) -4.48% and Northern Star (NST) -2.81%.
- Banks tried valiantly to hold the line today with the big four basket around $159.77 virtually unchanged from Friday. Wealth managers Challenger Limited (CGF) -1.38%, Clearview Wealth (CVW) -0.44%, Perpetual Limited (PPT) -1.71% and BT Investment Management (BTT) -2.45%.
- Speculative stock of the day: Admedeus (AHZ) +60.00% following news that the FDA had approved the launch in November for VascuCel a next generation collagen scaffold for restorative vascular repair. There are an estimated 250,000 vascular repair operations a year in the US.
- Crown Resorts (CWN) -13.90% following news that up to 18 Crown employees had been detained in China on gambling issues. The fall in Crown also spilled over into the other casino players in the sector. The Star Group (SGR) -% and Sky City Entertainment (SKC) -%.
- Evolution Mining (EVN) -2.30% has entered into a binding agreement with Newcrest (NCM) -1.09% to acquire the Marsden copper-gold project near the Cowal Gold project in NSW or an upfront payment of $3m and a further $7m on the decision to mine.
- Talking gold mines Kingsgate (KCN) -31.71% returned from a trading halt imposed since May after the Chatree mine was closed by the Thai government from December and a proposed takeover from a Singaporean Group Norther Gulf Petroleum Holdings for 4.2c. The company has a independents expert’s valuation of between 27.9c to 42c.
- Whitehaven Coal (WHC) +3.48% said it expects the coal price to remain strong through the December quarter. In the September quarter, Whitehaven received $US70 a tonne for sales of semi-soft coking coal and $US67 a tonne for sales of steaming coal. Quarterly coal was up 20% on the year from its Maules Creek coal project.
- The latest Reuters poll found analysts expect the $1.6 trillion economy to expand by 2.9% this year, unchanged from the July poll. Growth was seen at 8% next year and 2.9% in 2018.
- Worth another look at the latest RBA economic snapshot.
- Banks are cutting investor property loan rates again as competition intensifies for business.
- Sands China fell as much as 5.4%, while Galaxy Entertainment lost as much as 4.7%. The Bloomberg Intelligence index of Asia Pacific casinos stocks lost 2.5%.
EUROPE AND THE US
- Not that anyone is watching in the US but the US economy but US spending exceeded revenue by $587.4bn in the 12 months to Sept. 30, compared with a $439.1bn deficit in fiscal 2015. This marks the first time in seven years as the aging population boosted government spending and debt.
- Deficit as a share of GDP near 40-year average.
- In the UK a report from EY suggests Britain’s economy faces a “prolonged period” of weaker growth as consumer spending slows and business curbs investment, according to a report. Further EY predicts that the impact of weaker consumer spending and falling investment will cause UK GDP growth to drop sharply to 0.8% next year, before expanding to 1.4% in 2018.
- The European Central Bank is becoming dangerously over-extended and the whole euro project is unworkable in its current form, the founding architect of the monetary union has warned.
- Deutsche Bank, is considering options such as scaling back U.S. operations as part of a wider overhaul to lower costs, according to several media reports. CEO John Cryan is under pressure to lower costs further as mounting legal expenses threaten to undermine profitability.
And finally…please feel free to send any un-PC and PC jokes to me here at Beeksdownunder…henry @marcustoday.com.au
A guy goes into the confessional box after years being away from the Church.
He pulls aside the curtain, enters and sits himself down.
There’s a fully equipped bar with crystal glasses, the best vestry wine, Guinness on tap,
cigars and liqueur chocolates nearby, and on the wall a fine photographic display of buxom ladies who appear to have mislaid their garments.
He hears a priest come in:
“Father, forgive me for it’s been a very long time since I’ve been to confession and I must admit that the confessional box is much more inviting than it used to be”.
The priest replies,
“Get out, you idiot.
You’re on my side”.
A young ventriloquist is touring the clubs and one night he’s doing a show in a small club in a small town in Queensland With his dummy on his knee, he’s going through his usual dumb blonde jokes when a blonde woman in the fourth row stands on her chair and starts shouting: “I’ve heard enough of your stupid blonde jokes. What makes you think you can stereotype women that way? What does the color of a person’s hair have to do with her worth as a human being? It’s guys like you who keep women like me from being respected at work and in the community and from reaching our full potential as a person, because you and your kind continue to perpetuate discrimination against, not only blondes, but women in general…and all in the name of humor!” The ventriloquist is embarrassed and begins to apologize, when the blonde yells, “You stay out of this, mister! I’m talking to that little idiot on your knee!”
Have a lovely day
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