End of Day
ASX 200 rises 70 points to 5251 on best day in four months as Clinton victory edges closer. FBI report drives buying across the board. Westpac results soothe and big miners do well. Asian markets positive with Japan up 1.48%, China up 0.13% and Hong Kong up 0.46%. AUD 76.78c and US Futures up 218.
STOCKS AND SECTORS
- Banks took their cue from the Westpac (WBC) +2.66% result this morning. A good snap back rally after a week of losses. The big four basket rose to $156.33 with ANZ +0.33% the underachiever. More to come with Commonwealth Bank (CBA) +2.17% the last to report albeit only a quarterly update.
- Other financials also took heart from the FBI news with Macquarie Group (MQG) +2.96%, Challenger Limited (CGF) +2.77% and Perpetual (PPT) +2.46%. Insurers also did well with Suncorp (SUN) +2.60% and Insurance Australia (IAG) +2.86%.
- Big miners had a good day with BHP +1.93%, RIO +1.14% and Independence Group (IGO) +4.43%. Gold stocks were one of the few spots of weakness ahead of the US Election. Evolution Mining (EVN) -6.53%, Northern Star (NST) -4.05% and St Barbara (SBM) -5.00%. Energy stocks rose as shorts covered, Oil Search (OSH) +1.83%, Santos (STO) +3.86% and Woodside (WPL) +1.51%, although WorleyParsons (WOR) +1.50% and AWE -1.92% missed out on the exuberance.
- In the industrials, Healthcare was the standout sector led by a rebounding Mayne Pharma (MYX) +6.60%, Sonic Healthcare (SHL) +6.36%, Fisher and Paykel (FPH) +3.39% and Sirtex (SRX) +0.59%. Also on the dais were gaming stocks as Aristocrat Leisure (ALL) +3.24%, Crown Resorts (CWN) +2.09% and Tatts (TTS) +0.50%.
- IT stocks were also back in demand with Megaport (MP1) +3.11%, Aconex Limited (ACX) +3.95% and Class1 (CL1) +2.90%. Consumer stocks also squeezed higher with Lovisa Holdings (LOV) +8.52% one of the best performers but Baby Bunting Group (BBN) +4.62% also showed a clean pair of baby boots and Oroton (ORL) +5.38% in the bag though on low volume.
- IPO Watch: Domacom (DCL) -46.67% suffered a serious sell off after starting life on the ASX today. Seems the float was not well supported after all despite Lonsec giving the company a tick of approval for its fractional property owning model.
- Inghams (ING) +2.22% also started life today with a modest rise after the issue was repriced at the bottom of the range due to volatility and concerns about buying anything from private equity.
- Speculative stock of the day: 333D (T3D) +40.00% after announcing a reseller agreement with a Harvey Norman powered company MAC1. This gives the company an immediate sales channel for its 845 (school) 3d printer.
- Newcrest (NCM) -1.81% after it announced it has formed a strategic partnership with PT Antam in Indonesia to explore for gold and copper deposits in East and West Java, South Sumatra and Nusa Tengarra amongst others.
- Seven West Media (SWM) +5.15% announced that it had bought the Sunday Times and PerthNow from News Corp and the two companies will build a news sharing agreement for the West Australian. The acquisition was approved by the ACCC and is expected to complete early next week.
- Westpac (WBC) +2.66% announced a $7.82bn profit with an unchanged dividend of 94c. CEO Brian Hartzer said the bank would be walking away from its target of making return on equity of 15%, which he said was “no longer realistic.” ROE has declined to 14% with NIM falling 3bps.
- Cimic (CIM) +0.70% UGL -0.94% UGL’s board has split in its recommendations on CIMIC’s $524m takeover offer, with a majority urging investors to accept but independent director Robert Kaye recommending against the hostile bid. Independent expert Grant Samuel has valued UGL at between 311c and 394c per share, with CIMIC’s offer of 315c falling at the low end of the range.
- In seasonally adjusted terms, job advertisements increased by 1% to 161,499, leaving the number up 5.2% on the levels of a year earlier.
- The annual increase was higher than the 3.8% level seen in the 12 months to September.
- Australia could be stripped of its top credit score by S&P Global Ratings as early as next month if the government’s interim budget review shows further deterioration, according to BlackRock. This year’s rebound in coal and iron ore held out the prospect of increased government revenue but the BlackRock analyst doubted that it would be sufficient, or that it would come soon enough after years of under achieving on the budget deficit.
- The PBoC has weakened its currency fix with the onshore exchange rate declining 0.3% to 6.7748 a dollar dropping the most in a month as the authorities brace for volatility over the US election.
- The most-traded coking coal for January delivery on the Dalian Commodity Exchange soared 10 per cent to hit the exchange-set ceiling of 1516 yuan a tonne, a record high.
- Indonesia’s economy grew in line with economists’ forecasts in the third quarter. Gross domestic product increased 5.02% in the third quarter from a year earlier, compared with a revised 5.19% in the first three months of the year.
- HSBC Holdings Plc reported third-quarter profit that beat analysts’ estimates. Adjusted pretax profit, which excludes one-time items, rose 7% from a year earlier to $5.59bn.
EUROPE AND THE US
- The FBI’s decision has stuck by its finding that Hillary Clinton didn’t commit a crime in her handling of e-mails as secretary of state.
- For Buffett cash is king – Berkshire Hathaway had almost $85bn on its books as of Sept. 30, according to a regulatory filing late Friday. That’s up from the previous record of $72.7bn on June 30.
- Prof Otmar Issing, a founding father of the EU monetary union has given a damning assessment of the euro bloc, saying that not incorporating an exit strategy was a mistake. He was certain about one thing though, London’s position as Europe’s financial capital is now under threat.
- In Europe, Brussels officials seem to be re-examining existing ‘equivalence’ rules giving non -EU financial firms access to the market. This would be a blow for UK and for US institutions. They said everything was being considered in the light of the Brexit vote.
- In Germany the probe into Volkswagen’s ‘Dieselgate’ has widened and now authorities are examining the chairman Hans Dieter Poetsch.
An elderly Italian man went to his parish priest and asked if the priest would hear his confession.
“Of course, my son,” said the priest.
“Well, Father, at the beginning of World War Two, a beautiful woman knocked on my door and asked me to hide her from the Germans; I hid her in my attic, and they never found her.”
“That’s a wonderful thing, my son, and nothing that you need to confess,” said the priest.
“It’s worse, Father; I was weak, and told her that she had to pay for rent of the attic with her sexual favors,” continued the old man.
“Well, it was a very difficult time, and you took a large risk -you would have suffered terribly at their hands if the Germans had found you hiding her; I know that God, in his wisdom and mercy, will balance the good and the evil, and judge you kindly,” said the priest.
“Thanks, Father,” said the old man. “That’s a load off of my mind. Can I ask another question?”
“Of course, my son,” said the priest. The old man asked,
“Do I need to tell her that the war is over?”.