ASX down 25 points at 5346 with almost 22 points of bank dividends weighing. Mixed market as caution creeps in and resources fall on profit taking. Asian markets positive on Japanese GDP data. Nikkei up 1.76% and China up 0.55%. AUD at 75.45c with US futures up 106 points.
STOCKS AND SECTORS
- Resources led lower by gold of course. Miners gave in to profit taking with BHP -0.40%, RIO -0.18% and Fortescue Metals (FMG) -0.48%. Independence Group (IGO) -6.79% the worst of the base metals with Western Areas (WSA) -2.88% and South32 (S32) -1.77%
- % Some winners though Iluka Resources (ILU) +%, Orocobre (ORE) +% and Bluescope Steel (BSL) +%.
- Gold miners were big casualties as the gold sell off continues. Newcrest (NCM) -%, Evolution Mining (EVN) -%, Northern Star (NST) -% and St Barbara (SBM) -%.
- Energy Stocks weaker except for Santos (STO) +0.26%. Paladin Energy (PDN) -13.91% struggled again with coal stocks coming under some selling pressure. Whitehaven Coal (WHC) -2.53%, New Hope Corp (NHC) -0.85% and Yancoal (YAL) -10.59%.
- Industrials perked up in the bond proxy stocks as Telstra (TLS) +1.27%, Sydney Airport (SYD) +0.84% and Transurban (TCL) +2.82%. Consumer stocks though were sold off Harvey Norman (HVN) -3.40%, Bapcor (BAP) -3.13%, Coca Cola (CCL) -1.37% and Ardent Leisure (AAD) -4.29%.
- IT stocks had a shocking day in the trenches. Aconex (ACX) -7.03%, Nextdc (NXT) -7.67% and Freelancer (FLN) -6.33% along with Netcomm Wireless (NTC) -4.53%.
- In financials REITs continued to see selling. Scentre Group (SCG) -0.24%, Gateway Lifestyle (GTY) -3.43% and BWP Trust (BWP) -1.38%. In the banks, both ANZ -1.45% and Westpac (WBC) -3.17% were ex dividend but the other two were both slightly better, as were wealth managers BT Investment Management (BTT) +5.54% and Platinum Asset (PTM) +4.38%
- Speculative stock of the day: New Age Exploration (NAE) +50.00% after announcing a restart to mining activities at the Lochivar Coking Coal project in the UK given the huge rise in the coal price. The 2014 scoping study had an NPV of US$263m based on a coking coal price of US$165/t and average production of 1.4Mtpa.
- Central Petroleum (CTP) +37.04% has received a takeover offer from its main lender, Macquarie Group, that valued the company at $76 million. Macquarie has offered 17.5 cents and already owns 2.3% and the market is pricing in a higher bid.
- Harvey Norman (HVN) -3.40% after chairman Gerry Harvey accused short sellers of mounting a conspiracy against the company. Talking at the AGM today Harvey said they were trying to demolish the share price. The colourful chairman was responding to media reports on its dealings with franchisees and a proxy adviser not accepting the accounts.
- SMS Management and Technology (SMX) -14.24% it expects revenue to come in between $150m and $155m, down from $168.1m posted for the same period last year.
- Scottish Pacific (SCO) -32.43% after the company upgraded guidance with lower expected levels of growth with larger clients borrowing less than expected. This has led to a decline in forecast net revenue of$8.2m or 7.5% to a NPATA of $30.8m. The company only listed in July topping out at 390c before today’s fall to 270c.
- Dexus (DXS) -0.34% has sold 39 Martin Place for a bullish $332m compared to its year end book value of $222m
- National Bank (NAB) -1.08% chief Andrew Thorburn got a 22% pay rise to $6.7m mainly due to the vesting of $2.9m worth of shares. His take home pay was $4.06m. Thorburn is the third highest paid big bank chief. Ian Narev (CBA) gets $8.8m, Brian Hartzer (WBC) $6.75m and Shayne Elliott (ANZ) $5.1m. Four men $27.35m in remuneration.
- Hills Limited (HIL) -22.03% after the proposed merger with Lincor Solutions and a capital raising though an IPO, have been deferred due to market volatility. The two groups though remain committed to the merger subject to suitable market conditions. Apparently an all-time high on the Dow is not enough.
- No local economic news
- Japan’s economic growth beat expectations in the July-September period, helped by stronger exports to expand for a third straight quarter. The economy expanded by an annualised 2.2% in the third quarter, faster than the 0.9% increase markets had expected, following a 0.7% increase in April-June.
- In China, the value of homes sold rose 38% to 941 billion yuan (US$138 billion) last month from a year earlier, according to Bloomberg calculations based on data the National Bureau of Statistics released Monday. The increase compares with a 61% gain the previous month.
- China’s retail sales growth slowed to 10.0 per cent on-year in October. Total retail sales, a key measure of consumer spending, reached 3.1 trillion yuan ($US45 billion) last month.
- Iron ore futures in China have climbed to their highest in nearly three years, supported by stronger prices of steel and coking coal, which could push the spot rate well above $US80 a tonne.
- The most-traded January iron ore on the Dalian Commodity Exchange was up 6.6% at 642.50 yuan.
EUROPE AND THE US
- Trump has appointed Reince Priebus as his chief of staff. Stephen Bannon is appointed as chief strategist. And head counsellor. Not sure if it is head counsellor or Head counsellor.
- Both the UK and France have snubbed the emergency Trump meeting. CBS Sixty Minutes has the first Donald Trump interview. This phrase from the Usual Suspects springs to mind. “The finest trick of the devil is to persuade you that he does not exist”.
- The Simpsons has acknowledged their year 2000 prediction of Trump for President with Bart now writing ‘being right sucks’.
- And finally it’s Supermoon The event occurs when a full or new moon passes closer to Earth in its monthly orbit. The moon will be at its closest tonight only about 356,509 km away from the earth. Best times to view is Moonrise. Tonight in Sydney is 7:07pm AEDT, Melbourne 7:40pm AEDT, Hobart 7:38pm AEDT, Adelaide 7:32pm AEDT, Brisbane 5:51pm AEST, Perth 6:33pm AEST and Darwin 6:37pm AEST.
And finally…….thanks Hans..quality as usual and love teh others unfit to print!
My dad worked on the roadwork’s for twenty years before he got fired for stealing !
At first I didn’t believe it…. but when I got home all the signs were there.
Everyone’s a comedian nowadays.
Even the paramedic who was unable to resuscitate Whitney couldn’t avoid a gag ! When he radioed dispatch he said “It’s Houston, we have a problem !”