ASX 200 rallies hard as commodities and energy stocks lead the charge. ASX 200 burst through 5400 up 62 points at 5413. Volumes low though. Asian markets firmer with Japan up 0.18% and China up 0.76%. AUD 74c and US futures up 72.
STOCKS AND SECTORS
- Resources had a great day led by BHP +3.95% as iron ore jumped in China as the punters returned. Oil helped the big Australian too with RIO +2.23% and Fortescue Metals (FMG) +6.81%. Base metal stocks were also firm as Orocobre (ORE) +9.87%, Independence Group (IGO) +4.08% and Western Areas (WSA) +2.53%.
- Energy stocks in demand with Woodside Petroleum (WPL) +2.38%, Santos (STO) +3.75%, Oil Search (OSH) +2.15% and AWE +2.5%. Coal companies back in demand with Whitehaven (WHC) +5.22%, New Hope (NHC) -4.22% failed to inspire though and tiddler Stanmore (SMR) -5.34% copped a hiding.
- Gold miners better with modest gains, at least by gold mining standards, Resolute Mining (RSG) +4.78%, Evolution Mining (EVN) +1.99% and Beadell Resources (BDR) +4.17%
- Industrials winners as some of the oversold bond proxies fought back. Sydney Airport (SYD) +1.67%, Brambles (BXB) +1.95% Transurban (TCL) +0.81% and Macquarie Atlas Road (MQA) +4.98%.
- Tech shares perked up after TechOne Wisetech Global (WTC) +3.57%, Carsales.com (CAR) +2.41% and IRESS (IRE) +3.17%. Tech wannabe Telstra (TLS) +0.41% continued its glacial recovery with Macquarie Telecom (MAQ) +7.84% rallying hard on light volume. TPG (TPM) -0.97%, and Speedcast (SDA) +0.65% still struggling.
- Consumer stocks in the green, Wesfarmers (WES) +1.70%, Woolworths (WOW) +1.79%, Bellamy’s (BAL) +4.23%. Myer (MYR) +5.83% still carrying momentum after the recent numbers and upgrades.
- Banks and financials underperformed with the big bank basket trading at $164.86 despite ex dividend this month. Clydesdale Bank (CYB) -1.61% in the naughty corner with some profit taking creeping in and currency movements. Insurers moved higher IAG +1.64% and Steadfast Group (SDF) +2.43%. Fund managers not really in the mix. The switch from BT Investment (BTT) +0.55% and into Platinum (PTM) -1.62% seems to be yesterday’s news. REITS better too. Stockland (SGP) +1.21% and Westfield (WFD) +0.88% the standouts.
- Speculative stock of the day: Power Resources (PWW) +69.25% New back door listing to be renamed K2fly on Thursday. The company raised $4m and a market cap of $10m on listing. K2fly is an enterprise asset management company.
- Monadelphous (MND) +5.87% has secured two new water infrastructure contracts on the east coast worth around $200m. The AGM also today with conditions remaining challenging but solid levels of capital expenditure needed to increased production. Margins remain under pressure but the company has a strong balance sheet and is continuing to pursue opportunities in the infrastructure sector.
- Technology One (TNE) +11.13% revenue jumped 14% to $249m over the past financial year, while net profit climbed 16% to $41.3m, both of which results were way ahead of analyst expectations. TechOne touts itself as Australia’s largest enterprise software company. Incredibly, its annual revenues have climbed for an unbroken stretch of 17 years. The company sweetened the deal too with a 2c special dividend.
- A2Milk (A2M) +7.11% generated a big jump in revenue for the first four months of the current 2016/17 financial year. Revenue for the four months to October, 2016 was up 96% to $NZ155.2m, compared to a year earlier.
- Billabong (BBG) +9.22% trading conditions remain challenging in financial year 2017, flagging first-half EBITDA to be down substantially on the same period last year. FY17 EBITDA to be ahead of FY16 and in a range of $60m to $65m.
- CIMIC (CIM) +1.24% now has a 32.5% stake in UGL after buying more shares on market. CIMIC bought 22.4m shares on Friday and Monday. The on market buying has boosted its stake in UGL unchanged, to more than 32% from 17.4%on Thursday. The offer closes on Friday.
- Central Petroleum (CTP) +2.78% is looking for a better offer than the one Macquarie have in mind. The current $57m bid is not seen as high enough although the company has granted the bidder a non-exclusive due diligence.
- Prime Media Group (PRT) -4.69% announced that Chair John Hartigan is cutting his salary in half this year. Refreshing change for board members. CEO who is not taking a pay cut continued to call on the government to move on media reforms. Whatever happened to those?
No news today. RBA speeches tonight though.
According to Credit Suisse the Average Australian is worth $506,000. Not sure if that is Dead or Alive.
- Australia’s wealth still comes in second behind Switzerland. Credit Suisse expressed confidence around the outlook, with the wealth of Australians forecast to swell by 34% over the next five years.
- The proportion of those with wealth above $US100,000 is 55.8%, which ranks fifth and come seven-times above the global average.
- Iron ore futures on the Dalian Commodity Exchange have surged 6%to their upside limit at 580.50 yuan ($US84) as the punters returned. Stockpiles of imported iron ore at 46 Chinese ports reached 110.58m tonnes on Friday, up 2.83m tonnes from the previous week, according to data tracked by industry consultancy SteelHome.
- The PBoC raised its yuan fixing for the first time in 13 days as the dollar’s ascent eased, reinforcing speculation that policy makers are prepared to step up measures to slow the currency’s declines.
- The People’s Bank of China strengthened its daily reference rate by 0.3% to 6.8779 a dollar ending a 12-day decline.
EUROPE AND THE US
- Household wealth in the U.K. declined by $1.5 trillion, or 10%, in the 12 months through June 2016.
Baltic Dry is at a Two-year high.
- It hit a peak level of 11,793 in May 2008 but since hitting a nadir in February it has rallied by 333%. The latest surge in the index comes following Donald Trump’s shock victory on November 8. Since then it has soared 50% to 1,257.
Quadruple record on US Markets Dow, S&P,NASDAQ and Russell 2000.
‘First Day To Do’ List from President Trump
- Rip up TPP.
- Cut government red tape.
- Investigate visa program abuse.
- Cancel some restrictions on fossil fuel production.
- Take suit for dry cleaning.
- Have dinner with ‘bestie’ Nigel Farage, the British Ambassador to the US.
Three unmarried men were waiting to tee off when the starter walked up to them and said, “You see that beautiful blonde practicing her putting?”
“Her? Wow, she is beautiful,” they all said.
“She’s a good golfer,” he continued, “and would like to hook up with a group. None of the other groups will play with a woman. Can she play with you? She won’t hold you up, I promise.” They looked at each other and said, “Sure! She can join us.” Just as the starter said, the woman played well and kept up. Plus, they kept noticing, she was very attractive.
When they reached the 18th hole, she said that if she sank her 18-footer, she’d break 80 for the first time. “Guys, I’m so excited about breaking 80 that I have to tell you something. I had a great time playing with you. I can tell you all really love golf. I want you to know that I’m single and want to marry a man who loves golf as much as I do. If one of you guys can read this putt correctly and I make it, I’ll marry whichever of you was right!”
All three jumped at the opportunity. The first one looked over the putt and said, “I see it breaking 10 inches left to right.” The second looked it over from all sides and said, “No, I see it breaking eight inches right to left.”
The third man looked at the woman, looked at the ball, and said, “Pick it up. It’s good!”
This man goes to confession and says, “Forgive me father for I have sinned.”
The priest asks if he would like to confess his sins and the man replies that he used the “F-word” over the weekend.
The priest says, “Oh okay, just say three Hail Marys and try to watch your language.”
The man replies that he would like to confess as to why he said the “F-word”.
The priest sighs and tells him to continue. Well father I played golf on Sunday with my buddies instead of going to church.
The priest says, “And you got upset over that and swore?”
The man replied, “No, that wasn’t why I swore. On the first tee I duck-hooked my drive well left into the trees.”
The priest said, “And that’s when you swore.” The man replied, a little testily because of the constant interruptions, “No, it wasn’t. When I walked up the fairway, I noticed my ball got a lucky bounce and I had a clear shot to the green. However, before I could hit the ball, a squirrel ran by and grabbed my ball and scurried up a tree.”
The priest asked, “Is that when you said the ‘F-word’?”
The man replied, “No, because an eagle then flew by and caught the squirrel in its sharp talons and flew away.” The priest let out a breath and queried, “Is that when you swore?”
The man replied, “No, because the eagle flew over the green and the dying squirrel let go of my golf ball and it landed within 5 inches of the hole.” The priest screamed, “Don’t tell me you missed the f…ing putt!”