ASX 200 gains 1 point to 5485, to close on a positive note. Profit taking in resources as consolidation the name of the game. Gold miners in the casualty ward as AGM season dominates again. Asian markets rally on the stronger USD with Japan punching the air up 1.13% and China up 0.39%. AUD at 73.74c and US futures down 4 points.
STOCKS AND SECTORS
- Resources took a well-earned break today. BHP unchanged, RIO +0.25% and Fortescue Metals (FMG) -1.27%. Base Metals slipped to as the sector drew breathe. Alumina (AWC) -0.87%, Independence Group (IGO) -2.48% and South32 (S32) -1.04%
- Gold miners had dreams crushed as the spot price slipped below US$1200. Evolution Mining (EVN) -5.10%, Newcrest (NCM) -3.86%, St Barbara (SBM) -5.46% and Doray Minerals (DRM) -6.36%
- Energy shares slipped too on more profit taking. Santos (STO) -0.71%, Woodside Petroleum (WPL) -0.29% and Oil Search (OSH) -1.39%. Coal stocks too down with Whitehaven (WHC) -4.47% and New Hope (NHC) -0.92%.
- Industrial movers were dominated by AGMs and mainly upgrades to outlook statements. Healthcare stocks showed some green for a change as Sigma Pharma (SIP) +5.71%, Healthscope (HSO) +2.69% and recovering Fisher and Paykell (FPH) +2.06%.
- IT stocks back on the shopper’s list today with Freelancer (FLN) +1.49%, Altium (ALU) +1.29% and Nextdc (NXT) +4.14%. Telcos too in demand with TPG (TPM) +0.42% and Vocus (VOC) +1.66% although Telstra (TLS) -0.4% was finding it harder going at 500c.
- Banks and financials mildly positive still with the big four basket continuing to grind higher to $167.24. Wealth managers couldn’t toe the line though and fell back a little BT Investment (BTT) -0.88% and Magellan Financial (MFG) -0.26% easing in quiet trade.
- REITs weakened with the exception of Gateway Lifestyle (GTY) +4.65% on possible corporate action from a US predator and Ingenia (INA) +1.53% also in their sights it seems.
- Speculative stock of the day: Core Exploration (CXO) +28.99% after revealing it had encountered thick high grade Spodumeme in all diamond cores at Finniss.
- Nextdc (NXT) +4.14% after the company confirmed a strong start to the year with FY17 revenues forecast to be around $115m-$122m. EBITDA increasing from $27.7m to around $46m-$50m.
- Nick Scali (NCK) +8.07% after a solid lift to profit guidance by around 30-35%. Due to cost containment and stringer sales.
- Liquefied Natural Gas Ltd (LNG) +5.3% updated the market on legal developments on the Magnolia project in the US. The Federal Regulatory Commission in the US has reaffirmed authorisation for the project.
- Speedcast (SDA) +2.56% after successfully completing the retail shortfall of the recent capital raising at 310c, the same price as the raising.
- Seek (SEK) +0.47% release numbers from its Chinese business Zhaopin for the September quarter showing a 14% rise in EBITDA. The company reaffirmed guidance for a NPAT of around $215m – $220m excluding some one-offs.
- Boral (BLD) -13.30% despite the placement being ‘greatly oversubscribed’ the reaction was severe as instos voted with their feel on stock bought at 480c. The bookbuild for the rump of the entitlement was completed at 525c a large 45c premium but soon eroded. So much for demand. Boral will begin a retail entitlement offer, expected to raise about $483m, on November 30.
- RIO +0.25% sold its Lochaber aluminium assets in Scotland, saying the $410m received was well above their prescribed value. The buyer was SIMEC and the assets will be operated by sister company Liberty House Group. The company also announced a productivity push to liberate US$5bn of free cash flow over the next five years.
- Qube (QUB) unchanged, announced that long time chair Chris Corrigan will step down and Allan Davies will step into his shoes. That is once he has finished the current season of QI. The move comes after the recent acquisition of Asciano.
- Hansen Technologies (HSN) +4.63% guidance maintained with revenue in the $165m-$175m range. EBITDA margin of between 25%-30%
- Bonds resumed their sell-off, with the yield on the 10-year note climbing to 2.76%.
- Good to see we are getting the big issues sorted with the possible passing of the backpacker tax. Really? Should get that nasty deficit sorted in no time. Not only are we massively expensive for backpackers to visit but now we are going to tax them back to Blighty.
Singaporean government data out today:
- GDP fell an annualised 2% in the third quarter from the previous three months, according to a revised estimate from the Ministry of Trade and Industry on Thursday; it last month projected a 4.1% decline
- The median estimate for a 2.5% drop
- The economy grew 1.1% from a year earlier, higher than the 1 % median estimate
The Philippine peso fell to 50c against the US dollar for the first time since 2008.
- Airbnb is in talks to buy China’s Xiaozhu to expand in the world’s biggest outbound tourism market.
- And a Chinese company has bought up Skyscanner for US$1.4bn. A Scottish company apparently. You live and learn.
EUROPE AND THE US
- American consumer confidence has soared with Americans the most hopeful they have been in more than a decade. For the first time since 2006, 37% of households said they expect their personal finances to improve in 2017.
- Shoppers are predicted to hit the shops in the biggest retail event of the year. Thanksgiving Day. This is when all Americans give thanks for their blessings and shop. Sales in November and December are expected to rise 3.6% to US$655.8bn.
- In the UK, the Office for Budget Responsibility said growth will be 2.1% in 2016, higher than forecast in March. However, it will slow to 1.4% in 2017 because of lower investment and weaker consumer demand
- Growth is expected to be 1.7% in 2018, 2.1% in 2019 and 2020, and 2% in 2021.
A little boy goes to his dad and asks, “What is politics?”
Dad says, “Well son, let me try to explain it this way: I’m the breadwinner of the family, so let’s call me capitalism. Your Mum, she’s the administrator of the money, so we’ll call her the Government. We’re here to take care of your needs, so we’ll call you the people. The nanny, we’ll consider her the Working Class. And your baby brother, we’ll call him the Future. Now, think about that and see if that makes sense.” So the little boy goes off to bed thinking about what dad had said.
Later that night, he hears his baby brother crying, so he gets up to check on him. He finds that the baby has severely soiled his diaper. So the little boy goes to his parents’ room and finds his mother sound asleep. Not wanting to wake her, he goes to the nanny’s room. Finding the door locked, he peeks in the keyhole and sees his father in bed with the nanny. He gives up and goes back to bed. The next morning, the little boy says to his father, “Dad, I think I understand the concept of politics now.” The father says, “Good son, tell me in your own words what you think politics is all about.”
The little boy replies, “Well, while Capitalism is screwing the Working Class, the Government is sound asleep, the People are being ignored and the Future is in deep shite.”