Happy New Year
Did you miss me?
Has gone according to the script…gets interesting from here.
ASX 200 pushes higher up 27 points to 5748 on thin volume as big miners push ahead. Banks slightly higher with industrials mixed. Asian markets slip with Japan down 1.08% and China down 1.08%. AUD falls ever so slightly to 74.747 (Jumbo) with US futures down 3 points in holiday trade
STOCKS AND SECTORS
- BHP +1.67% hit a 17-month high. Our target was 3000c and looks increasingly possible. Other miners also powered up with iron ore futures rising strongly in China. RIO +1.82% Fortescue Metals (FMG) +2.92%. Base metal stocks also pushed higher with Oz Minerals (OZL) +1.69% a new high, South32 (S32) +1.42% and Sandfire Resources (SFR) +1.78%. Western Areas (WSA) +% bounced well and Metals X (MLX) +% put on another smidge.
- Gold stocks continued their strong start to 2017. Newcrest (NCM) +%, Ramelius Resources (RMS) +6.09%, Regis Resources (RRL) +2.28% and Dacian Gold (DCN) +7.93%.
- Energy stocks ran out of puff after a firm start, Santos (STO) -0.95%, Oil Search (OSH) -0.68% and Caltex (CTX) -0.79%. Whitehaven Coal (WHC) -2.33% after a December quarterly report. LNG -% the biggest loser after answering a ASX speeding ticket on the recent price increase. Nothing to see here move along.
- Industrials were a mixed bag Duet Group (DUE) +5.40% did well on the news from CKI on an agreed bid. Bellamy’s (BAL) +3.74% rose slightly as some bargain hunters seem to be at work. Much uncertainty and board room machinations and only $1m in the bank. More problems to come. A2Milk (A2M) +2.83% but Yowie Group (YOW)-2.42% after being off around 20%, seem to have melted in the sun.
- Healthcare stocks had a day on the beach with Nanosonics (NAN) +7.48% after a quarterly, Mesoblast (MSB) +6.5% and Starpharma (SPL) +5.66%. Mayne Pharma (MYX) unchanged after a small corporate reshuffle.
- In financials, the Big Bank Basket rose slightly to $179.07 building on recent gains but the momentum seems to be fading as more and more brokers are turning cautious. Insurers better again, QBE Insurance (QBE) +0.90%, Suncorp (SUN) +0.44% even NIB Holdings (NHF) +1.95% and Medibank Private (MPL) +0.72%.
- Speculative stock of the day: Recce (RCE) +84.38% before they stock was suspended pending an announcement. Seems the cat was out of the bag early and buyers piled in. This follows the pre- Xmas announcement of the development of a new synthetic antibiotic.
- IPO of the Day: Kalamazoo Resources (KZR) opened up 5% on the issue price of 20c. Rare thing indeed.
- Hong Kong-based utilities giant Cheung Kong Infrastructure will push ahead with a $7.4 billion takeover of DUET Group (DUE) +5.40%. The company has agreed to a 303c bid after squeezing a 3c increase.
- Woolworths (WOW) +0.37% has appointed a Tesco veteran Claire Peters to run the supermarkets division. Ms Peters is currently running Tesco in Thailand. Is that the equivalent of being sent to Coventry?
- com (KGN) +8.72% after an upgrade to 2017 earnings forecasts after trading beat management expectations in the December-half. Ruslan Kogan said that trading in the second quarter had exceeded forecasts made in November, when the company upgraded its full-year earnings guidance from $6.9m in the prospectus to between $8m and $9m before interest, tax, depreciation and amortisation. Still the shares are below the 180c issue price.
- Global ratings agency Fitch has revised its outlook on the Australian banking sector to negative, citing an increase in “macroeconomic risks” and slower profit growth. Fitch expects profit growth to slow in 2017 “reflecting low interest rates, slow asset growth, competition for assets and deposits, higher funding costs, and a rise in loan-impairment charges.”
A good reason to still like the banks.
- NAB said today its two-year fixed rate for new loans would rise by 23bps to 3.98%; the three-year fixed rate would go up by 20bps to 4.09%; and the four-year rate by 60bps to 4.59%.
- ANZ increased rates on two-year loans by 23bps to 3.9%, and three-year loans 4%. ANZ reduced its four-year fixed rate by 10bps to 4.74%.
Iron ore futures in China have jumped another 7.88% to 657 yuan ($US95), extending last week’s 11% rally.
At half time in China
- SHFE Copper ¥48,310, 1.19%
- SHFE Aluminium ¥13,515, 0.19%
- SHFE Zinc ¥22,935, 2.00%
- SHFE Nickel ¥86,940, 1.98%
- SHFE Rebar ¥3,398, 5.96%
- DCE Iron Ore ¥657.00, 7.88%
- DCE Coking Coal ¥1,330.50, 5.76%
- DCE Coke ¥1,828.00, 7.34%
- South Korea’s coal imports rose 18% in December compared with a year earlier
- The Chinese market is now down 5 straight days to its lowest level since August 2015 as authorities seek to curb property speculators affecting developers and builders.
EUROPE AND US
- With the US closed for Martin Luther King holiday, all eyes will be on the Bank of England chief Mark Carney as he attempts to balance the collapse in sterling with a Hard Brexit (degree of difficulty 3.8). Speech tonight to come but it looks like Carney will have to endure higher inflation as pound falls and economy stalls.
Shorts have come out to play in the pound. If you go down to the woods today…
Few bonus ones courtesy of my mate Hans..thanks mate..keep em coming..
These are classified ads which were actually placed in U.K. newspapers:
WEDDING DRESS FOR SALE.
Worn once by mistake.
FOR SALE BY OWNER. Complete set of Encyclopedia Britannica, 45 volumes.
Excellent condition, £200 or best offer.
No longer needed, got married, wife knows everything.
(Statement of the Century)
Thought from the Greatest Living Scottish Thinker — Billy Connolly.
“If women are so bloody perfect at multitasking,
How come they can’t have a headache and sex at the same time?”
Children Are Quick
TEACHER: Why are you late?
STUDENT: Class started before I got here.
TEACHER: John, why are you doing your math multiplication on the floor?
JOHN: You told me to do it without using tables.
TEACHER: Glenn, how do you spell ‘crocodile?’
TEACHER: No, that’s wrong
GLENN:Maybe it is wrong, but you asked me how I spell it.
(I Love this child)
TEACHER: Donald, what is the chemical formula for water?
DONALD: H I J K L M N O.
TEACHER: What are you talking about?
DONALD: Yesterday you said it’s H to O.
TEACHER: Winnie, name one important thing we have today that we didn’t have ten years ago.
TEACHER: Glen, why do you always get so dirty?
GLEN: Well, I’m a lot closer to the ground than you are.
TEACHER: George Washington not only chopped down his father’s cherry tree,but also admitted it. Now, Louie, do you know why his father didn’t punish him?
LOUIS: Because George still had the axe in his hand…..
TEACHER: Now, Simon, tell me frankly, do you say prayers before eating?
SIMON: No sir, I don’t have to, my Mom is a good cook.
TEACHER: Clyde, your composition on ‘My Dog’ is exactly the same as your brother’s. Did you copy his?
CLYDE: No, sir. It’s the same dog.
(I want to adopt this kid!!!)
TEACHER: Harold, what do you call a person who keeps on talking when people are no longer interested?