ASX 200 closed down another 44 points, on Trump slump, to 5611 after a strong opening was ambushed. No real surprise after the weekend of Trump talk. Brambles (BXB) profit warning and industrials weigh. Banks turn turtle and sink. Asian markets mixed as Japan sinks 1.12% but China rises 0.28%. AUD gaining up to 75.61c and US Futures down 32.
A four -week low but Mondays can be like that. Maybe Geldorf was right.
82 point trading range today on decent $4.2bn volume.
STOCKS AND SECTORS
- Banks and financials opened firm with the banks up around 1% early until bears sprang the trap only minutes after the open. The Big Bank Basket (BBB) down to $172.58 or 0.23% with insurers taking things badly. Insurance Australia (IAG) -1.34%, QBE Insurance (QBE) -2.27% and Suncorp (SUN) -3.22%. Wealth managers also slipped slightly with Macquarie Group (MQG) -1.14%, Perpetual Limited (PPT) -0.85% and Henderson Group (HGG) -1.02%
- Industrials tried to hold the line despite the Brambles (BXB) -15.80% downgrade. IT stocks eased too Wisetech Global (WTC) -4.53%, Class Limited (CL1) -3.60%, Technology One (TNE) -1.61%, Carsales (CAR) -2.01% and Nextdc (NXT) -2.09%. Consumer stocks were also sold off with REA Group (REA) -2.36%, Crown Resorts (CWN) -1.46% ,Flight Centre (FLT) -2.64% and Skydive the Beach (SKB) -7.26% had a parachute failure and cratered badly. AP Eagers (APE) +4.28% still basking in the post record result glow from last week.
- Healthcare gave back some of last week’s gains as CSL -2.68%, Sirtex (SRX) -3.58% and Mayne Pharma (MYX) -4.21% all eased
- Base metals miners eased again especially in the nickel Independence Group (IGO) -3.25%, Western Areas (WSA) -7.31%, Bluescope Steel (BSL) -1.89% and goliath South32 (S32) -3.76%. Iron ore miners fared better on a late rally, BHP +0.08%, RIO +0.11% and Fortescue Metals (FMG)+0.81%.
- Gold miners were once again in demand as bullion continues to hold up. Regis Resources (RRL) +1.55%, Newcrest (NCM) +1.66% and Evolution Mining (EVN) +3.23%
- Energy started well and finished badly. Santos (STO) -0.99% slipped again as did Oil Search (OSH) -1.41% and Origin Energy (ORG) -1.38% though Woodside Petroleum (WPL) +0.69% bucked the trend as did LNG +10.34% after a deal with an Indian terminal.
- Speculative stock of the day: Buymyplace (BMP) +20.00% after its quarterly activities report showed revenue up 147% to $549,610 and total listings up 84% on Q2FY16. BMP is a leading commission free real estate company.
- Brambles (BXB) -15.80% has flagged a profit warning as a rapid destocking by US retailers has made a significant dent in the company’s plans BXB expects first-half sales revenue will be up 5% and underlying profit will be up 3% previously it was looking for 9-11% growth in underlying profit.
- Bellamy’s (BAL) -3.99% had more problems today with news that litigation funder IMF Bentham (IMF) +% would fund Slater and Gordon (SGH) +% to fund a class action on behalf of shareholders.
- Ruralco (RHL) -9.09% says live export volumes have increased following a restructure of the unit, with strong volumes and prices. RHL said increased plantings of cotton and rice boosted sales of agricultural chemicals and pre-season fertiliser.
- McGrath (MEA) -5.26% continues its train wreck of an IPO with news today that volumes of listings have not recovered as expected and signalled that second half revenues will fall below first half estimates. The company does not provide earnings forecast but did say that analysts’ estimates of its full year profit outlook are too optimistic. Some loss of key agents also weighing on the company.
- Village Roadshow (VRL) -9.44% hardly a surprise really but the company admitted attendance by the local Queensland market which previously represented approximately 60% of attendances, has declined by more than 12%on the prior year since the Dreamworld The company’s theme parks had a solid start to the 2017 financial year prior to the Dreamworld tragedy.
- Suncorp (SUN) -3.22% has seen its natural hazard allowance to blow out to $350m for the 4th period in a row. Suncorp has now surpassed its natural disaster budget at every half-year result since 2013. Among latest costly disasters were storms whipping South Australia and Victoria in November and December, costing Suncorp $110m. Suncorp also will book a $25m paper loss on the sale of a specialist motor insurance portfolio in NZ.
- Nothing to report
- China Galaxy Securities made their debut today with a 44% increase following a 1400 times oversubscription rate. The company has raised US$597m in the public offering.
- Samsung had a ‘dog ate my homework’ press conference today on the report on why its Note 7 batteries failed. Unless you want to start a fire that is. Seems it was the battery after all. The battery in the initial batch of Note 7 phones was manufactured by an affiliate, Samsung SDI Co. In total about 200,000 phones and 30,000 separate batteries were examined in an investigation that included 700 people. The company is trying to move on to its next scandal that of corruption and bribery.
EUROPE AND US
- After an inauguration on Friday that kept some happy the weekend was a little train wreck for the new POTUS. First day at the office today. New school shoes – check. Packed lunch– check. Morning tea – check. Dismantle everything Obama achieved – check. Release tax returns – yeah right. Ever get the feeling the US voter has been well and truly conned.
- The USD may start to unwind its one-way trade. Gold is improving even the Peso has touched a two- week high.
- UK PM Theresa Maybe will be the first foreign leader to visit Trumptown. Love to be a fly on the wall for that one.
- The UK government has been urged to float the Green Investment Bank (GIB) rather than sell it to Macquarie Group (MQG) -% after the group was named as preferred bidder. GIB has invested £2.7bn in green energy projects since it was founded in 2012. Macquarie had been expected to pay around £2bn for its portfolio of assets, which includes wind farms and biomass energy schemes.
- US reporting season will prove to be a dose of reality.
Today’s funny comes from my wonderful contributor Hans…
These are real quotes from Top Gear!!!
Bentley Continental GT’s suspension adjustability.
It really is about as useful as having a snooze button on a smoke alarm.
And if you are clinically insane, by which I mean you wake up in the morning and think you are an onion, here’s your car.
It was rubbish when it was new, it was built by idiots, and it’s rubbish now.
Now we get quite a few complaints that we don’t feature enough affordable cars on the show, so we’re kicking off tonight with the cheapest Ferrari of them all.
Chevrolet Corvette ZO6
In many ways then this car is like herpes. Great fun catching it but not so much fun to live with every day.
Telling people at a dinner party you drive a Nissan Almera is like telling them you’ve got the Ebola virus and you’re about to sneeze.
This is the Renault Espace, probably the best of the people carriers. Not that that’s much to shout about. That’s like saying ‘Ooh good I’ve got syphilis, the BEST of the sexually transmitted diseases.’
I’ve seen better looking gangrenous wounds than this
BMW X5 M
There’s a gallon of fuel gone there, and another there…and yet another there. As a matter of fact, the only way this car could be less annoying to eco-mentalists is if its engine ran on sliced dolphin.
Renault Clio V6 handling bends
In typical French fashion, it just gives up! A bit like the French did with the Germans.
Koenigsegg are saying that the CCX is more comfortable. More comfortable than what…BEING STABBED?
Suzuki Wagon R
You do not just avoid the Suzuki Wagon R. You avoid it like you would avoid unprotected sex with an Ethiopian transvestite.
This car is more fun than the entire French Air Force crashing into a firework factory.
Whenever I’m suffering from insomnia, I just look at a picture of a Toyota Camry and I’m straight off.
4 Seater Convertibles
The only person to ever look good in the back of a 4-seater convertible was Adolf Hitler.
Arab Israeli Conflict
The only reason the Arabs and Jews have managed to keep their nasty little war going for 50 years is because it never bloody rains there. If the post-war powers had put Israel in Manchester, there’d have been no bloodshed.
Racing Car Conversions
Racing cars which have been converted for road use never really work. It’s like making a hardcore adult film, and then editing it so that it can be shown in British hotels. You’d just end up with a sort of half-hour close-up of some bloke’s sweaty face.
Britain’s nuclear submarines have been deemed unsafe … probably because they don’t have wheel-chair access.
I don’t understand bus lanes. Why do poor people have to get to places quicker than I do?
If all the creatures on earth were the same size, it’s said a lobster would have the smallest brain. But then someone invented Wayne Rooney.
Asking the front wheels of a car to do their normal job of steering while handling more than 170 hp is like asking a man to wire a plug while juggling penguins … while making love … to a beautiful woman while on fire, on stage … in front of the Queen. It’s all going to go wrong.
And finally…the words of Pete Townsend spring to mind…Trump…
With our children at our feet
And the morals that they worship will be gone
And the men who spurred us on
Sit in judgement of all wrong
They decide and the shotgun sings the song
Take a bow for the new revolution
Smile and grin at the change all around
Pick up my guitar and play
Just like yesterday
Then I’ll get on my knees and pray
We don’t get fooled again