ASX 200 charges up another 40 points to 5761 as resources continue the boom time rally. Energy stocks and JB Hi-Fi (JBH) better too. Asian markets up strongly with Japan up 0.50% and Chinas up 0.67%. AUD 76.66c and US Futures up 44.
STOCKS AND SECTORS
- Miners had a great day again as iron ore prices continue to zoom zoom. BHP +2.20%, RIO +3.59% and Fortescue Metals (FMG) +6.17%, Bluescope Steel (BSL) +2.47% was also a stand out with base metal stocks Independence Group (IGO) +4.74%, Oz Minerals (OZL) +3.34%, Orica Limited (ORI) +1.36% and Metals X (MLX) +5.00%.
- Energy stocks shrugged off slightly weaker crude prices in Asia with Santos (STO) +2.30%, Oil Search (OSH) +2.00% and Woodside (WPL) +1.52%. Coal stocks were mixed as Yancoal (YAL) -4.44% weaker on capital raising fears though Whitehaven (WHC) +1.81% and Paladin Energy (PDN) +6.90%
- Gold miners came out to play again with numbers from Newcrest (NCM) +0.80% helping sentiment, Oceanagold Corp (OGC) +3.24%, Resolute Mining (RSG) +2.99% and Beadell Resources (BDR) +2.94%
- Industrials better with Aurizon Holdings (AZJ) +2.50%, Sydney Airport (SYD) +0.97%, Virgin Australia (VAH) +0.00% and Seven Group (SVW) +4.97%. Media stocks better with the digital sore thumb Fairfax Media (FXJ) unchanged in the end and Seven West Media (SWM) -0.64% after more juicy revelations from Amber Harrison.
- Healthcare mixed with Ansell (ANN) -2.12% failing to bounce on disappointing numbers, Clinuvel Pharma (CUV) -5.31% and Viralytics (VLA) -2.83% though gains fort CSL +0.61%, Monash IVF (MVF) +4.01% and Ramsay Health Care (RHC) +1.65%
- IT and Telco stocks mixed. Telstra (TLS) +1.16%, TPG Telecom (TPM) +1.96% and Vocus (VOC) +1.86% but IT stocks Prophecy International (PRO) -29.26% on bad results, Reckon (RKN) -1.44% and Netcomm Wireless (NTC) +2.51%. Aconex (ACX) +5.63% continue the revival
- Consumer stocks stronger today as JB Hi-Fi (JBH) +3.20% reported and gave investors something to cheer about. Harvey Norman (HVN) +2.21% also felt the love as did Breville Group (BRG) +4.15% and Treasury Wine Estates (TWE) +2.24%. Elsewhere supermarkets were better with Woolworths (WOW) +0.67% and Wesfarmers (WES) +1.12% and A2Milk (A2M) +2.94%
- Banks and financials once again failing to really fire up. Bendigo and Adelaide (BEN) -4.99% showed once again how hard growth is hard to find. The Big Bank Basket rose modestly to $176.56 with insurers doing much better led by Suncorp (SUN) +1.28% and QBE Insurance (QBE) +0.48% with wealth managers also putting in a good effort. Magellan Financial (MFG) +1.85%, Perpetual (PPT) +0.55% and Platinum (PTM) +1.20%
- Speculative stock of the day: Artemis Resources (ARV) +92.31% on good volume after announcing high grade cobalt at its Carlow Castle project in Karratha WA. Grades above 1% with 4m at 33.6g/t gold and 1.12%cobalt. The resource remains open in all directions.
- Ansell (ANN) -2.12% reported flat first-half net profit. The review of its sexual wellness business is progressing in line with its expectations, revealing that it has received “multiple expressions of interest” from several parties. Net profit rose 0.3% to $US69.8m with revenue down 1.1% to $US775.8m and an unfranked dividend of 20.25c.
- JB Hi-Fi (JBH) +3.20% upgraded its full year sales and profit guidance after a strong December-half, with net profit jumping 16% to $110.4m. Sales rose 23.4% to $2.6bn with The Good Guys kicking in with $7m EBIT and a dividend of 72c from 63c.
- Bendigo and Adelaide Bank (BEN) –99% has held its interim dividend steady after reporting essentially flat first-half cash earnings of $224.7m. The bank says cash earnings for the six months to December 31 were just $1m higher than in the prior corresponding period, while net profit was also flat at $209m. Bendigo, which will pay a fully franked interim dividend of 34c
- Domino’s Pizza (DMP) -4.76% after Fairfax Media revealed over the weekend widespread underpayment and the illegal sale of visa sponsorship for migrants inside Domino’s and its franchisees. Domino’s said the reporting “did not reflect the strong financial performance of its franchise network, the high ethical standards required of all employees and franchisees, or the healthy levels of collaboration between the company and franchisees.”
- Sirtex (SRX) -0.14% knocked back a move to seek to settle a potential class action by effectively telling the plaintiff “we’ll see you in court”. Takes after Donald it seems.
- Amcor (AMC) +4.33% first-half net profit has fallen 6% to $US286.6m, but it says underlying earnings are up and it remains well placed in the current global environment. Underlying profit, adjusted on a constant currency basis and removing significant items, is up 3.8% at $US308.6m
- Newcrest (NCM) +0.80% underlying profit of $US273m was broadly in line with analyst estimates; Credit Suisse has predicted $US270m while Deutsche had predicted $US280 million. Dividend at US7.5c.
- Bankwest this morning moved the goalposts for property investors as it will not allow tax deductions as part of its lending criteria. Bankwest (Owned by CBA) told mortgage brokers that from today, the calculators it used to assess customers for loans would not include the tax benefit investors receive if their property is loss-making.
- Iron ore futures are extended last week’s strong gains, rising another 5% to hit 700 yuan ($US101.65).
Japanese economic news
- GDP expanded 1% estimate of +1.1%
- Measured quarter on quarter, GDP rose 0.2%. Estimates of 0.3%
- Private consumption was unchanged
- Business spending rose 0.9 % estimates of 1.2%
The Reserve Bank of India just dropped its bias to ease policy, citing global inflation pressures as one reason for a sudden change of heart.
EUROPE AND US
- Globally, foreigners are pulling back from U.S. debt though they won’t abandon Treasuries altogether as they still hold US$5.94 trillion, or roughly 43% of the U.S. government debt market. Seems overseas investors are concerned about the prospect of higher deficit and more inflation under Trump
- US retailers Sears and Kmart have discontinued online sales of 31 Trump Home items, details emerged showing sales of Ivanka Trump’s brand fell in the weeks before Nordstrom stopped selling her range.
- Verizon, the biggest U.S. wireless provider, will start selling a package that includes unlimited data for US$80 a month. The industry is moving towards unlimited data in the US. One day here perhaps?
- Oil and gas discoveries are at a 60-year low with new fields harder to find.
- The latest commodity to boom is olive oil. The two biggest countries in the business Spain and Italy, have both had serious problems with production. Tuscany is down 50% on its usual volume with prices up 40% after an outbreak of Xylella fastidiosa.
- Royal Bank of Scotland has played down stories that it will cut staff numbers by 15,000. The bank is expected to report losses of £2.3bn for 2016 when it publishes its financial results later this month, its ninth year of losses.
- The UK could become the world’s biggest grower and processor of cannabis destined for use in prescription medications after one of the country’s most promising biotechs announced plans to ramp up its production of the plant In 2010 GW pharmaceuticals launched the world’s first prescription cannabis-derived drug in the form of multiple sclerosis treatment Sativex, It is now boosting cultivation and manufacturing ahead of the launch of another promising experimental drug called Epidiolex, which has shown to be hugely effective in treating children with a form of epilepsy.
- The average price of a U.K. home hit a new record in January. Average value now GBP 300,000.
And finally I am indebted to Hans for a huge amount of joke material to keep Beeks going..so here are some of the best…
Socially (Un)acceptable Humor
If you are easily offended please stop reading right NOW!!!!!!
I saw a poor old lady fall over today on the ice!! At least I presume she was poor – she only had $1.20 in her purse.
My girlfriend thinks that I’m a stalker. Well, she’s not exactly my girlfriend yet.
A wife says to her husband you’re always pushing me around and talking behind my back. He says what do you expect? You’re in a wheel chair.
The wife has been missing a week now. Police said to prepare for the worst. So, I have been to the thrift shop to get all of her clothes back.
At the Senior Citizens Center they had a contest the other day. I lost by one point: The question was: Where do women mostly have curly hair? Apparently the correct answer was Africa!!!
Being a modest man, when I checked into my hotel on a recent trip, I said to the lady at the registration desk, “I hope the porn channel in my room is disabled.” To which she replied, “No, it’s regular people porn, you sick bastard.