Can you believe that I wrote the Trump fest fails to inspire yesterday! Doh!
May have failed to impress us but it sure impressed the US investor!!!
ASX 200 closes on a high up 72 points to 5777 as US markets soar and local resources and financials play catch up. Consumer and healthcare stocks also rally though Telstra under pressure. Asian markets rally with Japan up 0.95% and China down 0.18%. AUD 76.58c and US futures down 2.
STOCKS AND SECTORS
- Base metal miners were boosted today by news that China has ordered curbs on steel and aluminium output in as many as 28 northern cities to help the environment. South32 (S32) +9.24% and Alumina (AWC) +9.02% were both big beneficiaries. Broker upgrades also helped. Other Base metals were also strong with Independence Group (IGO) +8.99%, Iluka Resources (ILU) +3.28% and Oz Minerals (OZL) +3.49%. Iron ore miners were in demand with BHP +3.30% on copper exposure and Fortescue Metals (FMG) +0.30% despite going ex-dividend.
- Gold miners were surprisingly firm given bullion moves but the sector has been under pressure for the last two days so some bargain hunters around. Silver Lake (SLR) +4.69%, St Barbara (SBM) +3.15% and Oceanagold Corp (OGC) +2.17%.
- Energy stocks stronger too as Oil Search (OSH) +2.46%, Santos (STO) +1.34% and Woodside (WPL) +0.16% putting in a strong day given it was ex dividend.
- Banks and financials showed strong gains as US banks led the way. ASIC seems to be looking at lending practices but did nothing to dampen enthusiasm. The Big Bank Basket rose to $181.90 with wealth managers and insurers very strong. QBE Insurance (QBE) +2.63% as rate increases will benefit insurers holding bond products. Insurance Australia (IAG) +2.16% and Suncorp (SUN) +1.96%.
- Industrials firmer with consumer discretionary stocks doing well. Metcash (MTS) +4.25%, Wesfarmers (WES) +0.89% though Woolworths (WOW) -0.16% after going ex-dividend too. Gaming stocks did well as The Star Entertainment Group (SGR) +2.44%, Aristocrat (ALL) +1.02% whilst Domino’s Pizza (DMP) +2.40% impressed with plans of AI.
- Healthcare stocks rose led by CSL +1.87%, Sirtex (SRX) +2.71%, Ansell (ANN) +2.54%
- IT stocks bounced with Xero (XRO) +1.78%, Altium (ALU) +3.27%, Computershare (CPU) +1.04% and Covata (CVT) +21.05%. Telcos though continued to be pressured Telstra (TLS) -1.51%, Vocus Group (VOC) -1.13% and Spark NZ (SPK) -0.30%.
- Speculative stock of the day: Australian Mines (AUZ) +40.00% after gaining environmental licences for mining and processing at Sconi by the Queensland government.
- CIMIC (CIM) -0.16% declared its bid for Macmahon (MAH)-% will not be extended or raised.
- Sundance Energy (SEA) +8.70% following the sale of assets in the Anadarko Basin in Oklahoma.
- Viralytics (VLA) +7.87% has announced that the company will present at the American Association for Cancer Research (AACR) with its studies of its CAVATAK
- Medical Developments (MVP) +5.93% announced its second order from the UK and Ireland for its Penthrox product, a fast onset non-opoid analgesic for pain relief.
- Tassal Group (TGR) has announced a $100m capital raising via a fully-underwritten institutional placement and SPP. Tassal said it expects to invest $270m in capital expenditure over next five years, and that its planned initiatives are expected to deliver an additional 2500 to 3000 tonnes of harvested salmon each year to FY21. It also plans to invest $53m over 3 years to establish farming operations in Okehampton and Storm Bay.
- The trade balance was in net positive in January, posting a strong surplus of $1.3bn, but that’s far below expectations of $3.8bn.
- Exports fell 3% in the month to $31.8bn, while imports were up 4% at $30.5bn.
- The number of dwellings approved fell 2.1% in January 2017, in trend terms, and has fallen for eight months, according to data from the ABS today.
- Stockland (SGP) CEO Mark Steinert says curbing the excesses of negative gearing on property investments should be considered in an effort to improve Australia’s housing affordability problem.
- Chinese President Xi Jinping has highlighted property speculators, ‘zombie’ companies and the finance sector as areas of concern ahead of the annual party gathering of the faithful this month. 10 days. 3000 delegates. Plenty of news to come.
- As a sign of mounting frustration of the Chinese middle class with environmental issues a group of lawyers has launched a class action against the Beijing authorities over smog. It is a ‘War on Pollution’. 65 yuan (US$9) for having to buy face masks, 100 yuan (US$15) for seeing a doctor for a sore throat and 9,999 yuan (US$1,500) for emotional distress.
EUROPE AND US
- Snap (chat) IPO has been priced at a valuation of US$24bn as punters bet that Evan Spiegel is the genius they hope he is. Last year the company lost US$515m far more than the US$404.5m. The issue was priced at US$17 a share raising US$3.4bn.
- The odds of a US rate rise in March has now risen to 80%.
- Theresa May is planning to trigger Brexit in two weeks despite the defeat in the House of Lords on an amendment to protect EU citizens.
Two well dressed ladies happened to start up a conversation during an endless wait in Brisbane Airport Terminal.
The first lady was an arrogant Victorian married to a wealthy business man. The second was a well-mannered elderly woman from Mount Isa, Queensland.
After a little while Victorian woman started by saying, “When my first child was born, my husband built a beautiful mansion for me.” The lady from Mount Isa commented, “Well, isn’t that precious?”
The first woman continued, “When my second child was born, my husband bought me a beautiful Mercedes-Benz.”
Again, the lady from Mount Isa commented, “Well, isn’t that precious?”
The first woman went on, “Then, when my third child was born, my husband bought me this exquisite diamond bracelet.”
Yet again, the Mount Isa lady commented, “Well, isn’t that precious?”
The first woman then asked , “What did your husband buy for you when you had your first child?”
“My husband sent me to charm school,” declared the Mount Isa lady.
“Charm school?” the first woman cried, “Oh, my Lord! What could they teach you??”
The Mount Isa lady responded, “Well as an example… instead of saying, “Who gives a F***?”, I learned to say, “Well, isn’t that precious?”.
A visitor to Israel attended a recital and concert at the Moscovitz
Auditorium. He was quite impressed with the architecture and the
acoustics. He inquired of the tour guide, “Is this magnificent
auditorium named after Chaim Moscovitz, the famous Talmudic scholar?”
“No,” replied the guide. “It is named after Sam Moscovitz, the writer.”
Never heard of him,” said the visitor. “What did he write?”
“A check,” replied the guide.
Thanks Hans as usual..