ASX 200 bounces from lows as ‘Obamacare’ moves helped and RBA left rates unchanged.  Banks and healthcare sectors the driver. ASX 200 up 15 to 5761 from a low of 5720. Asian markets slightly weaker with Japan down 0.16% and China down 0.07%. AUD moves higher to 76.20c and US futures up 5.

Quiet trading as moves from US Republicans on turning promises into reality on Obamacare, Tax cuts and infrastructure help sentiment.

STOCKS AND SECTORS

  • Miners dragged today although South32 (S32) +1.44% with lithium stocks continuing to suffer as Argentina expanding the lithium market in a big way. Orocobre (ORE) -5.33% and Galaxy (GXY) -5.26%. Base metals and golds under pressure too with BlueScope Steel (BSL) -0.94% and Oz Minerals (OZL) -2.35%. Evolution Mining (EVN) -3.69%, Regis Resources (RRL) -5.88% and Resolute Mining (RSG) -3.35%.
  • Energy stocks mildly positive with big caps gaining whilst smalls gave ground. Woodside (WPL) +0.45%, Oil Search (OSH) -0.99% and Santos (STO) +0.54%.
  • Banks and financials improved today as two more CEOs faced the Spanish Inquisition today with the parliamentary inquiry grilling Ian Narev (CBA) +0.05% and Shayne Elliott (ANZ) +0.51% . The Big Bank Basket rose to $181.80.
  • Industrials again a mixed bag with winners and losers as the reporting season fall out continues. Some weakness in consumer staples Treasury Wine (TWE) -1.50%, A2Milk (A2M) -2.16% and continued weakness in Bellamy’s (BAL) -3.07%. Navitas (NVT) -3.79% slid yet again after the big loss yesterday as brokers moved to downgrade, Retail Food Group (RFG) -4.98% also weaker losing the dividend and then some.
  • Healthcare rallied hard after the open led by CSL +1.05% following moves in the US from Republicans on a wind back and significant changes to Obamacare. Mesoblast (MSB) also back in black after news of fast track designation for GVHD+9.60%.
  • IT and Telcos better with a few casualties in Codan (CDA) -2.47%, Netcomm Wireless (NTC) -5.60% and Dicker Data (DDR) -2.45% with Nextdc (NXT) +2.93% continuing its renaissance as were Isentia (ISD) +7.07% as bargain hunters and contrarians moved in. Even Telstra (TLS) unchanged attempted a rally then failed.
  • Speculative stock of the day: Some days ago, we wrote of the attractions of the medicinal cannabis sector and recent IPO Creso Pharma in particular. Creso (CPH) +20.78% had another strong day today having doubled since listing now.

CORPORATE NEWS

  • Ardent Leisure (AAD) +3.86% released February numbers for Dreamworld showing a 35% decline from February 2016. This was a better result than January or December with a slow bounce back in tourist numbers. For the month revenue was $4.4m.
  • BHP Billiton (BHP) -0.97% announced the early results of the maxium tender offers as part of the US$2.5bn bond repurchase program. The aggregate purchase of around US$863m of its US$1.25bn 3,25% senior notes.

BOND CORNER

bonds 7

ECONOMIC NEWS

The RBA left rates unchanged as expected with no sign of any movement at the station at all.

Futures markets are not pricing in another move in Australian interest rates until mid-2018, when they expect the RBA to lift its cash rate by 0.25bps to 1.75%.

For the full statement click here but much like last month and probably much like next months.

Highlights

  • Conditions in the global economy have continued to improve over recent months. Business and consumer confidence have both picked up. Above-trend growth is expected in a number of advanced economies, although uncertainties remain.
  • The Australian economy is continuing its transition following the end of the mining investment boom, expanding by around 2.5% in 2016.
  • Financial institutions remain in a good position to lend. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition.
  • There is no longer an expectation of additional monetary easing in other major economies.
  • Inflation remains quite low.
  • Conditions in the housing market vary considerably around the country.

gravity.png

Rising house prices making it hard for RBA to do much.

  • The Ai Group and Housing Industry Association Performance of Construction Index (PCI) rose 5.4 points to 53.1 points in February, from 47.7 points the previous month. A reading over 50 indicates expansion, while a reading under 50 shows contraction.

 ASIAN NEWS

  • The U.S. announced that it unloaded two mobile missile launchers in South Korea to start deployment of its ‘Terminal High Altitude Area Defense’ system. North Korea is continuing to create more tension firing missiles into the sea during the Chinese National People’s Congress. Trump is 100% behind Japanese PM Abe he has said. He wants the ‘Japanese to trust him and the US 100%’.

EUROPE AND US

  • The US Republican party has unveiled the long-awaited legislation to repeal and replace Obamacare. The legislation is in two parts and will move to the two-house committees on Wednesday. Optimism that the new administration is back on track and not
  • The Snap bubble has burst with the new IPO dropping below the opening price down 12% on Monday.
  • The UK North Sea oil industry is in dire need of fresh capital investment to drive activity in the embattled basin beyond 2020 according to a report from Oil and Gas UK. Last year, only two new field development plans were approved, with less than £500m committed. Costs are down from US$29.70 to US$15.30 in the last two years. US$4bn of deals announced since January.

And finally……………

Wife to her Accountant husband:
what is inflation?
Husband:
Earlier you were 36-24-36. But now you are 48-40-48.
Though you have everything bigger than before, your value has become less than before.
This is INFLATION
———————————–
Accountancy fact:
What is the difference between Liability & Asset?
A drunk friend is liability.
But,
A drunk Girlfriend is an Asset.
———————————–
An Economist beautifully explained two reasons for having 2 wives.
A- Monopoly should be broken.
B- Competition improves the quality of service.
If you have 1 wife, She fights with you!
If you have 2 wives, They will fight for you!
Feel the difference & decide
Disclaimer:
Sender is not having any such experience and not responsible for any side effects..
A retiree was given a set of golf clubs by his co-workers. Thinking he’d play golf in his retirement, he asked the local pro for lessons, explaining that he knew nothing whatsoever about the game.

The pro showed him the stance and swing, then said, “Just hit the ball toward the flag on the first green.”

The novice teed up and smacked the ball straight down the fairway and onto the green, where it stopped inches from the hole. “Now what?” the fellow asked the speechless pro.

“Uh… you’re supposed to hit the ball into the cup.” the pro finally said, after he was able to speak again.

“Oh great, now you tell me,” the beginner said in a disgusted tone. “If I knew that, I would have tried that the first time.”

Have a great night

Clarence

XXX

mt_tryforfree

NT Markets

Get a Global take on things at http://www.ntmarkets.com

Advertisements