Yo !

ASX 200 closes 23.5 points higher to 5708 in thin trading after a closing flurry. Bargain hunters out in miners, consumer stocks and industrials after yesterday’s sell off. Financials and telcos fail to inspire though. Asian markets modestly higher with Japan up 0.08% and China up 0.4%. AUD 76.57c and US Futures up 29.

STOCKS AND SECTORS

  • Miners struggled a little though BHP +1.13% on the better oil price, RIO unchanged and Fortescue Metals (FMG) -0.16%. Base metals South32 (S32) +3.77% and even Orica (ORI) +1.55% together with Incitec Pivot (IPL) +1.86%
  • Gold miners gave back recent gains as money moved back into base metal miners. Evolution Mining (EVN) -3.18%, St Barbara (SBM) -0.77% and Silver Lake (SLR) -3.88%.
  • Energy green on screen with Origin Energy (ORG) +2.13%, Oil Search (OSH) +2.20% and Santos (STO) +1.39%. Coal stocks also perked up with Whitehaven (WHC) +2.57% and New Hope (NHC) +0.56%
  • Banks and financials remain underwhelming though stable with the Big Bank Basket $178.92 with insurers mixed as Medibank Private (MPL) -0.70% and others tread water. QBE Insurance (QBE) +0.16% and Suncorp (SUN) -unchanged.
  • Industrials found bargain hunters happy to step in with A2Milk (A2M) +2.36% to an all-time high. Australian Agriculture (AAC) +3.92% doing well as China and Australia look to beef deals. Bellamy’s (BAL) +1.99% continued the revival together with BWX +3.18% and Blackmores (BKL) +1.03%. Other consumer stocks also in the frame with JB Hi-Fi (JBH) +3.41% a stand out. Some short covering too in Domino’s Pizza (DMP) +3.41%.
  • Healthcare sparked back into life with ResMed (RMD) +1.64%, Ansell (ANN) +1.74% and Mayne Pharmaceutical (MYX) +3.16%
  • IT and Telcos remain a weak spot as Telstra (TLS) -0.66%, TPG Telecom (TPM) -2.06% and Speedcast (SDA) -1.39%. Tech stocks going nowhere as Carsales (CAR) -2.15%, Xero (XRO) -1.13% and Hansen Technologies (HSN) -2.31%.
  • Speculative stock of the day: Bard1 Life Sciences (BD1) +60.00% on large volume following news on a successful Ovarian Cancer study showing positive test results for the BARD1 test for cancer.

CORPORATE NEWS

  • Story of the Day: Quintis (QIN) -13.36% the stock formerly known as TFS has responded the research report form a US research house denying any issues. However, the market seems under impressed with the company still.
  • iSentia (ISD) -1.33% continues its falls with news that the CFO has resigned. It is now down 50% for 2017.
  • Sigma Pharmaceuticals (SIP) +2.50% lifted its profits by 5.3% to $53.18m with guidance reaffirmed for at least a 5% growth. It also said it would conduct a buyback for another 10%.
  • Brickworks (BKW) +0.07% reported a net profit of $104.1m up from $76.9m. Earnings rose to 69.8c from 51.8c Dividend is 17c. Conditions in WA have stabilised but the downturn has resulted in a mothballing of some brick production.
  • Catapult (CAT) +10.70% after announcing a deal in the Major Baseball League (MLB) as an approved vendor for GPS-based wearables for in game use.

BOND CORNER

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ECONOMIC NEWS

  • New Zealand’s central bank held its benchmark rate at a record low of 1.75% with forecast of inflation of below 2%.

ASIAN NEWS

  • Seems overseas investors are more keen on Chinese high yield (Junk) bonds than local investors. Seems the export miracle is not just confined to manufacturing. Rates on dollar junk notes from the nation have dropped 81bps this year to 6.11%, near a record low. Property developers, have sold US$6.1bn of dollar bonds since Dec. 31, a record quarter.

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  • Iron ore futures have fallen another 1.3% in Asian trade and Steel Rebar down 0.3%. Futures have now lost more than 21% since its record high last month fuelling a 10% fall in real prices.

EUROPE AND US

  • Remember Sears, a US household name, well they are in serious trouble as the stock fell hard again last night on ‘substantial doubt’ about its future. The shares had gained more than 60% since Feb on hopes for a turnaround but last night it fell 16% as hope left the building..
  • AzkoNobel a Dutch chemical company, has rejected a second takeover bid from American rival PPG Industries worth almost GBP20m. It now faces a shareholder revolt as some believe that it should at least engage with the US bidder.

And finally…..

 

from the net…love this…

elton

There was this guy who was married to a blonde, and each night he came home with a new blonde joke. One night the wife got mad and decided to show him that she wasn’t dumb. She spent the whole next day learning all her states and capitals. That night when he got home he told his joke. She says, “I’m not so dumb. I know all of the states and capitals. Go ahead, quiz me.” He thought for a moment and asked, “What is the capital of Massachusetts?” She quickly replied, “M”!

 

Clarence 

XXXX

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NT Markets

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