End of Day

ASX drops 53 points to 5837 as banks, telcos and miners suffered heavy selling. TPG Telecom returned from the capital raising battered and bruised. Asian markets slightly positive with Japan up 0.31% and China up 0.14%.AUD 75.59c and US Futures unchanged.

STOCKS AND SECTORS

  • Miners hit by the slide in iron ore once again in the Asian time zone. BHP -1.56%, Rio Tinto (RIO) -1.94% and Fortescue Metals (FMG) -7.45%. Base metals also took fright with South32 (S32) -1.41%, Oz Minerals (OZL) -4.21% and Independence Group (IGO) -4.56%.
  • Energy slid too with Woodside (WPL) -0.42%, Santos (STO) -3.16%, Oil Search (OSH) -2.00% and Origin Energy (ORG) -1.60%. Coal stocks on the nose Whitehaven (WHC) -2.35% and New Hope (NHC) -4.11%.
  • Gold miners hit hard as tensions with Korea eased slightly. Resolute Mining (RSG) -12.45%, Saracen Mineral (SAR) -4.61%, Beadell Resources (BDR) -10.53% and Silver Lake (SLR) -7.21%
  • Industrials saw selling across the screens, Wesfarmers (WES) -1.42%, Woolworths (WOW) -0.42% with mining services Downer EDI (DOW) -%3.52. Building products were a rare glimpse of green today as Dulux Group (DLX) +2.35%, Boral (BLD) +0.86% and James Hardie (JHX) +0.53%. Discretionary retailers saw heavy selling with JB HI-Fi (JBH) -2.36%, Greencross (GXL) -2.15% and RCG Corporation (RCG) -9.00%
  • IT and Telcos came in for serious selling pressure as TPG Telecom (TPM) 15.95-% came back after suspension dragging Vocus Group (VOC) -3.43% and Telstra (TLS) -3.85%. Amaysim (AYS) -9.52% gave up the recent gains after the company announced its move into the energy market. In IT winners were rare but Nextdc (NXT) +3.32%, Carsales (CAR) +0.81% and Computershare (CPU) +0.65% all bucked the day’s sell off.
  • Healthcare a slight safe haven as CSL +0.57%, Fisher and Paykel (FPH) +0.89% and Resmed (RMD) +1.33%.
  • Financials and banks sold off with the big four down around 1% with the Big Bank Basket down to $184.51. Insurers slid slightly with Suncorp (SUN) -0.74% and Medibank Private (MPL) -0.70%. REITs down too as Scentre Group (SCG) -0.44%, Mirvac Group (MGR)-0.85% and Growthpoint Property (GOZ) -unchanged.
  • Speculative stock of the day: Thred (THD) +18.18% has now received Apple and Google approval for its Native Thred Thred is a social messaging platform which allows users to connect and share content in one simple app.

CORPORATE NEWS

  • Newcrest (NCM) -4.58% after a seismic event on Good Friday. The company said there was no ‘major damage’ but inspections are ongoing. Cadia is not expected to meet its production guidance for the 2017 financial year now. It is too early to be definitive about the impact on the group’s production guidance for the 2017 financial year. Newcrest produced 1.23m ounces in the first half of fiscal 2017, putting it on track to meet its full year production target of between 2.35m and 2.6m ounces.
  • South32 (S32) -1.41% announced it was no longer proceeding with the proposed acquisition of the Metropolitan Coal mine and a 16.67% interest in Port Kembla Coal Terminal, from Peabody.
  • OFX -5.00% after the resignation of the CFO.
  • Hub 24 (HUB) +9.15% after an update on FUA at $4.71bn and record Q3 inflows up 29%.

BOND CORNER

bonds 18

ECONOMIC NEWS

  • The minutes of the RBA April board meeting specifically mentioned the need to pay heed to both ‘housing and jobs’.

RBA Financial Snapshot

rba snap

 

  • ME Bank, which is owned by 29 industry funds, is the latest bank to ban some investors and interest-only borrowers as lenders’ respond to growing regulatory pressure and changing market conditions. ME Bank announced it no longer accepts investor home loans with a loan to value ratio of more than 90%.

ASIAN NEWS

  • Iron ore futures on the Dalian exchange dropped 2.4%, after sliding almost 3% on Monday.

EUROPE AND US

  • The US has admitted that the tax reforms will take longer than anticipated given the issues with rolling back Obamacare.
  • Weetabix is set to be gobbled up by US cereal giant Post Holdings in a GBP1.4bn deal. China’s Bright Foods bought the UK business five years ago for GBP1.2bn. Declining sales and profits have knocked the valuation recently with sales down 2% and profits down 13%.
  • UK inflation continues to move higher with 2.3% rise this year and more to come. A recent survey showed 82% of businesses now plan to offset higher prices by increasing charges to customers, while 48% said they will hunt for cheaper suppliers and 31% said they are considering changes to the way products were made.

inflkation

 

And finally………………

A guy goes to the supermarket and notices an attractive woman waving at him.

She says hello. He’s rather taken aback because he can’t place where he knows her from.

So he says, “Do you know me?”

To which she replies, “I think you’re the father of one of my kids.”

Now his mind travels back to the only time he has ever been unfaithful to his wife and says, “My God, are you the stripper from my bachelor party that I made love to on the pool table with all my buddies watching while your partner whipped my butt with wet celery?”

She looks into his eyes and says calmly, “No, I’m your son’s teacher.”

 

 

 

A bum asked a man on the street for $5.

“Will you buy booze?” the man asks, to which the bum replied, “No.”

“Will you gamble it away?”

Once again, the bum replied, “No.”

“Will you make bets at the golf course?”

Once again, the bum replied “No, I don’t play golf.”

“Will you go to a dance?”

“No, I don’t dance either.”

Then the man says, “Tell you what, I’ll give you the $5 if you come home with me so my wife can see what happens to a man who doesn’t drink, gamble, play golf or dance.”

 

Clarence

XXXX

 

mt_tryforfree

NT Markets

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