Lions_Tour_logo_2017

Go the Lions!!!

HIGHLIGHTS

  • ASX 200 struggles to find direction but closes up 10 at 5716 as banks weigh. Big miners and CSL in demand.
  • Big Bank Basket falls from $170.34 to $168.42 or 1.92%
  • ASX 200 falls 84 for the week or 1.02 %.
  • Fallout from the SA government tax levy continues. Un-Australian and perhaps unconstitutional.
  • Ardent Leisure (AAD) -6.57% profit downgrade as US continuing to cause problems. Dividend cut to 1c.
  • Telstra (TLS) +0.69% gain on defensive qualities.
  • CSR +1.65% AGM reveals no great surprise but company warns on higher energy prices. Reaffirms higher profits next year.
  • Dow Futures up 19 at close.

STOCK STUFF

  • Orocobre (ORE) -4.49% after weather related production issues in Argentina.
  • Westpac (WBC) -0.03% bets bank a broker upgrade.
  • Resources bounce as iron ore and oil moves higher. BHP +1.17%, RIO +0.79% but Fortescue Metals (FMG) -0.64% the standout loser.
  • REITs continue to see selling as Dexus (DXS) +0.1% capital raise sucks liquidity out.
  • Infigen (IFN) -4.49% blame wind for profit downgrade with seasonal patterns changing power generation ability.
  • APN Property (APD) +1.30% plans a $175m petrol station float.
  • Chickens really don’t fly. Archer Capital has shelved its $250m initial public offering plans for Craveable Brands a franchisor of 570 restaurants including Red Rooster and Oporto.

TODAY

  • Ardent Leisure (AAD) –6.57% The company has said it will pay a 1c dividend per stapled security for the second half of the year after lower earnings in Australia were not helped by the Dreamworld incident. In the US like for like sales are negative but it is up on the 3rd quarter. Main Event is expected to contribute EBITDA of US$44m-$45m.
  • GR Engineering (GNG) -0.68%The company has lowered its FY17 EBITDA expectations to between $16m to $17m after some payments were deferred from 2017 into 2018.
  • Rio Tinto (RIO) +0.79% has completed the reduction of $2.5bn of its gross debt.
  • Bega Cheese (BGA) – The company gone into a trading halt and announced it will start capital raising of $160m, consisting of $122.5m from an institutional placement and $37.5m from a share purchase plan that will go towards increasing the company’s financial flexibility.
  • Qunitis (QIN) – Still suspended as the company has announced it is in talks with its note holders as it has failed to lodge quarterly reports.
  • Pilbara Minerals (PLS) –unchanged- The company’s board has given the go ahead for the Pilgangoora Lithium-Tantalum Project with major site construction beginning shortly.
  • CSL (CSL) +1.65% The FDA has approved the company’s drug HAEGARDA, a self-administered drug to prevent Hereditary Angioedema (HAE) attacks in adolescents and adults.
  • Orocobre (ORE) -4.49% announced late last night of bad weather disruptions to operations in Argentina. Production will be 11700 – 11800 tonnes of lithium carbonate in FY17 due to the suspension of operations briefly.
  • NAB -0.51% has increased interest only mortgage rates by 0.35% per year and lowered principle-and -interest home loan rates by 0.08% per year effective June 30.
  • Evolution Mining (EVN) -0.41% has commenced mining at Edna Beryl Gold mine with the first new mine in NT for a decade.
  • CSR +1.65% AGM Update- Solid demand for building products. Increased energy costs are exacerbating glass business Viridian with competitive imports. Aluminium exposure hedged with 81% hedged at $2373 per tonne. Earnings for the year expected to be above last year.
  • Downer EDI (DOW)1.66 -% /Spotless Group (SPO) +0.43% Update on takeover with DOW now holding 40.444% of SPO. SPO continues to recommend rejection.
  • Infigen (IFN) -4.49% has downgraded profit expectations due to adverse wind conditions. EBITDA is now expected to be around $136m-$138m. The current quarter is expected to be the lowest production months from the current assets. Below average wind has taken its toll as the seasonal winds have passed to the south.

ECONOMIC NEWS

  • ABS website has ticked over to 24.5m people in Australia.28% of Australians are born overseas.

ASIAN NEWS

  • Crown Resorts (CWN) +0.79% has closed 8 of its Asian offices with implications for international visitors to its local casinos. Seems odd that the group has closed all but its China facing Asian office with potential to disrupt its international take which accounts for around 25% of revenue. The Sydney casino would be a big draw card for Asia visitors so it seems strange to close offices. Strange move.
  • The Beijing banking regulator has ordered a review of the sectors exposure to acquisitive private companies over ‘systemic risk’ Some of the companies singled out for review include Dalian Wanda with interests in Sydney and HNA which owns 13% of Virgin (VAH). According to one analyst, this ‘changes everything’ with Chinese buyers now having to be more cautious with foreign transactions.

EUROPE AND US MORNING Headlines

  • Theresa May has proposed that 3m EU citizens will be allowed to stay in the UK if they have been there longer than five years. The negotiating team has also scrapped an 85-page residence application.
  • Kristin Forbes, a member of the Bank of England’s Monetary Policy Committee (MPC), has warned that there was now “some urgency” for policymakers to lift rates from a record low of 0.25% to keep a lid on inflation and return price growth sustainably to the Bank’s 2% target.
  • The US healthcare bill looks to be under threat again in the senate. Four Republicans refuse to back the plan.
  • Qatar Airways looks to buy 10% stake in American Airlines.

And finally……………..

A father told his 3 sons when he sent them to the university. “I feel

it’s my duty to provide you with the best possible education.

You do not owe me anything for that. However, I want you to appreciate it.

As a gesture of appreciation, please each put $1,000 into my coffin when I die.”

And so it happened. His sons became a doctor, a lawyer and a financial
planner, each very successful financially.

When their father’s time had come and they saw their father in the
coffin, they remembered his wish.

First, it was the doctor who put ten $100 bills onto the chest of the deceased.

Then, came the financial planner, who also placed $1,000 there.

Finally, it was the heartbroken lawyer’s turn.

He dipped into his pocket, took out his cheque book, wrote a cheque for $3,000,

put it into his father’s coffin, and took the $2,000 cash.

He later went on to become a politician.

 

Have a great weekend …good to be back …go on you must have missed this? No…I did!

 

Clarence

 

xxx

mt_tryforfree

NT Markets

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

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