skybiz

Catch ‘Clarence’ on Sky Biz now on Tuesday at 5.30pm and Wednesday at 12.00.

Today’s highlights!

  • ASX 200 jumps 62 points to 5818 on window dressing and solid buying.
  • Banks and miners lead the charge. Cash being put to work.
  • Energy stocks rally strongly.
  • Big Bank Index rallies to $173.93. Insurers trail.
  • REITs, Utilities and infrastructure go ex-dividend.
  • Miners in demand even gold miners perk up.
  • Retail stocks rally slightly.
  • AUD pushes ahead to 76.56c
  • US Futures up 34.
  • Asian markets follow US, CSI 300 up 0.23%.

Stock Stuff:

  • SRX +4.24% Short covering on broker upgrades.
  • LNK +6.07% Impresses with acquisition and capital raise.98% insto uptake.
  • QAN +4.64% Broker upgrades continue.
  • WOR +3.93% Doing well on oil price rise.
  • MIN -3.52% Profit downgrade on lower iron ore price.
  • FMG +2.76% Continues top power ahead on iron ore price rises.
  • REA -0.77% Disappoints market with $180m write off in Asia.
  • AOG -3.16% Ex-dividend but question marks now on trading activity.
  • BIG +14.58% Q4 revenue guidance.
  • AGO +7.69% Awakens from slumber on iron ore rise.
  • CKF +5.17% Continues to find favour after KFC deal.
  • Biggest risers – EWC, LNK, WSA, GXL and CKF.
  • Biggest fallers – MYR, VAH, ING, YAL and BOC. (ex-divends excluded)

TODAY

  • Newly merged group Afterpay /Touch Corp began life today as APT +8.00%.
  • Cabcharge (CAB) +4.27% An agreement to sell a 49% interest in Cityfleet Networks for GBP 7.9m to its JV partner in the UK.
  • Link Administration (LNK) +6.07% Completion of institutional entitlement offer raising around $700m at 675c. 98% take up rate and the shortfall book build cleared at 770c a 95c premium to the offer price and a 16c premium to the TERP. The retail offer opens 5th July
  • Downer EDI (DOW) –2.55% now has 60.072% of Spotless (SPO).
  • REA Group (REA) –0.77% A $180m impairment charge will be taken by the company following a review of its assets. The charge relates to its Asian business and reflects a downturn in market conditions in Asia. The impairment has no effect on current trading conditions and the group is in compliance with its banking covenants.
  • Meanwhile Domain (FXJ) -1.23% has entered a JV with online home loan broker Lendi. Domain will own 60% for an undisclosed price.
  • Prime Media (PRT) +5.80%A trading update this morning following changes to the licence fee environment yesterday. The company has advised that core net profit was in line with the trading update in April. NPAT is expected to be between $29.5m and $31m. After the fee changes the company expects a number of between $33.5m and $35m.
  • Slater and Gordon (SGH) –4.35% A recapitalisation agreement has been reached with 75% of its lenders by value and 50% by number. Under the complicated deal, the company will have a sustainable level of senior secured debt and a stable platform for its operations in Australia and the UK. The new lending group will emerge as a 95% owner of the equity and a process of board and management renewal will take place. Andrew Grech (CEO) will be stepping down with immediate effect but will remain a director.
  • RIO -3.34% Shareholders have approved the sale of the coal assets to Yancoal.
  • Monadelphous (MND) -2.51%The company has responded to media speculation that it is looking for an acquisition of a civil engineering business. The company said that it continues to pursue opportunities to diversify its business when appropriate.
  • Pilbara Minerals (PLS) +2.67% after a ore reserve upgrade at Pilgangoora. 15% increase in proven and probable reserves to 80.3mt grading 1.27% Li2O 123ppm Ta2O.Opportunities for further expansion.
  • Mineral Resources (MIN) +% announced a late profit downgrade due to a lower iron ore price. Profit EBITDA no win the range of $460m-$480m. This contrasts with previous estimates of $480- $520m previously.

ECONOMIC NEWS

  • New home sales rose in May to record a second consecutive month of improved housing activity.
  • Strong gains in NSWand Queensland drove the result in the latest Housing Industry Association report, while a 2.2% increase in detached house sales was offset by a 2.6% drop in unit sales.
  • Job vacancies rose 1.7%in the three months to May. The number of positions employers were seeking to fill rose to 189,200 in the May quarter, the majority of those in the private sector according to the ABS.
  • ANZ has sold some of its holdings in South Australian government bonds following the introduction of its recent bank tax, citing the higher risk of financing the state government. Take that gonna take our bat and ball and go home!

ASIAN NEWS

  • Singapore’s central bank says not yet time to ease property curbs.
  • Renminbi hits its strongest level in 7 months as USD weakens. Xi Jinping makes first visit to HK to mark 20 years since the handover.
  • Iron ore futures in Dalian are surging again up 4.2% today as shortages emerge of high grade material and steel mills are actively buying.
  • Whilst most of the focus is on Tesla, China has quietly planned to build huge capacity in battery technology. Chinese companies plan for additional factories with the capacity to pump out more than 120 gigawatt-hours a year by 2021. By comparison Tesla Inc.’s Gigafactory will crank out up to 35 gigawatt-hours of battery cells annually.

battery.png

  • Telsa produced nearly 84,000 vehicles in 2016 and has said it plans to make 500,000 in 2018. China’s plans to flood its roads with 5m electric vehicles by 2020.

EUROPE AND US MORNING Headlines

  • Bank of England head Mark Carney has said that higher interest rates will be “necessary” if UK businesses shrug off Brexit uncertainty and raise investment and wages against a brighter global backdrop.
  • The number of cars rolling off UK production lines in May fell, as demand among British motorists for new vehicles fell.
  • Official data from the Society of Motor Manufacturers and Traders (SMMT) showed 136,119 new cars built in May, down 9.7% on the same month last year.
  • This story is going to get a bigger run at some stage. In the UK, the industry watchdog, the FCA, has proposed sweeping changes to the fund manager industry. Following a two-year investigation, the FCA has called for a ‘all-in-fee’ that would include trading costs. The industry has been lobbying against this move for some time. Other proposals include establishing standardised benchmarks that will allow investors to easily compare funds.

And finally……………..

A teacher asks her class, “What do you want to be when you grow up?”

Little Johnny says “I wanna be a billionaire, going to the most expensive clubs, take the best bitch with me, give her a Ferrari worth over a million bucks, an apartment in Hawaii, a mansion in Paris, a jet to travel through Europe, an Infinite Visa Card and to make love to her three times a day”.

The teacher, shocked, and not knowing what to do with the bad behavior of the child, decides not to give importance to what he said and then continues the lesson.

“And you, Susie? ” the teacher asks. Susie says “I wanna be Johnny’s bitch.”

Its Thursday and I love this picture!!!

blue-and-lonesome

Clarence

 

XXXX

 

mt_tryforfree

NT Markets

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

Advertisements