On the tapes…
- ASX 200 rises 53 points in thin trade to 5774.
- High of 5782 Low 5730.
- Bank holiday in NSW.
- CBA responds to allegations.
- Big miners in demand. Golds weaker.
- Banks bounce 1%.
- REITs back in favour.
- Industrials and infrastructure better.
- Diggers and Dealers kicks off in WA.
- Iron ore futures up 7% in Chinses trade.
- AUD rises on data to 79.40c.
- US Futures up 51.
- Asian markets better with Japan up 0.57%; China up 0.05%.
- MYX +5.33% rebounds after recent falls.
- TAH -1.15% results reaction.
- PGC +11.11% EBITDA up 41% to $17.1m. Record margin of 14.7%
- SPL +9.21% Phase III trial success for Vivagel.
- AGO +9.52% Iron ore price driving rise.
- ZML +12.68% Westpac invests $40m in company.
- CWN -4.27% continues to fall following disappointing results last week.
- SGM +2.01% rebounds after executive departures.
- LYC +7.14% rally continues.
- PME -2.64% weakness resumes.
- Biggest risers – BAL, BSL, LYC, MYX, STO, MTR and MSB.
- Biggest fallers – CWN, AGI, ASB, BIN, WEB and GXY.
- Capilano Honey (CZZ) -1.52% NPAT up 9% to 10.335m Final dividend 40c. the company is very optimistic of the potential for increased honey production in the coming season, starting from spring 2017.
- Mantra Group (MTR) +5.54% The hotel group has bought the Art Series Hotel Group in a $52.5m acquisition. The acquisition involves 7 properties and 1000 hotel suites and apartments. The deal will be funded by cash and a debt facility. The deal is expected to contribute $7m in underlying EBITDA. After The Chen in Box Hill opens in November 2017, that number will rise to between $8.5m-$9m. Results on 29th August.
- Woodside Petroleum (WPL) +1.31% another gas discovery off the coast of Myanmar. The Pyi Thit-1 well, which was drilled to a total depth of more than 4.5 km lies close to a discovery made early last year in the southern part of Woodside’s extensive acreage in the Rakhine Basin.
- ANZ Job Ads rose 1.5% m/m in July. Total ads are now up 6.5% this year. Annual growth picked up from 10.5% in June to 12.8% this month.
BOND MARKET UPDATE
- Chinese rebar steel futures have surged as much as 7% to their highest level in more than four years.
- Iron ore futures have also jumped more than 7%.
- The Chinese government has called on steel producers to halve output in four northern provinces, Hebei, Shanxi, Shandong and Henan, as well as Beijing and Tianjin, during the peak winter heating months around late November to late February.
- Changzhou Youon Public Bicycle System is set to become the first listed bike-sharing company in China following a public float that aims to raise US$96m, valuing the company at US$384m.
EUROPE AND US MORNING Headlines
- Brexit negotiators attempting to push through divorce payment during summer holiday lull.
- The European parliament is preparing to toughen the euro clearing business after Brexit.
- Elliott Advisers (BHP’s friends) discloses 6% stake in NXP, signals it will fight Qualcomm to raise its US$37bn for the company.
- Sprint Corp. has resumed preliminary talks about a potential merger with T-Mobile US.
Have a great evening