Is this Trump and Kim playing golf?

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On the tapes…

  • ASX 200 falls 8 to 5757.5 as 5800 level fails again.
  • High of 5795 Low 5747. Low volume.
  • Global tensions rise as N. Korea responds to ‘fire and fury’ with a plan on Guam.
  • Gold rallies to AUD1622 on news.
  • Haven assets in demand. Yen Bonds and Gold.
  • Banks give up early gains.
  • Morrison calls CBA ‘epic fail’.
  • Miners slip, RIO ex dividend.
  • Retails stocks hurt by NCK comments on outlook.
  • TLS gains on defensive buying.
  • AGL shows how to ride energy wave.
  • AMP disappoints yet again.
  • ALL hits jackpot.
  • AUD slips slightly to 78.76c
  • US Futures down 30.
  • Asian markets catch Korean flu. China CSI 300 down 0.70% and Japan -0.02%

 

STOCK STUFF

  • BAL +7.80% momentum continues after licence restrictions lifted.
  • WSA +5.83% on nickel price rise.
  • BGA -0.15% fails to fire despite latest breakthrough on Vegemite.
  • IGO +5.05% commodity rises spurs rally.
  • MSB +3.45% the recent recovery continues.
  • NCM +3.83% gold price rise on Korean tensions rising.
  • MLX +5.42% copper price rise.
  • VOC -5.83% wobbles on large volume. Looks suspicious.
  • SDA -3.03% slips after recent rally.
  • IRI -3.96% downtrend continues.
  • MYX +3.36% bargain hunting.
  • CAR +4.04% momentum from results yesterday.
  • YALRA -77.78% capital raising undertakings.
  • MHJ -2.01% retail woes continue.
  • WOW -0.82% ACCC has issues with BP’s acquisition of petrol sites.
  • Speculative stocks of the day: BIG UN (BIG) +20.22% – This is a video advertising platform and today announced that revenue for Q1 to be around $12.5m. Big jump in the numbers. US sales are exceeding expectations and July was a record month.
  • Biggest risers – ORA, BAL, VAH, WSA, IGO, MLX and FNP.
  • Biggest fallers – NCK, VOC, SSM, IRI, MFG, AMA and PPH.

TODAY

  • AMP (AMP)-2.59% released its first half report this morning. Revenue came in at $7,610m, up 25% and Australian wealth protection earnings were also up 11% on pcp, reflective of the steps taken to stabilise the business in 2H 16. 1H 17 interim dividend has been declared at 14.5 cents per share, franked at 90%, representing a half year 2017 dividend payout ratio of 79% of underlying profit. AMP has also confirmed two new reinsurance deals that will release $500 million in capital from its life insurance arm.
  • AGL Energy (AGL) +1.88% announced its interim results, revenue came in at $12,584m, up 12.9% and FY17 underlying profit after tax is expected to be in the upper half of $720-800m guidance range. Second half dividend has been declared at 50c.
  • Orora Limited (ORA) +9.16% announced another strong operating result for the full year ended 30 June 2017, delivering double-digit underlying NPAT, EBIT and EPS growth for the third consecutive year. NPAT up 14.4% to $186.2 million, EBIT of $302.3 million, up 11.1% and EPS up 14.6% to 15.6 cents.
  • Origin Energy (ORG) -1.68% anticipates an impairment charge of approximately $1.2bn (post tax) for 2H17. Results out on 16 August.
  • Aristocrat Leisure (ALL) +2.21% announced the purchase of Israel-based social gaming co. Plarium for US$500m, the move is aimed at increasing the company’s digital presence. The company has said it will fund the acquisition via existing cash and a US$425m 7-year debt facility. Looks like a good acquisition.
  • Nick Scali (NCK) -8.41% today reported a record net profit after tax of $37.2m, an increase of 42.4% on pcp. The 15% increase in sales revenue to $232.9m for the year was due a combination of same store sales growth of 10% and the contribution of new stores opened during FY16 and FY17. The final dividend has been declared at 20c per share, bringing total dividends for the year to 34c and the pay-out ratio for the full year to 74%.
  • Virgin Australia (VAH) -5.71% FY17 results improved on FY16, statutory Loss after tax came in at $185.8M, still a beat on FY16 where the loss was $224.7m. The improvement reflects some positive results from a restructuring program designed to cut costs and improve cash flow. No dividend has been declared.
  • Magellan Financial Group (MFG) -3.59% has reported full year results today. Average funds under management lifted 16% to $45.7bn with management and services fee revenue also up 15% to $307.2m. The company has announced a final dividend of 47.2c per security.
  • Pepper Group (PEP) +2.92% has accepted a $657m takeover offer from private equity firm KKR. The bid at 360c is worth 5% more than yesterday’s closing price. Shareholders will also receive a 3c dividend, and be given the option to accept an equity alternative to retain an interest in Pepper.
  • APN Outdoor Group (APO) –unchanged- has managed to keep its Adelaide metro contract which it has held since 2005. The contract is for 900 busses, 24 trams and 136 train cars.
  • Ariadne (ARA) +1.94% has raised its shareholding in Ardent Leisure (AAD) -0.50% to 10.9%. Results tomorrow.

ECONOMIC NEWS

  • RBNZ keeps rates on hold.
  • A consortium comprising Macquarie Infrastructure and Real Assets and one of Canada’s largest public- sector pension funds has agreed to pay $1.6bn for SA’s lands titles registry and land services unit.

BOND MARKET UPDATE

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ASIAN NEWS

  • Chinese steel futures are trading near a 4-1/2-year high as investors remain bullish ahead of production cuts in the world’s top steel producer. The most-active rebar on the Shanghai Futures Exchange was up 1%.
  • China Mobile proposed a special dividend on Thursday to mark the 20th year since its Hong Kong listing after first-half profits at the state-owned telecommunications group beat expectations.
  • Wanda Hotel, a Hong Kong-listed subsidiary of Dalian Wanda, surged as much as 41% on Thursday after the company announced an asset restructuring plan.

 EUROPE AND US MORNING HEADLINES

  • K. factory output for June and French industrial production are due today. Mais oui.
  • The US SEC has delayed approval for a takeover of the Chicago Stock Exchange by a consortium led by China’s Chongqing Casin Enterprise Group.
  • Worldpay’s CEO has admitted that its GBP9.3bn acquisition by US rival Vantiv will “inevitably” lead to job losses among its combined 8,700 work force.
  • Darling be careful. Former UK Chancellor has warned about complacency 10 years on from the GFC. “The next crisis will probably come from somewhere it wasn’t really expected, from causes that haven’t yet been identified” Thanks Darling.

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And finally….

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A successful stockbroker parked his brand-new Porsche in front of his office, ready to show it off to his colleagues.

As he got out, a truck passed too close and tore off the door on the driver’s side.

The stockbroker immediately grabbed his cell phone, dialed 911, and within minutes a policeman pulled up.

Before the officer had a chance to ask any questions, the stockbroker started screaming hysterically. His Porsche, which he had just picked up the day before, was now completely ruined.

When the stockbroker finally wound down from his ranting and raving, the officer shook his head in disgust and disbelief. “I can not believe how materialistic you stock brokers are,” the cop said. “You are so focused on your possessions that you don’t notice anything else.”

“How can you say such a thing?” asked the stockbroker.

The cop replied, “Don’t you know that your left arm is missing from the elbow down? It must have been torn off when the truck hit you.”

“My God!” screamed the stockbroker. “My Rolex!”

Clarence

XXXX

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NT Markets

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