- ASX 200 flip flops closing up 28 points to 5785.
- Afternoon rally in banks and TLS.
- Better volume today at over $6bn.
- High 5785 Low 5729.
- Results in focus as CBA accounts for 13 points due to ex-dividend.
- Banks lead market with telcos. Miners slip on profit taking.
- DMP bounces. CSL, SEK and CPU disappoints.
- Industrials firmer. TLS continues to rally.
- AUD relatively stable at 78.38c.
- US Futures up 2.
- Asian markets becalmed with China down 0.21% and Japan up 0.02%
- SEK -3.20% a miss on earnings.
- CPU -3.25% on weak corporate action revenues
- AOG +11.11% doubles profit and adopts new practices.
- SGP -0.91% warns on electricity prices.
- FXJ +0.50% Hywood says FXJ is in great shape.
- ORG +5.40% big write down and no div cheers.
- WPL +2.61% relief rally as results beat estimates.
- SWM -2.53% big write downs and Worner misses bonus.
- CSL -1.50% missed guidance. No more buy backs next year.
Movers and Shakers
- BHP +0.23% Elliott Management has raised its stake to 5%.
- MSB +5.80% after good clinical results.
- WHC +3.70% results tomorrow. Coal price strength.
- BLA +3.64% broker upgrades following good results yesterday
- DMP +7.23% bouncing after heavy falls.
- ARB +6.12% results positive.
- FLT +2.43% shorts continue to be squeezed.
- CGF -2.83% broker downgrades.
- PME -2.24% negative sentiment back again.
- CAR -2.84% broker downgrades after results.
- BAL -1.85% profit taking.
- ISU -13.37% misses estimates.
- MLX -4.19% suspends Nifty operations.
- NWH -5.79% profit taking after recent placement.
- Speculative stocks of the day: Fastbrick Robotics (FBR) +51.43% a MOU signed with the Kingdom of Saudi Arabia. FBR has a unique 3D printing and brick laying machine called Hadrian X.
- Biggest risers – AOG, MOE, DMP, MSB, ORG, IVC and JBH.
- Biggest fallers – PME, CPU, CGF, CAR, RRL, MYX and MLX.
- Fletcher Building (FBU) +0.66% has released their full year earnings today. Revenue came in at NZ$9.4bn, up 4%. Underlying operating earnings for the year was down 23% at NZ$525m. Performance was hit by the Building and Interiors business unit within the Construction division, which reported a NZ$292m loss during the year. A final dividend of 19c per share was declared, bringing the total dividend for the year to 39c.
- Iluka Resources Limited (ILU) +1.08% The Company has announced a loss after tax for the half-year ended 30 June 2017 of $81.5m, compared with a loss of $20.9m for the previous corresponding period. A major factor contributing to the loss was the non-cash impairment charge of $151m pre-tax for the Hamilton mineral separation plant (MSP), which will be placed on care and maintenance from October 2017
- Westfield Corp. (WFD) +1.85% has reported its first half earnings today. Revenue came in at US$987.6m, up 18%. Net profit rose 19.9% to US$588.9m. A first half distribution was declared at US$0.1275.
- InvoCare (IVC) +4.58% has reported first half sales of $218.2m, up 1.7% and EBITDA of $51.9m, up 9.9% on the previous corresponding period. The company’s operating margin lifted 1.8bps to 23.8% and has declared a first half dividend of $0.185. Net profit came in at $41.7m, up 50%.
- Seven West Media (SWM) –2.53% has reported full year revenue of $1.68bn, down 2.8%, and a net loss of $745m. Underlying EBIT came in at $261.4m, within guidance. The company recognised $988.8m of significant items which predominantly reflect non-cash impairment of the carrying value of intangible assets, and recognition of provision relating to onerous contracts. A fully franked final dividend of 2c brings full year pay-out ratio to 36% of underlying NPAT.
- Woodside Petroleum (WPL) +2.61% A 49% increase in interim profit to US$507m on higher prices and reduced production costs. Total sales fell 3.6% to US$1.87bn. Focus on growth is helping sentiment.
- CSL Limited (CSL) -1.5% FY17 Revenue up 13.2%, NPAT up 23.8%, EPS grew 26%. Total dividend up 8% to A$1.36.
- Computershare (CPU) –3.25% FY Revenue up 10.6%, EPS up 3.5%, final dividend of 19c. FY18 EPS guidance increase of +7.5%. Top line results were strong although the stock has fallen today on the weakest corporate actions revenues since 2005.
- Sonic Healthcare (SHL) +2.21% FY17 in line with guidance. Underlying revenue up 5.8%, underlying NPAT up 4.4%. Focus remains on costs with a pipeline of further acquisitions robust. In line but a quality healthcare play offering good regional diversification. Uptrend to continue.
- Origin (ORG) +5.40% A statutory loss of $2.2bn on the back of a non-cash impairment charge was three times larger than losses a year earlier. EBITDA up 49% to $2.53bn due to an improvement in electricity and gas portfolios. And a $1bn reduction of debt. There was no final dividend.
- Pact Group (PGH) -5.68% Full year revenue has been reported this morning at $5,122m, up 5.8%. EBITDA came in up 5.3% to $869m and net profit was also up 4.4% to $428m. A second half dividend has been declared at $0.46c, up 4.5%. Outlook statement a little weaker. ‘Challenging’ was mentioned.
- Seek Limited (SEK) -3.20% Full year net profit came in at $340.2m, down 5% due to one off gains being higher in FY16. Reported Revenue was $1,036.4m, (pcp $950.4m) and reported EBITDA came in at $362.3m, (pcp $366.7m). A second half dividend has been declared at $0.21 per share, (growth of 11% vs pcp).
- Dexus (DXS) +0.10%has announced an increase in net profit of 0.3% to $1.26bn in the 12 months to June, while its funds from operations increased by 1.1% to $617.7m. The earnings result was achieved despite net valuation gains on its property portfolio in the year falling short of the previous period by $109.7m. A distribution $0.45 has been declared, up 4.5% on FY16.
- BWX Limited (BWX) -2.88% Full year revenue has been reported at $72.7m, representing a 34% increase compared to FY16. Net profit came in at $13.4m, up 11.7% on FY16 and EBITDA is also up, 30.7% to $26.4m. Notably, Sukin branded product sales were up 53.9% on pcp at $62m. A final dividend has been declared at 4.2c per share.
- Wage price data for the June quarter met expectations set by economists. Wages were up 0.5% in the quarter to be up 1.9% over the year. Public sector wages grew 0.6% in June to be up 2.4% over the year. Private sector wages were up 0.4% in June, up 1.8% on year.
BOND MARKET UPDATE
- Steel and iron ore futures have slipped for a fourth session. The most-active rebar on the Shanghai Futures Exchange is off 0.5% at 3,727 yuan ($US558) a tonne, while iron ore on the Dalian Commodity Exchange is down 0.4% at 523.50 yuan a tonne.
- China has reclaimed its position as the largest holder of US Treasuries, displacing Japan which had held the top spot since October.
- The IMF issued its annual review of China on Tuesday, and has revised its growth forecast to 6.7% for 2017, which was up from 6.2%. The organization also said it expects China to average 6.4% growth between now and 2021, versus its previous estimate of 6%. Debt-fueled growth, the IMF warned, is a short-term solution that isn’t sustainable in the long run unless China tackles deeper structural issues.
EUROPE AND US MORNING Headlines
- Spain is back. Finally. Satellite images show 250 cranes currently deployed in Madrid, a 5% increase from a year earlier, as builders respond to demand for new houses. Good to see after housing starts dropped 96% from the 2006 peak to a trough in 2013, due to the GFC and banking crisis in Spain. Positive sign for European growth.
On their way to get married, a young Catholic couple is involved in a fatal car accident. The couple found themselves sitting outside the Pearly Gates waiting for St. Peter to allow them into Heaven. While waiting, they began to wonder: Could they possibly get married in Heaven? When St. Peter showed up, they asked him.
St. Peter said, “I don’t know. This is the first time anyone has asked. Let me go find out,” and he left.
The couple sat and waited, and waited. Two months passed and the couple were still waiting. While waiting, they began to wonder what would happen if it didn’t work out; could you get a divorce in heaven?
After yet another month, St. Peter finally returned, looking somewhat bedraggled. “Yes,” he informed the couple, “You can get married in Heaven.”
“Great!” said the couple, “But we were just wondering, what if things don’t work out? Could we also get a divorce in Heaven?”
St. Peter, red-faced with anger, slammed his clipboard onto the ground. “What’s wrong?” asked the frightened couple. “OH, COME ON!,” St. Peter shouted, “It took me three months to find a priest up here! Do you have any idea how long it’ll take me to find a lawyer?”