- ASX 200 flip flops again closing down 6 at 5780.
- High 5806 Low 5767.
- TLS rips up dividend policy.
- Resources shine. Energy sector falls. Banks weaker.
- Healthcare and consumer stocks rise.
- Jobless rate in line at 5.6%
- AUD jumps to 79.44c on US woes.
- US Futures down 9.
- Asian markets mixed with China up 0.35% and Japan down 0.04%
- QBE -7.07% disappointed yet again
- WES +0.29% Coles fails where coal fires.
- TLS -10.62% Dividend slashed.
- WHC +2.08% coal price helps and special div.
- COH +7.17% higher dividend cheers.
- BRG +5.95% Nespresso deal helps.
- EVN +5.31% results and new dividend policy.
- VOC -2.13% write down of $1.5bn. Results next week.
- TTS +2.29% blames weather. Outlook brightens.
Movers and Shakers
- ALL -0.37% on a stronger AUD.
- LYC +7.41% substantial shareholder notice.
- BKL +4.29% new CEO.
- IFL -3.24% profit taking.
- MYX -3.29% falls continue
- DMP -1.75% rally fades as brokers downgrade.
- BTT -2.47% fund managers under pressure.
- ABC +3.18% positive results.
- BUB -7.58% profit taking.
- API +3.26% bounce continues.
- Speculative stocks of the day: 88E +13.79% on big volume following an operations update on its Icewine project in Alaska. Increased acreage and flow testing to recommence next week.
- Biggest risers – LYC, COH, ORE, BRG, BIN, ALY, RFG and CHC.
- Biggest fallers – IRE, TLS, ASL, SRV, SHL, BLX and BTT.
- Treasury Wine Estates (TWE) +3.02% Today announced its annual 2017 financial result, with reported net profit after tax up 55% to $269.1m, earnings per share up 50% to 36.5 cents per share and EBIT up 36% to $455.1m. A final dividend of $0.13 has been declared along with a $300m share buyback.
- Telstra (TLS) –10.62% Profit came in at $3.9bn, down 32.7%, EBITDA lifted 2% to $10.7bn and basic earnings per share came in up 2.8% to $0.325. Telstra expects total dividends in respect of FY18 to be $0.22 cents per share fully-franked, including both ordinary and special dividends. It has declared a final dividend of $0.155 taking the total dividend for FY17 to $0.31 cents per share.
- Evolution Mining (EVN) +5.31% Has announced a net profit of $217.6m, swinging from a loss of $24.3m the previous year. The result reflected record gold production of 844k ounces, and an 11% reduction in all-in sustaining costs to $905 per ounce. EBITDA came in at $713m up 17%.
- Whitehaven Coal (WHC) -2.08% Net profit totaled $405.4m, up from $20.5m a year earlier. Operating EBITDA came in up 219% to $714m. A final dividend hasn’t been declared but the company said it would seek shareholder approval in October for a distribution of 20 cents a share. That would comprise a 14c capital return and a 6c unfranked dividend.
- Cochlear (COH) +7.17% Full year sales revenue came in up 7% to $1.2bn, net profit was up 18% to $223.6m and EBIT was up 20% to $315.6m. A final dividend of $1.40 has been declared. The company has said it expects reported FY18 NPAT of around $240-250M with “currency headwinds expected to moderate strong underlying business growth.”
- Tatts Group (TTS) +2.29% Full year revenue was down 5.1% to 2.8bn, statutory net profit after tax was also down 5.7% to $220.5m. A final dividend of $0.08 has been declared, unchanged from FY16.
- QBE Insurance (QBE) -7.07% Net profit increased 30% to US$345m in the first half, after falling sharply to US$265m a year earlier, mostly due to low interest rates and reduced insurance pricing. Cash earnings lifted 30% to US$374m and revenue was up 5% to US$8.2bn. An interim dividend of $0.22 has been declared. No surprise here after the recent announcement in July trading update.
- IPH Limited (IPH) +2.42% Revenue was up 17.9% to $182.04m. Statutory net profit after tax for the year was $42.9m and compares to $38.8m in the previous corresponding period. EBITDA came in at $68.7m up 15%. A final dividend of 10.5c has been declared.
- Blackmores (BKL) +4.29% has a new CEO. Richard Henfrey the previous COO and will replace Christine Holgate.
- July employment data indicated better than expected headline employment growth +27,900, although full time job growth was lower but expected, after large gains in the past two months -20,300. Part time came in higher +48,000.
BOND MARKET UPDATE
- Pigs do fly. The world’s largest pork producer WH Group has joined the Hang Seng and has hit a record high.
- Philippines Q2 GDP edges up to 6.5%.
- Tencent jumps 2.9% on Q2 earnings beat.
EUROPE AND US MORNING Headlines
- ECB minutes today. UK retail sales.
- Ireland’s finance minister said the European Commission’s demand that Dublin collect up to €13bn in back taxes from Apple was unjustified. The Irish government has said it will collect the money pending an appeal of the ruling by Apple. The money is currently being deposited in escrow.
- The latest broadside from Trump to Amazon saw a US$5.7bn hit to market cap. Briefly anyway.
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?”