- ASX 200 slips 13 points to 5737 as results disappoint.
- High 5781 Low 5723
- Trump calls for shutdown unless he gets his wall.
- CBA threatened with class action over AUSTRAC.
- Iron ore falls 5% in Asia.
- Banks reverse early gains as miners give in to pressure.
- Insurers sink with REITs sliding too.
- Energy stocks better with Telcos finding defensive buying.
- Tech stocks on the nose.
- AUD slightly higher at 78.94c.
- US Futures reverse down 28
- Asian markets slightly positive with China CSI 300 up 0.10% and Japan up 0.24%
- APA +0.71%
- AIZ -1.27%
- AIA unchanged
- A2M +6.89%
- CHC -1.04%
- CCL -2.60%
- HSO -15.30%
- IAG -7.99%
- IMD –1.13%
- SBM –1.03%
- QUB +3.35%
- SGR +5.10%
- VOC +0.76%
- WTC +10.06%
- WOW -0.44%
- WOR +5.12%
Movers and Shakers
- BHP -0.23% after Grant King has stepped down from the board.
- CBA -0.57% after Maurice Blackburn and IMF launched a class action.
- MND +8.15% after results and positive outlook yesterday.
- APO -3.77% sell off post results continues.
- TRS -5.91% well and truly rejected on results.
- WND -7.50% new float underwhelms.
- KGN +7.99% the brokers just keep buying.
- VRT +5.29% post result broker upgrades.
- SYD +1.69% on broker upgrades.
- AAD -1.03% changes to theme park regulations.
- BUB -30.22% following response to speculation on a takeover approach.
- AJD rent review pushes up NextDc (NXT) -2.29% rents by 7.87%- unchanged –
- Speculative stocks of the day: Range International (RAN) +43.48% after an announcement that sales had started for its heavy-duty pallet to Linfox in Indonesia. Also, an increase in orders from its Chinese customer to 23,720 pallets a month from 11,000 pallets. Small market cap big potential.
- Biggest risers – SIQ, WTC, MND, A2M, PSI and MYX.
- Biggest fallers – HSO, SRX, IAG, SRV, WSA and TNE.
- A2 Milk (A2M) +6.89% Full year results are out. Revenue came in up 56% to NZ$549.5m, EBITDA was up 159% to NZ$141.2m and EBITDA to sales margin moved to 26% from 15% the year before. Net profit after tax soared 198% to NZ$90.6m. A second half dividend hasn’t been declared but, the board remains open to the merits of a special dividend in light of progress on buyback & future market conditions.
- Woolworths Limited (WOW) -0.44% has released its results this morning. Net profit after tax came in at $1.48bn, down 2.7%, sales were up 3.7% to $55.5bn and earnings EBITDA was down 2% to $3.4bn. A second half dividend of 50c has been declared, bringing the total dividend for the year to 84c, a 9.1% increase on the previous year.
- Insurance Australia (IAG) -7.99% Today announced a profit of $1.3bn for FY17 and a reported insurance margin of 14.9%, a 6.8% increase on FY16. Net profit after tax increased 48.6% to $929m. A final dividend of 20c has been declared, which brings the full year dividend to 33c.This equates to a cash pay-out ratio of 79%, at the upper end of the company’s policy to distribute 60-80% of cash earnings
- The Reject Shop (TRS) -5.91% Today announced a year-end net profit after tax of $12.3m, a 27.8% decrease on the previous corresponding period, consistent with updated April 2017 guidance. Sales were up 1.2% to $794 and comparable store sales were down 1.6%, impacted by weak trading in WA and the ACT. A final dividend has not been declared.
- Charter Hall (CHC) -1.04% Funds under management lifted 13% to $19.8bn. Statutory profit after tax came in at $257.6m, up 19.7%. The company has delivered a 21.2% lift in operating earnings to $151.2m and a final distribution of 30c has been declared, an increase of 11% on pcp.
- Steadfast (SDF) -5.09% FY17 net profit up 10% at A$66.8m. Underlying EBITA up 11% $143m.Final dividend of 4.4c – up 22% on the pcp. SDF said it benefited from recent premium price increases across its Australian SME portfolio. Overseas, New Zealand up 7% for the year; and the company continues to target the Singapore market with +9 brokers joining its network. FY18 guidance – underlying NPAT: $70m – $75m.
- Sirtex (SRX) -10.46% FY17 underlying NPAT declined 20.9% due to lower dose sales growth and higher expenditures ahead of clinical study data. Sales revenue up 0.8%; and reported net profit down 149%. The reported net loss came on the back of asset impairments and restructuring costs. A 30% share final dividend was declared as was a $30 million share buyback. Another disappointing result.
- The Star Entertainment Group (SGR) +5.10% Has announced record statutory net profit after tax of $264.4m up 36%, supported by second half domestic revenue growth. Normalised net profit after tax was down 11.1% to $214.5m. The Board has declared a final dividend of 8.5c, up 13.3%, taking total dividends for the year to 16.0c, reflecting a 50% pay-out ratio.
- Helloworld Travel (HLO) +0.24% Total transaction value came in at $5.9bn, up 3%, EBITDA was up 118% to $55.2m and profit after tax was up $19.8m to $21.5m. A final dividend of 8c has been declared, bringing the total dividend for the year to 14c compared with 2c in the previous year.
- Qube Holdings (QUB) +3.35% Statutory profit came in at $77.3m down 5.7%, underlying revenue growth was up 14.7% to $1.5bn and EBITDA came in at $253.3m, up 2% on pcp. The Board has also determined a final dividend of 2.8c, maintaining the full year dividend at 5.5 as in the prior year.
- Tassal Group (TGR) +2.89% The company managed to improve all key metrics. Revenue was up 4.5% to $450.5m, EBITDA came in at $114.6m up 17.7% and profit after tax was up 19.8% to $58.1m. A final dividend has been declared at 7.5c, bringing the total dividend for the year to 15c, consistent with the previous year.
- Bega Cheese (BGA) -0.15% Revenue was up 3% to $1.226bn despite the increasing pressure on global dairy commodity prices. EBITDA came in at $228.9m up 250% and statutory profit after tax was up 382% to $138.7m. A final dividend has been declared at 5c, taking the total dividend for the year to 10c.
- Coca-Cola Amatil (CCL) -2.60% Total revenue for the half year was up 3.8% to $2.47bn, earnings came in at $312.7m, down 4.3% and statutory net profit was down 29% to $140.1m. An interim of 21c has been declared, representing an underlying pay-out ratio of 81.4% for the period.
- APA Group (APA) +0.71% Full year revenue excluding pass-through came in at $1.883bn, up 14%, EBITDA lifted 10.5% to $1.47bn and profit after tax increased 32% to $236.8m. The total distributions for the 2017 financial year are up 4.8% to 43.5c.
- Nothing today
BOND MARKET UPDATE
Nah who cares!
- Trading in Hong Kong was halted as a Typhoon Hato bore down on the island.
- Iron ore futures in China are down more than 5%. the gap between prices of high-grade and low-grade iron ore to almost $US28 a tonne this week, the widest in five months.
EUROPE AND US MORNING Headlines
- Trump has spoilt the party by announcing that he will shut down government unless he gets his wall. “If we have to close down our government, we’re building that wall.” The US government will shut down after 30th September unless congress can agree on a new budget. Trump wants US$1.6bn to begin building the wall. May need some quotes from Mexico at those prices.
- Jackson Hole kicks off Friday. Then she is ‘gonna party like its 1999’. Back pre 21st Century Alan Greenspan (yes, he is still alive) kicked off the symposium by highlighting rising stock prices, low inflation and low employment. He chose to tighten aggressively to weed out the ‘irrational exuberance’. And the NASDAQ dropped 78% over the next two years. RIP irrational exuberance. This time it is different.
- Vodafone is in talks with BT’s network subsidiary Openreach about a ground breaking joint investment in new ultrafast fibre-optic broadband for UK cities.
- The man in charge of the US Naval 7th fleet has been removed from office after the latest ‘bumping into oil tankers incident’.
For months the archaeologists had been tolling deep in the Amazon jungle, clearing creepers and rampant, choking undergrowth from the faint traces of a Lost City. Their excitement mounted as the place`s extraordinary purpose became evident. Broad, winding avenues of giant flagstones had deep, narrow, perfectly circular holes every few hundred yards. It had to be …. a golf course! Any doubt was dispelled by the discovery of stone panels depicting human figures using primitive prototypes of irons or putters.
Next step was to interrogate local Indian tribesmen about traditions associated with the prehistoric golf club. And yes, the tribes did have legends of Old Ones who followed a daily ritual with the clubs and balls, until routed by tragedy. Watching a particularly wrinkled, aged elder chattering to the interpreter, a Professor murmured wistfully. “If only we knew why they gave up golf, making it vanish for centuries before rediscovery.”
The interpreter nodded eagerly and relayed the query. The elder, surprised, made a sweeping gesture at the jungle, and replied tersely. “Simple,” was the translation, “they couldn`t afford the green fees.”
Clarence Alter Ego Henry Jennings is on the ABC Breakfast show tomorrow at 8.25am..tune in or miss out..well not that much missing out..
Be seeing you….