- ASX 200 up 8 points to 5745.5 as resources rise.
- Rally runs out of steam.
- High 5754 Low 5717.
- Banks remain becalmed. CBA weaker again.
- Insurers rally slightly. Telcos and utilities up
- Results dominate again.
- Industrials weaker. Food stocks doing well.
- S32 impresses. FLT soars.
- Woolworths sells off on broker downgrades.
- AUD slightly higher at 78.89c.
- US Futures down 3
- Asian markets slightly weaker with China CSI 300 down 0.16% and Japan down 0.27%.
- AAD +1.04%
- HT1 -5.57%
- ALU +1.18%
- AWC +5.91%
- FLT +10.66%
- MYO +5.04%
- OZL +2.51%
- RSG -0.91%
- S32 +1.73%
- SXL unchanged
- MEA -5.19%
- NEC +4.03%
- SCG -1.5%
- STO +0.29%
- VRL -1.81%
Movers and Shakers
- BGA +6.17% positive broker comments
- WSA +4.49% improving nickel price and broker comments.
- A2M +4.57% buyers lapping it up.
- NAN -7.20 % results underwhelm.
- QUB -6.83% broker downgrades on results
- GEM -3.19% profit taking.
- HSO -3.77% negative reaction to results.
- NEA -5.88% results underwhelm.
- GBT -4.84% broker downgrades continue.
- BUB +17.32% rebounding after sell-off.
- SRX +0.62% slight bounce after results and broker support.
- KGN -2.57% Ex dividend and sale of shares by Ruslan Kogan.
- MMS +5.47% positive broker reaction to results.
- SRF has been placed in administration.
- Speculative stocks of the day: Boart Longyear (BLY) +61.82% after delivering an optimistic set of numbers with revenue up 15% driven by higher volumes and adjusted EBITDA up 58% and restructuring nearing completion.
- Biggest risers – FLT, CEN, CGC, MMS, WSA, BGA and AWC.
- Biggest fallers – TME, QUB, NAN, WPP, HSO and VOC.
- Ten Network (TEN) The ACCC has said today it won’t oppose the acquisition of the Ten Network by Bruce Gordon and Lachlan Murdoch.
- Trade Me (TME) -6.49% Has released its full year results today. Revenue came in up 7.7%, to NZ$234.9m and full-year net profit was up 25.9%, to NZ$94.4m. Trade Me’s full-year EBITDA was NZ$155.7m, up 10.8% on year, and was in line with guidance the company had provided. Its earnings per share was 23.76 NZ cents, up from 18.87 NZ cents a year ago. A final dividend of 10 NZ cents has been declared.
- Costa Group (CGC) +5.68% Full year revenue came in at $909.1m, up 10.7% on year, EBITDA before material items was $115.2m up 29.4% and statutory profit after tax was up $32.4m to $57.7m. A Final dividend of 7c has been declared.
- OZ Minerals (OZL) +2.51% Has reported half year revenue up 47.6% to $445.9m with net profit after tax coming in at $80.6m, up 51.1%. Underlying EBITDA was $217.4m up 39%, supported by an increase in the average copper price and lower production costs. An interim dividend of 6c has been declared.
- Estia Health (EHE) +4.65% Full year EBITDA rose to $86.5m, in line with guidance. Net profit after tax was up 47% to $40.7m and revenue was up 17.7% to $525.7m. A second half dividend of 8c has been declared.
- MYOB Group (MYO) +5.04% Half year revenue was up 14.4% to $204m and net profit came in at $26.3m, up 13%. Cash flows were hit, -32.6% to $38.9m. An interim dividend of 5.75c has been declared.
- Nine Entertainment (NEC) +4.03% Revenue declined by 3.5% while Group EBITDA increased by 2% to $206m, inclusive of the $33m benefit from the regulated removal of licence fees for the year. The company realised a statutory net loss of $203.4m. Earnings per Share came in at 14.2c. A dividend of 5c has been declared, for full year total of 9.5c, down 21% on the previous year.
- South32 (S32) +1.73% The Group’s statutory profit after tax came in at US$1.2bn in FY17. The corresponding period’s loss of US$1.6B was impacted by the recognition of impairment charges totalling US$1.7bn. The Group generated Underlying EBITDA of US$2.4bn and a recovery in commodity prices helped to deliver a US$888m increase in free cash flow from operations to US$1.5bn. A second half dividend has been declared at US6.4c.
- Lovisa (LOV) +18.02% FY17 net profit of A$29.0m up 76%. EBIT up 68% to A$41m. Like-for-like sales up 10%. Plans 20-30 store openings in FY18. Final dividend of 7.6c.
- Alumina (AWC) +5.91% 1H net profit US$137m. Average realised price per ton increased by $81/tonne. Cash costs per ton increased by $9/t. Does not expect third-party bauxite prices to change in the 2H and says it is well supplied throughout 2017. It expects aluminium demand to grow more than 5% in the coming year. Demand outside China to be broadly balanced.
- Flight Centre (FLT) +10.66% Total revenue up 1% to A$2,677m. Underlying PBT down 7% to A$330m from A$352m. FY17 falls in profit due to airfare declines, and political uncertainty impacting both top and bottom line results. Says it expects reasonable growth in one 1Q18, but it’s too early for specific guidance. Underperformance in Asia and touring businesses.
- Spotless (SPO) +0.43% Sales revenue down 5.3% to A$3.1bn on pcp. EBITDA down A$199.2m due to impairments, asset write-downs and costs associated with restructuring. FY17 net loss A$347m. Net debt declined A$65.8m to A$782m. No final dividend.
- Perpetual Limited (PPT) +5.22% Has announced statutory net profit after tax of $137, up 4% on FY16, and revenue of $515.4m, also up 4%. A final dividend of 135c was determined by the Board, delivering a full year dividend of 265c. Funds under management reached $31.4bn.
- Scentre Group (SCG) -1.50% Has reported a 22% rise in half-year profit to $1.412bn, largely driven by valuation gains on its portfolio of shopping malls in Australia and New Zealand. The company appears on track to deliver its forecast for full year growth in funds from operations of approximately 4.25%. The company has also reaffirmed expectations for an annual distribution of 21.73c, after declaring a pay-out of 10.86c for the half year.
- Mortgage Choice (MOC) +4.37% Core broking business recorded its best ever settlement result, with settlements totalling $12.3bn. Net profit after tax on a statutory basis was $22.2m, up 13.5% on year and the company’s loan book also reached a record $53.4bn, up 3.2% on the previous year. A final dividend of 9c was declared by the Board. Total dividend for the year was 17.5c.
- Alumina (AWC) +5.91% Today reported a statutory net profit after tax of US$136.6m for the half year, compared to a US$7.8m profit in the previous corresponding period. EBITDA lifted by US$401.9m to US$682.4m, mostly due to higher alumina prices. Demand growth of around 5% in 2017 will feed through to Alumina & bauxite demand. An interim dividend of US4.2c has been declared.
- Village Roadshow (VRL) -1.81% Has reported a net loss of $66.7m, with FY17 results feeling the impact from the tragedy that occurred at Dreamworld in October 2016. Although not owned by Village, it sparked community concerns about ride safety. EBITDA was down 19.25% to $136.3m, no dividend has been declared.
- Santos (STO) +0.29% After heavy write down of US$689m the company produced a loss of US$506m. Underlying profit was US$156m beating estimates. Santos upgraded its guidance for full-year sales volumes to 77 million-82 million barrels of oil equivalent from an earlier forecast of 75 million-80 million boe. Production guidance has been maintained at 57 million-60 million boe.
- Nothing today
BOND MARKET UPDATE
- China is ratcheting up its opposition to the US investigation of Intellectual It has pledged that it will defend itself if necessary. The U.S. said it will probe China’s practices on intellectual property, technology transfer and innovation to determine whether the behaviour is “unreasonable or discriminatory,” or whether it restricts U.S. commerce.
- Chinese aluminium futures are near a 6-year high on supply cuts due to capacity restraints in China.
- Wanda Hotel Development, the Hong Kong-listed arm of Chinese developer Dalian Wanda Group, fell over 5%% after reporting a first half loss of US$38m
EUROPE AND US MORNING Headlines
- Hurricane Harvey may be the first to hit Texas since 2008. Positive for the oil price. It is currently a category 1 hurricane but could turn into a 2 by landfall on Friday. Looks like oil country to me.
- The US Federal Trade Commission has said it will not stand in the way of Amazon’s planned US$13.7bn takeover of upmarket grocer Whole Foods.
- Uber’s bookings continued to rise in the second quarter to US$8.7bn during the period with the loss narrowing to US$645m in the second quarter. One day they may even breakeven. The company is valued at US$68bn. Not bad for an unlicenced mini cab despatch system.
Beeks on TV this morning!!!
Too much lippy?