On the tapes…
- ASX 200 fights back to just 1.6 points down to 5744.
- High 5750 Low 5721.
- Central bankers meet at Jackson Hole this weekend.
- Banks, consumer stocks and telcos slip.
- Miners and Energy stocks better.
- Insurers up REITs down.
- Wealth managers better. Tech shines.
- Results dominate again.
- AUD slightly higher at 79.02c.
- US Futures up 10.
- Asian markets stronger with China CSI up 0.98% and Japan up 0.53%.
- AGO unchanged
- AHG -5.70%
- AWE -1.06%
- BAL +7.54%
- MPL +6.69%
- QAN -3.79%
- SGM +3.80%
- SUL +7.28%
Movers and Shakers
- AKP -8.78% on low volume as usual following an integration update.
- OZL -5.24% on profit taking and broker downgrades.
- QUB -3.47% broker downgrades.
- GXL -2.08% negative reaction to results continues.
- APO -3.21% sell off continues.
- STO +5.48% food buying on turnaround story.
- APT +11.11% finally moving ahead after the numbers.
- AHY +10.00% broker recommendation.
- WEB -3.36% completes entitlement offer.
- BUB -3.36% follows BAL down.
- GBT -3.95% results weigh.
- BLX +11.48% broker updates following results.
- SKB +1.69% results update.
- A2M +4.97% rally just continues.
- Speculative stocks of the day: Apollo Consolidated (AOP) +51.52% announced gold assays of 17.84m @15.95g/t and 49m at 4.57g/t at its Rebecca Gold project in WA. Big volume today too with over 10m shares traded.
- Biggest risers – NAN, AHY, APT, RCR, PTM and SUL.
- Biggest fallers – BAL, OZL, AHG, HT1, QUB and MYX.
- Qantas (QAN) +3.79% FY17 net profit down 17% to $852mn. FY17 underlying profit down 9% to $1.4bn. FY17 revenue down 1% to $16bn. The underlying results slightly above guidance due to strong domestic business. Announces further A$373 million share buyback. Expects international capacity for 1H18 to increase 5%. Domestic capacity to decrease 1%. Group capacity to increase 3%. Final Dividend of 7c.
- Super Retail Group (SUL) +7.28% FY17 net profit of 62% to $102m. Leisure segment led gains with like-for-like sales up 7%. Sports up 2% and Auto up 4%. Expects FY18 CAPEX to be around $120m. Final dividend of 25c.
- Medibank (MPL) +6.69% FY17 net profit up 7.6% to $450m. Total income up 2% $7bn. Full year total income up 2% to $7bn. Final dividend 6c. profit was lifted by investment income.
- Shine Corporate(SHJ) -1.63% FY17 net profit up 36% to $20m.
- Bellamy’s Australia (BAL) -7.54% Beat guidance and turnaround appears on track. revenue for the full 2017 year was up 2.6% to $240.2m compared with a restated 2016 number, while EBITDA was down 97.5% to $1.2m and normalised EBITDA fell 21.6%. Reported net profit swung to the red, tumbling over 102% to a loss of $809,000. The company is now focused on spending more time in China and is forecasting profitable growth for the core business of 5-10% revenue growth. No dividend.
- Sims Metal (SGM) +3.80% Underlying EBIT of $182m up from $58m. Final Dividend of 20c and a special dividend of 10c. Positive outlook statement and since the rupture of the share price in early August following the departure of the CEO the outlook has brightened.
- Prime Media (PRT) -3.30% after announcing a profit kick to $36.2m following a loss of $57.7m last year. The company warned that the 2017-2018 profit s could be down around 25% as the Olympic benefit from Rio games is not in place next year.
- Mesoblast (MSB) -unchanged- has announced it is raising another $50.7m from shareholders via a 1:12 entitlement offer at 140c.
- Nanosonics (NAN) +14.16% have extended its relationship with GE Healthcare in the Trophon relationship which will lead to better sales and revenue in the US over the next three years.
- Nothing today
BOND MARKET UPDATE
Japanese Inflation data:
- Core consumer prices, which exclude fresh food, increased 0.5% in July from a year earlier (forecast +0.5%).
- Excluding fresh food and energy, prices climbed 0.1% (forecast +0.1%).
- Overall, nationwide prices rose 0.4% (forecast +0.4%).
EUROPE AND US MORNING HEADLINES
- Amazon has announced it will slash prices on Wholefoods products from Monday as it completes the takeover.
- We got ourselves a convoy. 10:4 good buddy. Fleets of “driverless” lorries which accelerate and brake at the same time will be trialled on Britain’s motorways for the first time next year. Three lorries will be led by a single driver in a bid to cut congestion. Still have three lorries though.
- In the UK household expenditure rose by just 0.1% on the quarter, the weakest performance since late 2014. Growth in borrowing on credit cards slowed to 5.3% in the 12 months to July, compared to 6.3% a year earlier, UK Finance said.
- S. Plans to Unveil New Round of Sanctions on Venezuela.
- Hurricane Harvey set to hit Texas on Saturday, first major one since Wilma in 2005. Gas futures at highest in four months. Ike hit in 2008 in 2008 killed 103 people and caused US$29.5bn.
- Jackson Hole Yellen at midnight Saturday morning, Draghi at 5am. If you feel like setting the alarm. Kuroda not speaking. Carney not going. Gary Cohn, who could be the next US Fed chief, is not going either. Good chart from Bloomberg on JH Bingo. Fun for every central bank watcher.
Here is a list of the two 15 jokes from the Edinburgh Festival…
1. “I’m not a fan of the new pound coin, but then again, I hate all change.” – Ken Cheng
2. “Trump’s nothing like Hitler. There’s no way he could write a book.” – Frankie Boyle
3. “I’ve given up asking rhetorical questions. What’s the point?” – Alexei Sayle
4. “I’m looking for the girl-next-door type. I’m just gonna keep moving house till I find her.” – Lew Fitz
5. “I like to imagine the guy who invented the umbrella was going to call it the ‘brella’. But he hesitated.” – Andy Field
6. “Combine Harvesters. And you’ll have a really big restaurant.” – Mark Simmons
7. “I’m rubbish with names. It’s not my fault, it’s a condition. There’s a name for it…” – Jimeoin
8. “I have two boys, five and six. We’re no good at naming things in our house.” – Ed Byrne
9. “I wasn’t particularly close to my dad before he died… which was lucky, because he trod on a land mine.” – Olaf Falafel
10. “Whenever someone says, ‘I don’t believe in coincidences.’ I say, ‘Oh my God, me neither!'” – Alasdair Beckett-King
11. “A friend tricked me into going to Wimbledon by telling me it was a men’s singles event.” – Angela Barnes
12. “As a vegan, I think people who sell meat are disgusting; but apparently people who sell fruit and veg are grocer.” – Adele Cliff
13. “For me dying is a lot like going camping. I don’t want to do it.” – Phil Wang
14. “I wonder how many chameleons snuck onto the Ark.” – Adam Hess
15. “I went to a Pretenders gig. It was a tribute act.” – Tim Vine