- ASX 200 resets to flat line down 34 points at 5710.
- High 5746 Low 5700.
- Buyers absent on low volumes.
- Broad based losses across the board.
- Banks slip after APRA goes after CBA.
- Consumer and Telcos slide with staples falling.
- AUD slightly higher at 79.37c.
- US Futures down 39.
- Asian markets firmer with Japan up 0.02% and China +1.62%
- ADH +5.19%
- SKI -1.94%
- RWC +8.93%
- JHC -13.37%
- LLC +0.61%
- RFG -1.69%
- RCG +6.33%
Movers and Shakers
- NAN +2.40% positive vibe continues following investor presentation.
- NEC -2.99% CBS deal on TEN taking its toll.
- REG -6.78% following JHC in sympathy.
- LYC -3.12% profit taking continues.
- A2M -3.79% profit taking.
- SGM +4.07% bounce back continues.
- MPL +2.44% positive broker comments.
- UPD +7.95% results positive.
- STO +2.19% Harvey pushing up gas prices/director appointment.
- CDD +6.20% broker upgrades following results.
- SIV -13.63% strong second half unable to save results.
- QAN -5.65% management changes/broker downgrade.
- Speculative stocks of the day: Dawine (DW8) -unchanged- after announcing a new revenue stream by partnering with Alxa FB Festival in the Gobi Desert. This is a huge event and a major step up for the wine company.
- Biggest risers – SGM, NAN, VRL, STO, ARF and WEB
- Biggest fallers – JHC, LYC, CNU, OZL, QAN and SRV.
- Commonwealth Bank (CBA) -1.34% CBA says it welcomes APRA’s inquiry into its culture, accountability and governance on the back of recent money laundering allegations. The prudential regulator says an independent inquiry will take place, with a report to follow in six months’ time.
- Qantas (QAN) -5.65% A few key management shifts with former head of Qantas International, Gareth Evans set to take over the Budget unit of Jetstar. And Jetstar’s CEO, Jayne Hrdlicka to lead QAN’s loyalty business. Alan Joyce remains.
- Ten Network (TEN) Receivers plan to sell to CBS subject to Foreign Investment Review Board approval. Seriously.
- Lendlease (LLC) +0.61% Lend Lease net profit $758m. Revenue $17bn. Final dividend 33c. Says it has $49bn in development pipeline and says that the outlook for the construction segment remains ‘robust’.
- CSL -0.27% The company has announced it will acquire biotech company Calimmune and its Stem Cell Gene Therapy Platform. The cost will be up to $325m over a period currently around 8 years.
- Japara Healthcare (JHC) -13.37% FY revenue from ordinary activities $362.2m versus $327.3m. 2017 final dividend of 5.75c. FY net profit after tax was $29.7m, a slight decrease of $0.7m.
- Appen (APX) +3.72% Quality result. Revenue up 42% in constant currency to $74.1m. EBITDA margin up from 14.5% to 17.2%. Dividend of 3c up from 2c last year. Good result and a positive outlook statement.
- Reliance Worldwide Corporation (RWC) +8.93% Net sales up 12.6% to $601.7m. EBITDA up 21.8%. Good result. Strong top line growth for FY18 with EBITDA of between $145m-$150m driven by expansion of the PTC business in the Americas.
- Spark Infrastructure (SKI) +1.94% posted a 2.9% increase in first-half profit. Net profit for the June half edged up to $48.9m from an adjusted figure of $47.5m in the year-earlier half. Profit before interest on loan notes and tax climbed to $138.7m, up 14.3%.
- Adairs (ADH) +5.19% beat consensus forecasts for around $20.7m, followed two profit downgrades earlier this year. Total sales rose 7% to $264.9m (adjusting for an extra week of trade in 2016), swelled by 13 new stores. chief executive Mark Ronan said the improved momentum had continued into the first eight weeks of 2018, with same-store sales up 13%.
- Nothing today
BOND MARKET UPDATE
- Bank of Japan Governor Kuroda pledged to forge on with very accommodative monetary policy as he warned that his inflation target remains distant.
- Wanda Hotel Development, the Hong Kong-listed arm of Dalian Wanda Group, fell 6.4%% on Monday after its parent responded to claims that its chairman, billionaire Wang Jianlin, had been detained by authorities and forbidden from leaving China.
EUROPE AND US MORNING Headlines
- Hurricane Harvey has shut two of the biggest oil exporting ports, Houston and Corpus Christi.
- Uber has chosen Dara Khosrowshahi as its CEO. He has been the CEO of Expedia since 2005.
- Insiders at big US banks are selling as Trump bump optimism fades. Insiders at the big six banks by assets have in total sold a net 9.32m shares on the open market since the turn of the year. The KBW Banks index,two dozen of the biggest Wall Street and regional banks, was just 3% this year. The Australian Big Bank Basket (BBB) is down 4.6% this year. CBA is the biggest loser having fallen from 8240 to 7660c.
- Brexit negotiations could begin again as soon as October as France tries to break the deadlock. Under the terms of a proposal set out by France the UK is being encouraged to request a three-year transitional deal if it continues to pay into the EU Budget and accepts EU law. This is a split from euro hardliners who insist no talks without settling the divorce bill. The whole Brexit thing is just going to get much worse.14 months since the vote and no closer.