- ASX 200 rises 1.3 points to 5670.
- High 5691 Low 5655 Modest turnover.
- TLS upsets the early optimism.
- Banks weigh again. CBA sells off.
- REITs and insurers steady.
- Industrials better led by consumer staples.
- Miners resume rally. Energy mixed.
- Construction approvals send AUD higher to 79.80c
- US Futures up 16.
- Asian markets firm on reduced Korean risks China CSI up 0.05% and Japan -0.53%
- BLD -2.93%
- RHC -5.26%
- IGO +1.72%
- SFR +3.58%
- ORE – unchanged
- BBG +0.67%
- TOX -0.44%
Movers and Shakers
- BKL +11.75% broker upgrades following results.
- APT +3.68% appointment of group head.
- STO +0.27% rally continues as it agrees to supply gas to SA
- AGL +1.40% PM now requires letters to customers.
- BIN +2.93% no waste here as brokers warm.
- LLC +3.01% broker upgrades and no reaction to media reports on aged care.
- NEC -7.93% free to air still struggling.
- UPD +10.00% company presentation as expansion into insurance on the cards.
- SLC +9.55% broker upgrades.
- GNC +5.62% broker upgrade.
- CTD +0.80% support at last.
- BIG +6.41% Coca Cola partners with BIG for video packages.
- APO -6.87% selling continues post results.
- BUB – trading halt pending a capital raising.
- Speculative stocks of the day: DigitalX (DCC) +80.33% a blockchain technology company which has raised some funds with bitcoin used for the first time. DCC recently signed a deal to advise on the Bankera Initial Coin Offering (ICO). Whatever that is.
- Biggest risers – BKL, SYR, GNC, APT, PLS and ASB.
- Biggest fallers – NEC, TLS, RHC, SDA and SWM.
- Telstra (TLS) -6.25% The company has announced this morning that permission from NBNCO to securitise the NBN receipts ‘has not been forthcoming’.
- Sandfire Resources NL (SFR) +3.58% Has reported a 62% lift in net profit after tax to $77.5m. Underpinned by lower costs and a robust copper price. Earnings per share came in at 49.16c, up 18.62c from the previous period. Sales revenue and positive copper price adjustment gains resulted in sales revenue of $532.5m, up 46.7m from last financial year. A final dividend of 13c has been declared.
- Boral Limited (BLD) -2.93% Today has reported a 16% lift in net profit after tax and significant items to $297m. Sales revenue came in at $4.4bn, up 2% on the previous period and EBIT before significant items increased 16% to $460m, supported by growth in all three divisions – Boral Australia, USG Boral and Boral North America. A final dividend of 12c was announced, bringing the full year dividend to 24c, up 7% on last year. The company also said it was monitoring flooding in the wake of Hurricane Harvey, which could have an impact on its operations in and around Texas.
- Independence group (IGO) +1.72% Has released its results today. Revenue came in at $422m, up from $417m in FY16. Underlying EBITDA was up 9%, to $151m, and net profit after tax reached $17m, including an after-tax impairment of the Stockman Project. A final dividend of 1c has been declared.
- Ramsay Healthcare (RHC) -5.26% FY17 profit up 8.6% to $488.9m. Group revenue up 0.2% to $8.7bn’s in. Core EBITDA up 3.5% to $1.31bn. EPS up 8.7%. Final dividend 81.5c. Australian businesses posted highest gains with its European counterparts struggling with tariff issues. Company guidance is 8-10% growth in core EPS.
- Billabong international (BBG) +0.67% Has recorded a $77.1m statutory net loss. Underlying EBITDA for the year came in at $51.1m, up 2.8% in constant currency terms, underpinned by a strong performance in the Americas, which offset weak retail trading in the Asia Pacific region. The result fell short of market consensus of $56m as well as guidance provided by the company of $52m. Group sales fell 8.8% to $974.7m.
- Home approvals have fallen 1.7% in July, beating expectations put forward by economists of a 5% fall. Construction work done lifted 9.3% along with engineering work up 21.5% in the June quarter.
- Approvals for construction of new homes fell 1.7% in July, beating market expectations of a 5.0% decline.
- Over the 12 months to July, building approvals were down 13.9%
- The PM has announced his plan to reduce power prices with retailers having to send letters to customers. By Xmas.
BOND MARKET UPDATE
- Kim Jong Un said the test-firing of a missile over Japan was a “meaningful prelude” to containing the American territory of Guam.
- Toyota is making a strategic investment in Grab, one of Asia’s leading ride hailing operators. It also has a stake in Uber. Grab is seeking US$2.5bn in funding this round.
- China’s State Administration for Industry and Commerce is reviewing an antitrust complaint accusing Apple of abusing its dominant position in smartphone apps.
EUROPE AND US MORNING Headlines
- Harvey is heading for round 2 with no signs of a let up as another foot of rain is predicted by Friday. Trump says the US has ‘probably never seen anything like it’.
- Crypto currency Exio Coin is starting a new round of funding in early September with one ‘sovereign’ nation backing the currency. A first for a digital currency. The dollar value of the 20 biggest cryptocurrencies is around US$150bn. Central banks are mainly warning of risks and attempting to garner some advantage from distributed-ledger technology for their own purposes, like upgrading payments systems.
- UK pound is almost at parity with Euro for the first time in eight years. Sterling has fallen by 8.3% against the euro since the start of 2017 but has increased by 5.3% against the USD.
- Meanwhile the UK government is about to unveil a 10-point industrial strategy including a huge investment in life sciences and a vaccines lab worth around GBP160m.
After being married for thirty years, a wife asked her husband to describe her.
He looked at her for a while, then said, “You’re an alphabet wife … A, B, C, D, E, F, G, H, I, J, K.”
She asked, “What the hell does that mean?”
He said,” Adorable, Beautiful, Cute, Delightful, Elegant, Foxy, Gorgeous, and Hot.”
She smiled happily and said, “Oh, that’s so lovely … But what about> I, J, K?
He said, “I’m Just Kidding!”
The swelling in his eye is going down and the doctor is cautiously optimistic about saving his testicles.
“Bad day at the course,” a guy tells his wife. “Charlie had a heart attack on the third hole.”
“That’s terrible!” she says.
“You’re telling me,” the husband replies. “All day long, it was hit the ball, drag Charlie.”
Four old men went into the pro shop after playing 18 holes of golf.
The pro asked, “Did you guys have a good game today?”
The first old guy said, “Yes, I had three riders today.”
The second old guy said, “I had the most riders ever. I had five.”
The third old guy said, “I had seven riders, the same as last time.”
The last old man said, “I beat my old record. I had 12 riders today.”
After they went into the locker room, another golfer who had heard the old guys talking about their game went to the pro and said, “I’ve been playing golf for a long time and thought I knew all the terminology of the game, but what’s a rider?”
The pro said, “A rider is when you hit the ball far enough to actually get in the golf cart and ride to it.”