Pinch and a punch….

• ASX 200 grinds out a 10-point rise to 5725
• High 5735 Low 5701
• Plenty of ex-dividends weighing.
• Indices re-weightings announced.
• Banks steady after latest CBA issue.
• CSL leads healthcare higher.
• Miners firm but unspectacular. Golds in demand.
• Insurers and wealth managers wallow.
• Consumer stocks weaker led by HVN.
• AUD higher to 79.35c
• US Futures up 25 points
• Asian markets mildly firmer China CSI 300 up 0.43% and Nikkei up 0.04%

STOCK STUFF

Ex Dividends today

• ABC -0.70%
• CGF -0.72%
• FMG -1.00%
• LLC -1.75%
• REG -0.30%
• TTS -2.43%

Movers and Shakers

• CBA -0.42% new media reports of international monitoring issues.
• LYC +9.68% rare earths get a write up from analysts.
• HVN -4.17% sell off continues as Credit Suisse calls them ‘un-investable’.
• CGC +0.94% block trade of around 3% sold at 525c.
• GXY +7.37% lithium stocks back in focus after ORE results.
• RHC -1.83% fall out from issues in Europe continues.
• MYX +5.22% bounces off technical support.
• GPT -0.20% half yearly update with total return of 16.9%
• BUB -3.25% has raised $15.97m in an oversubscribed placement at 45c.
• AMA -6.00% on broker downgrades.
• SPO -unchanged- offer now closed with DOW securing 88%. No compulsory acquisition.
• Speculative stocks of the day: Coassets (CA8) +100.00% after acquiring 25% of Brighten Finance in HK. Low volume though and thinly traded. Toss a coin.
• Biggest risers – LYC, PLS, GXY, IEL, WGX and MYX.
• Biggest fallers – EWC, HVN, HTA, SRV, SLC and CNU.

TODAY

• Resolute Mining (RSG) +1.65% after reporting it has sold forward 96k oz at an average price of US$1330. Scheduled deliveries of 6k oz a month until December 2018. This hedging facility will support the Syama underground mine development plan.
• SMS Management (SMX) -unchanged- received shareholder approval for the proposal to acquire the ASG group and pay a special dividend of 10.2c.
• CIMIC Group (CIM) -0.88% Subsidiary, Thiess has secured a contract extension for Harum Energy’s MSJ coal mine in Indonesia. The extension runs to March 2021, and will yield further $300m in revenues.
• KordaMentha completes the sale of Arrium Australia to GFG Alliance.
• Commonwealth Bank (CBA) -0.4+0.65%% announces its intention to maintain ‘proactive relations’ with regulators, and strengthen its anti-money laundering frameworks. It says its invested $230m to strengthen compliance policies so far.
• Rio Tinto (RIO) +0.65% Yancoal Australia (YAL) +8.70% announces its completed its acquisition of RIO’s Coal & Allied.

ECONOMIC NEWS

• There was no movement in Sydney house prices in August while Melbourne’s house prices were up 0.5%. Brisbane also registered a low 0.2%.
• Nationally, house prices remained flat in August.
• Mortgages in arrears underlying prime Australian residential mortgage-backed securities (RMBS) transactions fell to 1.15% in the second quarter (Q2) of 2017 from 1.16% in Q1, according to a recently published report by S&P Global Ratings. Nonconforming arrears also fell, slipping to 4.84% in Q2 from 6.17% the previous quarter.

BOND MARKET UPDATE

ASIAN NEWS

• The Caixin manufacturing PMI reading beat expectations, rising from 51.1 in July to 51.6 in August, and ahead of a Bloomberg estimate of 51.0.

• Chinese rebar steel futures are up more than 2%, lifted by the positive PMI report.
• The renminbi hit a 14-month high against the dollar after the country’s central bank set the currency’s trading band firmer and the latest reading on China’s manufacturing sector came in better than expected.

• Chinese premier Xi Jinping will unveil the new politburo on October 18th.
• Tencent Music is seeking new funding at a US$10bn valuation ahead of an IPO.

EUROPE AND US MORNING HEADLINES

• Cholera and Typhoid now a risk for Houston with 30% of refineries closed.
• Greek GDP today.
• UK PMI and the Brexit negotiation war of words likely to continue. EU’s Michel Barnier says no “decisive progress” has been made following third round of Brexit talks. UK’s David Davis said they had made ‘concrete progress’. Lost in translation.
• Volkswagen will pay UK drivers up to £7,000 to scrap older diesel cars and switch to newer models.
• Macron proposes major reforms to French labour laws as popularity wanes. 1. Emphasis on in house labour talks, slashing red tape, changes to short term work contracts and damages for wrongful dismissal. France has an unemployment level of 9.5% and Macron’s approval is falling faster than a bad Soufflé.
• UK BOE policy maker has called for higher rates to prevent a blow out in inflation.

 

And finally…..

The Irish Bic Lighter Mick and Paddy were fishing on  the Irish shoreline when Mick pulled out a cigar. Finding he had No matches, he asked Paddy for a light. ‘Ya, sure, I tink I haff a lighter,’ Paddy replied and then reaching into his tackle box, he pulled out a Bic lighter 10 inches long. ‘My God, man!’ exclaimed Mick, taking the huge Bic lighter in his hands. ‘Where’d yew git dat monster?’ ‘Well,’ replied Paddy, ‘I got it from my Genie.’ ‘You haff a fecking Genie?’ Mick asked. ‘Ya, sure. It’s right here in my tackle box,’ says Paddy. ‘Could I see him?’ Paddy opens his tackle box and sure enough, out pops the Genie. Addressing the Genie, Mick says, ‘Hey dere! I’m a good pal of your master. Will you grant me one wish?’ ‘Yes, I will,’ says the Genie. So Mick asks the Genie for a million bucks. The Genie disappears back into the tackle box leaving Mick sitting there waiting for his million bucks. Shortly, the Irish sky darkens and is filled with the sound of a million ducks flying directly overhead. Over the roar of the one million ducks Mick yells at Paddy, ‘What the hell? I asked for a million bucks, not a million ducks!’ Paddy answers, ‘Ya, I forgot to tell yew dat da Genie is hard of hearing. Do yew really tink I asked for a 10 inch Bic?’

Have a great weekend

Clarence

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