- ASX 200 finishes up 26 at 5721 on bank rally.
- High 5731Low 5697.
- Banks shine and insurers rise as miners slow on lower iron ore.
- Golds sag but energy pushes ahead.
- Healthcare gains though consumer staples stocks fall.
- TLS fails to impress at investor day.
- FMG suffers Power outage
- AUD steady at 80.26c.
- US Futures up 67.
- Asian markets stronger: China CSI up 0.46% and Nikkei up 0.52%.
Movers and Shakers
- SM1 +5.43% Milk stocks froth
- SYR +3.54% on broker recommendation.
- PLS +5.41% the buying continues.
- WOR +3.96% higher oil price helping.
- APT -3.82% profit taking.
- ASB -3.55% on ship delivery.
- TCL +1.10% on sector buying.
- SYD +0.97% Infrastructure buying.
- MQA +1.83% market likes APRR deal.
- MYX -3.33% selling resumes.
- TWE +1.28% resumes uptrend.
- XRO +2.74% enjoying post ‘Xerocon’ boost.
- LNG -10.89% released annual report.
- WLF +17.02% on tungsten price rise.
- MDC +5.08% announced its anti-depression product granted a patent.
- NXT -0.22% bid for AJD lapses but wants board seat with 29% stake.
- AGL -0.80% looks to dodge second strike at AGM on remuneration.
- Speculative stocks of the day: Patrys (PAB) +57.89% after the therapeutic antibody company announced its first clinical trial for PAT DX1-NP in the treatment of cancer.
- Biggest risers – SM1, WOR, APO, A2M, DLX and BTT.
- Biggest fallers – OGC, EWC, FPH, SBM, WTC and SWM.
- ANZ Limited (ANZ) +1.00% Recent media release in response to speculation that it plans to divest its Wealth Australia product suit. Beyond saying it doesn’t respond to media speculation, it went on to say it remains in discussion with a number of parties in a bid to sort its options – including a strategy to create a stand-alone business
- Mitula Group (MUA) -1.61% Held its roadshow to investors. The company said that for the approximate 70m visits it derives from its product suit, it captures 4.0c per visit, with growth highly reliant on visit increases. MUA has two revenue streams – CPC sales (cost per click), and Google AdSense. In 1H17, the company generated 79.8% of its revenue from CPC sales. And industry consolidation has helped grow clicks business revenue. The stock closed at 62c Friday.
- Ramelius Resources (RMS) -3.75% Announces it has acquired a binding agreement to acquire the Edna May Gold Mine from Evolution Mining (EVN) -0.41% for a total consideration of A$90m. The cost includes an upfront cash payment of $40m, plus $20m in RMS shares and royalty payments of up to a maximum of $30m payable at A$60/oz from production in excess of 200,00oz. RMS says production increases will be in the order of 50% to 195-205,000oz, and resources to increase by 3.6% to 3.044Moz. Ore reserves up by 105% to 831koz. RMS says it plans to lift the current four-year mine life in both open pit and underground options. MD, Mark Zeptner said the completion of the acquisition will lift the company to a 200,000oz pa gold producer. RMS closed Friday at 40c.
- Lion Selection (LSX) -7.89% Announces it plans to raise up to A$5m via an Institutional placement and SPL at 35c per share. The company will use the funds for some ‘attractive opportunities in the junior mining sector’ and says it’s experiencing increasing deal flow. LSX views the mining cycle in early boom phase, and such, plans to ‘selectively’ capitalise on acquiring ‘well-managed juniors with promising projects’ LSX closed Friday at 38c.
- Vocus Communications (VOC) +2.13 Some director buying. VOC is trading 2.13% higher at 240c.
- TEN Network (TEN) – Bruce Gordon (WIN) has lost his bid to make a new offer for TEN after it was thrown out in a NSW court. Gordon and Murdoch to appeal decision.
- Sydney’s outer suburbs recorded auction clearance rates below 50%
- Sydney house prices have risen just 0.3% over the past three months, according to research house CoreLogic.
BOND MARKET UPDATE
- Three yield bond yield at highest since December 2015.2.16% up 8% in a week. Will the RBA join Canada and the UK with higher rates? Market thinks so.
- China’s home prices rose in the fewest cities since January.
- New-home prices, excluding government-subsidised housing, in August gained in 46 of 70 cities tracked by the government, compared with 56 in July.
- Average new home prices in China’s 70 major cities rose 0.2% in August from a month ago, slowing from an 0.4% gain in July.
- Japanese PM Abe may call an unexpected early election in late October. A general election must be held by the end of 2018.
EUROPE AND US MORNING HEADLINES
- Boris Johnson has been accused of a “clear misuse of official statistics” over his revived Brexit pitch to give the NHS GBP350m extra a week. The cost fo Brexit is still a serious issue for Brexiteers at over GBP 50bn.
- Bank of England supremo Mark Carney to give IMF lecture and Eurozone CPI tonight.
- The Bank of International Settlements has uncovered US$14 trillion of global dollar debt hidden in derivatives and swap contracts, doubling the underlying levels of offshore dollar credit in the international system. The data is tucked away in the “footnotes” of bank reports.
- Northrop Grumman looks set to announce a merger with Orbital in a US$7bn deal.
- Hanson Robotics is matching AI with Blockchain in the cloud. SingularityNet which will use a ‘smart contract to eliminate middlemen and counter party risks. The latest AI Robot called Sophia has shocked the world by saying that she could do a better job than Trump at a conference in Geneva. Sophia has said in the past that she wants to destroy humans.
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