On the tapes…
- ASX 200 rises 11 to 5682 buyers return.
- Early losses clawed back on month end buying.
- High 5688 Low 5652. Tight range good volume despite AFL Holiday.
- Banks reverse early losses CBA shines. REITs and Insurers rise.
- Miners push ahead Energy runs out of juice on lower crude price.
- Consumer staples shine.
- AUD slips to 78.40c on US tax reforms
- US Futures up 6.
- Asian markets mixed China CSI up 0.51% ahead of Golden Week and Nikkei down 0.03%.
- Quarterly performance
- Iron ore down 20% from high.
Movers and Shakers
- PLS +15.98% on Great Wall deal.
- MFG +5.86% bounces to3-week high.
- SM1 +4.77% continues higher on broker upgrades after Chinese approvals.
- A2M -2.17% on Challenger profit taking and large volume.
- CGC +6.69% broker upgrades.
- LOV -2.43% profit taking.
- RHC -0.59% light volume.
- BKL +0.82% moving higher on thin volume.
- XRO +0.60% looking interesting.
- AAC +3.70% agri stocks back in fashion.
- ORE +5.18% lithium back.
- FPH +0.51% RMD -0.20% after German court halt patent case.
- GXY +4.42% strong story continues.
- Speculative stocks of the day: Doriemus (DOR) +92.31% new float today is an oil and gas company from the UK interested in two licences in the Weald of England. It is also a producer. Amazingly. Oil in England. Who would have thought.
- Biggest risers –PLS, CGC, MFG, MLD, ASL and WSA.
- Biggest fallers – ORI, SRX, IRI, FNP, WGX and TPM.
- Pilbara Minerals (PLS) +15.98% has signed a multi-pronged supply and investment agreement with the Great Wall Motor Company which includes an agreement to sell up 150,000 tonnes a year of product from the Pilgangoora project in Western Australia, a $28m equity investment and the potential for $US50 million debt financing have also been announced.
- Bruce Gordon has now bought a 15% stake in Prime Media (PRT) +3.70%. Gordon’s private investment vehicle, Birketu, bought 39m shares on Thursday at 40c from Seven Group Holdings (SVW) -unchanged..
- Oroton Group (ORL) -unchanged- announced a $14.3m loss for fiscal 2017 with earnings and sales hit by increased losses at the Gap stores. Reported earnings before interest, tax depreciation and amortisation was a loss of $7m after booking of $9.7m of non-core pre-tax items
- Total private sector credit rose 0.5 % in August, with annual growth at 5.5%. Housing credit grew 0.5% for a 6.6% annual gain while business credit also rose by 0.5% for a 4.5% annual rise.
BOND MARKET UPDATE
- Golden Week holiday kicks off in China this weekend.
- South Korea bans Initial Coin Offerings (ICO).
- Growth in Japan’s retail sector slowed in August, coming in below economists’ forecasts, but both department store sales and household spending rose 0.6%.
- Unemployment stood at 2.8%
- Japan’s core consumer price index climbed to its highest level for the year to date in August, supported by rising costs for fuel and medical care. Stripping out volatile prices for fresh food, inflation was at 0.7%.
EUROPE AND US MORNING HEADLINES
- At least something is growing in the US with the Trump tax plan now up from one page to nine pages.
- Tesla is “structurally unprofitable” with a “way too leveraged” capital structure, said famed short seller Jim Chanos. He went on to say said the electric-car maker is behind on autonomous driving technology and had rushed the Model 3 to market to appease investors. He said Tesla is now about to face its biggest obstacle yet: real competition in the electric vehicle space from automakers with cash to spend. Short interest is about 19% of free float, IHS Markit data show, down from a high of 30% in January.
- More than half of U.S. investors anticipate a decline this year that will wipe out “significant gains,” according to the latest Wells Fargo/Gallup poll results. 61% said now is a good time to invest in the stock market. 62% of investors said they would ride it out, and 27% said it would be a buying opportunity.
- Angela Merkel has said she is ready to engage with France’s Macron on EU reforms. May even let UK back in once they have reformed.
- Elon Musk is going to Mars in 2022 in his BFR. Big ** Rocket. Good luck.
Have a great weekend