- ASX 200 moves higher up 29 points to 5739.
- High 5759 Low 5711. Light volumes again with US on holiday tonight.
- China data takes some gloss off strong day.
- Takeovers and banks drive market higher.
- Insurers and REITs finding buyers.
- Telstra attracts interest. CSL too.
- Big miners wilt on disappointing PMI Chinese data.
- AUD falls to 77.70c
- US banks closed for Columbus Day holiday. Futures up 26.
- Asian markets positive with China back from Golden Week up 1.85% and Japan up 0.39%
Movers and Shakers
- CLQ+11.59% after upgrading its cobalt at Syerston project.
- LYC +7.32% still finding buyers following positive coverage.
- ACX +5.67% change in substantial holding from Immersion Capital
- CGC +2.93% riding the blueberry train.
- ORE -2.91% profit taking.
- GXY -2.89% profit taking.
- FMG -2.90% broker downgrade.
- ALL +1.70% CEO moves to US and doubles pay.
- BPT -1.18% oil price weakness.
- SDA -1.19% selling continues.
- SYD +0.99% TCL +0.51% positive broker comments.
- MQG -0.47% looking tired.
- MFG +2.37% on indicative IPO raising of $1.55bn
- Speculative stocks of the day: Freemont Petroleum (FPL) +44.44% after confirmation of an oil discovery in Western Flank of Florence Field.
- Biggest risers – MTR, CLQ, ASB, LYC, ACX and NEC.
- Biggest fallers –PLS, ORE, ASL, GXY, FMG and MSB.
- Worley Parsons (WOR) – trading halt- has agreed a $303m acquisition of AFW UK Oil and Gas which is expected to be earnings accretive in its first year (pre-synergies, transaction costs and acquisition related amortisation). The purchase will be funded by an underwritten accelerated non-renounceable entitlement offer worth $322m. 1:110 at 1300c an 8% discount to theoretical entitlement price of 1413c.
- Austal (ASB) +7.41% has announced a $190m ferry contract for two 117m Trimaran ferries in Spain. The ships are due to be delivered in the next 29 to 36 months with the location of the build to be announced separately.
- Oz Minerals (OZL) -0.89% Announces diamond drilling at its copper-gold mine, Eloise in QLD has commenced.
- Select Harvests (SHV) +25.48% Has knocked back a $409m takeover approach from Mubadala Investment Company from Abu Dhabi. The price offered is 585c for the 700m shares and the board considers it too low. The company has said the highly conditional bid does not take into account the 34% of immature plantings that will come onstream in the next five years. Any offshore takeover bid for Select Harvests’ farms would require the approval of the Foreign Investment Review Board and federal Treasurer Scott Morrison.
- Mantra (MTR) +16.41% announced that it has received a approach from Accor on a change of control transaction by way of a scheme of arrangement. Accor has offered 396c less the final dividend and including a special dividend. MTR has agreed to allow Accor due diligence to see if the board can agree with the bid. Shareholders have been urged to take no action.
- Magellan Financial (MFG) +2.37% announced that it had raised $1.55bn from the Global Fund IPO. This is a significant positive for the company and removes some uncertainty over the IPO.
- Maurice Blackburn has launched a class action against CBA +0.54% for the AUSTRAC debacle following the announcement from litigation funders IMF Bentham that its funding is now unconditional. The statement of claim specifically names Ian Narev, Catherine Livingstone and Alden Toevs (ex-chief risk officer).
- Nothing today
- In China, the Caixin/Markit services purchasing managers’ index (PMI) fell to 50.6 in September, the lowest reading since December 2015 and one of the weakest since the survey began in 2005.
- Caixin’s composite manufacturing and services PMI, also released today, fell to 51.4 in September from 52.4 in August and was the lowest since June.
- Kim Jong Un has promoted his younger sister, Kim Yo Jong, to become an alternate member of the politburo. Same hair style?
EUROPE AND US MORNING HEADLINES
- Wolfgang Schäuble, outgoing German finance minister, has warned that spiralling levels of global debt and liquidity present a major risk to the world economy.
- Moody’s has maintained its rating on Italy with a negative outlook, citing the stabilisation of the country’s banking sector and stronger economic growth after a recent bout of weakness.
- Theresa May has hinted at a cabinet reshuffle. Goodbye Boris?
- Crunch week comes for Catalans call for independence. It is like London leaving the UK.
And finally…………..thanks Hans..
A young man and a priest are playing golf together. At a short par-3 the priest asks, “What are you going to use on this hole, my son?”
The young man says, “An 8-iron, father. How about you?”
The priest says, “I’m going to hit a soft seven and pray.”
The young man hits his 8-iron and puts the ball on the green. The priest tops his 7-iron and dribbles the ball out a few yards.
The young man says, “I don’t know about you father, but in my church when we pray, we keep our head down.”
Have a great evening …Catch Clarence on ABC Breakfast in the morning around 8.20am.