- ASX 200 slips 14 to 5992. Psychological barrier breeched.
- High 6018 Low 5992 Light volume ahead of Australia Day.
- Financials weigh as CBA suffers broker downgrade.
- TLS and consumer stocks rise slightly.
- AUD steady around 79.90c
- Bitcoin $11,643.
- US futures down 36 on day three of shutdown.
- Asian markets slightly mixed with CSI 300 up 0.75% and Japan down 0.17%.
Movers and Shakers
- DHG -17.17% CEO resignation for family reasons. FXJ -9.72% follows as 60% owner.
- KDR -6.81% PLS -5.05% lithium fall out continues.
- UPD -10.00% valuations questions.
- KGN -4.71% update leads to profit taking.
- NEC +6.89% ratings stronger.
- SWM +4.55% boosted by FXJ fall out.
- A2M +1.39% rally continues.
- MEA -12.28% board resignations and profit downgrade.
- PNI +10.86% after profit upgrade to $8m.
- TWE +2.71% technical buying on strong AUD.
- RFG -2.42% slide continues as new role created to look after franchisees.
- BYE +5.45% positive drilling update.
- GSW – Trading halt as Chanticleer asks questions.
- Speculative stock of the day: Ecargo (ECG) +233.33% after announcing it would acquire Jessica’s Suitcase from Kevin Rudd’s daughter. ECG will buy 45% of the company with an option to buy the remainder. Jessica Rudd will join the board.
- Biggest risers – PNI, NEC, YAL, SWM and OMH.
- Biggest fallers –KDR, UPD, DHG, MYX, and IVC.
- Domain Group (DHG) –17.17% A shock announcement this morning that Antony Catalano has resigned from the group for family reasons. Not a good result as Catalano was seen as the great hope for DHG to take on REA. The company is now conducting a global search for a replacement. And quickly it would seem.
- Quintis (QIN) – The company has announced it had entered administration. Hardly a surprise and a vindication for the US hedge fund that short sold the company and had a damming report on the company.
- AuMake (AU8) –4.00% The company has successfully raised $14m in a placement at 45c supported by existing shareholders associated with non-executive director Quentin Flannery. The company has also welcomed a cornerstone Chinese investor.
- Yojee (YOJ) – 5.66%The company has announced the completion of the block chain integration to provide seamless regional freight networking. First blockchain software product expected to be released in this quarter.
- Zip Co (Z1P) +1.15%Appointment of Dianne Challenor as a non-executive director.
- Animoca Brands (AB1) – Trading halt and capital raising. Given the huge run last week hardly a surprise the company is raising money. ‘Crazy Defense Heroes’ online gaming app had strong Asian sales hence the huge share price appreciation.
- McGrath (MEA) –12.28% Changes to the board and earnings update. CEO Cameron Judson and Head of Corporate Services Morgan Sloper will leave the company together with Nigel Dews as CEO of Message Media. EBITDA is now expected to be $1.63m before one off items giving a small loss of $50,000. Stage two of the restructure is expecting to deliver $5m in savings and deliver a full year EBITDA of between $5.8m-$6.8m..
- Get Swift (GSW) – Trading halt pending an announcement regarding the AFR article this morning.
- Kogan (KGN) –4.71% Trading update – Cash of $28.2m Strong growth achieved in 1HFY18. Acceleration in trading momentum in 2QFY18 with the business outperforming management budgets.
- Australian Pharmaceuticals (API) –3.59% Trading update with NPAT now expected to be $26.5m. The half year is expected to be down 9% due to ‘supressed retail conditions’ at Priceline. Xmas trade was also underwhelming with no pick up.
- Nothing today
- Shares of HNA Group Co. units fell in Shanghai and Shenzhen trading after more of the conglomerate’s subsidiaries halted their stock from trading, pending “major”’ announcements. HNA Infrastructure fell by 10% , the daily limit in Shanghai and HNA Innovation Co fell 9%.
EUROPE AND US MORNING HEADLINES
- Davos kicks off January 23rd. Trump will be there (closing keynote address) as will May, Modi and Elton John. This year’s theme is “Creating a shared future in a fractured world”. Runs all week. Will Elton play Rocket Man?
- Looks like Merkel will be back after SPD votes to hold coalition talks.
- Fitch has upgraded Spain’s credit rating to A- from BBB+.
- S&P Global Ratings upgraded Greece’s long-term sovereign credit rating by one notch to B from B-’
Job interviewer: “And where would you see yourself in five years’ time Mr Beeks?”
Me: “Personally I believe my biggest weakness is in listening.”
You have to appreciate how badass the Chinese are, making their language totally out of tattoo symbols.