- ASX 200 catches cold down 95 points to 6026.
- High 6099 Low 6013.Modest volumes. Worse fall in 18 months
- Initial falls carry through as Asia opens down.
- Banks and miners sell off in unison.
- WES takes write off. Telcos slump.
- Energy shares fall. Bond proxies slide.
- AUD slips to 79.29c as USD gains ground on rate rise fears.
- Bitcoin continues to fall to US$8,168.
- US futures down 140.
- Asian markets hit with CSI 300 down 0.76% and Japan -2.43%.
Movers and Shakers
- SHL +0.85% bucks trend to go to an all-time high.
- SDA +1.82% NBN contract win.
- APT -6.62% high PE stocks falling.
- JHX +0.04% positive broker sentiment after results Friday.
- KGN -8.08% gravity strikes.
- KDR -4.47% lithium unwinds.
- MIN -6.47% misses out on AWE.
- MLX -5.18% metal price weakness.
- BIG -9.44% negative sentiment takes toll.
- UPD -5.39% speculative stocks hit hard.
- DCC -16.33% follows bitcon down.
- WSA -6.87% nickel price falls.
- WBC -1.23% taps market for $750 of Tier One Capital
- ARU -12.50%% positive rare earths update.
- FXJ -1.39% NZM +5.30% to appeal NZ government decision.
- BYE -12.90% completes drilling operations.
- YOJ -15.22% catches GSW bug.
- XRO -5.79% sole ASX listing begins.
- ARB +1.62% bucks selling but volume low.
- MEA -6.38% on John McGrath’s alleged gambling losses.
- Speculative stock of the day: Roots (ROO) +7.32% Exclusive distribution agreement for Chinese market signed with Dagan Agricultural with targeted minimum sales of $19m over 5 years.
- Biggest risers – IFN, SDA, CVW, ARB and ARB.
- Biggest fallers – KGN, SYR, RSG, ELD, ORE and BIG.
- Wesfarmers (WES) -4.51%New CEO has cleared the decks as its UK Bunnings business struggles. Wesfarmers will book non-cash impairment charges of £454m($795m) before tax on BUKI, with £444m ($777m) to be recorded against goodwill on the acquisition of Homebase and £10m ($18 million) against the remaining book value of the Homebase brand name. BUKI was expected to report an underlying loss before interest and tax of £97m ($165m) for the December-half 2018. This compares with market forecasts for losses around $54m. The dividend will be determined off the group net profit and the write down will not affect that.
- AWE-3.05% The company has recommended the takeover by Mitsui for 95c in cash. Directors have unanimously told shareholder to take the cash. Obviously, the board has rejected the other two bids.
- Downer EDI (DOW) -3.78% Announced today it will impair the carrying value of the goodwill for its Mining business. A pre-tax charge of $77m will be recorded in its up and coming half year results and disclosed as a signficant non-recurring item; so no change to guidance. And no change impact to cash flow, or the existing operations the company said.
- Greencross (GXL) -0.16% Announced Simon Hickey as CEO and MD to replace Martin Nicholas effective next month. Hickey comes from Qantas Loyalty and has over 10 years’ experience in strategy and finance roles.
- A monthly survey by ANZ showed total job advertisements jumped 6.2% in January from December, when they fell 2.7%. That was the largest monthly rise since February 2010.
- The number of home auctions rose to 779 in the week to February 4 – almost triple the number of a week earlier but that was down on the 881 in the same period a year ago according to CoreLogic. Preliminary clearance rate of 67.7% across the combined capital cities well below the previous week’s 72.8%, and lower than the 68.8% rate at the same time in 2017.
BOND MARKET UPDATE
Growth in Japan’s service sector growth picked up in January as a gauge of industry activity remained in expansionary territory for a sixteenth consecutive month.
EUROPE AND US MORNING HEADLINES
- The Philadelphia Eagles (NFC team) have won their first Super Bowl, denying the New England Patriots (AFC) a sixth championship victory. This is a positive for markets as a NFC team is 80% more likely to result in a positive year for stocks. The ‘Superbowl Predictor’ has picked it correctly 8 times out of ten since the first one in 1967. A high scoring game above 46 points is also good for markets (41-33). They need all the help they can get after Friday.
- The Fed has slapped extra sanctions on Wells Fargo after fake account scandal.
- Lloyds Bank in UK bans credit card buying in crypto.
- Bank of England monetary policy decision Thursday.