dunn 4.5

Today’s Headlines

  • 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.


bonds 5.2.18


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.

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  • drops sp.png
  • 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.

And finally…………………

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