Today’s Headlines

• ASX 200 bounces 43.5 points to 5877. Not convincing.
• High 5939 Low 5858.Strong volumes.
• CBA results underwhelm. Other banks follow.
• Insurers and Telcos fail to fire.
• Utilities rally slightly.
• Energy and materials stand out.
• RIO results due after hours.
• AUD slips to 78.82c as USD gains ground on rate rise trajectory.
• AUD Bullion price $1329.
• Bitcoin rallies after wild ride US$7400
• US futures slips in quiet trade down 91 after huge volatility
• Asian markets mixed with CSI 300 down 1.08% and Japan +1.39%.

STOCK STUFF

Movers and Shakers

• GXY +11.46% risk on back in lithium ORE +3.65%. JP Morgan upgrades helping.
• PLS +6.25% rated neutral by JP Morgan.
• APX +9.73% tech rally helps.
• MYR -2.31% Premier Investments ramps up board pressure for EGM.
• A2M +5.15% buyers return.
• SWM -3.85% media stocks fall.
• SBM -2.70% gold under pressure as risks fade.
• SEA -15.96% acquisition and capital raising imminent.
• GMA -2.14% profits disappoint.
• WBC -0.10% upgraded to a Buy by Morningstar.
• EOS -2.61% placement weighs.
• AC8 +25.5% medicinal marijuana stocks rally.
• Speculative stock of the day: WPG Resources (WPG) +87.50% after spectacular Tarcoola grade control intersections of 73.31g/t of Au from 11m. 26.74g/t Au from 4m drill hole.
• Biggest risers – IEL, AJM, GXY, APX and KDR
• Biggest fallers – YAL, SWM, EVN, EWC and SBM.

TODAY

• Commonwealth Bank (CBA) -0.79% A slight miss from some forecasts of $5.2bn coming in at $5.11bn. The bank also took a $575m charge against AUSTRAC and other regulatory issues. The dividend has been raised to 200c from 199c another sign of confidence and the Net Interest Margin (NIM) is up 6bps to 216 bps. CBA has some clouds as do the other banks with Royal Commission and housing slowdown etc.
• Nick Scali (NCK) -1.15% 1H FY18 results announced today. Sales up 8.1% on pcp to $128m. Like for like sales growth up +2.6% assisted by six new store openings. Gross margin increased 90bps to 62.6%. NPAT increased 15% to $23.5m. Operating expenses decreased 35.2% of sales. The company announced a 20c final dividend, and a 16c half year dividend for FY18.
• Carsales (CAR) -1.74% Net profit was up 12% on year but fell short of expectations from Ord Minnett who anticipated a 14.7% lift in normalised net profit. There were also concerns that Carsales’s core business growth was mainly driven by fee hikes, which have brought into question if it is sustainable or not.
• Murry Goulburn (MGC) -unchanged- Reported a first half fall in revenue of 5%, a $27.5m loss and a lift in debt. The company warned if a deal with Canada’s Saputo isn’t successful, the groups uncompetitive milk price may result in more milk losses, trigger impairments and covenant breaches and the potential loss of creditors’ support.
• Premier Investments (PMV) -0.36% Has asked Myer’s share register to request an EGM to vote on replacing Myer’s board.
• WiseTech Global (WTC) +2.59% acquires Belgian logistics solutions provider Intris, the latest deal in a bolt-on strategy. Intris had 2016 annual revenue of $7.1m and EBITDA of around $1.1m. The acquisition cost is around $17m.

ECONOMIC NEWS

• The Living Cost Index of wage-earning households rose by 0.7% in the December quarter, above the consumer price index of 0.6%, CommSec reports.
• The Australian Industry Group Performance of Construction index rose by 1.5 points to 54.3 in January.

BOND MARKET UPDATE

 

ASIAN MARKETS

• Hong Kong deadly flu outbreaks spreads.
• Singapore based guru Steve Diggle says volatility is here to stay.

EUROPE AND US MORNING HEADLINES

• Elon Musk has successfully put a Tesla into space. Probably the best place for it.
• Steve Wynn has stepped down from Wynn Resorts.
• A German union has won the landmark right to a 28-hour week.
• US trade deficit has grown by 12.1% under Trump.
• LA Times to be sold to biotech billionaire Patrick Soon-Shiong

And finally………….

A married man was having an affair with his secretary. One day, their passions overcame them and they took off for her house, where they made passionate love all afternoon.

Exhausted from the wild sex, they fell asleep, awakening around 8:00 p.m. As the man threw on his clothes, he told the woman to take his shoes outside and rub them through the grass and dirt. Mystified, she nonetheless complied. He slipped into his shoes and drove home.

“Where have you been?” demanded his spouse.

“Darling, I can’t lie to you. I’ve been having an affair with my secretary and we’ve been having sex all afternoon. I fell asleep and didn’t wake up until 8 p.m..”

His spouse glanced down at his shoes and said, “You liar! You’ve been playing golf!”

 

Clarence

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