- ASX 200 up 17 to 5886.
- High 5895 Low 5869.
- Narrow range. Low volume.
- Banks have a better day at RC.
- Energy falters. Miners rally on Asian iron ore gains.
- Healthcare sags.
- AUD slips to 76.76c
- Bitcoin rallies hard to US$8847.
- US futures up 73.
- Asian markets fall with China CSI down 0.67% and Japan down 0.28%.
Movers and Shakers
- STO +0.17% media reports of a rival bid from Macquarie Capital and Total.
- MYR +8.45% appoints new CEO, John King ex-House of Fraser. Out of frying pan.
- BEN +4.94% broker upgrade.
- AMP -3.02% falls again.
- WSA +1.35% news on mill enhancement
- NCM +2.80% playing catch up on Cadia announcement.
- CGF -2.73% broker upgrade.
- KGN -17.75% trading update. Overdone. Adding to the portfolio.
- DFM +5.61% acquisition of local health supplements business.
- ADA +2.98% signs a multi-phase contract with Nav Portugal.
- GEM -3.90% heading south.
- GXY -2.97% clarifies the quarterly report.
- WOW +0.19% renewed pressure on pokies division.
- LVH -14.38% quarterly report.
- ELD -3.74% profit-taking.
- LYC -1.53% sellers appear.
- CAT -7.41% rally unwinds.
- ISU -55.55% has been deselected.
- EOS +3.06% on track with FY18 goals.
- Speculative stock of the day: Cirrus Net Holdings (CNW) +40.00% after a quarterly report delivered results with in excess of $2m of new orders booked. Consolidated revenue up 76% to $30.6m
- Biggest risers – CUV, CVW, BEN, NCZ, FXL and BGA.
- Biggest fallers – KGN, JMS, SSM, APT, GEM and ELD.
- Mirvac Group(MGR) –0.93% 3Q update. Confidently reaffirmed operating earnings guidance of between 15.3 and 15.6 cents per stapled security and distributions of 11.0 cpss. Earnings growth is supported by a full development pipeline of projects with solid margins. Gearing is expected to remain within 20-30% target and occupancy rates have remained high across all areas but fallen slightly. The company has also initiated an on-market buyback program for up to 26% of securities.
- Blue Sky Alternative Investments(BLA) –10.40% Significant management and board changes announced this morning including the resignation of the MD Robert Shand. An interim CEO has been appointed in Kim Morrison.
- Syrah(SYR) –1.51% The company has announced it has completed its fines dryer repairs at the Balama Operation ahead of schedule at the cost of US40.3m.
- Macquarie Atlas Roads(MQA) –83% Appoints new CEO, Graeme Bevans. His first task will be to employ a new management team and establish operations separately from Macquarie.
- iSelect (ISU) –55.50% The MD has resigned amidst a significant downgrade from an EBIT of $26m-$29m to $8m-$12m. Seems all their markets have been negatively impacted by health, energy, and telcos impacted by market volatility. Brodie Arnhold has been appointed interim CEO.
- Kogan (KGN) –17.75% Quarterly cash flow statement saw cash at $19.3m, accessible debt at $10m, unaudited gross transaction value +49.8% pcp, revenue growth +46.1% pcp, and strong mobile profit growth backed by customer growth.
- Nothing special today.
ASIAN MARKET NEWS
- China tech slump continues after ZTE ban. Lenovo Group Ltd. sank to its lowest level since 2009 down 3.4% in Hong Kong.
- Support for Trump’s golf buddy Shinzo Abe has hit an all-time low.
- Growth in Japan’s manufacturing sector picked up in April.
- The curbs on pollution continue in China with the government moving to control heavy industries. Just last year, the state’s share of steel capacity increased to 67% from 60% while aluminum smelting saw about an equal increase, J Capital Research Ltd. estimates. In coal, which began consolidating years earlier, the government now controls 80 percent of capacity compared with about 45% in 2010.
EUROPE AND US MORNING HEADLINES
- UBS has got the European bank results season off to a strong start, reporting a larger-than-expected 17% rise to SFr1.97bn in reported pre-tax profits for the first quarter of 2018, boosted by strong investment bank results.
- HNA has once again cut its stake in Deutsche Bank, this time to 7.9% despite saying it had no plans for further sales.
- Walmart is close to buying India’s leading e-commerce company, Flipkart, for US$12bn. EU budget set to shuffle funds from North to South.
- Iran has warned the US against reimposing sanctions.
- Data from the World Intellectual Property Office for the 2016-17 financial year shows patents filed for technology related to drones hit a new high of 5,301 – more than quadrupling from the 1,242 the prior year.
1960 Hits Renamed
Some of the artists of the 60’s are revising their hits with new lyrics to accommodate aging baby boomers who can remember doing the “Limbo” as if it were yesterday.
Herman’s Hermits —
Mrs. Brown, You’ve Got a Lovely Walker
Ringo Starr —
I Get By With A Little Help From Depends
The Bee Gees —
How Can You Mend A Broken Hip?
The First Time Ever I Forgot Your Face ?
Johnny Nash —
I Can’t See Clearly Now
Fifty Ways To Lose Your Liver
The Commodores —
Once, Twice, Three Times To The Bathroom
A Whiter Shade Of Hair
Leo Sayer —
You Make Me Feel Like Napping
The Temptations —
Papa’s Got A Kidney Stone
Tony Orlando —
Knock 3 Times On The Ceiling If You Hear Me Fall
Helen Reddy —
I Am Woman; Hear Me Snore
It’s My Procedure, and I’ll Cry If I Want To
And Last, but NOT least:
Willie Nelson —
On the Commode Again