Today’s Headlines

• ASX 200 -3 TO 6084.5 in quiet trade
• High 6095 Low 6070.
• Low volume and narrow range again.
• Banks slip as RC cranks up for the last time.
• CSL higher after broker upgrades.
• Resources see profit taking. Iron ore lowest in two weeks.
• STO gets a final offer from Harbour.
• TLS network fails. 7-year low.
• AUD steady at to 75.18c number
• Bitcoin rose again to US$8505
• AUD Gold rallies to $1286.
• US futures up 190.
• Asian markets better on trade talk success with Japan 0.45% and China up 0.70%

STOCK STUFF

Movers and Shakers

• APX +6.15% continued buying after results.
• VOC +4.24% new CEO and MD.
• WTC +3.40% $100m placement to global institution.
• ORE +5.61% lithium back in fashion.
• UPD +3.42% New York presentation.
• LYC +2.16% rebounding.
• STO +1.76% sixth and final bid.
• TLS -1.75% network outage.
• BLD -3.84% broker downgrades.
• FMG -3.09% iron ore slips.
• ELD -2.95% ex-dividend.
• AHY -5.94% broker downgrade.
• WHA -24.12% capital raising and acquisition.
• SFH +7.14% change of directors interest.
• TTT +10.66% the bulls are back.
• TWE -1.81% change in substantial shareholding.
• Speculative stock of the day: Star Combo (S66) +45.45% +% after it began life as an ASX listed stock last week. S66 is an Australian nutritional products company which manufactures vitamins, dietary products and skincare products. It has a strategic agreement with Terry White Chemists to offer a new product line through the 450 chemist stores.
• Biggest risers – YAL, APX, PME, ORE, AJM and LOV
• Biggest fallers – AHY, FNP, BLD, KMD, MGX and FMG

TODAY

• SkyCity Entertainment Group(SKC) +0.28% Has named Hansen Yuncken as its main contractor for its Adelaide Casino expansion. SkyCity said the project is on track to start next month and finish by 2020 whilst the budget remains in line with initial estimates of $330m.
• AGL Energy (AGL) +1.08% rejected the $250m Alinta Energy offer for its Liddell power station which it plans to decommission after 2022. AGL said the offer undervalues the future cash flows from the plant until 2022 and potential use of the site afterwards.
• Vocus (VOC) +4.24% Kevin Russell has been appointed the company’s new MD and CEO effective May 28. Kevin has previously been a Retail Group Executive at Telstra and the Consumer Country Chief Officer and CEO at Optus. The Vocus New Zealand CEO has also been appointed to the board.
• WiseTech Global (WTC) +3.40% issued $100m of shares to a single institutional investor, Capital Group’s Smallcap World Fund, at 1330c.
• Santos(STO) +1.76% Harbour Energy has outbid itself with a revised offer of US$521c up from US498c. Interestingly the bid has a number of conditions relating to the company hedging part of its oil production. The bidder has declared the bid its final offer.
• BWX – In a trading halt as a private equity buyer appears to be stalking the company.
• Here there and Everywhere (HT1) –0.87% Ooh!media (OML) +1.49% The company has engaged with a potential new bidder for it’s out of home advertising business (Adshell). It had now received multiple offers for the business including a $470m deal from oOh!media (OML).

ECONOMIC NEWS

• National Bank has changed its cash rate call and is now predicting a 0.25% increase will now come in mid-2019.

BOND MARKETS

ASIAN MARKETS NEWS

• President Xi Jinping reaffirmed the government’s battle against pollution.
• The value of Japan’s exports rose at the quickest clip in three months in April thanks partly to a boost in shipments to the US but still came up short against economist expectations. April exports 7.8% yr/yr vs forecast +8.1%. Imports +5.9% yr/yr vs forecast +9.6%.
• Malaysian stock markets saw the biggest outflow in funds since August 2013 as overseas investors sold US$625m of stock last week.
• Chinese stocks are set to be included in the MSCI with 234 companies joining the index. Buying has accelerated in April with net inflows up 222% on March and 400% since the same time last year.

EUROPE AND US MORNING HEADLINES

• US-China trade war is now officially on hold. World breathes sigh of relief.
• Venezuelan president Nicolás Maduro won another six years in office on Sunday. Record low turnout from voters.

And finally…………….

At breakfast, the husband says to his wife, “What would you do if I won the Lotto?”

“I’d take my half and leave you”, she says.

“Great”, he says.  “Here’s $6.  I won $12 yesterday!

 

 

A doctor in Dublin wanted to get off work and go fishing, so he approached his assistant. “Murphy, I am going fishing tomorrow and don’t want to close the clinic. I want you to take care of the clinic and take care of all me patients”. “Yes, sir!” answers Murphy. The doctor goes fishing and returns the following day and asks: “So,Murphy, how was your day?” Murphy told him that he took care of three patients. “The first one had a headache so he did, so I gave him Paracetamol.” “Bravo Murphy lad, and the second one?” asks the doctor. “The second one had indigestion and I gave him Gaviscon, so I did sir” says Murphy. “Bravo, bravo! You’re good at this and what about the tird one?” asks the doctor. “Sir, I was sitting here and suddenly the door flies open and a young gorgeous woman bursts in so she does. Like a bolt outta the blue, she tears off her clothes, taking off everyting including her bra and her panties and lies down on the table, and shouts: ‘HELP ME for the love of St Patrick! For five years I have not seen any man!'” “Tunderin’ lard, Murphy, what did you do?” asks the doctor. “I put drops in her eyes.”

 

Click here for the Audio version of this report

 

Clarence 

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