Monday 4th June – Australian Market Wrap | Beeks Downunder-Because not all financial news is boring!

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Today’s Headlines

ASX 200 closes up 35 to 6025.5.
Rally fades a little on modest volume. High 6038 Low 5999.
CBA leads financials higher after AUSTRAC.
Big miners back in spotlight. Energy stocks slip.
Healthcare weak CSL strong.
REITs in demand as WFD money flows.
AUD higher at 76.24c
Bitcoin popular at US$7690
AUD Gold weaker at $1292.
US futures up 56.
Asian markets mixed with Japan up 1.52% and China CSI 300 up 0.93%

STOCK STUFF

Movers and Shakers

GXY +2.87% UBS upgrade.
AGL -3.44% broker downgrade.
FMG +0.84% to build LNG import facility
KGN +7.46% pushes into appliances.
CYB+6.00% revises Virgin terms.
SM1+4.05% A2M -1.98%
CSL +1.26% weekend media article.
JBH -3.27% broker downgrades.
HVN -2.77% retail sales.
LNG +14.94% capital raising.
PDN +6.67% uranium starting to stir.
BUB +7.19% China deal.
ISU +9.09% Meerkats move to near 20%. Simples.
SXY +3.80% buyers back.
AVZ -10.34% drill results
Speculative stock of the day: Axiom Mining (AVQ) +17.24% after the company was granted rights to the Isabella nickel project.
Biggest risers – WBA, KGN, MYX, NWL, CYB and CVW.
Biggest fallers – IRI, OGC, REG, YAL, ASB and JMS.

TODAY

Commonwealth Bank (CBA) +1.44% CBA has settled with AUSTRAC over the anti-money laundering and counter-terrorism act breach allegations and will pay $700m in fines and $2.5m in legal fees pending Federal Court approval. CBA has also admitted to other breaches of the act that have not been disclosed.
Jumbo (JIN) +5.17% has updated its FY18 guidance. FY18 revenue is expected to be up 15% form FY17 at $37.3m, NPAT similarly up 45% to $11.0m and NPAT attributable to members up 102% to $11.3m. JIN also announced a second special dividend for 2018 of 8c per share, fully franked.
Vicinity Centres (VCX) +2.62% selling $1bn of non-core shopping malls to focus large transformative centres in Melbourne and Sydney. The sales will reduce funds from operations per security by 1c annually but will not impact on FY18 guidance due to the timing.
Kogan (KGN) +7.46% Will enter into the whitegoods and Built-in kitchen market signing a logistics and supply deal for its own range of exclusive brand-price competitor products.
CYBG PLC (CYB) +6.00% has submitted a revised offer to Virgin Money for its acquisition to create a new UK national banking competitor. The offer is now for and exchange ratio of 1.215 new CYB shares for 1 Virgin share, leaving Virgin Money shareholders with roughly 38% of the new company.
Bubs Australia (BUB) +7.19% has signed a long-term supply agreement with a China based supply chain for up to 20 e-commerce platforms in China. Bubs expect to at least double revenue with a $17m sales commitment for FY19 and a minimum sales commitment of $24m in FY20 and $37m in FY21.

ECONOMIC NEWS

Australian retail sales better than expected at +0.4% for April vs +0.2% expected. The beat was driven by increased consumer spending on household goods and at restaurants.
Australian job ads were strong at +1.5% for May compared to -0.3% in April.
Australian 1Q business inventories, profits and wages all rose. Inventories rose +0.7% in seasonally adjusted terms adding to last quarter’s 0.6% rise, company profits rose 5.9% for the quarter in seasonally adjusted terms, and wages grew 0.8% over the quarter.

The seasonally adjusted estimate for company gross operating profits rose 5.9% in the March quarter 2018.
The seasonally adjusted estimate for wages and salaries rose 0.8% in the March quarter 2018.

BOND MARKETS

ASIAN MARKETS NEWS

Chinese authorities are set to investigate film and TV companies on tax issues. Huayi Brothers falls to a 5-year low.
China warns all trade deals could be off in spat with US.

EUROPE AND US MORNING HEADLINES

Unicredit looking to merge with Soc Gen.
Moody’s has said it will consider whether to further downgrade Turkey
The airline industry body has forecast a fall in profits for the sector due to rising fuel costs and staff costs.

And finally……….