Today’s Headlines

• ASX 200 rises to decade high again up 57 to 6272.
• High 6273 Low 6219. Volume lighter ahead of weekend.
• ASX up 78 points or 1.26%
• Trade tariffs kick in as expected. World doesn’t end. Sellers take a holiday.
• Big four lead advances as RC finishes.
• Resources join the party. Energy solid.
• Even TLS catches a bid.
• AUD stronger at 74.02c
• Bitcoin eases to US$6511
• Aussie Gold $1695.
• US futures celebrate pyrrhic victory up 46.
• Asian markets rally as war kicks off. Japan up 1.16%  and China CSI 300 up 0.18%.

STOCK STUFF

Movers and Shakers

• ELD -15.35% the ongoing drought surprises. Not sure why.
• COE +8.45% Sole report.
• AAC +2.45% ELD comments cheer.
• PLS +3.31% bargain hunters
• MSB +2.98% buyers snap up
• ISD +12.14% reaffirms guidance and new CEO.
• WHA -1.64% profit taking.
• CSL -0.07% can’t quite make it.
• ALL -0.96% profit taking.
• WES +1.55% the beat goes on.
• ASX -1.97% broker downgrades.
• NEC +4.08% analogue is back.
• BSL +3.17% broker upgrade.
• Speculative stock of the day: Symbol Mining (SL1) +24.14% huge volume as mining lease approved and commenced at Macy Zinc project in Nigeria.
• Biggest risers – COE, SBM, DCN, AJM, NWL and NEC
• Biggest fallers – ELD, SHV, CLQ, NHC, WBA, WGX and ING

TODAY

• St Barbra (SBM) +7.53% achieved record quarterly production in 4Q to 119,436oz taking full-year production to 403,089oz, beating the top end of FY18 guidance of 392,000oz and cracking 400,000oz for the first time. SBM also highlighted its strong balance sheet with $344m cash on hand and no debt.
• Elders (ELD) –15.35% reiterated its FY18 guidance after market commentary on dry weather and cattle price declines. FY18 EBIT to be between $70-$74m ($71m in FY17), NPAT to be between $59m-$63m ($58.4m in FY17). The results are driven by maintained high levels of sheep and wool demand and prices.
• iSentia (ISD) +12.14% A new CEO has been announced in Ed Harrison. The company has also reaffirmed guidance given recently of $32-$36m EDITDA with results on August 23rd.

ECONOMIC NEWS

• UBS economists have joined the list of analysts forecasting that the Reserve Bank of Australia will keep rates on hold until 2020.
• The borrowing capacity of Australian property investors has contracted 20% over the past three years, according to more research by UBS. Borrowing capacity could shrink by 30% if the royal commission recommends a “more strict” responsible lending regime.

BOND MARKETS

ASIAN MARKET NEWS

• HNA has announced that co-chairman Chen Feng will absorb the duties of his colleague Wang Jian, who died in a fall in France this week.
• Xiaomi’s highly-anticipated IPO in Hong Kong drew nearly ten times more applications for share purchases than what it made available for retail investors.
• Shanghai-listed energy and petrochemical group Wintime Energy defaulted on a bond payment on Thursday, putting US$3.9bn in oustanding bonds at risk.

EUROPEAN AND US HEADLINES

• Trump does what it says on the box. Tariffs rise and more to come perhaps with threats of $500bn more.
• Merkel walks back talk of car tariff agreement. Must conform to WTO.
• “The world has never been so indebted – even more than before the 2007 crisis – and this debt has never been so risky,” said the Autorité des Marchés Financiers (AMF) in its annual report. The AMF is France’s chien de garde.
• UK Brexit showdown again this weekend at Chequers. Euro-sceptics not happy with proposed rules on goods. 266 days to go.
• Next on the list of US products under threat in EU, Heinz Tomato Ketchup. Is there no end to this horror?
• Smart TVs are monitoring what people watch to send targeted ads to other devices in their homes, it has emerged. Time to reread George Orwell.
• It’s coming home. England play Sweden on Saturday at midnight. Never have so many, hoped for so much from so few.

And finally…..

Have a great weekend…may the force be with you and your team…

 

Clarence

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