- ASX 200 down 26 to 6252 on Turkish turmoil.
- High 6280 Low 6240.
- Banks and big miners bear the brunt.
- Controlled broad-based selling.
- NAB in the dock at RC.
- Results dominate but trade nervous on macro woes.
- AUD weaker to 72.80c USD strength on ‘flight to safety’ buying.
- Bitcoin weaker again at US$6346
- Aussie Gold steady at $1660.
- US futures down 99.
- Asian markets weaker again as China down 1.94% and Japan down 1.91%.
Movers and Shakers
- COE +6.45% resource and reserve upgrade.
- CVN -34.68 % disappointing drill results from Phoneix 3.
- NUF -13.13% Monsanto cancer case loss weighs.
- ELD -11.27% hit by Monsanto case too.
- NWS -9.29% concerns on outlook for Foxtel.
- PRY -3.96% guidance update.
- NHF +9.65% upgraded guidance.
- KGN +6.81% JBH results helps sector.
- DHG +3.76% results positive.
- ECX +10.53% strong bounce on broker moves.
- APA +0.30% CKI goes formal at 1100c cash.
- CZZ +25.37% sweet bid from Private Equity.
- PPS -5.03% results weigh.
- RAP -13.16% sellers moving back in.
- WHA -10.07% broker downgrades.
- AGY +5.88% back in demand.
- WES -0.18% tires of K Mart Auto.
- S32 -2.20% completes acquisition of Arizona Mining.
- Speculative stock of the day:Lachlan Star (LSA) +28.57% after the appointment of Klaus Eckhof as an executive director of the company. Eckhof is the former founder of AVZ Minerals. He will be gifted 80m performance rights over LSA based on various prices ranging from 2.5c to 6.5c.
- Biggest risers – ECX, NHF, KGN, COE, NGI and FAR
- Biggest fallers – CVN, NUF, ELD, NWS, SGM and ORE.
- Wesfarmers (WES) –0.18% Is selling its Kmart Tyre and Auto business to Continental AG for $350m to realise a pre-tax profit on the sale of around $270m. The sale is subject to ACCC and FIRB approval and is expected to be complete in 1Q FY19.
- APA Group (APA) + 0.30% Has entered into a conditional scheme of implementation with the CKI Consortium to acquire 100% of APA shares for an all-cash offer of 1100c per share. This will not change APA’s final distribution which will be 24c per share. The deal is subject to ACCC and FIRB approval and expected to be complete by December this year.
- Capilano Honey (CZZ) +25.37% Preliminary FY18 result and takeover bid. Revenue increased by 4% to $138.5m impacted by a change to the accounting treatment of a major customer. NAPT fell 5% to $9.8m impacted by lower honey prices due to increased supply and last year’s NPAT value including an untaxed capital gain. Underlying NPAT grew 19% using the FY17 NPAT value excluding the capital gain. The dividend grew by 2c to 42c per share. The company also announced it has agreed to a takeover offer from Wattle Hill, ROC Capital Consortium for 2006c per share, a 28% premium to the current share price of 1565c.
- JB HiFi (JBH) – 0.38% FY18 result. NPAT increased 12.3% YoY to $233.2m driven by a 21.8% increase in sales to $6.9bn. Performance was underpinned by JB Hi-Fi Australia whilst The Good Guys struggled in 2H as the company is still working out how to best meet key initiatives. EPS grew 9.2% to 203.1c per share and the total dividend was up 11.9% to 132c per share. FY19 sales guidance is around $7.1bn.
- BlueScope (BSL) – 1.45% FY18 Results. Net profit +119% to $1.57bn on the back of $743.1m in unusual and one-off benefits. EBIT +40% to $1.46bn. Sales revenue +9% to $11.5bn, driven by strong demand and steel spreads in U.S. and Australasian markets. Underlying EBIT 1H19 earnings expected to be up 10% YoY. Final Dividend up 60% to 8c.
- Aurizon (AZJ) +1.82% FY18 result sees the company return to profit. NPAT increased to $560.1m from a $37.2m loss last year, driven by higher coal volumes this year and last year’s results being impacted by Cyclone Debbie. Revenue decreased 1% YoY to $3.1bn, and underlying EBIT rose 6% YoY to $940m. FY19 underlying EBIT guidance for it’s above rail business is between $390m-$430m, lower than this year’s $460m due to the $50m impact of the end of two large WA contracts and the uncertain outcome of the QLD UT5 decision. FY19 above rail, coal haulage guidance is for between 215-225m tonnes per annum.
- Praemium (PPS) –5.03% Preliminary FY18 results saw underlying NPAT up 105.5% YoY to $1.4m while statutory NPAT was up 3,557.2% YoY to $1.7m. Net Tangible Assets increased from 32 to 35c over the year and no dividend will be paid.
- Bendigo and Adelaide (BEN) -0.35% Looks a little underwhelming at first glance. Underlying cash earnings: $445.1m, up 6.4%. Dividend increased by a cent which is a sign of confidence. Margin performance was strong, up 14bps for the financial year, with a margin of 2.36%.
- Santos (STO) +0.79% Has announced a 4th rig will commence operation in the Cooper Basin, with 8 wells expected by the year-end to increase LNG supply to the east coast domestic market.
- Domain Holdings (DHG) +3.76% FY18 result. Underlying EBITDA increased 12.5% to $115.7m whilst underlying NPAT rose 7.7% to $52.9m. Statutory results saw a net loss after tax of $6.2m, impacted by the one-off $29.6m loss from the early exit of its Beevo investment and the revaluation of its Oneflare marketplace. Earnings per share increased 7.3% to 9.2c and DHG will pay a full year dividend of 8c per share with 50% franking.
- Nufarm (NUF) – 13.13% A US court has ruled a similar glyphosate product from Monsanto has caused cancer which has put pressure on the NUF share price today, down 14%. The company has also said a Brazilian judge has suspended all Glyphosate registrations pending the completion of a regulatory review which has already been underway for 10 years. NUF said neither issue is expected to have any impact on its business.
- Nothing locally.
ASIAN MARKET NEWS
- Shanghai stock exchange is clamping down on stock suspensions.
- Singapore GDP revised down to 3.9% and expected to moderate further.
EUROPEAN AND US HEADLINES
- Early European moves likely to see FTSE down 35; DAX down 99 and CAC down 38.
- Turkey coming up with a cunning plan. South African Rand at a two -year low as emerging market currencies hit in Turkey roll.
And finally …
Twenty-one reasons why English is hard to learn.
1. The bandage was wound around the wound.
2. The farm was used to produce produce.
3. The dump was so full it had to refuse more refuse.
4. We must polish the Polish furniture.
5. He could lead if he would get the lead out.
6. The soldier decided to desert his dessert in the desert.
7. Since there was no time like the present, he thought it was time to present the present.
8. A bass was painted on the head of the bass drum.
9. When shot at, the dove dove into the bushes.
10. I did not object to the object.
11. The insurance was invalid for the invalid.
12. There was a row among the oarsmen on how to row.
13. They were too close to the door to close it.
14. The buck does funny things when does are present.
15. A seamstress and a sewer fell down into a sewer line.
16. To help with planting, the farmer taught his sow to sow.
17. The wind was too strong to wind the sail.
18. After a number of injections my jaw got number.
19. Upon seeing the tear in the painting I shed a tear.
20. I had to subject the subject to a series of tests.
21. How can I intimate this to my most intimate friend?