Today’s Headlines

• ASX 200 slow burns to a plus 28 day to lose at 6190.
• High 6197 Low 6167. Modest volume. SPI expiry tomorrow.
• Resource bargain hunters rush back in as Asian metals rally
• Infrastructure and REITS under pressure.
• Banks light up.
• AUD higher again at 72.464c
• Bitcoin better at US$6337
• Aussie Gold stable at $1662.
• US futures up modestly by 8 points
• Asian markets continue to bounce with Japan up 1.28% and China CSI up 1.60

STOCK STUFF

• SFR +5.12% change in substantial holding.
• CSL -1.36% still suffering from blood to the head.
• IGO +5.65% WSA +4.02% shorts covering.
• CGC +4.89% broker upgrade.
• BAL +4.50% finally finding support.
• LYC +4.03% bounces despite tariff news.
• SM1 -6.43% results underwhelm.
• TPM -5.39% profit-taking continues on 5G auction news.
• EHE -3.64% Aged Care RC terms released.
• ORG +0.49% new gas contract.
• UPD -% a NY state of mind has finished.
• BWX -4.76% ceasing to be a substantial shareholder
• RAP -14.81% $7.5m equity issue at 22c.
• TLS +1.56% AI love in day.
• BYE +26.79% Block 74 update.
• SFX +8.13% Thunderbirds are go. Loan approved.
• AGL -1.17% sellers resume.
• NAB +0.72% CEO takes a $1m pay haircut.
• GRR +6.98% doing well on iron ore pellet price.
• Speculative stock of the day:Old favourite BYE +26.79% after an update on South Marsh Island 74 with a Spud date of February to April next year. MEL has farmed in for a 30% stake in the project too for 40% of the dry hole cost.
• Biggest risers – IGO, SFR, CGC, OZL, FMG and AMI.
• Biggest fallers – SM1, TPM, BWX, SLC and UPD.

TODAY

• Synlait Milk (SM1) –6.43% FY18 results. Net profit up 88.9% to $74.6m driven by infant formula sales. Revenue was 15.8% higher to $759m. The average total milk price for FY18 was 678c per kg of milk solids, consisting of a 665c per KgMS average price and an average value-added incentive payment of 13c per KgMS. SM1 also announced it has entered into an agreement to acquire assets from Talbot Forest Cheese, the investment is expected to be in the range of $30m to $40m.
• InvoCare Limited (IVC) +0.25% Has entered into an agreement to acquire the business and assets of Harrison Funerals based in Ballarat, Victoria. The acquisition is anticipated to complete by the end of September 2018. The business conducts approximately 150 funeral services and generates revenue of around $1m per annum.

ECONOMIC NEWS

• RBA Assistant Governor has given a speech today. Money – Born of Credit? Straight to the pool room. One for the education section.

BOND MARKETS

ASIAN MARKET NEWS

• China plans to slap tariffs on US natural gas exports as trade tensions escalate.
• China’s Premier Li Keqiang pledged a series of pro-business policies including equal treatment for foreign investors.Li went on to say it will not devalue the currency to combat the tariff increase. It is down 8.5% against the USD in the last five months.
• North Korea has pledged to shut its missile engine testing site and allow external inspections.
• BoJ has kept rates steady today. Nothing for 32 months now. A fine example for the RBA.

EUROPEAN AND US HEADLINES

• The Norwegian central bank is set to lift interest rates for the first time since 2011.
• German car companies are facing EU collusion accusations over anti pollution systems. Das Auto.
• Implications for RHC, with UK private hospital provider Spire Healthcare seeing a massive drop in profits, down 58%.
• Here comes the future. Ocado, a UK online supermarket has forecast a ramp up in sales on the back of warehouse robotics. Must be hungry work.
• In the UK, EU migrants pay more tax than the average British adult, leaving the UK’s public finances at risk and making post-Brexit tax hikes more likely, according to Oxford Economics. Migrants from the EU contribute £2,300 more on average per year to the public finances than a UK-born adult.

And finally I was asked today what’s my pet hate – I replied when a vet sticks his finger up his bum!

Sad news… the world’s most prolific Facebook user died this week. I dare say we will not see his Like again.

 

Our local medical practice has taken on a new GP and his name is Phil Collins (honestly). I went to see him the other day but at first he said he was fully booked with appointments but then he said he’d take a look at me now..

 

More sad news. The man who invented the speedboat has died. His funeral is next Friday and will be followed by a wake.

Clarence

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