Today’s Headlines

• ASX 200 slips 20.5 points to 6169.5 despite stronger US lead.
• High 6197 Low 6164. SPI expiry boosts volume. Tight range.
• Three biggest stocks positive, helping by 12 points.
• Banks ease on mortgage war fears.
• Resources back in the spotlight after RIO buyback announced.
• Gold stocks back in fashion.
• Telcos slip but CSL bounces after torrid time.
• Big sell off in high risk/PE stocks.
• Bond proxy stocks under pressure as US 10’s push through 3%
• AUD higher again at 72.57c
• Bitcoin better at US$6394
• Aussie Gold stable at $1661.
• US futures up modestly by 4 points
• Asian markets muted with Japan up 0.15% and China CSI down 0.10%%

STOCK STUFF

• PLS +6.88% lithium rally gathers pace.
• LYC +5.94% finding its feet.
• EVN +6.74% RSG +4.29% Aussie golds back in favour.
• JHX -1.62% change in substantial holding.
• WES -1.89% WOW -1.44% despite milk rises for PR purposes.
• VOC -5.41% telcos back under pressure.
• APX -4.21% high PE tech stocks sold off.
• APT -3.82% doubts creeping in?
• CRD +5.88% new mortgage platform launched in US
• OZL +3.18% resources back in demand.
• FMG -unchanged -after solid run yesterday.
• AMP +0.94% finding some support.
• SVW +6.03% tracking nicely as PA deal continues.
• CWN -2.28% gaming stocks under pressure.
• DMP -2.83% stuffed crust sinks.
• Speculative stock of the day: Axiom Mining (AVQ) – the company has been granted a mining lease for its Isabel nickel project in San Jorge.
• Biggest risers – AMI, PLS, EVN, RRL, ASL and SVW
• Biggest fallers – SOL, VOC, BKW, ELD, KGN and APX

TODAY

• Rio Tinto (RIO) +3.58% Announced a US$3.2bn off-market buyback (US$1.9bn Aussie stock & US$1.3bn of UK listing). The miner is returning proceeds from the sale of its coal assets.
• Brickworks (BKW) -5.38% record underlying NPAT of $223.7m for the year ended 31 July 2018, up 13.9% from the prior year. Statutory NPAT was $175.4 million, down 5.8%, after including the impact of significant items. These items include $7.1m (after-tax) in restructuring and commissioning costs within Building Products and $39.2m in net cost relating to WHSP significant items. Fully franked final dividend of 36c up 5.9% for the year. Outlook statement noted that tighter bank lending controls have reduced personal borrowing capacity, and this is now impacting building activity, due to delays and cancellations of dwelling construction.
• Washington H. Soul Pattinson (SOL) –6.31% FY18 result. Net profit after tax was down 20% to $266.8m, hit by a $64.3m loss related to New Hope’s impairment of an undeveloped exploration project in QLD. Regular net profit after tax came in at $331.1m, up 17.4%. A final dividend of 33c was declared, up 3.1% from the previous period.
• Sydney Airports (SYD) –1.97% Traffic performance for August 2018. Total passenger growth up 3.8% and international traffic up 4.7%. Domestic growth was 3.3% higher compared to the previous period, helped by a 2.9% load factor improvement in August.
• Premier Investments (PMV) –2.31% FY18 results. Net profit down 20% to $83.6m, excluding significant items it was up 8% to $113m. Revenue was up 8% to $1.19bn and underlying EBIT was up 10.3% to $150.1m. Chairman Soloman Lew said the result was driven by “continued growth of Smiggle and Peter Alexander as well as positive momentum within the apparel brands”. A final dividend of 33c was declared. PMV expects annual sales of Peter Alexander to exceed $250m by FY20 and is looking at expanding Smiggle into France, Spain, Italy and Germany in FY19.

ECONOMIC NEWS,

• Queensland is the most popular destination for people moving from other states, according to the latest population figures released by the Australian Bureau of Statistics (ABS).

• Overall, Australia’s population grew by 380,700 people to reach 24.9m in the year ending March 2018.
• Net overseas migration added 236,800 people to the population, and accounted for 62% of Australia’s total population growth.

BOND MARKETS

ASIAN MARKET NEWS

• Tencent backed Meituan Dianping’s stock price jumped 7% on its debut in Hong Kong.
• China is planning to cut yes cut import tariffs for the majority of its trading partners as soon as next month. Hoping this will lower costs and stimulate spending.

EUROPEAN AND US HEADLINES

• PM Theresa May has rejected the EU plan for Northern Ireland as ‘not credible’. So far no good on a deal.
• Jack Ma has abandoned his plans to create 1m new jobs in the US.
• UK inflation has hit a six-month high. The cost of living rose by 2.7% on the year, accelerating from 2.5% in July, the Office for National Statistics said. Petrol prices are up more than 11% on the year, train costs 4.4% and bus and coach travel up 7.1%. Even boat travel became more expensive with prices rising 13.9%.

• Fun and games trading this pot stock in the US last night with Tilray having a bizarre day nearly doubling then crashed and closed up 40%. All on the comments from the CEO. Computer trading gone nuts.

 

And finally…………..

 

Clarence

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