Today’s Headlines

• ASX 200 up 9 to 6185.5. Down 0.35% on the week.
• Early losses tempt buyers back.
• High 6199 Low 6161. Holiday volumes.
• WES reveals Coles timetable.
• Banks and miners lead turnaround.
• Staples rally with CSL firm.
• End of week book squaring.
• AUD weaker at 70.66c.
• Bitcoin steady at US$6536.
• Aussie Gold positive at $1695.
• US futures up 24.
• Asian markets weaker with Japan down 0.47% and HK down 0.18%. China back on line Monday.

STOCK STUFF

• SM1 -3.02% drift lower in dairy continues.
• EHL +7.04% index change added to ASX 200 October 12^th.
• MSB -4.55% volatility continues.
• BPT -3.65% update following disposal of assets.
• WSA -2.48% metal price falls.
• MYX -3.07% profit-taking.
• SOL +3.22% continuing to march higher as investments timed to perfection.
• SBM +6.32% gold turnaround on lower dollar.
• QBE +2.65% US bond yields help.
• LYC +9.85% positive news on Malaysian committee focus.
• NUF +0.83% it’s raining.
• MQG +1.28% don’t mention the Germans. Mentioned once but got away with it.
• NAB -0.15% liar loans continue to bite.
• WES +0.28% Coles details emerge.
• ASB -unchanged- awarded additional LCS work.
• FLT +2.05% technical buying and broker upgrade.
• Speculative stock of the day: VHT +11.32% buying continues following positive broker comments. Nothing else special on volume anyway.
• Biggest risers – LYC, EHL, SBM, NWL, CAR and CIA.
• Biggest fallers – MSB, CVN, FAR, AX1, APX and BPT.

TODAY

• Alacer Gold (AQG) +5.58% Quarterly activities report. AQG expects to meet the lower end of full-year production guidance of 160,000 – 230,000 ounces. Third quarter gold output from the Çöpler Gold Mine came in at 26,160 ounces.
• Dexus (DXS) – 0.10% To acquire a 28.5% interest in Heathley for $11.3m, with an option to acquire an additional 21.5% interest in the future. DXS will also take a 10% cornerstone investment in the Healthcare REIT at the proposed issue price of 200c per stapled security for a total consideration of $37.3m. The company said the decision is in line with its commitment to lift its exposure to Australian healthcare property. It notes the transaction is expected to have an immaterial impact on distribution and adjusted funds from operations.
• Beach Energy (BPT) –3.65% To sell 40% of its Victorian Otway interests to Eyal Ofer’s O.G. Energy for $344m. FY19 guidance following the sale has been revised, EBITDA is now expected to be 4.1-4.5% weaker at $1.05-1.15bn and production is also anticipated to be around 3.5% lower in the range of 25-27MMboe.
• Wesfarmers (WES) +0.28% Coles will book provisions of between $130 million to $150 million in 2019 to cover job losses and the cost of closing five distribution centres after deciding to develop two new automated distribution centres in a bid to catch up with Woolworths.

ECONOMIC NEWS

• Australian retail turnover rose 0.3% in August 2018, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) Retail Trade figures. Bang in line with expectations.
• This follows a relatively unchanged estimate (0.0%) in July 2018.
• Online retail turnover contributed 5.6% to total retail turnover in original terms in August 2018, a rise from 5.5% in July 2018. In August 2017 online retail turnover contributed 4.6% to total retail.

• Fitch Ratings have joined the chorus of disapproval forecasting that higher bonds rates would lead to a ‘rude shock’ for financial markets. Fitch forecasts now four US rates rises next year.

BOND MARKETS

ASIAN MARKET NEWS

• Social media reports that China is cracking down on travellers returning home with suitcases full of luxury goods. Any stepped-up enforcement may be aimed at cracking down on the “daigou,” trade when Chinese tourists sell luxury goods acquired overseas at a profit when they return. The duty-free allowance is US$727.

EUROPEAN AND US HEADLINES

• FTSE expected to open up 20, DAX up 4 and CAC up 4.
• The clock is ticking on Brett Kavanaugh nomination. Vote tomorrow. Looks a dead cert now. Jobs tonight.
• Then I go and spoil it all by saying something stupid. Like this. Good one Elon. SEC will be pleased.

• Aston Martin has been shaken and stirred. After a lacklustre IPO debut. It has gone bust seven times before. Private Equity the seller. Says it all. This one comes as a pair. US$6m.

And finally….

Have a great weekend Clarence

XXX