Todays Highlights

  • ASX 200 closes up 48 to 5691.
  • High 5695 Low 5655. Good volume. Thanksgiving.
  • MIN jumps on huge lithium deal.
  • Banks feel some love.
  • Oil stocks higher.
  • CSL rallies as BHP drags resources higher.
  • RCR falls into administration.
  • AGM season continues to reaffirm guidance across the board.
  • AUD firms to 72.47c
  • Bitcoin seriously firmer at US$4540
  • Aussie Gold slightly better at $1693.
  • US futures up 19. Turkey time.
  • Asian markets mixed with Japan up 0.43% and China slightly lower by 0.79%.

STOCKS IN FOCUS

  • COL -unchanged- Goldman says buy.
  • RCR – Administration
  • CGC -3.80% tough year ahead.
  • WES -2.00% broker downgrades.
  • TLS -1.00% NBN package issues.
  • ALL +3.54% finding support.
  • A2M +5.88% BAL +4.72% TWE +5.70% China eases e-commerce restrictions.
  • MQG +1.27% Moore faces Hodge. Moore wins.
  • PRY +8.02% AGM Comments.
  • SYR +4.32% catching MIN love. Have added at close.
  • LOV +2.74% searching for the bottom.
  • APT +4.61% sees change with Uni campuses buying glasses.
  • KDR +8.71% lithium cheer.
  • FMG +1.01% CSIRO deal on hydrogen technology.
  • DMP -1.95% change of director’s interest.
  • LVH +17.11% signs 4th agreement with Korn Ferry.
  • NBL +12.84% good AGM update.
  • Speculative stock of the day: Eon Nrg (E2E) +216.67% after record gas sales of US$660,000 as Natural Gas prices increased by 66% in the last two months. Gas stockpiles are at a 15-year seasonal low and there could be a shortage in meeting winter heating needs. CIG Rockies benchmark prices currently above US$4/Mcf (AU$5.50/Mcf) (the average CIG Rockies price has been US$2.40/Mcf for the previous 6 months)
  • Biggest risers – MIN, GXY, CUV, PRY, PLS and PNI.
  • Biggest fallers – OMH, CGC,WBA, AMI, NST and FXL

TODAY

  • Cleanaway Waste Management (CWY) – Announced at its investor presentation that it expects to achieve $35m in Toxfree synergies over the coming two years.
  • Evolution Mining (EVN) – Approves expansion to the Cowal processing plant and upgrades its outlook. EVN is on track to deliver FY19 gold production guidance in the range of 720k – 770k ounces, at an all-in sustaining cost (AISC) of $850-$900 per ounce. Production is forecast to lift by 5k ounces in FY20, and 10k to 15k ounces in FY21.
  • Mineral Resources (MIN) +26.59% Has entered into an agreement with Albermarle regarding the potential sale of a 50% interest in the Wodgina lithium project and the formulation of a 50:50 joint venture. Albermarle would pay $US1.15bn for the 50% stake.
  • Webjet (WEB) +3.36% Has completed the $243m acquisition of wholesale travel business, Destinations of the World.
  • RCR Tomlinson (RCR) – Has been unable to acquire additional finding. Appoints McGrath Nicol as administrators.
  • Primary Health Care (PRY) +8.02% Reiterated FY19 guidance at its AGM. The company expects underlying NPAT to be at or above $100m, the second half is anticipated to be stronger than the first in all divisions.

ECONOMIC NEWS

  • Royal Commission rolls on. WBC CEO and MQG sail through. ASIC now in the spotlight. Nicholas Moore lectures on remuneration practices. The irony.
  • ANZ joins the clamouring chorus predicting a housing fall of 20%

  • OECD forecasts local economic growth to remain ‘robust’. The OECD upgraded its 2018 estimate of domestic economic growth to 3.1% and slightly edged down the 2019 forecast to 2.9%. Globally, the Paris-based OECD said growth would remain strong but has passed its recent 3.7% high and is now expected to be around 3.5%. Australia is forecast to moderate to a 2.6% in 2020. Easy to say in hindsight.

BOND MARKETS

  • 2-Year bonds down 2bps to yield 2.03%
  • 5-Year yields down 2bps to yield 2.24%
  • 10-Year yields down 3bps to yield 2.66%

ASIAN MARKETS

  • Japanese CPI stalled last month despite higher food prices.

  • Economic growth in Singapore slowed more than expected in the three months to the end of September and is forecast to ease further in 2019.
  • Truly scary. China’s plan to judge each of its 1.3bn people based on their social behaviour. Beijing will pool data from several departments to reward and punish its 22m citizens based on their actions and reputations by the end of 2020.

EUROPEAN AND US HEADLINES

  • Goldman Sachs being sued by Abu Dhabi over 1MDB.
  • The EU is hailing progress on the Brexit negotiations. Never going to happen.
  • IKEA is cutting 7,500 jobs in the UK due to online shopping

 

And finally…I cant but help think that Randolph was right…get back in there and Buy Mortimer!

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Clarence

XXX

mt_tryforfree

Get a Global take on things at www.ntmarkets.com

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