Todays Highlights

• ASX 200 up 104 to 5771. Back to Thursday’s close.
• High 5771 Low 5685. Strong volume.
• Remarkably low volatility on day.
• Banks mixed as big miners star leading the market bounce back.
• MQG shines.
• Energy stocks back in favour as oil rallies on OPEC/Alberta comments.
• Healthcare higher as CSL rallies.
• Telcos in demand.
• Consumer stocks back in demand.
• AUD showing good strength to 73.70c
• Bitcoin falls to $3956
• Aussie Gold weaker at $1663
• US futures jump by 420 on ceasefire. Wednesday markets closed for George Bush Snr.
• Asian markets better with Japan up 1.33% and China up 3.13%

STOCKS IN FOCUS

• BSL +11.75% buyback increased.
• A2M +5.30% welcomes China guidance.
• SYR +10.74% production update.
• CTD +7.00% ceasing to be substantial shareholder. MUFG.
• STO +8.70% Bayu Undan infill program completed.
• BAL +12.02% China moves on e-commerce.
• ANN +3.07% closes factories.
• ALL +2.24% starting to find support
• MTS -5.05% Half yearly results.
• COL -0.77% sell off continues.
• APT -2.50% profit taking on AFR article.
• RFG +6.67% loses CEO after less than 12 months.
• LYC +7.14% Malaysian risk eases.
• BKW +3.67% sells more SOL.
• NEA +7.12% tech bounce.
• Z1P +3.70% quietly moving higher.
• SHV +7.24% almond outlook brightens.
• NEC+0.85% kicks off new start with 92 job losses.
• Speculative stock of the day: Resonance Health (RHT) +100.00% the company has received FDA approval for its FerriSmart machine learning system for the quantification of liver iron concentration.
• Biggest risers – GNC, BAL, BSL, SYR, STO and ALG.
• Biggest fallers – SBM. MTS, WPP, GOR, ASL and SGF.

TODAY

• A2 Milk (A2M) +5.30% Has provided further guidance on China Cross-Border E-Commerce; new detailed implementation policy guidelines issued are consistent with company’s market interpretations. The company and its major trading partners selling English label products to Chinese consumers are confident all requirements will be met on or before 31-Mar-19.
• Metcash (MTS) -5.05% Reports H1 underlying NPAT $100.3M versus $96.2m expectation. Revenue $6.19bn vs year-ago $6.05bn. EBIT $158.1m vs $149.1m expectation. Interim dividend $0.065/share (fully franked). Outlook: highly competitive market conditions are expected to continue through the balance of FY19.
• Bluescope (BSL) +11.75% Commencing new on-market share buy-back of up to A$250M; confirms H1 guidance of underlying EBIT +10% y/y.
• GrainCorp (GNC) +26.71% has received non-binding indicative takeover proposal from Long-Term Asset Partners at $10.42/share. Graincorp will engage with LTAP in the context of the ongoing Portfolio Review to further assess the merits of the LTAP Proposal, including the value offered compared to other value creation alternatives and strategies available to GrainCorp. Proposal is subject to a number of conditions and involves a complex financing structure with significant leverage. GNC board has not formed a view on whether the price is sufficient to take to shareholders, has recommended no action at this time.
• Primary Health (PRY) -unchanged- has changed its name to Healius (HLS) is the new code.
• Ansell (ANN) +3.07% Closes two production facilities in Juarez, Mexico and one in Janggye, South Korea as part of the company’s ‘Transformation program’ announced in July 2017. The program is on track to meet the target of $30m in annual cost savings by 2020.
• The Reject Shop Limited (TRS) –2.43% Directors have unanimously recommended that shareholders reject the takeover offer made by Allensford, labelling it ‘opportunistic’ and ‘inadequate’.

ECONOMIC NEWS

• AMP’s Shane Oliver believes the next RBA move will be a cut to rates.
• ANZ jobs ads fell 0.3% in November with annual growth slowing to 2.3% and the Melbourne Institute’s Inflation Gauge for November basically stalled with headline inflation slowing to 1.6% YoY.

Auction clearance Rates at the weekend

• For Sydney the clearance rate was 41.4% and, based on revisions in the last few weeks (the last week of November was revised to 40.9% from a preliminary 46.2%) the final rate will end up in the mid 30% range.

• In Melbourne, the weekend auction numbers were preliminary clearance of 45.6%.

BUILDING APPROVALS – OCTOBER KEY POINTS

TOTAL DWELLING UNITS

• The trend estimate for total dwellings approved fell 1.1% in October.
• The seasonally adjusted estimate for total dwellings approved fell 1.5% in October

PRIVATE SECTOR HOUSES

• The trend estimate for private sector houses approved fell 0.5% in October.
• The seasonally adjusted estimate for private sector houses rose 2.7% in October.

VALUE OF BUILDING APPROVED

• The trend estimate of the value of total building approved fell 1.5% in October and has fallen for 12 months. The value of residential building fell 1.4% and has fallen for ten months. The value of non-residential building fell 1.8% and has fallen for 15 months.

BOND MARKETS

• 2-Year bonds up 1bps to yield 2.00%
• 5-Year yields unchanged to yield 2.20%
• 10-Year yields up 3bps to yield 2.62%

ASIAN MARKETS

• Where is the growth in China? Asia slowing.

• Taiwan’s manufacturing sector fell to its lowest level in three years.
• South Korea’s manufacturing sector fell into contraction after just two months of expansion.
• Japanese manufacturing growth slipped to a 15-month low in November as new orders slowed and business confidence weakened

EUROPEAN AND US HEADLINES

• Soybeans jump as US/China agree to ceasefire. Up 2.3%. Wheat up 1.4%. Corn up 1.3%.

• Macron returns to Paris to find the [place trashed in his absence. 130 people injured and 400 arrested. Petrol prices the catalyst for worst protests in 50 years. New diesel tax hit January 1st.
• Nexstar to buy Tribune Media for US$4.1bn.
• Alberta is set to cut oil production to boost prices.
• Boris Johnson writes in media that the UK needs to hold its nerve on Brexit negotiations, suggesting a better deal is available. On which planet?

And finally…thanks Al…..

A Polish immigrant went to the DMV to apply for a driver’s license. First, of course, he had to take an eye sight test. The optician showed him a card with the letters   ‘C Z W I X N O S T A C Z.’ ‘Can you read this?’ the optician asked. ‘Read it?’ the Polish guy replied, ‘I know the guy.’

A woman came home, screeching her car into the driveway, and ran into the house. She slammed the door and shouted at the top of her lungs, ‘Honey, pack your bags. I won the lottery!’ The husband said, ‘Oh my God! What should I pack, beach stuff or mountain stuff?’ ‘Doesn’t matter,’ she said. ‘Just get out.’

Clarence

XXXX