Another strong day although off highs finishing up 66 points to 6092. Good volumes too. Banks back in demand with large cap resources and industrials finding buyers. Short covering from funds underweight ASX exposure again a feature chasing large cap exposure. Results from DOW, AGL and SPO fail to inspire but education provider IEL continues to knock the lights out. NAB in a trading halt on management changes (potential announced this evening) and ahead of update in the morning. Results season outlooks mixed with a skew to the second half slightly worrying but its early days. AUD under pressure dipping below 71c on RBA rate cut possibility. More from RBA tomorrow. Bond yields under pressure again.
- ASX 200 up another 66 points to 6092 as 6100 fails to hold
- High 6106 Low 6028. Lower AUD helps.
- Banks lead the charge after a day of rest yesterday.
- NAB heads into a trading pause ahead of update tomorrow.
- Miners continue to spurt ahead on iron ore gains.
- Energy stocks in favour as industrials push ahead.
- AUD falls on RBA speech fallout to 70.99c
- Bitcoin falls to US$3371
- Aussie Gold rises to $1835
- US futures up 6.
- Asian markets limited with Chinese and Hong Kong markets shut for Lunar New Year. Japan up
STOCKS IN FOCUS
- IEL +21.16% knocks lights out again.
- CYB +17.87% positive trading update.
- AMP +2.49% media speculation on corporate moves.
- LOV +5.49% shorts covering.
- ASL +5.99% secures funding for Hindustan Zinc.
- BAL +2.97% rally continues. More to come.
- JHG +4.76% turning around slowly.
- TWE +3.51% lower AUD helping.
- PPH -6.57% disappointing update.
- AGL -4.78% politics weighs.
- DOW -4.63% disappoints.
- WBC +1.93% closing 22 branches out of 1000. Goes digital.
- MOC +4.46% WBC CEO says mortgage broker commission will eventually be scrapped.
- QAN +1.24% cancels Airbus order.
- RIO +1.34% Moodys upgrade debt position.
- CAT -22.93% CEO resigns. Not a good look.
- A40 +18.18% record production at Bald Hill.
- AFG +14.92% bargain hunters in mortgage broking.
- SPT +17.16% hires new business development director.
- JMS +6.00% resource stock buying.
- David Jones CEO resigns.
- Speculative stock of the day: Connexion Technologies (CXZ) +30.00% following positive quarterly and an update on the unmarketable parcel facility.
- Biggest Risers – IEL, CYB, EHL, ASL, LOV and SSM
- Biggest Fallers – PPH, SAR, AGL, DOW, OGC and RRL
- Spotless Group (SPO) – First half results. Sales revenue down 2.7% on year to $1.46bn, EBITDA up $107.9m to $121.6m, the previous corresponding period was hit by $109.3m in one-offs as result of the Downer takeover. Profit after tax came in at $39m vs ($39.6m) in HY18.
- Catapult Group International (CAT) -22.93% CEO Joe Powell resigns, to work through six-month notice period, Shaun Holthouse will increase his executive committee until a new CEO is in place.
- Magellan Financial Group (MFG) +1.12% Total funds under management as at January 31 of $72.95bn vs $70.78bn in December. In January MFG experienced net inflows of $317m, which included net retail inflows of $110m and net institutional inflows of $207m.
- Altura Mining (AJM) –6.90% Undertaking a $28m capital raising (before costs) to provide a “significant working capital buffer.”
- ALS Limited (ALQ) +0.66% Acquires BioScreen in the US, MARRS in Chile and takes up a stake in a Brisbane based technology company RedEye, totaling $51m.
- The National Australia Bank consumer anxiety index rose to 62 points in the December quarter, with the biggest rise in worry coming from the cost of living concerns. Almost 4 in 10 said they had experienced some form of financial hardship in Q4 – the highest in 2 years.
- 2-Year bond yields down 1bps to 1.70%
- 5-Year yields down 3bps to 1.75%
- 10-Year yields down 3bps to 2.15%
- Softbank shares up 15% after a buyback and an earnings lift.
- Xi Jinping ramps up negotiations on Taiwan reunification.
- Pork is spiraling down in price. Lowest prices for a decade at 65.61c a pound. US producers have seen a boom, but trade wars are taking their toll.
EUROPEAN AND US HEADLINES
- Sonos CFO to retire.
- Global temperatures hit a record.
- Ex-Polish PM Donald Tusk says there is a ‘special place’ in hell for Brexiteers with no plan. There was a plan. A very cunning one.
- 49 days to go. PM May has delayed a vote on Plan A until a month to go before Article 50. Dela seems inevitable.
- Huawei has told UK authorities it could take 5 years to resolve security issues.
- JP Morgan tells clients to raise risk positions and unwinds the hedges. Viva equities. Vale Bonds.
Little Johnnie’s neighbour had a baby.
Unfortunately, the baby was born without ears.
When mother and new baby came home from the hospital, Johnnie’s family was invited over to see the baby.
Before they left their house, Little Johnnie’s dad had a talk with him and explained that the baby had no ears.
His dad also told him that if he so much mentioned anything about the baby’s missing ears or even said the word ears, he would get the smacking of his life when they came back home.
Little Johnnie told his dad he understood completely.
When Johnnie looked in the crib he said, ‘What a beautiful baby.’
The mother said, ‘Why, thank you, Little Johnnie.
Johnnie said, ‘He has beautiful little feet and beautiful little hands, a cute little nose and really beautiful eyes. Can he see?’
‘Yes’, the mother replied, ‘we are so thankful; the Doctor said he will have 20/20 vision.’
‘That’s great’, said Little Johnnie,’coz he’d be buggered if he needed glasses’
I went to the shop the other day. I was only in there for about 5 minutes and when I came out, there was a damn traffic officer writing a parking ticket for over-running the meter.
So I went up to him and said,
“Come on, how about giving a man a break?”
He ignored me and continued writing the ticket.
So I called him a pencil-necked Nazi. He glared at me and started writing another ticket for also having parked partially on the pavement!!
So I called him a son of a mutant pig. He finished the second ticket and put it on the car with the first. Then he started writing a third ticket!!
This went on for about 20 minutes and the more I abused him, the more tickets he wrote.
I didn’t give a damn.
My car was parked around the corner…