Apologies for lack of posts this week…been busy with other stuff…back now..

 

ASX 200 close to its highs with a 19-point gain to 6169. Closing rally helped. US futures down 29 points. RIO (+1.1%) results cheer with special dividend very appealing. BIN (+15.2%) wins ACCC approval for Dial a Dump acquisition. Banks mixed as NAB (+1.3%) and WBC (+0.97%) play a little catch up. Consumer stocks remain out of favour but HVN (+1.1%) divides analysts on outlook. Healthcare back in fashion with CSL (+3.1%) showing signs of life and RHC (+5.9%) producing good results and a more optimistic outlook statement. Last day of reporting brings a long month to a conclusion. Tech stock showing signs of a rebound with WTC (+3.72%) looking interesting together with APT (+4.54%). AUD barely moved the needle on the CAPEX numbers which were better than expected. Negates the weak construction numbers yesterday.

Todays Highlights

  • ASX 200 up 19 points to 6169 closes near highs after closing rally
  • High 6173 Low 6135
  • RIO cheers with special treatment for shareholders.
  • CAPEX number better.
  • Banks turn positive. Consumer stocks under pressure.
  • Miners ease back on lower commodity prices and profit taking. Except RIO.
  • AUD weaker at 71.44c
  • Bitcoin steady at US$3804
  • Aussie Gold slightly weaker at $1846
  • US futures down 29.
  • Asian markets slightly firmer with Japan up 0.48% and China up 0.43%

STOCKS

  • BIN +15.17% ACCC clears takeover of DAD.
  • RHC +5.90% does enough and UK improving.
  • PTM – 1.43% XD and well off lows. Good sign.
  • SDA +5.72% broker comments.
  • JIN +2.84% pushing ahead again. $40m jackpot tonight.
  • APT +4.54% technical buying.
  • ING -8.18% disappoints and cost pressures on feed.
  • VOC -4.15% profit taking as brokers weigh in.
  • NXT -4.00% falls continue.
  • MLX +5.08% clarifies results.
  • FSF -6.35% outlook sours.
  • FXL -3.46% profit taking. Starting to look interesting again.
  • ASB -5.5335.14% results sink ship
  • Specualtive Stock of the Day: Atrum Coal (ATU) +% response to ASX query with a focus on the Gina Rinehart deal to buy Riversdale which lies immediately to the south of ATUs Elan Hard Coking coal project. Riversdale has a coking coal project to the North of Elan.
  • Biggest Rises: BIN, BIN, AHG, RHC, SDA and APT
  • Biggest falls: ING, NSR, ASB, FMG, NEA, ABC and VOC.

TODAY

  • Bingo Industries (BIN) +15.17+1.12% confirms ACCC on Dial A Dump acquisition; announce on-market buy-back for up to $75m. Daniel Tartak (CEO) described the ACCC decision as an important step in realising BINGO’s vision and five-year strategy to be a fully vertically integrated business and diversify into new markets in NSW. BINGO expects to achieve run-rate cost synergies of around $15m pa. The buyback will commence 15th March and run for 12 months. Expect BIN to continue to bounce.
  • Harvey Norman (HVN) – 1H19 results – NPBT of $315.688m up 7.5%. Interim dividend of 12c up 5.9%. Record offshore revenue of $1bn. Offshore profit 2%% of PBT. Net profit after tax and non-controlling interests for the half-year to 31 December 2018 was $222.77m, up $15.08m, from $207.69m or 7.3%. The company remains on track with investment and expansion plans in Malaysia, with expectation of growing to 25 Harvey Norman® stores in Malaysia within the next 2 years, with potential to increase to over 50 stores by the end of 2023.
  • Atlas Arterial (ALX) – Statutory net profit of $59.9m. Average portfolio traffic grew 1.5%. EBITDA up 4.1%. Distribution of 24c guidance reaffirmed. Some disappointment perhaps in traffic growth numbers. Internalisation of management set for 15th May 2019.
  • Austal (ASB) –5.53% 1H19 results – Revenue jumped 31% on last year, up to $851.5m, while net profit rose 2% up to $23.7m. EBIT increased 52% to $40.4m on the back of broad-based performance improvement and a 7.1% shipbuilding margin on US Navy programs. An interim dividend of 3c has been announced, up 50% on last years. The company says they held a record order book of $5.2bn at the end of December, securing work until 2025.
  • Suncorp (SUN) +1.65% Has finalised the sale of its Australian Life Business to TAL Dai-ichi Life Australia for around $725m. SUN anticipates an after-tax loss of $880m on the sale and will return $600m to shareholders as a result of the sale.
  • Reece Australia (REH) –1.51% 1H19 results – Revenue jumped 104.5% on last year up to $2.72bn. Normalised NPAT rose 20.2% to $127m and normalised EBITDA increased by 45.3% to $260.1m. An interim dividend of 6c has been announced. The company will continue to invest in customer experience in Australia and New Zealand in 2H19, while continuing to build their long-term strategy for MORSCO.

ECONOMIC DATA

  • Australian private sector credit rose 0.2% on last quarter, missing expectations of a 0.3% rise. The number rose 4.3% on last year, meeting expectations.
  • Australian private capital expenditure rose 2.0% in the December quarter, beating expectations of a 1.0% rise.

BOND MARKETS

  • 2-Year bond yields down 1bps to 1.69%
  • 5-Year yields up 1bps to 1.72%
  • 10-Year yields up 1bps to 2.10%

ASIAN NEWS

  • Trump and Kim say ‘no rush’ at the Hanoi love in. Meanwhile India and Pakistan face off. Two nuclear nations in perpetual conflict. And we are worried about Kim.
  • Chinese PMI fell for the third month. The official Purchasing Manager’s Index (PMI) fell to 49.2 in February. Aren’t we still in February? Export orders fell at the fastest pace since the GFC.
  • Total new orders, an indicator of future activity, edged back into expansionary territory, suggesting some improvement in domestic demand.
  • South Korea keeps rates on hold.
  • Japanese production fell at its fastest pace in a year in January.

EUROPEAN AND US NEWS

  • Ah, the French. President Macron has thrown a bucket of cold eau over the possible Brexit extension saying it would need a new exit plan to get an extension. No amour lost here.

And finally……………..

2 truths & 5 rules of life

As Buddha was quoted: “There are three things that cannot be easily hidden,
The sun, the moon, the truth.”

Two Truths and 5 Rules of Life

SIMPLE TRUTH
1. Lovers help each other undress before sex.
However, after sex, they always dress on their own.
Moral of the story – In life, no one helps you once you’re screwed.

SIMPLE TRUTH
2. When a lady is pregnant, all her friends touch the stomach and say,
“congratulations.”
But, none of them comes up to the man – touch his penis and say, “Good job.”
Moral of the story – Hard work is rarely appreciated.

FIVE RULES TO REMEMBER IN LIFE:

1. Money cannot buy happiness – but it’s far more comfortable to cry in a
Porsche than on a bicycle.

2. Forgive your enemy – but remember the asshole’s name.

3. If you help someone when they’re in trouble – they will remember you when
They’re in trouble again.

4. Alcohol does not solve any problems – but then, neither does milk.

5. Many people are alive only because it’s illegal to shoot them.

BONUS RULE:

Condoms do not guarantee safe sex. A

Clarence

XXXX

mt_tryforfree

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

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