ASX 200 jumped out of the box today rising 25 points to 6217 although well off highs at the close. US futures up 127 points on trade optimism. The market off its highs as day wore on. Volumes remained on the low side with Miners leading on iron ore rises in Asia. BHP up 1.2% RIO 1.6% up and FMG up 6.9%. Banks were mixed but off highs CBA down 0.4% and ANZ down 0.6% being the weakest link. RBA meeting tomorrow should be another fizzer. Building approvals bounce off January numbers. Buy Now Pay Later (BNPL) in focus after media articles over the weekend. NZ markets at record highs. Asian markets showed a clean pair of heels but AUD went nowhere.
- ASX 200 up 25 points to 6217 as rally fades slightly.
- High 6240 Low 6198 Modest volumes.
- Banks fade into close.
- Miners in focus as BHP and FMG lead.
- CSL still going well.
- Gold miners under pressure.
- Tech stocks in focus.
- AUD weaker at 70.85c
- Bitcoin steady at US$3803
- Aussie Gold weaker at $1830
- US futures up 122.
- Asian markets strong with Japan up 1.10% and China up 2.99%
INSIGHTS FROM MARCUSTODAY TEAM
- BUY HOLD SELL – Nearmap has been in the news of late given the surging share price. The stock is up 400% since 2017 and has become a market darling. We are adding NEA to the MT Growth Portfolio, with a 2% weighting.
- IDEA OF THE DAY – AMA GROUP (AMA) – Recent results well received by the market and strong financials for a company with an undemanding PE.
- HENRYS TAKE – Added MLX to the Small Cap Portfolio. A look at the RBA’s move tomorrow and the ‘be careful what you wish for’ issue it faces. And regional banks. Have they been sold off too much?
- BIN +8.92% broker speculation of value of assets
- BAL +12.00% big volume too.
- FXL +10.33% APT +2.15% Z1P +10.97% and SPT+23.08% media attention on sector.
- FMG +6.86% broker upgrades.
- MYX +5.80% bargain hunting.
- MMS +4.81% bargain hunting.
- JIN +4.38% continues to hit the jackpot.
- NUF +5.58% takeover speculation.
- AAC +4.48% Indonesian Free trade agreement signed.
- CRN -9.71% XD and some.
- GOR -3.83% profit taking on gold price falls.
- CRD +17.02% brokers pushing hard.
- BUB +10.71% broker upgrade.
- Specualtive Stock of the Day: Advanced Nanotek (ANO) +22.08% on director buying.
- Biggest Rises: BAL, Z1P, FXL, BIN ,CIA and FMG
- Biggest falls: CRN, DCN, EVN, LYC, SBM and GOR
- Dicker Data Limited (DDR) +4.11% Dividend and guidance update for FY19. DDR now expects NPAT of around $51.4m and group revenue of $1.65bn, maintaining 10% growth year on year for both measures. Dividend policy maintained, interim dividend of 5cps (fully franked), this takes the full year dividend to 22cps, an increase of 22.2% from FY18.
- Collection House (CLH) –1.83% To acquire AMC Group Limited’s Purchase Debt Ledger and other selected assets for $40.3m. The transaction is expected to settle at the end of March and will be funded from existing cash reserves and a $50m facility expansion from CLH’s banking partners. The company expects to incur $1.3m in one-off acquisition and integration costs in FY19, but still expects to reach at least the top-end of current EPS guidance of 15.5cps on a normalised basis.
- Metcash (MTS) +2.69% Has provided a strategy and trading update. Notes that year-to-date food sales are marginally higher than in the prior year. Liquor sales in the second half of 2019 have remained strong, supported by increased wholesale customer volumes. Hardware sales have softened, as expected, given the slow-down in construction activity. The business is confident of achieving $50m in savings over FY20 and 21.
- GrainCorp Limited (GNC) –1.02% To sell its Australian bulk liquid terminals business to ANZ Terminals for around $350m, representing 13x EBITDA. GNC has retained ownership of its New Zealand bulk liquids business, but is independently reviewing options for this business as part of the ongoing portfolio review.
- The seasonally adjusted estimate for company gross operating profits rose 0.8% in the December quarter 2018.
- The seasonally adjusted estimate for wages and salaries rose 0.8% in the December quarter 2018.
- The number of dwellings approved in Australia fell by 3.2% in January 2019, in trend terms according to the ABS.
- Among the states and territories, total dwelling approvals fell in January in the Australian Capital Territory (19.8%), the Northern Territory (8.0%), Victoria (4.5%), Queensland (3.9%), New South Wales (2.3%) and South Australia (0.8%) in trend terms. Western Australia (2.2%) and Tasmania (1.4%) recorded increases.
- Apartment approvals are down 51% compared to last year, but actually increased 2.7% between December and January on a seasonally adjusted basis.
- The value of total building approved fell 1.5% in January, in trend terms, and has fallen for 14 months.
- The trend estimates for total mineral exploration expenditure increased 0.4% ($2.2m) to $554.4m in the December quarter 2018.
- The trend estimates for total petroleum exploration expenditure rose 11.1% ($35.6m) to $356.4m in the December quarter 2018.
- 2-Year bond yields up 1bps to 1.74%
- 5-Year yields up 2bps to 1.79%
- 10-Year yields up 4bps to 2.18%
- Hyundai under pressure following another call recall in the US.
- Taiwanese manufacturing has fallen to its worse reading in three and a half years.
- South Korean manufacturing production slumped to its worst level in nearly four years in February
EUROPEAN AND US NEWS
- Vale chief Fabio Schvartsman has temporary stepped aside under pressure from prosecutors.
- The US is discussing emergency aid for Venezuela.
- German car industry will invest EUR60bn over 3 years in electric and self-driving cars.
- UK unemployment rate is at decade lows. There are now 32.6m people working in the UK. 3m in the last decade. Over-50s make up about a third of the entire UK workforce, up from around one in five in the early 1990s, yet the bad news is that between 2008 and 2015 real wages fell by 10%. Some also suggest that business invests in people rather than new machinery as people are easier to get rid of.
- 25 days to go.
A new guy in town walks into a bar and reads a sign that hangs over the bar… FREE BEER! FREE BEER FOR THE PERSON WHO CAN PASS THE TEST!
So the guy asks the bartender what the test is. Bartender replies “Well, first you have to drink that whole gallon of pepper tequila, the WHOLE thing at once and you can’t make a face while doing it.
Second, there’s a ‘gator out back with a sore tooth…you have to remove it with your bare hands.
Third, there’s a woman up-stairs who’s never had an orgasm. You gotta make things right for her.”
The guy says, “Well, as much as I would love free beer, I won’t do it. You have to be nuts to drink a gallon of pepper tequila and then get crazier from there. Well, as time goes on and the man drinks a few, he asks, “Wherez zat teeqeelah?”
He grabs the gallon of tequilla with both hands, and downs it with a big slurp and tears streaming down his face.
Next, he staggers out back and soon all the people inside hear the most frightening roaring and thumping, then silence. The man staggers back into the bar, his shirt ripped and big scratches all over his body.
“Now” he says “Where’s that woman with the sore tooth?”
A little boy says, ‘Dad, I’ve heard that in some parts of Africa a man doesn’t know his wife until he marries her.’ ‘Son,’ says the dad. ‘That happens everywhere.
Close your eyes children….
An Italian guy is out picking up chicks in Roma.
While at his favorite bar, he manages to attract one rather attractive looking blonde.
So they’re back at his place, and sure enough, they go at it. After a long while… He climaxes loudly. Then he rolls over, lights up a cigarette and asks her, “So…. you finish?”
After a slight pause. She replies, “No.”
Surprised, but pleasantly, he puts out his cigarette, rolls back on top of her, and has his way with her again, this time lasting even longer than the first… and this time completing the deed with even louder shouts. Again he rolls over, lights a cigarette, and asks, “So…. you finish?”
And again, after a short pause, she simply says “No.” Stunned, but still acting reflexively on his macho pride, he once again puts out the cigarette, and mounts his companion du jour.
This time, with all the strength he could muster up, he barely manages to end the task, but he does, after quite some time and energy is spent. Barely able to roll over, he reaches for his cigarette … lights it again, and then asks tiredly, “So… you finish?” “No. I’m Swedish.”