ASX 200 closes on its highs up 18 to 6179. US Futures down 34. China data disappoints but resources continue to outperform as banks and other financial remain under some pressure Late buying of the big four helped the index and spared blushes again. CBA down slightly by 0.2% as the bank has cancelled its demerger of its wealth arm. NAB down 0.3% has raised its wholesale rates which may be a reason for the late buying.  BHP up 0.8% and RIO up 1%. Some shorts covering too in LYC up 7%. Energy stocks continue to do well led by WPL up 1.4% Speculation grows the RBA may cut rates during the federal election. AUD slips slightly on China data.

Todays Highlights

  • ASX 200 up 18 to 6168. Late rally into the close.
  • High 6181 Low 6153. Direction and conviction lacking.
  • Banks weigh again as CBA pulls plug on demerger. Rebound on close.
  • Resources and energy continue to outperform.
  • Late buying again helps index higher.
  • AUD falls slightly to 70.61c
  • Bitcoin weaker at US$3852
  • Aussie Gold falls to $1845
  • US futures down 34
  • Asian markets mixed with Japan up 0.21% and China down 0.48%

STOCKS

  • RHC +3.63% UK investor presentation.
  • CVN +2.27% broker upgrade.
  • KGN+8.12% the Amazon of Oz introduces its Marketplace.
  • SIG -1.87% sinking into sunset.
  • RFG -5.13% gets a woeful report card.
  • CTD -2.64% AFR article.
  • DUB +13.61% buying continues.
  • SPT +15.38% rally back on.
  • SYR +8.49% production report.
  • ANO +3.43% response to ASX query.
  • MYR +7.69% silence is golden.
  • BAL +7.60% buyers resume.
  • LYC +6.98% short covering.
  • WTC +3.95% continuing higher.
  • CBA -0.16% puts demerger on hold. Spent $650m so far.
  • PPT +2.37% more gains. Smoke? Fire?
  • CGC +2.88% berries are up
  • DMP -0.41`% franchise inquiry fallout.
  • Speculative Stock of the Day: Sunstone Metals (STM) +% on big volume following its Bramaderos project getting EIA apporoval. Drill rig weill be mobilised. Bramaderos is a copper/gold project in Ecuador.
  • Biggest Rises: EQT, BAL, LYC, CIA, BIN and NWH
  • Biggest falls: AIZ, AMI, ZEL, GCTD, AAC and HLO

TODAY

  • MYOB Group Limited (MYO) – Has been given approval from the Federal Court to hold a shareholder meeting to vote on the proposed acquisition by KKR. The meeting is scheduled to be held on Wednesday, 17 April 2019.
  • Stockland (SGP) +0.81% Is selling two shopping centres in Brisbane to private investors for a combined total of $143m. SGP looking to divest $400m in non-core assets in FY19, so far it has achieved total asset sales of $256.1m, 64% of the company’s target.
  • Syrah Resources (SYR) +8.49% Has provided a first-quarter production update for FY19. It expects production from its Balama graphite operation to come in at the lower end of guidance, around 45kt vs company guidance of 45kt – 50kt.
  • Kogan (KGN) +8.12%has today launched Kogan Marketplace, allowing businesses to reach more customers and giving customers greater choice and price competition in what the company is labelling a win-win-win (customers, retailers and Kogan).
  • Commonwealth Bank (CBA) -0.16%  Due to its focus on implementing the Royal Commission recommendations, CBA has decided to delay the demerger of its wealth management and mortgage broking business. The company has already spent $650m on costs related to the wealth spin off. Just think about that number a minute.

ECONOMIC NEWS

  • National Australia Bank (NAB) is increasing wholesale funding rates by 15bps on products offered by mortgage brokers.

BOND MARKETS

  • 2-Year bond yields fall 1bps to 1.58%
  • 5-Year yields unchanged at 1.60%
  • 10-Year yields up 1bps to 1.97%

ASIAN NEWS

  • Chinese slowdown continues. Industrial output rose 5.3% from a year earlier, the worst start to a year since 2009. Retail sales expanded 8.2%, the slowest pace since at least 2012.

  • The unemployment rate rose to 5.3% at the end of February from 4.9 percent in December, the highest level in two years.
  • Property investment jumped to 11.6% growth, the highest since November 2014.

EUROPEAN AND US NEWS

  • Anyone missing Facebook? The company is battling huge outages for its first time in history.
  • This is the best round up of Brexit ever. Click here. More meaningless votes to come. Think many have long given up caring. A long extension coming up. Maybe 2 to 3 years.
  • Fitch Ratings has warned the credit ratings of Boeing and its suppliers could be affected if the fallout from deadly plane crashes in Ethiopia and Indonesia worsens. Maybe time to look at buying Boeing. Airbus is no alternative as it has 5 years of back orders too.
  • This could have ramifications as Oaktree Capital is bought by Brookfield in a US$4.7bn deal.
  • Question marks on Jared Kushner’s Harvard entry after his dad paid US$2.5m donation to the college.

And finally….hello Al….

garden.jpg

 

Airman Jones was assigned to the induction center, where he advised new recruits about their government benefits, especially their GI insurance.

It wasn’t long before Captain Smith noticed that Airman Jones was having a staggeringly high success-rate, selling insurance to nearly 100% of the recruits he advised.

Rather than ask about this, the Captain stood in the back of the room and listened to Jones’ sales pitch.

Jones explained the basics of the GI Insurance to the new recruits, and then said: “If you have GI Insurance and go into battle and are killed, the government has to pay $200,000 to your beneficiaries. If you don’t have GI insurance, and you go into battle and get killed, the government only has to pay a maximum of $6000.

Now,” he concluded, “which group do you think they are going to send into battle first?”

 

Clarence

XXXX

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