Monday Madness 20th May – Australian Market Wrap | Beeks Downunder-Because not all financial news is boring!

ITS ALL ABOUT THE BANKS!!!!!

ASX 200 up a massive 111 points to 6476 as investors celebrate Coalition ‘surprise’ victory. US Futures up 79. All about the banks today. ANZ +7.8% NAB +7.9% and CBA +6.3%. MQG ran hard too up 1.7%. 87 points of the rise was down to a rally in the four banks on short covering as franking fears prove foundless. Bond proxy stocks fell on rate cut hopes fading, as tax cuts may be the answer. TCL -1.4% and SYD – 4%. Miners were generally weaker despite iron ore pushing through $100. FMG +3% bucked the trend along with RIO +1% but BHP -0.6% and gold miners slipped. Energy stocks were mixed with ORG +1% and WPL -0.4%. TLS – 0.6% on NBN write down hopes fading. Tech shares sold off slightly as money flowed to banks. WTC -3.3% and XRO -3.1%. Healthcare stocks mixed with CSL -0.1%. AUD strengthened on status quo, popping back up to 69.15c. Bond market yields rise. Asia markets mixed with Japan up 0.4% and China down 1.1%

Todays Highlights

ASX 200 up 111 to 6476 as investors celebrate.
High 6476 Low 6382.
Highest close since 2007.
All about the banks today.
Consumer stocks better on tax cut hopes.
Telcos slip a little.
AUD rallies to 69.2c on ScoMo miracle.
Oil in focus on Trump Iran comments.
Aussie Gold drops on stronger AUD to $1845.
Bitcoin bounces to $8001.
US futures up 79.
Asian markets mixed with Japan up 1.05% and China down 1.67%

STOCKS

NHF +15.79% MPL +11.46% up on status quo.
EHL +9.14% short covering.
BHP -0.65% goes nowhere despite franking changes.
BUB +4.40% uptrend continues.
AHG +8.97% APE +5.58% merger update.
WAM +5.32% wins franking fight.
JBH +5.24% tax cut hopes.
BAF -5.81% BLA goes into administration.
WEB -7.74% Thomas Cook woes in UK.
NEA -5.74% profit taking.
SYD -3.96% disappointing traffic numbers.
XRO -3.10% profit taking.
IPL -2.70% results.
NET -2.35% Appendix 3B.
WZR +35.71% buying momentum building.
AYS +7.04% takeover speculation.
SPT +1.64% SPP date confirmation.
AMP +3.18% CGF +4.19% on Coalition win.
SGP +4.83% on property hopes.
MOC +14.47% housing recovery play.
EML +9.22% UK acquisition.
JMS +7.81% manganese prices.
Speculative stock of the Day: Wisr (WZR) +35.71% called it and up they go. Momentum building.
Biggest Risers: NHF, MPL, EML, WBC, EHL, AHG and NAB
Biggest Falls: WEB, NEA, RMS, CUV, ALU and RWC.

TODAY

Incitec Pivot (IPL) -2.70% results this morning. 1H19 statutory NPAT of $41.9m, missing expectations of $43.1m. Revenue of $1.74bn beat expectation of $1.56bn, while EBIT (including items) came in at $119m. An interim dividend of 1.3c unfranked has been announced. The company expects FY19 EBIT to be in the range of $370-415m after the impact of $209m in non-recurring events.
Bapcor (BAP) +0.53% has said that the slow down seen in the last few months has shown no signs of easing. The CEO did emphasise though that the slowdown had not worsened, which at least is a small positive. NZ seems to be experiencing the same issues as the local outlets. The one positive note was in Thailand where there are promising signs, and they are set to open another store in Bangkok, bringing the number to five.
Sydney Airport (SYD) -3.96% April traffic numbers. Domestic passengers down 1.3% on last years number to 2,284,000, while international passengers rose 2.5% up to 1,399,000. The overall traffic change was +0.1%.
Blue Sky (BLA) – Oaktree Capital Partners has appointed Mark Korda and Jarrod Villani of investment and advisory firm KordaMentha as Receivers and Managers of the Company. The shares are now suspended. Implications for BAF too at a big discount to last updated NTA of 111.5c.
James Hardie (JHX) -3.36% Alison Littley and Rudolf van der Meer will retire as non-executive directors with effect from the conclusion of the AGM on 9 August 2019.
Elders (ELD) –0.46% On track for FY19 Guidance with a return to average winter cropping now expected. NPAT of $27.4m, down 34%. Underlying EBIT of $33.5m. ROC is 18.4% and fully franked dividend of 9c. In its outlook statement, the company stated that EBIT is now likely to be in the range of $72m-$75m and underlying NPAT around $61m-$65m. The company remains committed to its 8-point plan.

ECONOMIC NEWS

All eyes on RBA release tomorrow.

BOND MARKETS

2-Year bond yields up 5bps to 1.25%
5-Year yields up 5bps to 1.31%
10-Year yields up 4bps to 1.67%

ASIAN NEWS

Japanese GDP expanded at an annualised 2.1% in the three months through March, according to a Cabinet Office report. That compares with economists’ estimate for a contraction of 0.2%.

India’s PM Modi looks set to return with an increased majority. Rupee lifts.
Thailand is on full pig alert to stop the ‘pig ebola’ from crossing into the country.

EUROPEAN AND US NEWS

Trump warns of the ‘end of Iran’ if it threatens the US.
Saudi Arabia has said it will recommend OPEC extends cut until years end.
Google will NOT provide Huawei with Android services.
EU elections to dominate thinking this week.
Trump vows that China will ‘never catch up with the US on his watch’. He believes that China wants to replace the US as the leading superpower. Not. Going. To. Happen. Not even close under Trump.
Theresa May has a cunning ‘new and improved plan’ for a Brexit deal. Farage may have other ideas. Opposition leader Corbyn now heading towards endorsing a second referendum.