The ASX 200 overcomes early weakness to rise another 15 points to 6661. Quiet start to the week to be domintaedby G20 at the weekend. US futures rose 62 points as oil pushes higher on Iranian tension. Banks turned positive with CBA up 0.6% and ANZ up 0.5%. Miners too overcame weakness to figh back with BHP up 0.4% and S32 up 0.9%. REITS continue to gring higher with GMG hitting an 11-year high, up 1.4% and SCG up 1.3%. Healthcare too rose ever so slightly with CSL up 0.3% the big mover. Energy stocks trod water as well as gold stocks. Good to see ADH bounce back from a huge loss on Friday which always looked overdone  and gained 18.4% today. In corporate news, AOG updated the market and fell 5.3% and MTS too disappointed dropping 9.8%. The ACCC has raised some concerns about competition in Newcastle with the AHG/APE merger. Bonds were little changed with 10-year yields risisng 1bps to 1.29%. Asian markets were mostly better with Japan up 0.11% and China unchanged.

Todays Highlights

• ASX 200 fights back to close up 15 at 6665.4 after early falls
• High 6665 Low 6617.Quiet start to the week.
• Banks and miners fight back.
• REITs do well yet again.
• TLS heads higher on broker note.
• Healthcare bucks up led by CSL.
• AUD rallying back to 69.57c
• Aussie gold firmer at $2018.
• Bitcoin breaks US$11,000 drops back to US$10800.
• US futures up 70.
• Asian markets slightly higher with Japan up 0.11% and China unchanged.

STOCKS

• ASL +10.48% Botswana contract.
• MSB +5.11% orphan status update.
• PNV +5.07% the beat goes on.
• DMP +3.90% broker upgrade. As Euro boss re-signs contract.
• VEA +4.43% trading update.
• CRN +6.31% coal is firing up.
• RES -25.71% market update.
• MTS -9.84% results.
• AHG -0.72% APE -2.86% ACCC concerns on competition in Newcastle and Hunter Valley.
• AMP -0.48% multi -year lows.
• GMG +1.53% 11 -year high.
• MGX -6.11% profit taking.
• Z1P -3.83% trademarek issues.
• GOR -3.81% reverses after Friday’s gains.
• ADH +18.40% overdone Friday.
• SYR -4.60% ceasing to be substantial.
• PCK +7.69% rally continues.
• BTI +6.19% closing NTA gap.
• TLS +1.59% broker update.
• COL -2.31% investor day rethink.
• Speculative stock of the Day: Hylea Metals (HCO) +330.77% after announcing it will acquire the high grade Kayelekera uranium project.
• Biggest Risers: ASL, CRN, MSB, PNV, VEA, SLR and DMP
• Biggest Falls: MTS, NWH, MGX, DHG, BUB, AOG and NCK

TODAY

• Metcash (MTS) –9.84% Full-year results; reports underlying NPAT of $210.3m vs consensus of $212.9m. EBIT also missed expectations coming in at $330m vs estimates of $334.7m. A final dividend of 7c was declared.
• Ausdrill (ASL) +10.48% Subsidiary Barminco awarded 5-year underground mining services contract valued at $800m in Botswana.
• GrainCorp (GNC) -2.20% Chairman Graham Bradley to be appointed as chairman of Malt business if the demerger goes ahead.
• Viva Energy REIT (VVR) +1.47% Managing director and CEO Margaret Kennedy to step down in the first half of FY20. Hadyn Stephens to take over the role.
• Kogan.com (KGN) -2.92% Enters into an agreement with Powershop Australia. Kogan Energy to offer power and gas services, expected to launch before the end of the 2019 calendar year.
• Woodside (WPL) +0.13% Completes additional work at Pluto LNG and has restarted LNG production.
• Zip Co (Z1P) –3.83% Firstmac Limited has commenced proceedings in the Federal Court against Z1P alleging infringement of Firstmac’s “ZIP” trademark. As far as Zip is aware, Firstmac ceased offering a “ZIP” home loan product before the business commenced in June 2013.
• Aveo Group (AOG) –5.29% Expects profit in FY19 of $50m. Estimated distribution to be 4.5c per security, half of what was payed out in FY18. AOG also said it has also found a preferred party to buy the company and is in due diligence.
• Murray Goulburn (MGC) +18.64% To pay $42m to settle a class that was filed against it when it unexpectedly cut milk prices & downgraded profit guidance in 2016.

ECONOMIC NEWS

• Talking to a lunch in Canberra, Phil Lowe said he doesn’t understand how investors can call for rate cuts and buy the stockmarket at the same time. He called it a a ‘Strange World’. Lowe said it was really important to keep things in perspective suggesting the International Monetary Fund which was “prone to negativity” had recently given an optimistic economic outlook. He added that another financial crisis was unlikely as “Liquidity ratios are higher, balance sheets are simpler and less opaque – the financial system looks a lot stronger than a decade ago.”

BOND MARKETS

• 2-Year bond yields down 1bps to 0.89%
• 5-Year yields unchanged at 0.94%
• 10-Year yields fall up 1bps to 1.29%

ASIAN NEWS

• China will not allow talk of HK protests at G20.

EUROPEAN AND US HEADLINES

• Trump warns of more sanctions for Iran. Iran warns that more drones could be downed.
• Daimler issues third profit warning on diesel woes.
• The top performers last week:

• Boris in trouble after an argument with his girlfriend.
• EU to give Italy more time to fix its budget. Might as well give it forever.

And finally……………

 

It’s the World Cup Final, and a man makes his way to his seat right next to the pitch. He sits down, noticing that the seat next to him is empty. He leans over and asks his neighbour if someone will be sitting there. ‘No,’ says the neighbour. ‘The seat is empty.’ ‘This is incredible,’ said the man. ‘Who in their right mind would have a seat like this for the Final and not use it?’ The neighbour says, ‘Well actually the seat belongs to me. I was supposed to come with my wife, but she passed away. This is the first World Cup Final we haven’t been to together since we got married.’ ‘Oh, I’m so sorry to hear that. That’s terrible….But couldn’t you find someone else, a friend, relative or even a neighbour to take her seat?’ The man shakes his head. ‘No,’ he says. ‘They’re all at the funeral.’

Clarence

XXXX