ASX 200 fell around 3 points to 6405 after a quiet calmer day. For the week the index has fallen around 2.7% US futures up points. Banks did well today with CBA up 1% and NAB up 0.9% though miners slipped slightly led by BHP down 0.6% and RIO down 1%. FMG bucked the trend up 2.1%. Healthcare was lively, led by CSL up 0.3% and COH up 3.9% after a set of solid results. Doing well were stocks that have reported strongly even on the second day as SUL rose 7.8%. TWE fell though 2.1% as brokers remain a little sceptical on the US division. In corporate news, SWM picked up 6.7% on a CEO change rising %, and MFG went ex-div but kicked higher by 1%. BBN rose 11.1% after a good set of numbers and growth outlook, but OML trashed following a business update falling 27.5%. Nothing on the economic front and 10-year bonds were unchanged at 0.88%. Japan has overtaken China as the biggest owner of US bonds. In Asian markets firm with Japan up 0.1% and China up 1%. European markets expected to open higher. Aussie dollar firmed to 67.92c

Todays Highlights

• ASX 200 flat lines down 3 to 6405. Narrow range. Calm.
• High 6425 Low 6396. Average volume.
• ASX down 2.7% this week.
• Banks firm. Miners weaken.
• Results in focus. Follow the good.
• Healthcare in the pink.
• AUD firms to 67.92c
• Aussie gold steady at $2239
• Bitcoin rallies to $10009
• US futures up 143
• Asian markets weaker with Japan down 1.40% and China down 0.80%

STOCKS

• CWY +2.93% brokers warm to results.
• FCL +8.00% good start to latest IPO
• WPL +0.10% warns on gas processing delays.
• TLS -2.58% sells exchanges to REIT.
• LYC -1.87% licencing reprieve.
• WHC 5.33 broker downgrade.
• SWM +6.67% Tim Worner replaced.
• ANZ +0.61% sluggish home loan growth.
• CCP +13.29% acquisition and guidance.
• SUL +7.85% kicks again on broker upgrades.
• WSA +5.51% ceasing to be a substantial holder.
• JIN -15.42% results disappoint.
• SGR +5.87% house wins.
• BRG -9.82% broker downgrades.
• AMP -4.93% SPP opens. Good luck.
• APE +1.19% AHG +4.56% merger unconditional.
• NEC -3.91% SWM management changes.
• PME -5.18% unwinding high PE stocks.
• ANO -29.09% another bubble pops.
• Speculative stock of the day: Metalsearch (MSE) +72.73% HPA acquisition still pulling in the punters.
• Biggest Risers: CCP, FCL, SUL, SWM, SGR and WSA.
• Biggest Falls: OML, JIN, BRG, RWC, BKL, WHC and VOC.

TODAY

• Abacus Property Group (ABP) -0.98% report FY underlying NPAT of $139.4m, beating expectations of $131.0m. Statutory profit dropped 16.8% from last years number to $202.7m. NTA came in at $3.33 per share and an 18.5c dividend was announced. The company expects FY20 to see the distribution grow 2-3% year on year and the pay-out ratio to increase from 85% to 95% of FFO.
• Baby Bunting (BBN) +11.11% reports FY pro forma NPAT $15.1m vs $14.1m expected. Total sales came in at $368m vs $357.7m expected. Comparable store sales growth was 8.7%. EBITDA $27.1m vs guidance $25-27m. Final dividend of 5.1 cps bringing total FY19 dividend to 8.4 cps vs 5.3 cps a year ago. Year to date trading (to 9-Aug-19) has seen comparable-store sales growth of 5.2%.
• Cochlear (COH) +3.93% reports FY underlying NPAT $265.9m vs $248m a year ago. NPAT $276.7m vs $267.1m. Revenue $1.45bn vs year-ago $1.35bn. EBIT $370.1m vs $367.5m expected. Implant units 34,083 vs year-ago 35,260. Final dividend 175cps, fully franked.
• Domain Holdings (DHG) +2.09% reports FY NPAT $37.4m ex-items vs $40.0m expected. Revenue $335.6m vs $346.6m expected. EBITDA $98.0m vs $100.1m expected. DPS 44c.
• Healius (HLS) +5.02% report FY19 underlying NPAT of $93.2m, just below expectations of $94.0m. FY revenue of $1.80bn was also slightly below expectations of $1.83bn, while EBIT of $167.3m was ahead of the $166.2m expected. A final dividend 3.2c has been announced.
• Michael Hill (MHJ) –1.00% report FY underlying EBIT of $34.6m, slightly missing estimates of $33.7m. Revenue came in at $569.5m, above expectations of $564.4m, while statutory NPAT was up to $16.5m from $1.6m a year ago. A 1.5c dividend was announced
• Newcrest (NCM) –1.39% report FY underlying NPAT of $561m, missing expectations of $575.8m. FY revenue of $3.74bn fell just short of the $3.76bn expected, as did EBITDA of $1.67bn (vs $1.68bn). A fully franked final dividend of 14.5c has been announced. The company expects FY20 gold production of 2.35-2.5Moz, copper production of 110-120Kt, group AISC of $1.78-1.88bn, capex of $680-780m, exploration of $90-100m and depreciation & amortization of $655-705m.
• oOh!media (OML) –27.48% trading update and revised guidance. H1 preliminary revenue of $304.8m, slightly below the $305.4m expected, while underlying EBITDA of $56m also fell short of the $59.5m expected. H2 trading activity has indicated a significant decline in overall media advertising spend, leading to a sizable drop in the company’s Q3 advertising bookings. The company has revised FY19 guidance and now sees underlying EBITDA will be in the range of $125-135m, down from prior guidance of $152-162m. Growth in operational expenditure is also expected to be below the previously forecast range of 5-7%, while capital expenditure is expected to sit within the forecast range of $55-70m. The integration with Commute is still on track. $16m in cost synergies in expected in FY19, with further synergies in 2020.
• Seven West Media (SWM) +6.67% CEO Tim Worner has resigned from his position. James Warburton has been appointed as his replacement effective immediately. Warburton was previously Managing Director and CEO of APN Outdoor.
• The Star Entertainment Group (SGR) +5.87% reports FY normalized NPAT $223.7m vs $221.5m expected. Revenue $2.50bn vs $2.49bn expected. Normalised EBITDA $556.5m ex-items vs $556.1m expected. Final dividend 10cps, fully franked. CFO Chad Barton will step down effective November 1. Barton will be replaced by Chief Commercial Officer Harry Theodore.

ECONOMIC NEWS

• Nothing today

BOND MARKETS

• 2-year bond yields up 1bps to 0.72%
• 3-year bond yields unchanged at 0.66%
• 10-year bond yields unchanged at 0.88%

ASIAN NEWS

• China readies a package of retailiatory measures against USA. Trump says deal is close. China says no.
• Goldman Sachs has cut its growth forecasts from Asian Tiger economies.

• North Korea fires more fireworks. Rejects having talks with South Korea.
• Japan is now the largest holder of US Treasuries.

EUROPEAN AND US NEWS

• European markets showing good gains at the open.
• Olli Rehn has suggested that the ECB is set to announce a substantial raft of stimulatory package in September. Go big . Go early.
• GE is now in the sights of the fund that called out Bernie Madoff.  GE says they are ‘meritless accusations’.

 

And finally……..

Women really know how to hold a grudge. My wife asked me to pass her a lip balm. And by mistake, I gave her a tube of Super Glue. It’s been a month now and she’s still not speaking to me!

 

I’m dating this wonderful girl and she has a twin. People often ask me how I can tell them apart – but it’s easy, really. Jane likes to paint her fingernails and Tom has a willie.

I thank you…have a great weekend…Go England!

Clarence

XXX