ASX 200 dropped 62 points to 6483 as the market giveth and taketh away. Well off lows with US futures up 60 points. A huge day for results but the tone was set from the go with US falls and iron pre posting losses in Asia. Results from A2M down 13.2% and NEA down 9.5% was not a sign of the market in a forgiving mood. Do not disappoint. Banks were hit hard in places following US financials falling, CBA dropped only 0.1% but WBC fell 1.8%. Other financials fared better with MQG up 0.4% and insurers flat lining to positive. Healthcare rose led by CSL up 0.4% and SHL rose 3.1% post the results. TLS under pressure as the selloff continues, down 2.9%. Miners too were in the sellers’ sights as BHP fell 2.9% S32 fell 2.8% and FMG off 4.1%. Iron ore futures in Singapore were down significantly. Industrials saw broad selling with techs mixed. In corporate news, results dominated, the Good, MMS up 17.8%, CAR up 10.9% and WTC up 11.0%. The Bad DMP down 4.8%, MND down 5.15% and the Ugly, A2M down 13.2% and ILU falling 10.6%. Economic data, a modest rise in the Westpac–Melbourne Institute Leading Index. Asian meanwhile was quiet as Japan fell % and China up %. Once again, the AUD was steady and 10-year bond yields were slightly weaker.
- ASX 200 falls 62 to 6483.
- High 6525 Low 6467. Results dominate.
- Iron ore with futures in Singapore down 5.2%.
- Banks hit hard in places.
- Financials and Insurers do well.
- Miners fold on iron ore prices.
- Healthcare rises at close.
- TLS sold off. REITs down too.
- AUD steady at 67.80c. Very dull.
- Aussie gold slightly higher at $2217
- Bitcoin falls to $10231
- US futures up 60
- Asian markets quiet with Japan down % and China up %
- KGN +6.56% broker upgrades.
- IFM +6.86% kicks after results.
- BKL +4.73% bargain hunting.
- CTP +18.75% resource extended.
- DTL +9.52% positive results.
- BGL +5.56% change in substantial holding.
- CTD -6.41% two-year low after initial rise.
- CWN +1.31% results and not so reliant on Whales.
- MMS +17.82% results cheer.
- AJL +15.79% UK fracturing keeps things bubbling along.
- NEA -9.55% shine wearing off.
- SWM -5.19% director’s interest.
- PTM -4.44% final report.
- FMG -4.09% iron ore price falls.
- TGR -3.81% capital raise.
- Speculative stock of the day: Up there Cazaly Resources (CAZ) +80.00%. The company will sell its Parker Range project to MIN for $20m plus royalty. Market cap was only $13m yesterday.
- Biggest Risers: MMS. WTC, CAR, EML, SHV, EBO and BAP
- Biggest Falls: A2M, ILU, NEA, BXB, EHL, FCL and SGP
- a2 Milk (A2M) -13.19% reports FY NPAT NZ$287.7m vs NZ$291.9m expected. Revenue NZ$1.30bn vs $1.31bn expected. EBITDA NZ$413.6m vs NZ$427.5m expected.
- Amcor (AMC) –1.01% Full-year results; revenue was in line with estimates at $9.46bn. Adjusted EBITDA fell short of expectations at $1.39bn vs consensus of $1.43bn. AMC also announced a $500m on-market buyback. Expects 2020 to be a transition year as Amcor integrates the newly acquired Bemis business. In FY20 AMC anticipates adjusted constant currency EPS growth of approximately 5 to 10%. Cash flow after dividends is expected to be between $200-300m.
- APA Group (APA) –2.95% Full-year results; NPAT fell short of estimates at $288m vs consensus of $307.7m. Revenue beat expectations at $2.45bn vs consensus of $2.41bn. EBITDA was a slight miss at $1.57bn vs consensus of $1.58bn. A final dividend was declared at 25.5c per share. In FY20 EBITDA is expected to be between $1.66bn – $1.69bn and the dividend is forecast to be around 50c per share.
- Bapcor (BAP) +7.14% reports FY NPAT $94.3m vs $95m expected. Revenue $1.30bn vs $1.31bn expected. EBITDA $164.6m vs $164.7m expected. Final dividend 9.5 cps, fully franked; record 30-Aug, payable 26-Sep.
- Brambles (BXB) –9.38% Full-year results; revenue was up 7% to US$4.6bn in constant currency terms. Underlying profit was up 2% in constant currency terms to US$803.7m. Profit after tax from continuing operations fell 13% in constant currency terms to US$454.1m as tax expense increases offset lower net finance costs. A final dividend of 14.5c per share was declared. In FY20 sales revenue growth is expected to be at the lower end of mid-single digit range. Underlying Profit growth to be in line with, or slightly above sales revenue growth.
- Carsales (CAR) +10.90% Full-year results; NPAT beat estimates at $131.3m vs consensus of $128.7m. Revenue missed expectations $417.5m vs consensus of $455.8m. Adjusted EBITDA fell just short at $210.1m vs consensus of $211.6m. A final dividend of 25c per share was declared. Group Revenue, Adjusted EBITDA and Adjusted NPAT growth is expected to be solid in FY20.
- Corporate Travel Management (CTD) -6.41% reports FY underlying EBITDA $150.1m vs guidance at top end of A$144-150m. Underlying NPAT A$96.9m vs $103.2m expected. Revenue $449.5m vs $456.5m expected. Total Transaction Value (TTV) $6.46bn vs $4.96bn a year ago. Final dividend 22 cps (50% franked). Payable 3-Oct.
- Crown Resorts (CWN) +1.31% reports FY normalised NPAT $368.6m vs $362.4m expected. Revenue $2.95bn vs $3.20bn expected. Normalised EBITDA $802.1m vs $802.1m. Final dividend 30cps (25% franked); record 20-Sep; Payable 4-Oct.
- Domino’s Pizza (DMP) -4.80% reports FY underlying NPAT $141.2m vs $141.8m expected. Network Sales $2.9bn, up 11.9% year-on-year. Underlying EBITDA $282.4m vs $286.5m. Final dividend of 52.8 cps (100% franked). Record 28-Aug-19, paid 12-Sep-19. As outlined in 2018, DMP will no longer provide 12-month guidance, instead providing a longer-term outlook (3-5 years) on sales and store count growth. This outlook is for SSS growth of 3- 6% annually at a group level, and store count growth of 7-9% annually at a group level.
- Emeco Holdings (EHL) –9.05% Full-year results; operating NPAT beat estimates at $63.1m vs consensus of $59.5m. Revenue came in ahead of expectations at $464.5m vs consensus of $463.6m. Operating EBITDA also beat estimates at $214m vs consensus of $210m. EHL expects to see additional growth in revenue and earnings in FY20, albeit with a greater weighting to earnings in 2H20. The company is also focused on diversifying Eastern Region exposure to gold and copper.
- Iluka Resources (ILU) –10.56% Half-year results; NPAT up 8% to $137.2m. Revenue came in just above expectations at $545.6m vs consensus of $545.5m. Underlying EBITDA was down 1.7% to $232.7m. A final dividend of 5c per share was declared. In FY20 Zircon sales are expected to be H2 weighted however sales volumes are now expected to be at the lower end of forecasts. Depreciation and amortisation outlook has been increased to $155m from $135m. Capex outlook has been reduced to $260m from $330m.
- Fletcher Building (FBU) +2.06% reports FY NPAT from continued operations of NZ$246m vs a NZ$239m loss a year ago. Revenue NZ$8.31bn vs NZ$8.21bn a year ago. EBIT NZ$549m ex-items vs NZ$29m loss a year ago. Final DPS NZ15c. NZ$300m on-market buyback.
- Seven Group (SVW) +2.70%1.67% Full-year results; underlying NPAT came in ahead of estimates at $479m vs consensus of $475.1m. Revenue beat expectations at $4.08bn vs consensus of $4.02bn. Underlying EBIT missed estimates at $695m vs consensus $705.4m. A final dividend of 21c per share was maintained. Underlying EBIT growth in FY20 is expected in the mid to high single digits implying a result between $722m and $750.6m.
- St. Barbara (SBM) – reports FY underlying NPAT $141.7m vs $201.9m a year ago. Sales Revenue $650.3m vs $679.2m a year ago. EBITDA $278.7m ex-items vs $345.5m a year ago. Final dividend 4cps (fully franked); record 4-Sep; payable 25-Sep. FY20 gold production is expected to be in the range 310,000-335,000 oz.
- Steadfast Group (SDF) –Trading Halt – Full-year results; underlying NPAT came in ahead of estimates at $89.2m vs consensus of $88.8m. Launches $100m placement, underwritten floor price of 328c per share.
- Stockland (SGP) –6,74% Full-year results; funds from operations per security (FFO) in line with estimates at 37c. Revenue beat estimates at $2.77bn vs consensus of $2.7bn. A final distribution of 14.1c per security was declared. SGP expects flat growth in FFO per security in FY20, cautious about the pace of recovery in the residential market. Distributions per security growth will also be flat, distribution payout expected to be at the bottom end of the 75-85% target rage. SGP also announced the exchange of contracts to sell its 50% stake in 135 King Street and Glasshouse in Sydney for $340m, and to acquire the remaining 50% stake in the Piccadilly Centre from Oxford Properties for $347m.
- WiseTech Global (WTC) +11.05% reports FY NPAT $54.1m vs $53.6m expected. Revenue $348.3m vs $338.7m expected. EBITDA $108.1m $106.4m expected. Final dividend 1.95cps (fully franked). Record 9-Sep; payable 4-Oct.
- WorleyParsons (WOR) -3.87% reports FY underlying NPATA $259.8m vs $252.8m expected. Revenue $6.92bn vs $6.37bn expected. EBITA $412.8m vs $401.7m expected. Final dividend 15cps (unfranked); record 28-Aug; Payable 25-Sep.
- Nearmap (NEA) -9.55% Group annualised contract value (ACV) grew by a record $24.0m (36%) in the year to $90.2m – North America (NA) now comprises more than one third of the total portfolio. • Statutory revenue of $77.6m was up 45% on the prior comparative period (FY18: $53.6m). Global subscriptions rose 11% to 9,800, with Group average revenue per subscription (ARPS) increasing 23% to $9,208 (FY18: $7,473). Strong net operating cash inflows of $24.9m (FY18: $13.7m) as the business benefits from continuing operational leverage
- The Employment Department’s measure of internet vacancies rose in July with more than 172,000 jobs advertised nationally. The July increase followed six consecutive months of declines. Despite the July improvement, ads were down by 5.5% over the past year. The biggest drop has been in NSW where ads are down by 11.7% to 59,888.
- The six-month annualised growth rate in the Westpac–Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, rose from –0.09% in June to +0.05% in July.
- WBC chief economist Bill Evans had this to say: “With global economic conditions deteriorating and progress towards a lower unemployment rate and a lift in wages growth seeming to be stalling the case for another rate cut in the near future is strong.”
- CBA has downgraded its AUD/USD target to 60c by March next year. Another race to the bottom.
- 2 – year bond yields unchanged at 0.72%
- 3 – year bond yields down 1bps to 0.67%
- 10 – year bond yields down 1bps to 0.92%
- Awkward – Huawei’s chief financial officer allegedly told a Canadian border official that the company has an office in Iran. This is all part of a court case in Canada which will not sit well with the US as it has charged Huawei with operating a secret subsidiary in Iran that obtained American goods.
- Alibaba Group Holding Ltd has delayed its $US15bn listing in Hong Kong. Maybe October.
- Thai exports bucked expectations by rising for the first time in five months in July.
- The UK has lost one of its consular workers whilst travelling from HK to China. Protesters have another focal point for unrest.
EUROPEAN AND US NEWS
- In the UK, there is more chance of having a FTSE 100 CEO called Steve than having a Female CEO.
- The EU has rejected BoJO proposals as he heads to Berlin for talks with no ‘no backstop’ agreement in sight. BoJo is heading for the G7 Summit Meeting in Biarritz at the weekend. What could go wrong? Donald and BoJo against the rest at charades.
- Now Trump has said that if Denmark will not sell Greenland, he will not visit the country for a state visit. Win win. The Danish PM thought he was joking. Who is laughing now?
- New James Bond film finally has a name. ‘No Time to Die’. Due April 2020.
Boris’s best Gaffs…
At the Conservative party conference in October 2017, Johnson was criticised after claiming the Libyan city of Sirte would have a successful future as a luxury resort once investors “cleared the dead bodies away”.
On the Turkish PM
There was a young fellow from Ankara
Who was a terrific wankerer.
Till he sowed his wild oats
With the help of a goat
But he didn’t even stop to thankera.
On Hilary Clinton: She’s got dyed blonde hair and pouty lips, and a steely blue stare, like a sadistic nurse in a mental hospital.
Voting Tory will cause your wife to have bigger breasts and increase your chances of owning a BMW M3.
Never boring with BoJo.