Did you miss me?

ASX 200 slips into negative territory at the close falling 28 to 6688 in aggressive closing sell off. US futures slightly higher ahead of October 1^st Chinese National celebrations. The ASX 200 tried hard to rally on the back of materials today but a late sell off killed any rally with BHP down 0.3% and S32 down 0.4% after early gains. The rally in NUF, up 26.5% on the sale of its South American business, helped early sentiment but news of a potential break out of a US v EU tariff war again sapped interest. RBA meeting looms too. Consumer stocks gained led by COL up 0.85% and TWE up 1.3% bouncing back a little. Banks though suffered with CBA down 0.9% and WBC down 0.9%. Healthcare stocks were weaker at the close with CSL down 0.3% though FPH up 2%. Energy stocks saw small losses though WPL did well up 1.1%. In corporate news, NUF deal dominated proceedings, and economic news on credit growth did nothing to shift the dial. The market is waiting for direction still. In the bond market 10-year yields up 2bps to 0.96%. Asian markets were wary given China has its big parade tomorrow and a week’s holiday to come. They have even banned pigeons in Tiananmen Square in an aerial ban ahead of celebrations. Asian markets mixed with Japan up % and China down %.

Todays Highlights

• ASX 200 drop 28 to 6688 in late sell off.
• High 6735 Low 6688. Quiet start ahead of RBA and China’s day.
• Market sold off aggressively at the close. EU tariff war perhaps?
• Materials slip late as banks under pressure all day.
• Consumer stocks modestly higher. Tech sell off a little.
• AUD lower at 67.55c
• 10-year yields 0.93%
• Aussie gold slightly higher at $2210
• Bitcoin continues under pressure US$7844
• US futures up 78.
• Asian markets quiet ahead of 70^th Birthday of PRC and week long holiday. China  % and Japan %.

STOCKS

• EOS +5.01% space communications business established.
• Z1P +9.41% revised annual report
• AVH +6.31% NASDAQ listing
• MSB +7.00% momentum builds on recent results.
• CGC +6.23% agriculture sector improves on NUF deal.
• GTK -9.5% Updated outlook. Not so bright.
• WEB -4.30% Thomas Cook issues continue to weigh.
• SXY -5.48% board changes.
• CLV -3.25% profit taking.
• FNP -2.78% downturn continues.
• AYS -14.29% broker downgrade. ASX query.
• ADN -17.57% scoping study underwhelms.
• PAR +13.83% Osteoarthritis pain reduced by Zilosul.
• BNO +35.00% BNC210 positive results.
• RAP +11.36% sleep study wakes up market.
• Speculative stock of the day: Change Financial (CCA) +332.00% after it completed a major milestone with its payment and card issuing platform. It is now a registered Mastercard processor and the first in five years. Customer onboarding will begin in October.
• Biggest Risers: NUF, Z1P, MSB, AVH, CGC, REG and SWM.
• Biggest Falls: GTK, SXY, WEB, PRU, NHF and CLV

TODAY

• Nufarm (NUF) +26.46% Full-year results; underlying NPAT came in at $89.1m vs consensus of $88.1m. Revenue $3.76bn vs consensus $3.49bn. Underlying EBITDA $420.3m was in line with guidance of A$420m. No final dividend declared. H1 EBITDA in FY20 is expected to be in line with prior year, assuming full half contribution from South American businesses. Expects continued growth in sales, cost saving benefits and improvements in supply chain efficiencies to drive earnings growth in the remaining businesses in 2020. FY20 actual results will be significantly impacted by completion timing of the sale of Nufarm South America. Capital expenditure is forecast to be $150m for FY20.
• AMA Group (AMA) – Is in a trading halt pending an announcement regarding a proposed acquisition and associated capital raising. There are reports AMA was among the final contenders for Suncorp’s Capital SMART repairs.
• Service Stream (SSM) +0.77% Secures 5G deal with Optus. SSM will provide site acquisition, design and construction services on the Optus network nationally, in respect of 5G. The agreement is for three years with the option for a one-year extension. Service Stream management had this to say, “Whilst, as is common in the wireless space, this new panel arrangement does not provide guaranteed volume, we estimate revenue at $40m over the initial two years. We expect to commence works early in Q3 of FY20.”
• Amaysim (AYS) –14.29% Has responded to an ASX price query, saying it is unaware of any information that could explain today’s share price weakness. The stock is off 57% since results in August and has been down as much as 17% today.

ECONOMIC NEWS

• The Melbourne Institute headline inflation gauge edged up 0.1% in September. The annual rate eased from 1.7% to 1.5%.
• Private sector credit rose 0.2% in August to be up 2.9% over the year.

• NZ business confidence falls to a decade low.

BOND MARKET

• 2 – year bond yields unchanged at 0.72%
• 3 – year bond yields unchanged at 0.71%
• 10 – year bond yields up 2bps to 0.96%

ASIAN NEWS

• Second time lucky for AB In Bev. Hong Kong IPO does well on debut. AB InBev the globe’s second biggest float this year closes up around 6.11% after raising US$5bn in its listing.
• Hong Kong braces for October 1^st violent protests. China about to rain on Trump’s parade with its own.
• China purchasing manager indexes September: Manufacturing rose from 49.5 to 49.8 vs consensus of 49.5. Services eased from 53.8 to 53.7 vs consensus of 54.2. 5^th straight month of contraction.

EUROPEAN AND US NEWS

• European markets look to open slightly mixed.
• All about the anonymous whistleblower in the US and the Conservative party conference. Brexit. Just get it done.
• Jaguar closed its Castle Bromwich assembly plant to gear up to make more electric cars.
• Boris refuses to rule out a No -Deal Brexit. Going to get messy.
• One Saudi Prince has suggested oil could skyrocket if Iran is not sorted.
• Looks like Trump is about to hit Europe with tariffs backed by WTO. Airbus seems to be one of the issues and its subsidies versus Boeing. US airlines will not be happy on having to pay more for their Airbus orders. Airbus employs 48,000 workers in France and 130,000 worldwide. Some in US.

And finally…did you miss me? No didn’t think so…still I am back…

 

A married Irishman went into the confessional and said to his priest, “I almost had an affair with another woman.” The priest said, “What do you mean, almost?” The Irishman said, “Well, we got undressed and rubbed together, but then I stopped.”

The priest said, “Rubbing together is the same as putting it in. You’re not to see that woman again. For your penance, say five Hail Mary’s and put $50 in the poor box.” The Irishman left the confessional, said his prayers, and then walked over to the poor box. He paused for a moment and then started to leave.

The priest, who was watching, quickly ran over to him saying, “I saw that. You didn’t put any money in the poor box!” The Irishman replied, “Yeah, but I rubbed the $50 on the box, and according to you, that’s the same as putting it in!”

 

Yes I need new material …please send more jokes!!!

 

Clarence

XXX