Monday 7th October – Australian Market Report | Beeks Downunder-Because not all financial news is boring!

ASX 200 grinds 46 points higher to 6564 in a very quiet holiday affected day. US futures down 95 points on China trade issues. Most of Asia closed for a holiday. A positive lead from Wall Street set the tone for the day with a modest rise building throughout the day. Plenty of risks around this week with the trade talks but with many states on holiday today, volumes were pathetic, and the bias was to the upside. Banks squeezed higher with CBA up 0.22% though NAB flat lined. Miners were modestly higher, and golds pushed into the green despite muted underlying bullion moves. NCM up 1.3% and SBM up 3.3%. Consumer and rate sensitive stocks were once again better led by TLS up 1.75%, WOW up 1.35% and TWE up 1.3%. Infrastructure stocks firmed too with SYD up 1.4% and TCL up 1.1%. Little happening on the corporate front today and economic data was scant. Asian markets mainly closed for holidays. 10-year yields were stagnant at 0.89%.

Todays Highlights

ASX 200 up 46 to 6564
High 6565 Low 6525. Volumes were minimal due to bank holidays.
Banks and miners improve.
Consumer and rate sensitive stocks firm.
AUD steady at 67.50c
10-year yields steady at 0.89%
Aussie gold stuck at $2231
Bitcoin rallies hard to US$8087
US futures down 95.
China closed and HK protests abound Japan down 0.2%.

STOCKS

SOL +7.25% broker upgrade.
AVH +3.74% bargain hunters
SBM +3.27% Horn Island JV report.
CUV +4.15% CEO renews for another three years.
PNV +3.23% pushing higher again.
KGN +5.40% tech stocks back in fashion.
MYX -3.45% more profit taking after recent deal.
EOS -3.28% thin volume.
MFG -2.30% FUM fail puts pressure on stock.
GSW +6.45% AGM date.
DUB +8.12% good volume and heading higher.
RAP +9.68% continues to gain on recent approvals.
SLK – set to buy Transit Systems and raise funds.
KLL +2.08% after adding to portfolio.
Speculative stock of the day: Antisense Therapeutics (ANP) +23.71% ASX price query response focused on recent Phase II trial result success.
Biggest Risers: SOL, RMS, KGN, CDA, MGX and CUV
Biggest Falls: MYX, EOS, CYB, MFG, PGH and BUB

TODAY

CIMIC Group (CIM) +1.21% There are reports CIM is in talks with a potential buyer for its Thiess unit. The company is one of Indonesia’s largest private contractors working in the resource and infrastructure sectors. The asking price is speculated to be more than $1.5bn.
Resolute Mining (RSG) +1.07% Q3 production report; gold production of 103,201oz. On track to achieve full-year production of 400k ounces at an AISC of $960 per ounce. Major Syama ramp-up milestone achieved. RSG also reported strong performance from Mako with processed tonnages, grades and recoveries ahead of budget.
Sealink Travel Group (SKL) – Trading halted in SLK pending announcement regarding a proposed acquisition and associated equity raising.
Macquarie Media (MRN) – Announced that Nine Entertainment can compulsorily buy the rest of the company as it now holds 158,869,583 shares with 92.80% of voting rights.
Clinuvel Pharmaceuticals (CUV) +4.15% CEO Philippe Wolgen to stay for another 3-years. “Dr Wolgen has steered the company since its restructure in 2005 to its current successful position,” CUV said.

ECONOMIC NEWS

The AIG/HIA Australian Performance of Construction Index fell to 42.6 in September from 44.6 in August. It was the thirteenth consecutive month of contraction.

BOND MARKET

2 – year bond yields unchanged at 0.61%
3 – year bond yields unchanged at 0.61%
10 – year bond yields unchanged at 0.89%

ASIAN NEWS

Major markets closed for holidays.
Hong Kong protests continue killing the economy.
HSBC set to cut another 10,000 jobs in cost cutting drive.
The PBoC reserves amounted to $US3,092bn at the end of September. That was $US25bn lower than the previous month and fell below economist expectations.

EUROPEAN AND US NEWS

Opening Euro calls for a mixed start to the week. FTSE unchanged DAX up slightly together with the French.
AMS Bid for Osram fails. Now a 20% shareholder.
Macron has told Boris to have his homework in by Friday or face a weekend detention.
Whistleblower #2 will make Trumps life that bit trickier.
BlackRock “remains positive on US equities on reasonable valuations and concentration of high-quality companies, but rising geopolitical risks challenge our overall preference for equities over bonds”.
Something to bear in mind. On October 15^th another $250bn worth of Chinese goods will be subject to a 30% tariff. One week away. And counting.
HKSE has only two more days to put another deal to the London Stock Exchange. October 9^th deadline.
RIP Ginger Baker. One of the best. Could say cream of the crop maybe.