ASX 200 drops 47 to 6547 in another low volume day again. US Futures slightly better by 9 points. After a fall on the open, the market tried to find a bottom and largely succeeded but no follow through. Banks were on the nose with CBA down 0.5% and ANZ down 1.2%. Big miners too were in trouble led by BHP down 1.35% and FMG down 2.1%. Consumer and healthcare stocks also fell away after some days of gains with CSL down 0.7% and WOW down 1%. Gold miners found favour with RMS up 7.4% and SAR up 4.5%. Corporate news dominated with CUV soaring an incredible 60% after news of FDA approval for its SCENESSE treatment for a rare genetic disorder. SLK also returned from suspension and rose 21.5% after its acquisition and capital raising. APT rose 0.7 % after news that one of the founding directors had resigned and was free to sell his shares. FLT updated the market and once again the local economic situation is making things ‘challenging’ for the company and the shares were hit hard down 11.7%. In economic news, the Westpac Consumer Sentiment index fell, scuppering any hope that the rate cuts and tax cuts had helped the consumer. Not so it appears. 10-year bonds were little changed at 0.88% and in Asia, Japan lost % and China dropped %. All quiet on the streets on Hong Kong.
- ASX 200 closes down 47 to 6547.
- High 6580 Low 6520. Volumes well below average.
- Banks and big miners hit.
- Another great day for biotechs as CUV soars.
- Consumer stocks slipped finally, healthcare too.
- TLS better on a broker upgrade.
- AUD steady at 67.39c
- 10-year yields steady at 0.89%
- Aussie gold slips to $2235
- Bitcoin rallies hard to US$8135
- US futures up 9
- China back after Golden Week. Japan up % and China up %.
- SLK +21.48% sails back after trading halt and acquisition.
- APT +0.66% director resignation.
- CWY +6.25% acquisition.
- PNV +2.71% rally continues.
- CBA -0.53% new PERLS launched.
- MIN -5.15% Annual report
- DMP -3.92% US head franchise under pressure.
- MSB -2.78% indigestion from placement.
- SVY -13.60% profit taking.
- BYE +9.84% CEO spruiks prospects in letter to shareholders.
- DCN +8.33% Sept quarter results.
- PYC +10.64% major milestone
- Speculative stock of the day: K-Tig (KTG) +187.28% Must be a bull market when a disruptive welding technology company is up 170% in a day on listing. More biotechs in the news. OCC +20.25% nerve regeneration results cheer.
- Biggest Risers: CUV, RMS, CWY, PRU, PET, PME and SAR
- Biggest Falls: FLT, MIN, PGL, ORE, CIA, NWS, AMP
- Clinuvel Pharmaceuticals (CUV) +60.20% FDA approves skin treatment, Scenesse, used to prevent skin damage from the sun in people with a history of phototoxic reactions. The treatment also received Orphan Drug designation, which provides incentives to assist and encourage the development of drugs for rare diseases.
- Vocus Group (VOC) -0.29% is considering floating half of its NZ operations. The partial sale may be sufficient for the company to recommence dividend payments, as the NZ operations could be worth over $500m. Sources tell The Australian that some investors have been lobbying for a move and that it is under consideration by the Board.
- REA Group (REA) -0.12% has teamed up with 99.co to build the biggest property online search platform for Singapore and Indonesia, with REA leading as the biggest investor – REA will be the JV’s largest shareholder, at 27%. The venture has been backed by global venture capital group Sequoia and Facebook co-founder Eduardo Saverin. The new joint venture will combine the existing businesses of 99.co, Indonesian search portal Rumah123.com and REA’s iProperty.com.sg.
- Flight centre (FLT) –11.72% Profit warning; expects first-half profit to be below last year’s result of $140.4, adds total profit is likely to be heavily weighted toward the second half of FY20. FLT had this to say, “trading conditions and results deteriorated significantly in Australia, particularly within the leisure business, in November and December of 2018, and have remained subdued”. FLT will announce profit guidance at its AMG on November 7.
- Cleanaway Waste Management (CWY) +6.25% To acquire the assets of the SKM recycling group for $66m, completion is expected to occur by the end of October 2019. The proceeds from the sale will return to CYW, with SKM owing the company $60m in senior secured debt and accrued interest.
- Westpac Consumer Sentiment Index has fallen 5.5% to 92.8 lowest since July 2015 – Seems rate cuts are not working.
- 2 – year bond yields unchanged at 0.61%
- 3 – year bond yields unchanged at 0.61%
- 10 – year bond yields down 1bps to 0.88%
- Nissan has appointed the Chinese head as CEO of the group.
- China’s Zijin Mining said it would spend US$146m to increase its stake in Ivanhoe Mining, beating Robert Friedland to become the second-largest shareholder of the company developing a large copper mine in the Congo.
- Morgan Stanley has downgraded HK banks on a failing economy.
- Thai baht hits a 6 -year high. Cancel Phuket.
EUROPEAN AND US NEWS
- Brexit Update: If Merkel says nine then that’s it. The UK is set to delay the deadline yet again and then head to the polls. That is assuming that Boris does not defy the law and crash the UK out. Brexit is not the end. It is just the beginning of a whole new round of negotiating.
- European markets set to open mixed with a flat opening across the major markets.
- Johnson and Johnson have been hit with a US$8bn court order over its drug Risperdal.
- The US NBA has lost more sponsors as the rumble with China over the tweet from the Rockets GM continues.
- MIT will review its involvement with Chinese AI company SenseTime after Trump imposed a ban on the company yesterday.
- 40th Oil and Money Conference kicks off in London this morning. Protests galore. Extinction Rebellion will be busy.
- Turkey set to cross Syrian border ‘shortly’.
And finally………thanks Hans as always love yer work
After 40 years of marriage, a husband and wife went for counseling.
The wife went into a tirade, listing every problem they had ever had in the years they had been married. On and on and on, she went: neglect, lack of intimacy, emptiness, loneliness, feeling unloved and unlovable, an entire laundry list of unmet needs she had endured.Finally, the therapist got up, walked around the desk and after asking the wife to stand, he embraced and kissed her, long and passionately, as her husband watched – with a raised eyebrow.
The woman shut up, and quietly sat down as though in a daze.
The therapist turned to the husband and said, “This is what your wife needs at least 3 times a week. Can you do this?”
“Well, I can drop her off here on Mondays and Wednesdays, but on Fridays, I Golf!”
Grandma and Grandpa were visiting
their kids overnight.
When Grandpa found a bottle of Viagra in
his son’s medicine cabinet, he asked
about using one of the pills.
The son said, “I don’t think you should
take one Dad; they’re very strong
and very expensive.”
“How much?” asked Grandpa.
“$10. a pill,” answered the son.
“I don’t care,” said Grandpa, “I’d still like
to try one, and before we leave in the
morning, I’ll put the money under the pillow.”
Later the next morning, the son found
$110 under the pillow. He called
Grandpa and said, “I told
you each pill was $10, not $110. ”
“I know,” said Grandpa. “The
hundred is from Grandma.