ASX rallies another 48 points to 6772 as healthcare and banks lead the charge. US Futures down points. A solid start to the week despite ex dividend in ANZ and MQG with banks continuing to push higher. CBA up 1.1% and WBC up 1.3%. Healthcare was the other standout sector as CSL saw broker upgrades and rose 3.5%. COH up 2.1% and RHC up 1.6% also helping. Bond proxy stocks pushed ehigher despite the 10-year bond yield rallying to 1.28%. TCL up 1.5% and SYD up 1%. REITs too were better with GMG doing well up 1.8%. Energy stocks were better with WPL up 1.5% and CTX better by 1.4%. Miners though hit hard by the iron opre price fall, BHP down 0.3% and FMG clobbered 5.5%. Gold stocks though tried to rally slightly led by NCM up 1.9%. Tech stocks also in focus led by APT ahead of its AGM rising 4.6%. ALU continues higher by 2.4% but WTC fell 1.7% ahead of its AGM later this week. In corporate news, ELD rallied 4.8% after results and an optimistic outlook statement, DHG 5.1% better after numbers, SUN issues $250m capital note and EML in an Irish takeover and capital raise and BUB 4.7% better after announcing a push into Vietnam. AUD stable, 10-year yields pushing higher, Aramco prospectus is out. Asian markets spooked by more protests in HK with China down % and Japan down %. HK down over 2%.

Todays Highlights

• ASX 200 up 48 to 6772. All time high beckons. Good volume.
• High 6771 Low 6713. Solid and steady at highs.
• Banks drive market higher. ANZ and MQG go Ex Dividend.
• Healthcare higher as CSL continues to more records.
• Bond proxy stocks rally.
• Singles Day.
• 10-year bond yields jump to 1.28%
• AUD lower at 68.53c
• Aussie gold lower at $2133
• Bitcoin falls to US$8996
• US futures down points.
• Asian markets fall on HK unrest with China down % and Japan down %.

STOCKS

• Z1P +4.08% broker upgrades on Amazon deal.
• DHG +5.13% results and update, buys Real Time Agent.
• APT +4.56% ahead of AGM
• WTC -1.67% bucks tech rally.
• ISX – still suspended
• BUB +4.67% pushes into Vietnam.
• FMG -5.53% iron ore tumbles.
• REA -1.20% JP Morgan downgrades.
• PRN -3.41% security concerns on attack with 19 dead..
• PLS -2.99% trading halt pending incident.
• TTT -5.11% profit taking.
• STX -6.67% resource statement.
• MCP +11.60% establishes JV in China.
• VMT +23.08% launches new electric scooter.
• CSL +3.53% broker upgrade.
• RIC unchanged restructure.
• SUN +1.35% capital note issue.
• Speculative stock of the day: Immugene (IMU) +26.92% huge volume following AGM meeting last week. Punters special.
• Biggest Risers: PPK, SIG, MP1, DHG, APX, ELD and BUB.
• Biggest Falls: FMG, IMF, PRN, WSA, PLS and MGX.

TODAY

• Suncorp Group (SUN) +1.35% There is speculation SUN is considering a potential merger or divestment of its banking arm to RACQ. The Australian reports SUN could sell white-label banking products through RACQ or acquire its insurance business while offloading the bank to RACQ. SUN also announced its intention to raise $250m through the offer of Suncorp Capital Notes 3, the funds will be used to cover APRA requirements.
• Qantas (QAN) +1.79% Has announced it is committed to reaching zero net emissions by 2050, through a combination of fuel efficiency measures and with the implementation of carbon offset schemes.
• Downer EDI (DOW) +3.00% Apollo Group is reportedly looking at buying DOW’s mining division. The Australian cites Apollo and Oaktree Capital Management were both previously working on deals to buy the division, but neither offered a high enough price. The division is valued between $550-700m.
• Bega Cheese (BGA) +0.25% CFO Colin Griffin to be replaced by Pete Findlay.
• Elders (ELD) +4.79% Full-year results; underlying NPAT came in at the top end of the $61-64m guidance range at $63.6m. Revenue was $1.67bn vs consensus of $1.68bn. Underlying EBIT was $73.7m vs guidance of $72-75m and consensus estimates of $72.1m. A fully franked final dividend of 9 cps was declared. Management said ELD was in a position to grow earnings in FY20 and beyond.
• EML Payments (EML) is seeking to raise $250m for an overseas acquisition. It is buying an Irish digital payments company for $420m. The placement will be at 365c.
• Healius (HLS) +0.96% could see a new takeover offer lobbed at it after its AGM as Jangho considers its options. Jangho holds 16% of HLS and has previously attempted a $2bn takeover of the company but was knocked back. Media reports that Jangho will launch another bid after the AGM on November 23rd. This is despite many believing that the FIRB would knock it back anyway. The last offer was 325c from Jangho.
• Domain Holdings (DHG) +5.13% Trading update at AGM; total revenue from July 1 to October 31 down 12% year on year. For FY20 H1, total costs (adjusted for divestments) are expected to fall around 10% including the benefit related to the introduction of AASB 16. DHG will also acquire Bidtracker Holdings for $35m.

ECONOMIC NEWS

BOND MARKET

• 2 – year bond yields up 1bps to 0.86%
• 3 – year bond yields up 2bps to 0.92%
• 10 – year bond yields up 8bps to 1.28%

ASIAN NEWS

• 11.Singles Day stats: More records fall.

• More unrest in HK as two protesters shot.
• China’s trade surplus still growing.

EUROPEAN AND US NEWS

• Moody’s has downgraded the UK credit outlkook on Brexit ‘paralysis’.

The Week that was.

• Spanish election provides no clear winner.
• Saudi Aramco releases more details on its huge IPO and hopes for 0.a% to go to retail investors. Good luck with that. Worlds’s most profitable company. Will pay US$75bn in dividends.

And finally…

A perfectionist walks into a bar….

…..apparently it wasn’t set high enough for him….

I was in a taxi today and the driver said, “I love my job. I’m my own boss. Nobody tells me what to do.”

I said, “Turn left here.”

 

I keep imagining I’m holding an invisible pack of cards.

No one knows what I’m dealing with.

I can’t believe that even after 15 years of the show ending, people are still making “Friends” references.

No one told me life was gonna be this way.

Clarence

XXXX