ASX falls another 55 points to 6698 in broad sell off. US Futures down points. Broad market sell-off led by banks with CBA down 2% and WBC down 1.3%. Miners too feel despite a rally in iron ore prices, BHP lost 0.8% and RIO down 1.7% after more protests in Chile and potential for supply issues in copper. FMG continues to be pummelled, down 2.1% and energy stocks came under pressure as some pessimism crept in. WPL dropped 1% and STO down 0.6%. Consumer stocks under pressure as wage growth was tepid, to say the least, COL down 2.4%, WES down 1.1% and WOW down 0.7%. TLS too under pressure by1.1% along with bond proxies and infrastructure, TCL down 0.3% and SYD down 1.7%. One bright spot was CSL up 0.15% after a few days of selling and tech stocks back in focus. The usual suspects all doing well, APT +0.6% on a volatile day after a business update. NAN up 2.3%, PME up 3% and NEA up 0.4%. In corporate news, we had an AGM update from SWM down 3.4% and EML delivered positive guidance and an acquisition, rising 15%. BIN rose 10.7% after the CEO said he would increase his stake buying from his parents. Guidance reaffirmed too at slightly higher levels. Plenty of AGMs around too COL, CPU, and CGL had some management changes. 10-year bond yields fell by 2bps to 1.27% and the AUD was once again becalmed at 68.40c. In economic news, wage growth came in as tepid as expected, the RBNZ held rates unchanged and NAB changed its forecast for a rate cut next year, not December. In Asian markets, Japan fell 0.9% and China 0.04% lower on trade deal concerns.
- ASX 200 down 35 to 6698. Closes at low.
- High 6766 Low 6698 Volume picks up on sell down.
- Banks slip. Miners fall and energy runs out of puff.
- Tech stocks attract buyers as AGMs and updates dominate.
- Consumer stocks ease.
- 10-year bond yields weaker at 1.26%
- AUD lower at 68.40c
- Aussie gold lower at $2133
- Bitcoin falls to US$8730
- US futures down 35 points.
- Asian markets lower on continued HK unrest with China down 0.04% and Japan down 0.9%.
- BIN +10.67% MD buys more from parents.
- EML +14.98% positive reaction to update and deal.
- DTL +5.21% AGM commentary.
- Z1P +3.58% BNPL optimism.
- NAB +1.00% usual tech njames rallying.
- FLT +2.24% bargain hunting.
- AVH -7.97% capital raising.
- VG8 -7.20% New IPO. Not a great start.
- ECX -7.95% AGM comments.
- PNV -3.62% profit taking continues.
- AYS +1.27% grinding higher.
- MYX -6.03% completes E4/DRSPP transaction.
- Speculative stock of the day: VMT +33.33% Electric motorbike maker revels in recent E-Max scooter and Super Soco launch.
- Biggest Risers: EML, PPK, BIN, APX, DTL, SGF and CLV
- Biggest Falls: AVH, ECX, VG8, PET, MYX and ORE.
- Afterpay Touch Group (APT) +0.62% provides a trading update at AGM; Underlying sales of $2.7bn in the four months to October, up 110% year-on-year. Represents annualised run rate in excess of $8.5bn globally. In the US there are 2.6m active customers, up 51% from the end of June 2019. In the UK there are over 400k active customers, which is higher than the US at the equivalent stage of the lifecycle. Unaudited year to date Group Gross Loss, Net Transaction Loss (NTL) and Net Transaction Margin (NTM) remain in-line with FY19, notwithstanding higher contribution from newer, higher loss international markets. APT also announced a subscription agreement for a $200m private placement with Coatue Management at $28.50 per share.
- Charter Hall Group (CHC) –0.65% CEO David Harrison has strongly dismissed the idea of interest in a merger with Abacus.
- Bingo Industries (BIN) +10.67% FY20 underlying EBITDA expected to be in the range of $159-164m vs consensus of $159.0m. Headwinds in residential construction are expected to continue throughout FY20. The integration of Dial a Dump (DADI) has progressed well. CFO, Anthony Story to retire and effective from today. Managing Director and CEO, Daniel Tartak, has also announced his intention to increase his interest from 15.19% to 19.83%.
- Computershare (CPU) +0.73% Has reaffirmed guidance, expecting a 5% fall in EPS due to issues with its UK mortgage business and accounting changes. The last 3-years CPU has released guidance in August then upgraded later in the year so it will be interesting to see how the market responds to this update. CPU also commented that operating performance was in line with expectations.
- Viva Energy (VEA) +0.47% Obtains FIRB approval to acquire the remaining 50% interest in Liberty Oil’s wholesale business. The transaction is expected to complete during 2019.
- Eclipx Group (ECX) -7.95% Reports FY Cash NPATA $23.8m vs year-ago $69.1m. Results included a $344.2m charge (pre-tax) related to losses on the sale of non-core businesses & impairments on assets yet to be sold. Management said FY20 will be a year of ongoing refocus of Core and stabilization of the group, including sale or restructure of Right2Drive and CarLoans.
- EML Payments (EML) +14.98% Provides trading update in AGM presentation; repeats FY20 EBTDA guidance of $38.5-42.5m vs consensus of $41.1m.
- Seven West Media (SWM) -3.41% Provides trading update at AGM; expects FY20 underlying EBIT to be at the lower end of the guidance range. SWM said the market remains short and difficult to predict and expects further softness in Q2.
- Westpac-Melbourne Institute Consumer Confidence Index (November): +4.5% to 97pts.
- Australia Wage Price Index (September Quarter): 0.5%/qtr to 2.2%/yr in-line with expectations.
- NAB says it expects the Reserve Bank of Australia to cut rates in February, delaying from its previous forecast for a December cut.
- RBNZ – No change – bit of a surprise. Some had expected a cut again from 1%. Another central bank on hold.
- 2 – year bond yields down 4bps to 0.83%
- 3 – year bond yields down 4bps to 0.88%
- 10 – year bond yields down 2bps to 1.27%
- Iran admits its economy was under extreme pressure. Not something that it usually does.
- Hong Kong violence continues. Police warn HK is on the ‘brink of a total collapse’.
- Alibaba gets approval to list in Hong Kong.
EUROPEAN AND US NEWS
- US shale rig count down 22% YoY.
- US biggest milk producer Dean Foods has filed fro Cahpter 11 Bankruptcy. The reason: more consumers are turning to non-dairy milk or buy private-label products. Americans’ per capita consumption of fluid milk has fallen 26% in the last two decades,
- Angela Merkel has declared war with Silicon Valley urging the EU to claim ‘digital sovereignty’ of data from the US behemoths.
- Tesla announces its first European factory in Berlin.
- Chile’s peso plummeted to a record low as protests continue with no resolution in sight. Implications for BHPs Escondida copper mine.
- Pallinghurst Group have announced plans to invest up to US$2bn in mining projects for battery materials. Pallinghurst is chaied by Brian Gilbertson (ex BHP chief).
- Investor sentiment about the German economy has rebounded sharply.
- Global emissions are rising again after a plateau in recent years. Up 1.9% in 2018 according to the IEAA.
So many items are no longer made in Australia..
I just bought a new tv and the box said “built in antenna”…
I don’t even know where that is!
A cement mixer and a prison bus crashed on the highway…
Police advise citizens to be on the lookout for a group of hardened criminals!