The ASX 200 rallies another 26 points to 6730 following strong US leads on jobs number. US futures up points. Banks solid today led by CBA up 0.3% and WBC up 0.3% ahead of AGM Thursday. Miners too in demand with BHP up 1.8% and FMG up 3.4% on higher iron ore prices. CSL fell 1.1% as some profit taking kicked in and energy stocks gained on higher WTI prices, WPL up 1.9% and STO up 1.7%. REITs solid with GMG up 0.4% and SCG up 1%. In corporate news, MMS dropped 7.5% on an earnings downgrade, A2M soured by 3.9% as the CEO quit after only 18 months. EHE too updated the market on its trading and occupancy and slipped 7.1%, whilst MPL and NHF rose 1.2% on smallest premium rises in years. VEA also in the doghouse today on a business update dropping 6.6%. Nothing economically and the ten-year bond yield continues to rise back to 1.15% Asian markets were positive but muted as fears remain on trade war deal lite being signed, 15th December deadline looms. Japan up 0.34% and China down 0.22%
- ASX 200 up 23 to 6730.
- High 6740 Low 6712 Volumes well below average.
- Banks, financials, miners and energy rally
- CSL drops. Profit warnings from some and A2M CEO sours rally.
- 10-year bond yields rally to 1.15%.
- AUD eases to 68.31c
- US futures up 36 points.
- Aussie gold easier at $2137
- Bitcoin big rally to US$7508
- Asian markets mixed with Japan up 0.34% and China down 0.22%
- VEA -6.57% guidance hit by fuel margins.
- WSA +1.79% no impact from bushfires.
- LYC +2.44% Kalgoorlie has been picked for its cracking and leaching plant.
- TWE -0.41% Citi warns on risks.
- ISX – Earnings downgrade. Still suspended.
- PRT +5.13% special dividend
- WOR +2.52% nuclear power JV with SASOL.
- EHE -7.14% guides lower on occupancy issues.
- NHF +1.20% MPL +1.25% premium increases by average of 3.27%
- A2M -3.92% CEO resigns.
- SYD -1.09% broker downgrade.
- EOF -9.84% technical selling
- BAL +0.08% Supreme court approval.
- JIN -4.52% sell off continues.
- EVO +16.00% acquisition of centres in ACT.
- AST -0.30% CFO appointment.
- Speculative stock of the day: Legend Mining (LEG) +92.86% Back from suspension and looking good after a massive nickel-copper sulphide hit at Rockford.
- Biggest Risers: BPT, SXL, S32, COE, OCL and ORE.
- Biggest Falls: MMS, EHE, VEA, AVH, SAR, OPT and JIN
- McMillan Shakespeare (MMS) –7.46% Downgrades underlying NPAT guidance, now expected to be between $83m-87m vs prior $87m-89m. MMS said it is experiencing more challenging market conditions in Australia, New Zealand and UK than expected. The impact is expected to persist for at least the remainder of FY20.
- iSignthis (IXS) – Lowers FY19 EBIT (ex-items) guidance to $6.5m vs prior $10.7m. The Company has experienced slower growth and lesser volumes in its forward sales pipeline as a consequence of the ASX suspension. However, anticipates this will be a short-term issue that will be resolved with the lifting of the suspension.
- The a2 Milk Company (A2M) -3.92% CEO, Jayne Hrdlicka has stepped down after 18-months in the role. Former CEO Geoffrey Babidge has accepted the role as interim CEO.
- Estia Health (EHE) -7.14% Has downgraded FY20 earnings guidance following a drop in occupancy levels and heightened competitive pressures. Revenue is trending below expectations. Overall costs are in line with its forecasts. Expects FY20 EBITDA on Mature Homes between $78m – $82m vs pervious guidance $86m-90m.
- Viva Energy Group (VEA) -6.57% Guides FY Underlying NPAT (RC) between $135m-165m vs year-ago $229m. Retail fuel margins were lower than FY2018 as a result of oil price volatility and periods of heightened competition. Supply, corporate & overheads are expected to increase relative to FY2018, predominantly due to higher property and supply chain management costs.
- The Reject Shop (TRS) +12.50% Appoints Andre Reich as CEO, effective January 13.
- Medibank (MPL) +1.25% Receives approval to increase health insurance premiums by an average of 3.27%, “its lowest average premium increase in 19 years”.
- nib Group (NHF) +1.20% Receives approval for 2.90% average premium increase, effective April 1.
- Viva Energy REIT Limited (VVR) -0.36% Moody’s has assigned a Baa1 corporate rating with a stable outlook. CFO Guy Farrands said, “the provision of the Moody’s rating highlights the strength of Viva Energy REIT’s balance sheet and the strong fundamentals of our real estate portfolio.”
- Inghams Group (ING) +0.89% TPG sells 18.6m shares at 340c per share, reducing its stake to 14.9% from 19.7%.
- Sezzle (SZL) -1.29% Underlying merchant sales (UMS) were up 402% versus 2018’s numbers to $US11.3m. merchant sales were $US157.5m for the 12 months to September 30. This year’s Black Friday-Cyber Monday event saw 36,000 new customers added compared to 8,000 last year.
- ASIC has released its 96-page responsible lending guidance paper.
- WBC’s Bill Evans says disappointing third quarter GDP growth of 0.4% will increase the pressure on the RBA and the government to lower their growth forecasts. The RBA will need to lower its optimistic growth forecast for 2020 of 2.8% given it is based on a rise in consumer spending growth to 2.4% (compared to the current 1.2%) and a 6.2% lift in business investment. Potential for possible economic downgrades in MYEFO due on Christmas Eve (maybe).
- China has ordered its state companies to remove foreign (US) computers and software. It is called the ‘3-5-2’ policy. 30m pieces of hardware will be swapped out. 30% in 2020, 50% in 2021 and 20% in 2022. US tech to be replaced at all levels. 4-4-2 worked well for England in ‘66.
- HK stages its biggest protest in months but largely peaceful.
EUROPEAN AND US NEWS
- Bank of Canada governor Stephen Poloz will step down in 2020.
- Goldman Sachs is bringing wealth management to the masses with robo advisers for clients with upwards of US$5000 to invest.
- Aramco lists on Wednesday in Saudi Arabia.
How is Christmas like your job? You do all the work and the fat guy in the suit gets all the credit.
Two factory workers are talking. The woman says, “I can make the boss give me the day off.” The man replies, “And how would you do that?” The woman says, “Just wait and see.” She then hangs upside down from the ceiling. The boss comes in and says, “What are you doing?” The woman replies, “I’m a light bulb.” The boss then says, “You’ve been working so much that you’ve gone crazy. I think you need to take the day off.” The man starts to follow her and the boss says, “Where are you going?” The man says, “I’m going home, too. I can’t work in the dark.”