The ASX 200 rose another 4 points to 6851 as miners rallied again. It was a struggle though as banks weighed on the market after the NAB AGM with fresh ASIC allegations together with a class action against WBC. Dow futures up 3 points. NAB fell 0.7% and WBC dropped 0.6%. Healthcare and CSL, in particular, did well again today with CSL up 0.8%. Consumer staples were again firmer with WES up 0.65% and WOW up 0.9%. Not too many movers and shakers in the industrials as Xmas slow down bites. In corporate news, WBC got hit with a Class action, only a matter of time, NAB held its AGM and talked of challenging times ahead and PRT /SWM got approval for the merger from the ACCC. QBE struggled falling 1.1% after an update on crop insurance issues in the USA. CDA rose 8.4% after a profit upgrade and EOS up 4.1% after a DoD contract. NST returned to trade having secured a 50% holding in the Super Pit and raised capital with the stock rising 3.3%. 10-Year bonds rose slightly to 1.20% yield. Elsewhere Asian markets weaker with Japan down slightly by 0.6 % and China unchanged.
- The ASX 200 rose 4 points to 6851.
- High 6864 Low 6833.
- Banks soft on NAB AGM and WBC class action.
- CSL continues to push ahead.
- WTC rallies after bear report yesterday.
- 10-year bond yields 1.20%
- AUD slips to 68.45c
- Dow futures down 9 points.
- Aussie gold firms to $2157
- Bitcoin down to US$6694
- Asian markets weaker with Japan down 0.6% % and China unchanged.
- WBC -0.57% first class action.
- RBL -3.32% Goldman Sachs update
- SPK +1.95% buy from UBS.
- OSH +3.28% Alaskan update
- CDA +8.38% profit upgrade.
- WTC +3.76% shrugs off latest attack.
- JIN +2.76% good bounce.
- OZL -5.37% broker downgrade.
- CIM -3.83% LLC -3.58% infrastructure stocks slip.
- SWM -2.90% PRT – ACCC approves.
- PXS -40.38% partner pulls out of trials.
- JHX +1.85% US building approvals rise.
- WZR -9.09% profit taking.
- CLV +4.88% MD selling makes no difference.
- Speculative stock of the day: Blast from the past AusCann (AC8) +% after releasing its hard-shell capsules for clinical evaluation.
- Biggest Risers: CDA, CRN, CUV, LIC, CTD and PNV
- Biggest Falls: PAR, OZL, WGX, VUK and SIQ
- Seven West Media (SWM) -2.90% CFO Warwick Lynch to leave the business on the 15th of January. ACCC will not oppose Seven West Media’s proposed acquisition of Prime Media Group.
- Metals X (MLX) -28.57% Downgrades 2019-20 tin production guidance 12.5% to 1-7.4k tonnes.
- QBE Group (QBE) –1.13% Combined operating ratio expected to be above the top end 2019 target range between 94.5-96.5%. Higher ratio meaning lower underwriting profitability. Also anticipate a 2020 net investment return target range of 2.5-3%, down from 3-3.5% in the current year, reflecting lower global risk-free rates.
- ANZ Bank (ANZ) –0.20% ANZ New Zealand appoints Antonia Watson as CEO.
- Northern Star Resources (NST) +3.32% Completes bookbuild for $765m fully-underwritten placement which was heavily over-subscribed.
- Westpac (WBC) -0.57% Served with class action by Phi Finney McDonald. The claim relates to market disclosure issues linked to Westpac’s monitoring of financial crime over the relevant period and matters which are the subject of the recent AUSTRAC proceeding.
- NAB -0.57% There are fresh allegations from ASIC that the bank broke the law more than 10,000 times which could result in a maximum penalty of $10bn. Not the headlines new chairman, Philip Chronican and CEO, Ross McEwan would want to lead into the AGM with.
- Coca-Cola Amatil (CCL) +1.41% CFO Martyn Roberts to resign from the role to become CFO of Ramsay Health Care. CCL reiterates profit goals for 2020, mid-single digit growth in EPS.
- Codan (CDA) +8.38% Guides underlying NPAT for H1 to $30m vs prior guided $26m. Strong business conditions mentioned at the AGM have continued into November and December, with Metal Detection and Communications sales exceeding expectations.
- The NAB cashless retail sales index for November showed month-on-month growth of 0.6% in November, compared to 1.6% in October,
- NAB’s ABS retail trade forecast is 0.6% for the month.
- Hong Kong’s unemployment rate rose to the highest level since 2017 in November, as months of protests continued to damage the Asian financial hub’s economy.
- The overall unemployment rate rose to 3.2% as of the end of November
- PBOC lowers 14-day reverse repo rate to 2.65% while keeping the 7-day rate unchanged at 2.50%.
- Japanese exports dropped for a 12th straight month in November.
EUROPEAN AND US NEWS
- Elliott Management’s private equity arm has partnered up with Francisco Partners to take software provider LogMeIn private in a US$4.3bn deal.
- Officials in the US have signalled that Trump is keen now to turn his attention to Europe having ‘won’ in China and Mexico. Not great news.
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