Happy Valentine’s Day. A near record-breaking end to a busy first week of earnings. The ASX 200 ground out a 27-point rise to a close of 7130 as the banks remain the driver of the rise as brokers upgrade. NAB up 3.2% and CBA up 2.5%. Miners were under a little pressure with BHP up 0.3% and NCM falling 3.6% on broker downgrades following results yesterday. Energy stocks mixed with WPL down 2.7% after a win in its dispute with FAR down 8.8%. Some of the recent stellar gains seeped away on book squaring before the weekend. BRG dropped 4.4%, HTA down 9.1% and TPM down 1.1%. PME fell 5.3% on broker downgrades. TLS saw some buying as brokers upgraded modestly with the stock up 0.3%. AMP had a rare positive day as one or two brokers warmed to the outlook rising 0.55% and PMV rose 1.8% as a 28% holder of BRG. In company news, BBN fell 5.3% despite sales up 8.1%. Numbers out of China for the coronavirus infection were significantly better than yesterday’s shock jump and helped sentiment. The 10-year yield fell 1 bps to 1.05% AUD steady at 67.23 and Asian markets mixed with China up 0.8% and Japan up 0.6%.

• ASX 200 up 27 to 7130. Record. Well nearly. Bit of selling at close.
• High 7138 Low 7101 Average volume.
• For the week the ASX 200 is up 107points or 1.5%. All banks.
• Royal Commission what Royal Commission? Banks upgraded.
• Miners stuck in the doldrums.
• Broker research dominates.
• Book squaring ahead of another busy week.
• 10-year bond yields down 1.05%
• AUD stable at 67.23c.
• Dow futures down 100 points.
• Aussie gold steadies at $2342
• Bitcoin eases to US$10237
• Asian markets fell slightly on the pandemic news, China down 0.5% and Japan down 0.24%

STOCKS                                               

• HTA -9.09% rethink on merger outlook.
• PME -5.26% broker downgrades
• BRG -4.43% too much too soon.
• BKL -4.38% needs a shot of vitamins
• NCM -3.62% broker downgrades
• MFG +2.99% broker upgrades.
• IEL +2.98% we all need that education.
• AVH +3.82% rally continues.
• MVP +4.86% ‘medtech’ doing well.
• AEF +3.60% buyers are back.
• LTR +4.76% Mallina hopes.
• DEG +20.00% great drill results continue to drive higher.
• ZNO +8.83% Covid -19 hopes.
• BYE +6.25% Bell Potter upgrades.
• FAR -8.82% a court case too far.
• WZR -9.52% loses the loving feeling.
• AGL +2.27% CS drops PT to 1710c.
• SDI +8.57% results bring smiles.
• SIQ +1.88% nabs BAL’s CFO as its CFO
• Speculative stock of the day: De Grey Mining (DEG) +20.00% more than one mention this week. Is now up from 4.6c at its lows last week to 21con very impressive drill results. Mallina now looking like a 1.7Moz project. Resource update due Q2 and hoping for 3M oz.
• Biggest Risers: BWX, NGI, MVP, PNI, AVH and SOL
• Biggest Falls: HTA, SM1, SXL, MGX, PME and URW

TODAY

• Baby Bunting (BBN) -5.26% reports H1 pro forma NPAT $7.5m vs year-ago $5.8m. Revenue $186.4m vs year-ago $177.7m. Comparable store sales up 1.0% y/y. Declares a fully franked interim dividend of 4.1cps vs year-ago 3.3cps. Gross margin came in at 36.9% vs pcp 34.7%. BBN said it is yet to determine the full impact from the coronavirus outbreak, though it ended H1 with relatively high levels of stock. Expects comparable store sales growth to be in the low to mid-single digits for the year. Gross profit margin anticipated to reach 37% for the full year.
• Select Harvests (SVH) +0.33% confirms no material short-term impact on financial performance from Coronavirus outbreak. The company expects a near-term softening in almond price and demand from the outbreak, the extent and duration of which will depend on when the virus can be contained, and the China-related supply chain and factories return to normal.
• ACCC raises preliminary concerns over Bunnings’ proposed acquisition of Adelaide Tools. the final decision is scheduled for 23 April 2020.

ECONOMIC NEWS

• All part of the grand plan from the RBA apparently. The housing boom is tracking more or less exactly as we expected said the RBA. Based on the RBA’s model of housing dynamics, people should pencil in total capital gains of about 20% this cycle assuming no further reductions in rates.

BOND MARKET

 

ASIAN NEWS

• Nissan slashes profit outlook by 43% and shares down 9.4%. Coronavirus issue force factory closures too.
• The infected cruise ship has finally found a place to dock in Cambodia.
• China’s Hubei province reported 4,823 additional coronavirus cases, confirming that the nearly 15,000 reported a day earlier was a one-off situation due to a new method for counting infections. The death toll in China was at 1,380, lowered by more than 100 to account for some double counting, while total cases topped 63,000.
• China is expressing regret over ScoMo’s week long extension of travel ban.
• Japan reports first death from virus.

EUROPEAN AND US NEWS

• Tesla launches an equity issue after saying it doesn’t need the money. US$767 a share 4.6% discount to close.
• US attorney general Barr has said its impossible to do his job whilst the President is tweeting.
• Mexico cuts rates to three year low.
• All change at No 11, Sajid Javid is out and Rishi Sunak is in.
• Domino’s Pizza in UK has sold its Norwegian arm in order to shore up its local business.
• Mike Bloomberg is rumoured to be spending US$460m on ads to beat Trump. The USA’s very own Clive Palmer spend-a-like.
• US accuses Huawei of stealing technology from six companies.

Fancy dinner with POTUS? A fund raiser at Nelson Peltz’ Palm Beach estate will set you back US$580,000 a couple. Free bar though. RSVP by 1^st April.

And finally….need jokes…please supply…exhausted my stash…send to henry@marcustoday.com.au

Clarence

XXX