ASX 200 closed the week up 71 to 5487 (1.3%). For the week the index has risen 1.85%. Dow futures kicked 850 points higher on reopening plans and Gilead’s hoped for drug treatment. All sectors across the board were in the green. Healthcare as usual doing well led by CSL up 1.1%, FPH up 4.3% and RHC up 4.9%. Miners were better following RIO quarterly results rising 3.3% and BHP up 1.6%. Gold miners eased back as bullion fell, NCM down 2.62% and EVN down 2.7%. Energy stocks fared better despite falls in the oil price. WPL up 0.8% and STO up 0.9%. Banks too put in a better day finally, CBA not so only managing a small fall of  0.3% rise but NAB up 0.7% and the Big Bank Basket down to $109.88. Other financials fare well too, MQG up 1.4% and MFG up 1.1%. Insurers were better led by a bounce back in QBE up 0.7%. REITS too saw buyers with GMG up 1.9% and SCG up 4.4%. Infrsatructure stocks had a terrific dsay, SYD up 8.3%, TCL up 6.7% and even QAN up 7.2%. Consumer stocks also better with WES up 1.6% and ALL up 4.9%. Tech in focus too, APT up 6.3% and CPU up 4.4%. The All Tech Index rose 2.2%. In corporate news, BAP returned to trade and rose 1.9%, RIO released its quarterly, and plenty of substantial shareholder changes afoot. The 10-year bond yield relatively steady at 0.86% and the AUD around 63.64c on Chinese data this morning. Asian markets caught the US bug with Japan up 3% and China up 1.5%.

  • ASX 200 up 71 to 5487. Up 1.8% for the week.
  • High 5564  Low 5433.
  • Big Bank Basket $.
  • Healthcare rallies again. Industrial strong
  • Infrastructure stocks show good gains. Miners better on RIO numbers.
  • Dow Futures up 850 points.
  • 10-year bond yields steady at 0.86%
  • AUD rallies to 63.64c on Chinese data.
  • Aussie gold drops to  $2676
  • Bitcoin rallies to US$7069
  • Asian markets showing good rallies with Japan up 3% and China up 1.5%.

STOCKS                                               

  • LOV +9.14% back in favour.
  • PTM -5.46% MS cuts PT
  • WHC -3.23% Wilsons remain overweight
  • CWN -1.69% JP Morgan does not see normal earnings from casinos until 2023.
  • WBC -0.31% MS tips div to halve.
  • SYD +8.28% TCL +6.72% buyers back bounce back.
  • QAN +7.20% shorts covering ahead of a reopen.
  • LSF +7.69% NTA backing.
  • PDL -3.39% change in substantial holding.
  • MSB -2.69% willpresent at conference.
  • IVC -2.15% broker downgrades post raise.
  • AT1 +33.33% IPO success story continues.
  • PNR +22.73% good drill results.
  • AD8 +10.66% tech rally cheers.
  • SO4 -8.86% placement weighs.
  • BAP +1.87% good demand for placement spills over.
  • ZNO +11.42% buyers return on CV19 hopes.
  • NAB +0.68% concedes some jobs may have to go.
  • Speculative stock of the day: Harris Technology HT8 +200% has established a new line of protective hygiene products to be known as “ProHygiene”. The Pro-Hygiene range will include a range of facemasks, hand sanitiser gels and alcohol wipes. Sales will be made through HT8’s own e-commerce website and other distribution partners.
  • Biggest Rises: CDA, LOV, MYX, AX1, COF, SGP, SYD and SKC.
  • Biggest Falls:CCL, PTM, NWL, PRN, VGI and GOR.

TODAY

  • Coca-Cola Amatil (CCL) –6.09% Low single-digit volume and revenue growth in Q1 2020 vs Q1 2019 driven primarily by Indonesia. Reports low single-digit EBIT decline in March. Has experienced a 30% fall in volume in the first 2-weeks of Q2 (predominantly in Indonesia) reflecting weaker sales in the lead up to Easter and Ramadan due to Government lockdown measures. Withdraws payout ratio guidance and expectation of dividend franking levels being above 50% in 2021. The board will make a decision on the 2020 interim dividend at the time of the 1H 2020 results. Capex for the year to be reduced by $100m to approximately $200m.
  • Michael Hill International (MHJ) +1.39% Q3 total sales down 11.9% to $105.1m vs year ago $119.3m. Same stores down 11.2% to $102.3m vs year-ago $115.2m. Remains confident it will have sufficient liquidity and reserves to trade through the crisis and beyond. Actively engaging with landlords in all markets to seek rent abatement for the period of close down. All planned capital expenditure has been cancelled or deferred.
  • Healius (HLS) +0.82% HLS could look to raise funds if bids for its medical centres aren’t high enough. There is speculation a Canadian suitor, possibly Brookfield, as well as other PE groups are interested in HLS’s medical centres division with the expected asking price around $500m.
  • Sandfire Resources (SFR)+1.91% reports Q3 copper production of 17,936t. Gold production came in at 9,352oz. C1 costs at US74c/lb. DeGrussa Operations in WA continue to operate at full capacity, with strong mine production and milling rates maintained for the quarter. FY2020 guidance withdrawn subject to further assessment of the impacts of COVID-19. For the year to date, production and costs have remained broadly in line with the company’s previously published guidance for FY2020 of 70-72kt of contained copper and 38-40koz of contained gold, and ahead of the C1 cost guidance of ~$0.90/lb on strong production and lower AUD.
  • Rio Tinto (RIO) +3.34% Pilbara iron ore shipments of 73mt (100% basis) were up 5% on Q1 2019, driven by a strong recovery following tropical cyclone Damien. The number missed expectations from UBS of 74.4mt. Mined copper production of 133kt was down 8% on Q1 2019, reflecting anticipated lower copper grades. Capital expenditure now expected to be $5 to 6bn in 2020 (down from the previous guidance of $7bn). Mined and refined copper guidance lowered due to a potential reduction in H2 output at Escondida from Covid-19 measures and the earthquake repairs at Kennecott. Pilbara iron ore 2020-unit cost guidance of $14-$15 per tonne remains unchanged. Copper C1 unit cost guidance in 2020 is unchanged at 120-135 US cents/lb. CEO comments, “all of our assets continue to operate and we achieved a very robust production performance in the first quarter. Our world-class portfolio and strong balance sheet serve us well in all market conditions and are particularly valuable in the current volatile environment.”
  • Brambles (BXB) +1.67% Q3 sales revenue up 6% to $1.13bn. Sees revenue growth between 5-7% and underlying profit growth of 3-5% (at constant-FX rates) in FY20. That said, BXB expects a material reduction in Q4 revenue and earnings contributions from the Automotive and Kegstar businesses. On-market share buy-back continuation and dividend policy unchanged. on July 1 Stephen Johns will retire as Chairman and John Mullen will commence the role of Brambles’ Chairman.
  • Telstra (TLS) +0.32% has announced a €500m bond (~$850m) to ‘further strengthen its balance sheet’. TLS is the third company in Australia to tap global bond markets for funds.

ECONOMIC NEWS

  • The RBA has pulled back its Bond purchases with only %750m of interventions today.
  • The Reserve Bank now owns $46.25 billion of Australian government and state and territory-issued debt since it started buying bonds on-market a month ago. This weeks bond auction of Nov 2024 debt attractred twoce as much in bids as the $13bn sought.

CV19 NEWS

  • China has revised its official count of deaths from the coronavirus u[ by 39% and added some 1,290 deaths in Wuhan.
  • NYC has done a similar thing revising up deaths by 3700 for people who dies at home before being tested.

BONDS

ASIAN NEWS

  • The first time the Chinese economy has fallen since 1976. China GDP fell 9.8% in the March quarter, ahead of expectations of a 9.9% drop. The fall took China’s annual decline to 6.8%, worse than the 6% contraction economists had been forecasting.
  • Chinese Retail sales -15.8% vs forecast -12.2%.
  • Chinese Production -1.1% vs forecast -7.7%.
  • Chinese Investment -16.1% vs forecast -18%.
  • The Reserve Bank of India has banned banks from paying dividends.
  • Singpaore cases grow as considers housing infected workers in cruise ships.

EUROPEAN AND US NEWS

  • European markets set to open around 2-3%.
  • Macron has warned of the EU unravelling if it does not show financial solidarity.
  • Denmark heading for a reopening as kids return to school.
  • Record inflows into junk bonds as Fed offers backstop.
  • Argentine offers investors a 62% haircut to restructure its $83bn in debt.
  • UK has only just finished paying off its WWII debt recently. Takes a while then.

And finally…

Wife: ‘What are you doing?’   Husband: Nothing.   Wife: ‘Nothing . . . ?  You’ve been reading our marriage certificate for an hour.’   Husband: ‘I was looking for the expiration date.’

 

Wife:  ‘Do you want dinner?’   Husband: ‘Sure! What are my choices?’   Wife: ‘Yes or no.’   

  A woman was having a passionate affair with an Irish inspector from a pest-control company. One afternoon they were carrying on in the bedroom together when her husband arrived home unexpectedly.   ‘Quick,’  said the woman to the lover, ‘into the closet!’ and she pushed him in the closet, stark naked.   The husband, however, became suspicious and after a search of the bedroom discovered the man in the closet.  ‘Who are you?’ he asked him.    ‘I’m an inspector from Bugs-B-Gone,’ said the exterminator.    ‘What are you doing in there?’ the husband asked.    ‘I’m investigating a complaint about an infestation of moths,’ the man replied.   ‘And where are your clothes?’ asked the husband.   The man looked down at himself and said, ‘Those little bastards!

Clarence

XXX

mt_tryforfree

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