The ASX200 fell 36 to 6001 in a steady day of trade. Dow futures up 78 points. After early losses, the market rallied into the afternoon sessions as the miners firmed and the banks recovered some lost ground. The Big Bank Basket fell slightly to $122.70 with CBA up 0.3% and WBC down 0.95%. Other financials eased back after gains of recent days. MQG down 0.6% and SUN down 3.7%. In the miners, FMG continued its march higher with another 0.8% gain, BHP up 0.1% and RIO down 1.1% as gold miners joined in the fun to celebrate $2000 gold. EVN up 3.7%, NST up 4.3% and RMS up 4.7%. Silver stocks did very well, ADT hit all -time highs up 17.4% and SVL rose 18.2%. Industrials though were soggy we healthcare stocks slipped led by CSL down 1.8% and RHC down 2.2%. Consumer stocks eased as WOW dropped 1.7% and TLS fell 2.3% after selling some data centres. Energy stocks down too as WPL fell 1.7% and STO down 0.5%. Tech stocks went nowhere really, APT up 0.3% after changing its logo colours, PME fell 3.6% and WTC saw a 3.6% drop on some profit taking. In corporate news, VRL down 2.3%, extends exclusivity agreement with BGH. RWC improved 1.1% on its lockdown update. SRG rose 1.7% on NZ$50m of new work. LYC down 1.6% despite receiving approval for its Bukit Ketam site in Malaysia. In economic news, the value of new loan commitments for housing rose in June, up 6.2%. The CBA services PMI was revised lower to 58.2 in July. The 10-year bond yield steady at 0.81% and the AUD steady at 71.52c. Asian markets narrowly mixed, Japan down 0.4% and China unchanged. HK up 0.4%.

Today’s Highlights

• ASX 200 falls 36 o 6001
• High 6034 Low 5965.
• Big Bank Basket bounces back to $122.70
• All Tech Index flatlines.
• 62 trading days until the US election.
• Dow Futures up 78.
• Gold steady rallies to $2,819.
• 10-year bond yields steady at 0.81%.
• AUD rises to 71.52c
• Bitcoin steady at $11,235, off recent highs.
• Asian market stronger with Japan up 1.7% though China flatlines.

STOCKS

• ASX -1.61% now unsure about the April 2022 date for CHESS replacement.
• FMG +0.77% now bigger than NAB.
• ALQ +0.57% completes placement in US debt markets.
• VRL -2.29% extends exclusive discussions yet again.
• COF +6.56% results presentation.
• JIN +8.43% hits the jackpot.
• LYC -1.63% Malaysia approves development site.
• ADT +17.44% hits all-time high on silver rise.
• RED +3.85% change in substantial holding.
• MSB +4.37% getting excited for results.
• SVL +18.18% silver and gold.
• SPT +8.79% completes placement.
• GSW -5.49% change of director’s interest.
• PME -3.62% results release date.
• DOW -3.60% change in substantial holding.
• WTC -3.62% profit taking.
• MMS -3.35% webcast details.
• POS +50.00% Golden Swan extends new discovery.
• Speculative Stock of the Day: Alterity Therapy (ATH) +39.13% good volume again following announcements.
• Biggest Rises: JIN, RBL, COF, AGG, IFL, BGL and DEG
• Biggest Falls: OBL, GMA, CIA, ASB, MND, MYX and IAP.

TODAY

• Centuria Office REIT (COF) +6.56% Reports full-year funds from operations (FFO) of $85.4m vs year-ago $61.2m. Statutory NPAT $23.1m vs year-ago $53.6m. Revenue $146.3m vs year-ago $108.9m. Q4 distribution 4.45c. Expects DPS of 16.5c in FY21.
• PointsBet Holdings (PBH) +1.83% Appointed official partner of Indiana Pacers NBA team.
• Virgin Australia (VAH) – To reset VAH to meet lower global and Australian demand. Will keep ~6,000 jobs with 3,000 to be impacted. Tigerair Australia brand discontinued with Air Operator Certificate (AOC) and necessary support maintained to provide an option for ultra-low-cost operations when the market recovers. Long-haul international flying important part of the plan but suspended until global travel market recovers.
• Telstra (TLS) -2.30% To sell its Clayton data centre to Centuria Industrial REIT for $416.7m. The sale includes a triple-net lease-back arrangement which means Telstra will retain ownership of all IT and telecommunications equipment, as well as ongoing operations and responsibility for building upgrades and repairs, future capex requirements and security. The lease is for an initial period of 30 years with two 10-year options for Telstra to extend the lease. No accounting gain from the sale will arise.
• SRG Global (SRG) +1.72% NZ business returns to normal levels of operation. Secures a number of contracts with a total value of NZ$50m.
• Lynas Corp (LYC) -1.63% The Atomic Energy Licensing board has approved the proposed site at Bukit Ketam, Malaysia for the construction of a Permanent Deposit Facility for Water Leach Purification residue, subject to completion of relevant studies and final approvals by regulatory authorities.
• Helloworld (HLO) -1.61% Completes retail component of entitlement offer. Take-up rate of 17.2%. Together with the placement has raised ~$50m.
• Reliance Worldwide (RWC) +1.14% Advises that, on the basis of the guidelines provided by the Victorian Government, its Melbourne manufacturing facilities fall within the ‘permitted industry’ category and will continue to operate.

ECONOMIC NEWS

• The Commonwealth Bank Services PMI was revised lower to 58.2 in July from a preliminary estimate of 58.5 and compared to June’s 53.1 reading.
• The value of new loans for housing rose 6.2% in June, seasonally adjusted.
• Official figures from the Federal Chamber of Automotive Industries on Wednesday showed that total new vehicle sales across Australia slipped by 12.8% in July, compared with the same month a year ago. Sales of new vehicles in NSW were down 7.8%, Queensland was 9.1% lower and South Australia was off by 5%. Tasmanian sales slumped by 22.6%.
• Westpac now expects second-half GDP growth of 2.8% instead of 3.3%, which represents a zero outcome in the September quarter and 2.8% outcome in the final quarter. Additional job losses in August and September will push the unemployment rate to 8.8% by September, and Westpac now has a revised unemployment rate forecast of 8.5% by the December quarter.

COVID-19 NEWS

• Victoria had 725 new cases in the past 24 hours. 15 people died.

BONDS

• The RBA is back buying three-year bonds after a three-month hiatus. It said it will buy $500m of the April 2023 bonds.

ASIAN NEWS

• Indonesian Gross domestic product contracted 5.32% in the second quarter from a year ago, worse than the median estimate of a 4.72% contraction.

• Tencent is in talks to merge the biggest game streaming platforms Huya and DouYu International in a $10bn deal. Tencent owns 37% of Huya and 38% of DouYu. A deal would create a behemoth with 300m users and a combined market value of US$10bn, cementing Tencent’s lead in Chinese games and social media. China’s game-streaming market is estimated to generate US$3.4bn in revenue this year.
• Caixin Services PMI 54.1 a little underwhelming.

EUROPEAN NEWS

• Just to poke the dragon, a high-level US delegation is heading to Taiwan. Health and Human Services Secretary Alex Azar is due to arrive in Taipei in the next few days. I am sure China will have something to say on this.
• Deutsche Post delivers a positive result as online shopping takes off in Germany.
• BMW reaffirmed guidance – pre-tax H1 EUR 498m. After tax loss of EUR212m. EBIT EUR 709m Net Profit H1 EUR 362m.
• Virgin Atlantic files for bankruptcy protection in the US.

And finally…

I caught my son chewing on the electrical  cords..I had to ground him. Hew is currently doing much better and conducting himself properly.

 

I started a new job as a delivery driver today.

When I got to my first address there was a little sticky note left on the door saying “Dear Delivery Driver, we are out, please hide in garage”.

That was eight hours ago and still nobody has found me.

 

Whenever my wife says I was thinking….it means I either have to move, build, paint or buy something.

 

Clarence

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