The ASX gave up all its early gains as the market limped into the close down 9 points to 6111. (0%). For the week the index is down 15 points. Dow futures positive to the tune of 70 points. Early gain evaporated as enthusiasm waned after a long slog of results. Analysts are still working out what is what and which have been winners. Results continued to dominate today but some give back from recent winners in CSL down 1.5% and MQG down 1.6%. The Big Bank Basket fell to $122.89. Miners were mixed as BHP fell 0.9% and RIO down 0.5% on the higher dollar though FMG pregnant with a fat dividend rose 0.7%. Industrials were mixed, WOW fell 1.4%, COL fell 1.2% and WES unchanged. Tech stocks flat lining for a change, as All Tech Index up 0.58%.  Energy stocks saw a few bottom pickers as STO rose 3.4% and WPL up 1.0% but unconvincing. In corporate news, VTG rallied 16.2% on its results, NPAT coming in well ahead of consensus. 2.4c dividend. MYX underwhelmed, down 2.9% although reported NPAT improved significantly from FY19’s $280m loss. HLS up 0.3%, profit and EBITDA in line with guidance. Notes trading in the 2021 financial year was already strong. TPG is up 2.7%, first-half underlying NPAT up 22% to -$113m. 5G Vodafone mobile network is planned to reach more than 85% of the population in Australia’s by the end of 2021. SUN up 11.0%, cash earnings down 33% to $749m. Fully franked dividend 10c vs 44c year ago. Increased its FY21 natural hazard allowance by $130m to $950m. Retail turnover rose 3.3% in July, seasonally adjusted, according to preliminary figures released the ABS. VCX up 6.0%, URW up 5.7% and SCP up 0.9% on the release. The 10-year yield rose to 0.88% and the AUD pushed through 72c again. In Asia, Hong Kong up 1.4%, China up 1.2% and Japan up a mere 0.4%.

Today’s Highlights

  • ASX 200 down 9 to 6111. Down 15 points for the week.
  • High 6166 Low 6105. Options boost volumes.
  • Market limps to close as results take toll.
  • Big Bank Basket falls to $122.89.
  • All Tech Index up 0.58%
  • 50 trading days until the US election.
  • Dow Futures up 70
  • Gold steady down to AUD$2704.
  • 10-year bond yield steady at 0.88%
  • AUD rallies to 72.06c.
  • Bitcoin rises to $11860
  • In Asia, Hong Kong up 1.4%, China up 1.2% and Japan up a mere 0.4%.


  • WEB +11.80% food Friday bounce.
  • NEA +10.25% oversold yesterday.
  • FLT +7.11% travel stocks inexplicably better. Numbers help in NSW.
  • URW +5.75% nice bounce off bottom.
  • MYX -2.86% presentation.
  • NVX -2.63% profit taking.
  • IEL -3.86% some tempered enthusiasm.
  • SM1 -3.10% A2M deal hurts sentiment.
  • OZL -4.58% broker downgrades and weaker commodities.
  • AYS +23.93% energy sale talk.
  • VTG +16.16% jobkeeper keeping it buoyant.
  • SWF +10.48% good growth in clients and US trading beckons
  • Speculative Stock of the Day: Connexion (CXZ) +% after results today showed revenue up 131% to $8.20m. NOAT up 340% to $2.05m and Diluted EPS of 0.35c.
  • Biggest Rises: WEB, SUN, NEA, OPT, PAR, DEG, SGR, FLT and NWH.
  • Biggest Falls: OZL, VG1, IEL, PNI, NWL, SIQ, JMS and BRG.


  • Suncorp Group (SUN) +11.05% Full-year cash earnings down 33% to $749m vs consensus $682.9m. Insurance Australia net earned premium $7.27bn vs year-ago $7.29bn. General insurance underlying trading ratio 11.1% vs year-ago 12.3%. COVID-19 had an ~$140m pre-tax negative impact on the group’s FY20 result. Fully franked dividend 10c vs 44c year ago. While the board remains committed to its long-standing ordinary dividend payout ratio policy of 60-80% of cash earnings, future distributions will be informed by the outlook for the economy, the results of stress testing and the operational needs of the business. Group has increased its FY21 natural hazard allowance by $130m to $950m.
  • PWR Holdings (PWH) –4.14% Full-year NPAT down 6.1% to $13.3m (pre-AASB 16) vs year-ago $14.2m and consensus $12.1m. Revenue $65.7m vs year-ago $65.4. and consensus $66m. EBITDA $23.4m vs year-ago $21.8m and consensus $22.9m. Final dividend 4c vs year-ago 6.9c. Capacity utilisation at C&R is expected to continue to improve through FY21.
  • BWX Limited (BWX) +3.75% Full-year statutory NPAT up 59% to $15.2m vs preliminary $14.1m. Revenue up 26% to $187.7m, in line with July preliminary. EBITDA up 30% to $27.5m, in line with preliminary Fully franked final dividend of 2.6c vs 2.7c year ago. In FY21, expects revenue growth of at least 10% to $206.5m. EBITDA growth of at least 10% to $30.3m. As announced on July 16, the outlook is further boosted by $4.5m one-off benefit to FY21 following agreement on the final consideration payable under the Egide Compensation Plan to the sellers of the Andalou Naturals business, with no impact on the carrying value of Andalou Naturals.
  • Inghams Group (ING) +3.04% Full-year underlying NPAT down 23% to $78.8m vs consensus $72m. Revenue $2.56bn vs consensus $2.59bn. Underlying EBITDA down 13.9% to $179.7m vs consensus $195.8m. Poultry volume 428.7kt, up 3.3% vs year ago. Final dividend 6.7c/share, fully franked. Conditions remain uncertain as government restrictions continue to impact consumption of poultry products in Australia and New Zealand. Feed costs will remain elevated 1HFY21 with improved outlook fully flowing to cost of sales by Q4FY21.
  • Vita Group (VTG) +16.16% Full-year NPAT $22.4m vs consensus $15.9m. Revenue $773.1m vs consensus $742.2m. EBIT $36.1m ex-items vs consensus $30.6m. Fully-franked final dividend 2.4c.
  • Mayne Pharma (MYX) –2.,86% Full-year reported NPAT -$92.8m vs year-ago -279.1m. Reported NPAT impacted by non-cash intangible asset impairment. Revenue $457.0m vs consensus $456.5m. Underlying EBITDA down 27% to $95.3m vs consensus $86.1m. The key strategic priority is to return to growth through repositioning the company into sustainable products, distribution channels and therapeutic areas. Contract services is expected to benefit from the pipeline of committed development business and growing manufacturing revenues. Specialty Brands is expected to benefit from its restructured dermatology cost base, a return to more normalised prescription patterns and further growth of TOLSURA that was negatively impacted by COVID-19.
  • Healius (HLS) +0.31% Full-year underlying NPAT $55.4m vs guidance $54-56m. EBIT $102.7m vs guidance $102-104m. Underlying revenue $1.60bn vs year-ago $1.57bn. Given the strong outlook for FY21, the board expects regular dividends to re-commence in H1 of 2021. Following the receipt of $470m on completion of the sale of Healius Primary Care, the board intends to review its capital structure including consideration of an out-of-cycle dividend and other capital uses. Trading in the 2021 financial year was already strong, with pathology revenues up 25% in July on the prior corresponding period.
  • Redbubble (RBL) +2.25% Full-year NPAT -$8.8m vs consensus -$1.9m. Revenue $416.3m vs year-ago $307.0m. Marketplace revenue $348.9m vs year-ago $256.9m. Adjusted EBITDA $15.3m vs consensus $10.2m. FY21 has started strongly with July Marketplace revenue growth of 132% and similar sales levels in the first two weeks of August, measured on a paid basis.
  • MyState (MYS) –3.91% Full-year NPAT $30.1m vs consensus $30.7m. Income from operations $128.9m vs year-ago $120.4m. Net interest income $99.5m vs year-ago $89.4m. NIM 1.86% vs year-ago 1.80%. The capital adequacy ratio at June 30 was 13.0% and the CET1 ratio was 11.1%. No final dividend. Total dividend for the year was 14.25c, representing a payout ratio of 43.4% for FY20. In light of the current economic uncertainty, the board has change its dividend policy to a pay-out ratio of 60-80% of post-tax earnings from the previous range of 70-90%.
  • TPG Telecom (TPG) +2.74% First half underlying NPAT up 22% to -$113m vs year-ago -$144m. Revenue down 11% to $1.54bn vs year-ago $1.72bn. Adjusted EBITDA down 6% to $555m vs year-ago $592m. Reported NPAT up 154% to $83m, including a one-off, non-cash credit to tax expense of $226m and one-off merger and other costs of $30m. Underlying TPG Telecom (former VHA) standalone 1H20 results (after excluding the four days’ contribution from TPG Corporation). Revenue $1.51bn, EBITDA $546m and NPAT -$117m. 5G Vodafone mobile network is planned to reach more than 85% of the population in Australia’s top six cities of Sydney, Melbourne, Brisbane, Adelaide, Perth and Canberra by the end of 2021.


  • RBA Governor Lowe says sates should put %40bn in an infrastructure kitty.
  • Westpac chief economist Bill Evans has lifted his 2020 and 2021 forecasts for the Australian dollar, arguing the “undervalued” currency could rally to US80¢ by the end of 2021 on strong iron ore prices and more stimulus.
  • Australian retail turnover rose 3.3% in July 2020, seasonally adjusted, according to preliminary retail trade figures released today by the Australian Bureau of Statistics (ABS). Turnover rose 12.2% when compared to July 2019. Food retailing saw a rise of 1.2%, with supermarket and grocery store turnover elevated in Victoria especially, with spikes in sales of non-perishable items evident in July


  • Brazil reported 45,323 new cases, almost 4,000 fewer than during the previous 24-hour period.
  • Japan’s current wave of coronavirus infections has more or less reached its nationwide peak according to authorities.
  • South Korea added another 324 cases in 24 hours compared with 288 a day earlier.
  • A vaccine being developed by Pfizer Inc. and BioNTech SE is on course for regulatory review as soon as October.
  • Argentina recorded a record daily rise of 8,225 new Covid-19 cases, bringing the total to 320,884. Total deaths now 6,517.
  • The New York Mets have two positive Covid-19 cases, Major League Baseball said in a statement. Games have been postponed.



  • Pressure grows on HK to reopen asap as case numbers fall.


  • Biden officially nominated as Democrats nominee with Harris as VP. Kanye West misses deadline for Wisconsin ballot. Doh!
  • US gun and ammo sales are surging ahead of the election.
  • Bayer will pay US$1.6bn in settlement for birth control product.
  • Airbnb bans groups of 16 or more.
  • More UK quarantine rules to come in for a bunch of countries.
  • Merkel and Macron are meeting at his Mediterranean retreat. The aim is to prevent further lockdowns.
  • Uber and Lyft win a reprieve in California to keep operating.
  • US reimposes sanctions on Iran.
  • UK July retail sales up 3.6% v 2% forecast. Shoppers save the day. Y/Y 1.4% above forecasts.

And finally…

I decided to reorganize my library and found these books.
“The secrets of duck hunting” by D Coy,
“How to avoid prison” by B Haver
“How to avoid being sociable at parties” by Sir Lee Gitt


A man walks into an Indian restaurant.

The waiter asks, “have you ever ordered here before?”

The man replies, “No, I haven’t.”

The waiter continues, “We’re a little different here. Before you order, I need you read and sign this form,” and he hands a piece of paper to the man.

The man squints at the paper and reads the single sentence, “We have naan at this restaurant.” The man looked up, puzzled, and asked why he needed to sign this worthless statement.

The waiter replied, impatiently, “Just sign the naan disclosure agreement and we can move on.”



A young man runs away from home and tries to join the circus. “Watch this” he says to the ringmaster. He begins to flap his arms and lo and behold, he gets airborne. He flaps harder and starts to fly up towards the roof of the bigtop tent. Soon he’s flying around inside the big top, past the trapeze artists and flies around the center mast a couple of times, does a loop de loop and flies back down and lands back in front of the ringmaster.
“So what do you think” he asks. “Do I have a job?”
“I don’t know” says the ringmaster. “Is that all you do……bird impersonations?”