The ASX 200 closes up 32 points to 6161 (0.5%) after early euphoria fades. 6200 level rejected. Dow futures showing up 150. Early gains slipped through our fingers as resulst continue to take centre stage. The Banks were in demand on the recovery trade with the Big Bank Basket back up to $125.38. CBA rallied 2.2% and ANZ up 3.2%. Other financials also did well led by MQG up 1.0% and SUN continuing to shine up 1.7%. Elsewhere though miners saw profit taking as iron ore prices slipped, FMG down 0.3% and BHP off 0.7% with gold miners continuing to be pressured as NCM dropped 2.2% and NST down 3.0%. Healthcare stocks caught a cold as CSL bled 1.8% and SHL faded 0.75%. Tech was back with a vengeance as the All Tech Index rose 2.4% mainly as APT rallied 11.8% on broker upgrades and XRO hit the ton on an acquisition but faded from highs closing unchanged. In corporate news, BIN up 13.5%, underlying NPAT $53.5m vs consensus $49m. 1.5c dividend. SGP up 6.3%, despite reporting a statutory loss ($14m). Final distribution 10.6c, in line with estimates. NAN down 9.6%, highlighting a difficult operating period with access to hospitals negatively impacting results. SWM falling 16.1%, underlying NPAT $40.8m vs consensus $66.5m. BKL down 5.6%, underlying profit in line with guidance though will axe 10% of its workforce with plans to divest the Global Therapeutics business. HUB down 1.5% despite record 2020 net inflows up 27% to $4.95bn. Targeting total FUA between $28bn to $32bn by FY 2022. ALD down 4.4% on its results. OSH up 0.7%, FY20 production guidance unchanged. On the economic front, the ANZ-Roy Morgan consumer confidence index rose 4.6% to 92.7, the biggest increase in 3 months. Payrolls data nationally, payroll jobs fell by 1% over the month to August. Preliminary international trade data for July: Value of exports -6%. Value of imports +11%. Goods trade surplus of $3.295bn. The 10-year yield steady around 0.87% and the AUD steady. Asian markets rally with Japan up 1.5% and China a more modest 0.1%.

Today’s Highlights

• ASX 200 up 32 to 6161.
• High 6199 Low 6130. Narrow range again.
• Results dominate. Nearly there. Very solid volume.
• Big Bank Basket falls to $125.38.
• All Tech Index up 2.38%
• 48 trading days until the US election.
• Takeover of Lion Dairy collapses on FIRB worries.
• Dow Futures up 155.
• Gold steady down to AUD$2697.
• 10-year bond yield steady at 0.88%
• AUD steady at 71.69c
• Bitcoin rises to $11689
• In Asia, Japan slightly higher with a 0.2% rise and China up 0.8%.

STOCKS

• GEM +10.27% broker upgrades.
• XRO unchanged cracks the ton early.
• FMG -0.32% Macquarie remains positive.
• APT +11.79% MS upgrades to $106 PT.
• CDA +8.23% results afterglow.
• WSA -4.53% best results in 7 years.
• FLT +6.24% WEB +4.20% CTD +5.98% vaccine hopes.
• MNF -12.74% results disappoint.
• NAN –9.61% lockdowns hurt US sales.
• BKL -5.64% results fail to bring health.
• SWM -16.13% results fade.
• TNT -8.16% profit taking.
• EHL -5.67% capital raising weighs.
• COE -4.17% cops a write down.
• PET -4.84% profit taking.
• OSH +0.67% loss of US$266m and no div.
• SPL +23.33% CV19 hopes for nasal delivery system.
• 3DP +5.88% back in favour.
• SCG +4.46% sigh of relief.
• WES -1.70% Ex dividend.
• MOZ -26.47% will close as many as 500 stores.
• AMP +2.08% Capital loses three team heads.
• Speculative Stock of the Day: RTG Mining (RTG) +75.00% final legal award in favour of Mt Labo in Mabilo Singapore arbitration. total monetary award in favour of Mt. Labo of approximately $33.6 million plus interest.
• Biggest Rises: BIN, APT, GEM, CDA, SGM. RWC, SGP and FLT
• Biggest Falls: MNF, NAN, MMM, ALK, BKL, WAF and NWH

TODAY

• Ansell (ANN) –1.94% Full-year net profit up 5.2% to US$158.7m vs consensus $154.6m. Revenue up 7.7% to US$1.61bn vs consensus $1.57bn. EBIT up 8.3% to US$219.9m vs consensus US$212.7m. EPS of US122c vs consensus US117c. Final dividend of US28.5c, up from US26c in FY19. In FY21, expects EPS in the range of US126-138c vs consensus US126c.
• Blackmores (BKL) –5.64% Full-year underlying NPAT $18.7m, in line with guidance of $17-21m. Revenue down 3.5% to $568.4m vs consensus $599.4m. EBITDA $50.7m vs consensus $52.1m. No final dividend. Anticipates full year profit growth in FY21, predominantly from H2. To cut 10% of its workforce. Plans to divest the Global Therapeutics business.
• HUB24 (HUB) –1.54% Full-year underlying NPAT $10.1m vs consensus $13.9m. Record 2020 net inflows up 27% to $4.95bn. Targeting total FUA between $28bn to $32bn by FY 2022. Statutory NPAT $8.2m vs year-ago $7.2m. Underlying EBITDA $24.7m vs consensus $24.5m. Platform revenue of $74.3m, up 37% vs year ago. Fully franked dividend of 3.5c (full year dividend of 7.0c, +52% y/y). Kitrina Shanahan appointed as CFO and Joint Company Secretary.
• Spark Infrastructure Group (SKI) +0.90% First half adjusted EBITDA $439.0m vs year-ago $423.9m. Standalone net operating cash flow $45.0m vs year-ago $128.0m. Interim dividend of 7c/security. Expects full year distribution of at least 13.5c. Has experienced minimal Covid-19 impacts with no interruptions to customer supply, and no significant impacts on operations, maintenance or safety.
• Ampol (ALD) -4.40% First half replacement cost of sales operating profit basis (RCOP) NPAT $120m vs consensus $139.0m. Revenue down 22% to $8.06bn vs consensus $8.38bn. RCOP EBIT $221m vs year-ago $255m. Interim dividend 25c/share, fully franked. Has undertaken a review of the carrying values of its assets. The 1H result has recognised a non-cash pre-tax loss of $355m.
• Stockland (SGP) +6.34% Reports FY FFO A$0.35 vs year-ago A$0.37. FFO $825m, down 8% year-on-year, largely due to COVID-19 impacts on operations. Statutory loss (A$14M). Final distribution 10.6 cps, in line with estimate. Net operating cashflows of over $1.1bn. NTA of A$3.77 per security, down 6.7% year-on-year. 96% rent collected in 4Q206. Outlook: YY21 outlook remains uncertain due to ongoing uncertainty around the impacts of COVID-19 on business performance, Stockland will not at this time be providing FFO and distribution guidance for FY21.
• Oil Search (OSH) +0.67% Reports H1 core NPAT $24.7m vs $47m expected. Revenue $625.6m vs $625.8m expected. In light of the material reduction in core net profit after tax in H1, a commitment to preserve capital during the current challenging market conditions and the uncertain near-term oil price outlook, the board has decided not to pay an interim dividend but will revisit the position on dividends at the end of the year. FY20 production guidance unchanged: total production (mmboe) 27.5 – 29.5. Production costs ($ per boe) 10.0 – 11.0.
• Nanosonics (NAN) –9.61% Difficult operating period with access to hospitals negatively impacting results. FY NPAT $10.1m vs $12.4m expected. Revenue $100.1m vs $103.6m expected on 5 estimates. EBIT A$11.6m vs $13.9m expected. Outlook: Certain project milestones, means that commercialisation of the new technology is no longer expected to be in FY21 but will likely be in FY22. While installed base continues to grow, it is likely that in H1 of the year, trophon capital sales will be impacted by limited hospital access currently being experienced, in particular in North America. This has been the experience to date in FY21.
• Cooper Energy (COE) -4.17% Anticipates FY20 non-cash impairment charges of $108m before tax.
• Xero (XRO) – unchanged –  To acquire Waddle for $80m. A cloud-based lending platform that helps small businesses access capital through invoice financing.
• Western Areas reports (WSA) –4.53% Full-year NPAT up 124.7% to $31.9m vs consensus $41.5m. Revenue $308.4m vs consensus $316.1m. EBITDA $121.9m vs consensus $127.6m. Growth and sustaining capex $114.8m vs year-ago $97.0m. Final dividend of 1c, same as FY19. Expects FY21 nickel concentrate production 19-21Kt and unit cash cost between 325c-375c/lb.
• Seven West Media (SWM) –16.13% Full-year underlying NPAT $40.8m vs consensus $66.5m. Revenue continuing operations $1.23bn vs consensus $1.40bn. EBITDA continuing operations $129.6m vs consensus $166.5m. Advertising market conditions remain volatile and unpredictable in Q1 FY21, but the rate of decline has moderated since Q4 FY20. Divestment processes is ongoing for TXA, Ventures and Studios
• Johns Lyng Group (JLG) –3.01% Full-year NPAT $22.2m vs consensus $19.4m. Revenue $495.1m vs consensus $470m. EBITDA $41m vs year-ago $23.2m. Dividend 2.2c, fully franked. Management comments, “we move into FY21 with a strong pipeline of job registrations in our core businesses, and ongoing work continues to flow from the six CAT events of FY20. We expect to deliver another sound performance in FY21.” Expects FY21 sales revenue of $485.3m and EBITDA of $41.2m.
• Bingo Industries (BIN) +13.49% Full-year underlying NPAT $53.5m vs consensus $49m. NPAT $66m vs consensus $52.9m. Underlying Revenue $486.7m vs consensus $486.4m. Adjusted EBITDA $152.1m vs year-ago $108.0m. Final dividend 1.5c, fully franked. Expects EBITDA margin to decline by 200-300 bps in FY21 before rebounding to its longer-term target of 30%. DADI integration is complete and delivery of full cost synergies of $15m remains on track for the end of FY21. FY21 capex budget $85m, around $55m less than last year.
• Alumina (AWC) +3.46% First half underlying NPAT US$87.5m vs consensus US$73m. Net receipts from Alcoa World Alumina and Chemicals (AWAC) US$89.9m vs year-ago US$265.5m. Interim dividend US2.8c, fully franked.
• Qube Holdings (QUB) –2.40% Full-year underlying NPAT (pre-amortization) $121.2m vs consensus $108.1m. Underlying revenue $1.88bn vs consensus $1.85bn. Underlying EBITDA $290.9m vs consensus $286.8m. Underlying EPS (pre-amortization) 7.2c. Final dividend 2.3c, fully franked, down 21% on FY19. At present, there is very limited visibility regarding near-term volumes in key markets. Expects that the generally weaker conditions it experienced in H2 of FY20 will continue in FY21 until the impact of COVID19 subsides. Expects volumes in a number of its markets to decline in FY21 relative to FY20.
• MNF Group (MNF) –12.74% Full-year underlying NPATA up 18% to $16.6m vs year-ago $14.1m and consensus $16.5m. Revenue $230.9m vs year-ago $215.6m and consensus $233.5m. EBITDA $38.2m vs guidance $36-39m and consensus $36.1m. Final dividend of 3.6c. Brings total dividend for the year to 6.1c (fully franked).
• Decmil Group (DCG) –1.96% Full-year NPAT -$140.4m vs consensus -$82.3m. Result includes $85m of one-off write downs on disputed contracts and assets. Revenue $451m vs year-ago $551m. Forecasting that FY21 will be a year of consolidation, with a return to operating profit and positive operating cashflow in FY22. Revenue for FY21 includes $245m of work in hand, active tendering to bolster this toward $400m level. Targeting A$7-8B pipeline that will drive growth beyond FY21.
• Wagners (WGN) +8.74%Full-year proforma NPAT $4m vs consensus $1.2m. Revenue up 5.1% to $252m vs consensus $228.7m. EBIT $9m vs consensus $9.1m. No dividend declared.
• Rhipe (RHP) –13.43% Full-year NPAT $5m vs consensus $5.8m. Revenue $55.8 vs consensus $57.9m. EBITDA $11.6m vs consensus $12.7m. Gross sales $325.2m vs year-ago $252.5m. Final dividend 2c/share (fully franked). In FY21, expects its public cloud business to continue to be the growth engine for the business, with revenue growth to continue with numerous opportunities, challenges and uncertainties. Overall, the Company is targeting continued growth in its operating profit.

ECONOMIC NEWS

• Payroll jobs decreased by 4.9%
• Total wages decreased by 6.2%

• Payroll jobs fell by 1.0% over the month to 8 August. Over the month to 8 August, payroll jobs fell by 2.8% in Victoria.

Preliminary trade in goods (original, current prices)

• The preliminary figures show that the value of exports declined $1,966m (-6%) to $29,104m from the revised June 2020 value of $31,070m. Year-on-year, the July 2020 figure declined $6,239m (-18%) from July 2019.
• The value of goods imported increased by $2,482m (11%) to $25,809m on the revised June 2020 value of $23,327m. Year-on-year, the July 2020 figure declined $540m (-2%) from July 2019.
• The decline in exports and increase in imports in July 2020 lead to a goods trade surplus of $3,295m (original, current price, merchandise trade basis).
• The total value of goods imported increased by $2.5bn or 11% in July 2020, according to the latest Australian Bureau of Statistics (ABS) preliminary international trade in goods figures.
• Imports of road vehicles increased by $792mor 49% while imports of petroleum increased $244m or 15% over the same period.

COVID-19 NEWS

• QAN is cutting another 2,500 jobs as it outsources ground operations.
• The FDA has backtracked a little on its claim that an experimental therapy can be a dramatic treatment for CV19.
• Doctors plan to stage a nationwide strike Aug. 26-28 against the government’s plan to increase their number.
• Four different coronavirus vaccine initiatives will receive financial support from the Mexican government.
• Argentina reported 287 additional deaths for a national toll of 7,366.
• HK will announce new social distancing measures.
• Usain Bolt has tested positive for Cv19. If he can catch it what hope is there for the rest of us. No oine can catch him.

BONDS

Commonwealth Bank now sees three straight quarters of negative GDP for Australia, after revising down its forecast for the third quarter of 2020 to negative 0.7%.

ASIAN NEWS

• US and China are talking trade. Both sides saying they are making progress. Talks took place on the eve of the GOP Convention.

• India moves to cut Huawei gear from its telco networks.

US and EUROPEAN NEWS

• European futures showing positive opens
• Nasdaq up 27% YTD.
• Mclaren says no more petrol engines after 2030.
• Plenty of IPOs in the pipeline for tech companies as Nasdaq hits the highs.
• Almond prices are plunging to decade low levels.
• Exxon, Pzifer and Raytheon to be replaced in Dow components. Additions Salesforce, Amgen and Honeywell. Biggest shake up in 7 years. The Dow Jones Industrial Average is weighted by price, which means the higher the nominal share price, the more effect the stock has on the index’s performance. It means that after the Apple split it will drag in the Dow.
• German Q2 GDP down 9.7% Q/Q v 10.1% expected.

And finally…

A bloke knocked on my door today I opened it he was only about 3ft 3inches tall.
I said who are you ? he said I,m the meter man.

Some pushy salesman talked me into a family plot at a cemetery. Now I have grave reservations.

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

 

Clarence

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