ASX 200 dropped and stayed dropped, down 187 points to 5925.5 (-3.1%) as a long weekend beckons in the US and the all-important jobs data tonight. For the week, the ASX 200 has fallen from 6074 to 5925 (-2.45%). Broad base sell-off with high flying techno stocks the worst hit. KGN led the falls down 10.8% with APX down 7.1%, WTC down 7.3% and APT down 6.7%. The All Tech Index cratered by 5.2%. In the blue chips, banks suffered a bug sell off with the Big Bank Basket down to $118.95 and CBA off 2.1% together with other financials like MQG down 3.1% and MFG off 6.4%. Miners too were lumped in the sell orders despite a lower dollar and higher iron ore prices, BHP fell 3.8% and FMG down 3.4% with some selected gold miners bucking the trend as WAF rose 1.0% and RED up 1.6%. Energy stocks continue to fall as WPL dropped 1.45% and STO down 2.75%.  Industrials were mauled by the weakness as WOW fell 3.9%, CSL down 4.1% and REITs suffered. One still bright spot was SYD up 0.3% as VAH looks to have been finally sold to Bain Capital, maybe helped sentiment. In corporate news, 5GN in a trading halt as it looks to raise $30m. BHP appoints Christine O’Reilly to board. Index changes have also been announced. on the economic front, retail turnover rose 3.2% in July, seasonally adjusted, according to the latest ABS figures. Slightly below expectations of a 3.3% lift. The 10-year bond was little changed at 0.88% and the AUD steady at the lower levels. In Asia, China slips 1.5% and Japan down 1.2%

Today’s Highlights

  • ASX 200 down 187 points to 5925
  • For the week, the ASX200 is down 149 from 6074.
  • High 6079 Low 5918.
  • Volume again solid
  • Big Bank Basket falls to $118.95
  • All Tech Index drops 5.2% as techs crash hard.
  • 39 trading days until the US election.
  • Dow Futures down 20.
  • Gold rises to AUD$2662
  • 10-year bond yield down to 0.90%
  • AUD drops to 72.71c
  • Bitcoin down to $10260
  • In Asia, China slips 1.5% and Japan down 1.2%

STOCKS

VAH – Creditors approve plan to sell to Bain Capital.

AMP -1.81% AMP Capital placed under review by Zenith Partners.

5GN – Capital raise to fund acquisitions.

BHP -3.78% board appointment.

FMG -3.42% port volumes lifted.

JMS -unchanged- approves iron ore IPO.

AKP +8.04% thin volumes again.

DEG +1.98% WAF +1.01% gold explorers back in demand.

BRN -1.70% index inclusion.

APX -7.08% sell off continues.

WTC -7.28% ex dividend.

NXT -6.78% APT -6.67% MAQ -8.15% tech under serious pressure.

GSW -27.34% will redomicile to US.

BET -9.26% US Board appointments.

SPT -7.67% BNPL sell off.

WTC -7.28% no fans in CS investor survey.

Speculative Stock of the Day: Adavale (ADD) +30.43% the company is converting $1m of loans into shares at 5c. Free of long-term debt.

Biggest Winners: MCY, AKP, SM1, SKC, AIA, MEZ and PPC

Biggest Losers: KGN, RBL, FCL, GXY, MAQ, TPW and WTC

TODAY

  • ASX (ASX) -5.09% August volatility 0.6% vs year-ago 0.8%. Expected future volatility (as measured by the S&P/ASX 200 VIX) increased to an average of 19.0 vs year-ago 15.9. Total capital raised $4.95bn vs year-ago $4.90bn.  Average daily number of trades down 13% vs year ago. Average daily value $6.21bn vs year-ago $5.48bn. Futures & options average daily volume down 19% vs year ago.  
  • Scentre Group (SCG) -3.96% Speculation that SCG might undertake a capital raise in the order of $1.8bn. Shares are up over 14% in the past two weeks on the back of expectations that an entitlement offer could be launched as early as next week with minimal discount.

S&P/ASX Indices September 2020 quarterly rebalance. Effective at the open of trading on September 21. Click here for the full list of companies.

  • Additions:
  • Removals:

ECONOMIC NEWS

  • Retail turnover rose 3.2% in July, seasonally adjusted, according to the latest ABS figures. Slightly below expectations of a 3.3% lift.

ANZ CEO says he’s more hopeful about the economy than he was at the start of the crsis.

COVID – 19 NEWS

Federal governments and most states agree to work towards opening up the economy by Xmas.

France registered 7,157 new cases over 24 hours, the third time in a week that it’s reported more than 7,000 new cases.

Italy registered 1,397 new coronavirus cases on Thursday. There were 10 additional deaths from the virus.

Spain’s daily coronavirus infections remained roughly stable as the country recorded 3,607 new cases in the past 24 hours, compared with 3,663 on Wednesday.

The chief scientific adviser to Operation Warp Speed in the US to create a vaccine said it was “extremely unlikely but not impossible” a vaccine would be ready in the U.S. by November.

ASIAN NEWS

Yum China Holdings has raised $2.2bn after pricing its second listing in Hong Kong at HK$412 per share


EUROPEAN AND US HEADLINES

European markets surprisingly stable although big falls yesterday.

Steve Sedgwick, my old buddy, is at a conference and reporting form Lake Como. Half his luck but his first international OB for many, many months. Sign of improving times?

UK EPL has pulled the plug on its China deal.

The ultimate insiders are leaving the party as US executives sell the most stock in their companies since 2015. Similar thing happening here.

Have a great weekend

Clarence

XXX

Short of time tonight.